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Coeur Mining enjoying Barron's bounce

  • Coeur Mining (CDE) +2.8% premarket after a weekend Barron's article speculates shares could jump 50% after falling ~60% over the past year, as the silver miner restructures its operations and sentiment improves on the sector.
  • CDE is posting losses but is profitable on an operating cash flow basis, it has a solid balance sheet with little net debt, and the stock is cheap at around half of book value.
  • Efforts to improve efficiencies at its mines appear to be working; in the June quarter, production at the Palmarejo mine, the biggest contributor to CDE's cash flow, rebounded Q/Q with silver production up 24% and gold up 23%.
Comments (1)
  • ducat
    , contributor
    Comments (232) | Send Message
     
    It is refreshing to read that a major financial outlet is looking beyond the current blood bath that has swallowed up the precious metal miners. Coeur Mines has made a deliberate and substantial move to keep the company profitable from a cash flow standpoint and to increase its current operations in "safe" jurisdictions. If the price of silver returns to a more reasonable level as supply and demand would suggest, I think a doubling of share price is conservative.
    14 Oct 2013, 11:40 AM Reply Like
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