Coeur Mining looks weak at $19 silver, Dundee analyst foresees

Silver prices below $20/oz. should worry some investors, as several miners may need to adjust their plans if spot prices weaken further, Dundee's Chris Lichtenheldt says as he breaks down how specific companies will be impacted.

The analyst says Coeur Mining (CDE) is an ideal sell or short candidate, Endeavour Silver (EXK) is essentially breakeven at $19 silver, and Silver Standard (SSRI) has been a top performer YTD but is a high-cost operator.

As for Dundee's potential winners: Tahoe Resources (TAHO) is a low-cost operator with a best-in-class asset, Silver Wheaton's (SLW) balance sheet is solid above $15 silver, and Pan American Silver's (PAAS) strong balance sheet should provide a cushion as higher-cost operations have improved.


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Comments (2)
  • johnbuck1188
    , contributor
    Comments (48) | Send Message
    SSRI is Worth much more than its trading at with there new gold income streams and increased production, There earnings will hit new highs, This Is a management team that cant be beat. I see the price close to 18.50 in the next few months, Easy, And the sale of another none core asset soon, An opportunity to Buy not sell !!!!!!!!!
    25 Mar 2014, 12:23 PM Reply Like
  • milo3131
    , contributor
    Comments (36) | Send Message
    Yesterday, Goldman Sachs for a 3rd time reiterated its call for gold to decline this year as U.S. economic growth picks up and Treasury yields rise, but the bank listed potential for supply disruptions in platinum, palladium and nickel. As they did on March 20, bank analysts listed a year-end gold forecast of $1,050 an ounce. On March 20, Gold went down from $1391 to $1276 based on the very same call made by Goldman; after that Gold started a very successful recovery up to $1331 when the $1,050 target call by Goldman was made again yesterday, which helped smashing the price of gold down by 45 points in 1 day to $1286 again. This is a clear manipulation of the Gold price, and Goldman must be heavily prosecuted for that - every time Gold is rallying, Goldman manipulates the price down! The core CPI, which excludes volatile food and energy costs rose +0.2% on Monday showing clearly inflationary signs and it does not support Goldman's views that we are in deep deflation, but the opposite - in times of inflation, Gold shall rise not to decline. The American economy is not going to boom in the 2nd half of the year as Goldman says because real consumer incomes have been falling, not rising. If there is no income growth then there is no credit growth either. There are no good paying jobs being offered in the United States - they are just not there. The job statistics are always the same - it’s always low-paying minimum wage stuff. These are also part time jobs, so this is not an income that supports consumer demand. The bottom line is people are really struggling in the U.S. to make a good living. So the U.S. economy is definitely not going to accelerate, Goldman Sachs is one of the bullion banks. Goldman and Co. are totally corrupt, and they are in league with the Fed to keep pressure off the U.S. dollar. The problem for the Fed and Goldman Sachs is that these dollar pressures could be on the verge of exploding. The Fed can print all the money it wants to buy bonds and keep interest rates low, but it cannot print money to buy dollars. And there is some limit as to how much it can prevail on its EU puppet states (in Europe) to supply money to buy dollars. At some point these puppet EU states will realize that the consequences for them may mean a very high domestic inflation. The West may not be in a position to prevent an explosion in the gold price if Russia and other countries drop out of the SWIFT system and refuse to use dollars. The Russian energy transactions are a trillion dollars or more (each year). Well, that’s equal to the amount of QE that was injected into the system annually. So the elimination of that demand for dollars in international transactions would offset a year of QE. So Goldman Sachs, the Fed, and the other bullion banks, are doing whatever they can to stave this off. But if there is a run on the dollar, the gold price will explode, particularly if there is not any gold to speak of in the West. Remember the 70s when Gold exploded from $35 to $850...
    15 Apr 2014, 08:29 PM Reply Like
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