The Coeur/SilverCrest Merger Has My Blessing
Summary
- I have been bullish on Coeur Mining and SilverCrest during 2024 due to their exposure to rising gold and silver prices, on relatively undervalued fundamental ratios.
- The proposed merger this week makes sense to me, as the combined entity will have high free cash flow generation in 2025 with little net debt part of the equation.
- A Wall Street rerating of the new company could deliver outsized investment returns over the next 6-12 months without much headway in gold/silver quotes.
- CDE and SILV remain Buys, based on my expectations for US$3000+ gold and $40+ silver soon.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CDE, SILV 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 trade the precious metals sector on a regular basis, with a goal of transitioning some capital back into both CDE and SILV in the coming days on any price weakness. This writing is for educational and informational purposes only. All opinions expressed herein are not investment recommendations and are not meant to be relied upon in investment decisions. The author is not acting in an investment advisor capacity and is not a registered investment advisor. The author recommends investors consult a qualified investment advisor before making any trade. Any projections, market outlooks, or estimates herein are forward-looking statements based upon certain assumptions that should not be construed as indicative of actual events that will occur. This article is not an investment research report, but an opinion written at a point in time. The author's opinions expressed herein address only a small cross-section of data related to an investment in securities mentioned. Any analysis presented is based on incomplete information and is limited in scope and accuracy. The information and data in this article are obtained from sources believed to be reliable, but their accuracy and completeness are not guaranteed. The author expressly disclaims all liability for errors and omissions in the service and for the use or interpretation by others of information contained herein. Any and all opinions, estimates, and conclusions are based on the author's best judgment at the time of publication and are subject to change without notice. The author undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional materials. Past performance is no guarantee of future returns.
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