Coeur d'Alene Mines (CDE -4.7%) is downgraded to Underperform with a $10 price target (from...


Coeur d'Alene Mines (CDE -4.7%) is downgraded to Underperform with a $10 price target (from $16.50) at BMO Capital, which cites relatively high costs at its key La Preciosa project and the expected continuation of the downward trend in silver and gold prices in conjunction with CDE's high all-in-costs.

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Comments (2)
  • ducat
    , contributor
    Comments (306) | Send Message
     
    Judging from the quote: "...the expected continuation of the downward trend in silver and gold prices ..." the downgrade could just as well apply to almost, if not all silver miners. An extended silver price less than $20 is a road to bankruptcy for all but a few companies.

     

    BMO calling La Preciosa Coeur's key growth project is somewhat discretionary. The company is emphasizing the new Rochester as their short term, very low cost growth project.

     

    By the way, I would have expected BMO Cap to have at least picked up the fact that Coeur d'Alene Mines has changed their name to Coeur Mines.
    1 Jul 2013, 12:39 PM Reply Like
  • Investor Talkroom
    , contributor
    Comments (560) | Send Message
     
    Thank you BMO. I added more CDE. Today.
    This downgrade is a joke:
    CDE is the largest and safest silver miner. Their current ratio is close to 3. Low debt, huge cash - they will survive the down turn easily. Looks like gold and silver bottomed out too. Ye and the La Preciousa project they bought - it will take a few years to develop. There is no rush with it either. In a few years Ag prices will be definitely higher than today and the mine will be huge cash generator.
    I guess BMO needed to cover the short or something.
    1 Jul 2013, 12:55 PM Reply Like
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