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%.

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  • ducat
    , contributor
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    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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