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Coeur Mining: The Recent Weakness Is An Opportunity

May 02, 2021 10:21 AM ETCoeur Mining, Inc. (CDE) StockSLV27 Comments
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  • Coeur Mining posted $202.113 million in revenues in the first quarter of 2021.
  • Coeur Mining produced 85,225 Au Oz of gold (sold 83,112 Au Oz) and 2.403 million Ag ounces (sold 2.436 Ag Moz) during the first quarter.
  • The balance sheet is looking great now, and the stock is experiencing a sell-off that I see as an opportunity.
  • Looking for a helping hand in the market? Members of The Gold And Oil Corner get exclusive ideas and guidance to navigate any climate. Learn More »

Gold rock
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Investment Thesis

Chicago-based Coeur Mining (NYSE: NYSE:CDE) released its first-quarter 2021 results on April 29, 2021.

CEO Mitch Krebs said in the conference call:

"...first quarter results were in line with our expectations

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This article was written by

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Fun Trading is a retired engineer and independent investor. In addition to writing on investing in all aspects of gold, oil, and gas, he runs his own portfolio..

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in CDE over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I may start a new accumulation phase at or below $8.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (27)

What about the exploration results for Silvertip and Crown released today?
For Silvertip, I am challenged by this piece of text: "As the Company is approaching the source of mineralization" - What can we deduce from it or at least hope from it?
Fun Trading profile picture

Will look at it seriously tomorrow. Thank you for letting us know.
CDE has taken a stake in Victoria Gold:
With this 1T profit of 0.51, we can expect 2.5 on an annual basis, a ratio of just over 5 compared to the price of 13.2 which seems advantageous for CDE! What do you think ?
On the other hand, does this investment bode a takeover, are synergies or economies of scale possible with CDE mines?
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I generally avoid calculations like that because it is not really telling in terms of stock price. I will have to look at the news but did not have time lately. Sorry. What is your opinion?
@Fun Trading I don't see any synergy. I note that CDE is taking stakes in VGCX and also in ITRG, when it will already be difficult to cover the significant financing needs for its Rochester and Silvertip mines!
Fun Trading profile picture

Thank you, you have made a good point here.
At current prices for gold, silver, zinc and lead, PP reserves and M and I resources (since there would be no duplicate "excluding reserves last presentation"), have a price of potential sale of 26257M (I know the potential profit would only be a small proportion), but this sheds light on the importance of CDE reserves and resources!
Thank you for this interesting post.
For me, CDE is valid first of all for its reserves which are less valued than in other mining companies, no doubt because CDE does not show the same ability to transform them into cash flow. Currently, each OEG of proven and probable reserves is valued at $ 287 and $ 142 if we add the measured and indicated resources (no duplicates because excluding reserves). An update for Silvertip and Crown is expected next month. It should be interesting and even more if the price of silver were to increase a lot (some foresee $ 50 and more soon)!
Fun Trading profile picture

You are welcome. Yes, reserves is not the end of the story if the company is not transforming them into cash flow. I am waiting for the update on Silvertip and Crown as well.
Did I miss something? Isnt this the only good news here?
"The total proved and probable gold and silver reserves, as of December 31, 2020, increased 22% and 42% from the reserves in 2019."

Revenues were less even with the price of SLV in Feb 2021????
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Can you formulate a little better? I can't figure out what you want to say? Thank you in advance.
@Fun Trading
1. Revenues were less in this most recent quarter even though price of silver seemed to hit a high in Feb?

2. Isnt this the only good news here?
"The total proved and probable gold and silver reserves, as of December 31, 2020, increased 22% and 42% from the reserves in 2019."

.......by the way, I have a long position, with average around $2.50
Fun Trading profile picture

What I mean is that you are asking questions, but I would have loved your opinion. For your 1) the conclusion is that CDE is highly correlated to gold price without silvertip.
For your 2) Yes, reserves were up, but it is rarely a stock mover event.

Best regards,
Bought some LEAPS on CDE and FSM this week on what I thought was unfair moves by the market.

Feeling quite good about them
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It will be a rebound soon just based on the sheer drop. Use it to profit.
I was hoping to hear from you on a CDE update. I can't believe CDE dropped $1.50 (15%) on a modest EPS miss. I am scaling my buys as the stock drops and will follow your guidance to sell north of $9.00. Thanks
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You are very welcome. Do not sell all at once. Just sell gradually, the real profit is in the repeat.
Thank you for the excellent report.Now that the weak sisters
are out I'm sure we can get back to a sustained uptrend!
Fun Trading profile picture

You are welcome.
Been trading every dip for three years now along with AG AU F X and CLF. EVERY dip has paid and paid well. $7.60 is likely bottom and $11+ the next trade for us, $8 to $11 the basic trade here. We loaded 55,000 on Friday and will load up to 25,000 more if we see $7.60. Easy $.
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Yes, I think it is a good time to accumulate.
Caramico profile picture
I bought the dip , and will continue to cost average down until support is found ... great long play into 2022
Fun Trading profile picture

I agree, I intend to accumulate as well.
Caramico profile picture
@Fun Trading year over year , everything looks great & q3 is usually their strongest quarter
Fun Trading profile picture

I do not mind some weakness now. We will see when Silvertip will restart...
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