CDE Stock Overview
Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico.
Coeur Mining Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$3.42|
|52 Week High||US$7.64|
|52 Week Low||US$2.54|
|1 Month Change||26.20%|
|3 Month Change||11.40%|
|1 Year Change||-45.10%|
|3 Year Change||-33.20%|
|5 Year Change||-63.07%|
|Change since IPO||-98.40%|
Recent News & Updates
Coeur Mining (NYSE:CDE) Seems To Be Using A Lot Of Debt
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Coeur Mining: Nearing The Finish Line At Rochester
Coeur Mining released its Q2 results last month, reporting quarterly production of ~83,700 ounces of gold, and ~2.5 million ounces of silver, a 4% decline from the year-ago period. The lower production was related to a decline in production at nearly every asset, with the exception of Rochester which was up against easy year-over-year comps. Fortunately, the company will see a sharp increase in production once its Rochester Expansion is complete, but costs have also risen sharply across the board due to inflationary pressures. At ~6x FY2023 cash flow estimates, Coeur is reasonably valued, but I think there are more attractive bets elsewhere in the sector given the company's track record of consistent share dilution, and short mine life at Kensington. Just over five months ago, I wrote on Coeur Mining (CDE), noting that there was a risk of share dilution to improve the balance sheet to ensure it could complete its Rochester Expansion. We saw this shortly after, with Rochester not only selling its Victoria Gold (VITFF) stake but also completing a $100 million At-The-Market Equity offering. Not surprisingly, the stock has declined 30% since then, with Coeur continuing to have one of the worst track records of share dilution sector-wide. Let's look at the Q2 results and updated valuation to see if the stock is worth betting on at $3.00 per share. Coeur Mining - Shares Outstanding (TIKR.com) Q2 Production Coeur Mining released its Q2 results last month, reporting quarterly production of ~83,700 ounces of gold, and ~2.5 million ounces of silver, a 4% decline from the year-ago period. This was related to lower production at its three largest gold-producing assets (pre-Rochester Expansion). In the silver segment, production was also down, with another mediocre quarter from Palmarejo and Rochester, where silver production is down sharply from 2019 levels due to lower grades. Coeur Mining - Quarterly Production (Company Filings, Author's Chart) Beginning with Palmarejo, the Mexican asset produced ~27,100 ounces of gold and ~1.80 million ounces of silver in the period, with silver production up only because the mine was up against easy year-over-year comps (Q2 2021: 1.67 million ounces - its second-worst quarter since Q4 2019). While gold grades have continued to drop at Palmarejo, the asset benefited from better recovery rates of 92.4% on gold and 84.2% on silver, which helped the asset to see an increase in gold production combined with higher throughput (~539,600 tonnes milled). The recovery improvements were due to blending optimization and enhancements in the flotation and solution management processes. Palmarejo Mine (Company Website) Adjusted costs applicable to sales at Palmarejo dipped to $12.97/oz from $13.34/oz, but the adjusted cost of sales per gold ounce soared by 29% to $855/oz (Q2 2021: $662/oz). As shown below, this was the weakest quarter since Q1 2021 for Palmarejo from a cash flow standpoint, with just $12.2 million in free cash flow, down from $33.4 million in the year-ago period despite similar capital expenditures. Given that this is the only asset generating significant free cash flow for Coeur, it's no surprise that free cash flow was negative on a company-wide basis with the increased spending on its Rochester Expansion Project. Palmarejo Mine - Quarterly Cash Flow (Company Filings, Author's Chart) Moving to Kensington, the Alaskan operation saw a marginal decline in production year-over-year, but costs at the operation rose sharply. During Q2, adjusted costs applicable to sales per ounce increased to $1,399/oz, up from $1,088/oz in the year-ago period. This led to a significant dip in operating cash flow, and when combined with increased capital expenditures, quarterly free cash plunged to $1.9 million (Q2 2021: $13.4 million). Coeur noted that it is raising its FY2022 cost guidance by $150/oz at the mid-point to $1,350/oz, reflecting higher diesel, labor, and maintenance costs. Assuming an average realized gold price of $1,850/oz, Coeur will have just $500/oz margins in FY2022 at Kensington, a sharp decline from year-ago levels ($675/oz). Kensington Mine - Quarterly Cash Flow (Company Filings, Author's Chart) Meanwhile, at its two smaller gold-producing assets, Rochester and Wharf combined for just ~28,800 ounces in the period, down from a combined ~31,300 ounces in the year-ago period. While Rochester's gold production was higher, costs remained elevated at $1,763/oz. During the quarter, Rochester saw a cash outflow of $56 million with the increase in spending as the Rochester Expansion heads closer to completion. At Wharf, adjusted costs applicable to sales soared to $1,233/oz, up 28% from the year-ago period. Fortunately, the mine still generated free cash flow, but cost guidance was revised, moving to $1,300/oz at the mid-point. Palmarejo/Rochester Quarterly Silver Production (Company Filings, Author's Chart) Finally, looking at the silver segment, we can see that silver production remains at lower levels than pre-COVID-19, and costs are much higher, with Rochester reporting costs of $20.85/oz vs. $13.19/oz in Q2 2019 and $11.89/oz in Q2 2018. Coeur noted that it is revising cost guidance higher to $23.00/oz at the mid-point vs. $21.75/oz previously, leaving little room for margins at the asset. The silver lining is that more than half of Rochester Expansion capital has been incurred, it should come in below $640 million (current estimate: $600 million), and production should increase materially once complete in H2 2023. Costs & Financial Results Looking at Coeur's costs, we can see why cost guidance was raised at multiple assets, with diesel, cyanide, labor, and cement costs continuing to trend higher. The good news is that cement prices appear to be off their peak, and labor costs don't appear to be as bad as some other companies, with many producers noting that they're seeing double-digit rises in labor costs due to a heavier reliance on contractors. The most affected regions appear to be Ontario and Western Australia, where Coeur does not operate. Coeur Mining - Rising Costs (Company Presentation) Given the sharp increase in costs in the period and the costs that have been revised higher in recent technical reports completed by other companies, the cost assumptions in the Rochester Technical Report look ambitious. In the report, mining costs were estimated at just $1.39/ton and crushing/processing costs at $2.11/ton, suggesting that the previous outlook for $104 million in annual free cash flow generation for the first ten years might be a high estimate. That said, we will still see a dramatic improvement in Coeur's cash flow profile from the massive outflows we're seeing currently. Coeur - Quarterly Capex & Free Cash Flow (Company Filings, Author's Chart) During Q2, Coeur reported revenue of $204.1 million, a 5% decline year-over-year despite the higher gold price. Meanwhile, it reported a cash outflow of $50.6 million in the period vs. a cash outflow of $20.2 million outflow during Q2 2021. This was related to elevated capital expenditures with Coeur being in the latter portion of the Rochester Expansion and the impact of much lower operating cash flow due to reduced profitability with higher operating costs across the board. On a trailing-twelve-month basis, Coeur has reported a cash outflow of ~$241 million, with net debt now sitting at more than $400 million, translating to a net debt to adjusted EBITDA ratio of 2.7x. The good news is that the company has hedges for over 220,000 ounces at an average price near $1,970/oz gold, de-risking its expansion plans even if we see a slight cost overrun. As it stands, Coeur has ~$360 million in total adjusted liquidity and up to $400 million in total potential liquidity from the addition of equity investments, meaning that there's a very low risk of further share dilution, as we saw from Argonaut (ARNGF) which completely mismanaged Magino. That said, if inflationary pressures persist and metals prices don't improve, Coeur will continue to have relatively high costs vs. the industry average (shown below with adjusted 2022 cost applicable to sales guidance, which isn't ideal for a company with a weaker balance sheet. Coeur Mining - 2022 Adjusted CAS Guidance (Company Presentation) Valuation Based on ~280 million shares and a share price of US$3.01, Coeur trades at a market cap of $843 million and an enterprise value of ~$1.32 billion. This might appear very cheap for a company of its size (~450,000 GEOs per annum) operating in mostly Tier-1 jurisdictions, and it now trades at ~5.5x FY2023 cash flow per share estimates. While this is a massive discount to its historical cash flow multiple, I believe much of this discount is justified and don't see any reason the stock would back up to its historical multiple of 12.6x cash flow (10-year average). The reason is that Couer has proven it has one of the worst track records of share dilution sector-wide among its peers and has one of the ugliest production growth per share trends in the industry. Looking at the chart below, the amount of shares per gold-equivalent ounce produced has nearly tripled in 8 years from 235 to estimates of 674 in FY2022. The latter metric is based on ~280 million shares divided by estimates of 415,000 GEOs produced at a 75 to 1 ratio.
|CDE||US Metals and Mining||US Market|
Return vs Industry: CDE underperformed the US Metals and Mining industry which returned -14.7% over the past year.
Return vs Market: CDE underperformed the US Market which returned -23.2% over the past year.
|CDE Average Weekly Movement||11.6%|
|Metals and Mining Industry Average Movement||8.6%|
|Market Average Movement||6.8%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: CDE is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.
Volatility Over Time: CDE's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico. The company primarily explores for gold, silver, zinc, and lead properties. It holds 100% interests in the Palmarejo gold and silver mine covering an area of approximately 67,296 net acres located in the State of Chihuahua in Northern Mexico; the Rochester silver and gold mine that covers an area of approximately 43,441net acres situated in northwestern Nevada; the Kensington gold mine comprising 3,972 net acres located to the north of Juneau, Alaska; the Wharf gold mine covering an area of approximately 3,243 net acres situated in the northern Black Hills of western South Dakota; and the Silvertip silver-zinc-lead mine comprising 97,298 net acres located in northern British Columbia, Canada.
Coeur Mining Fundamentals Summary
|CDE fundamental statistics|
Is CDE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CDE income statement (TTM)|
|Cost of Revenue||US$594.97m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.48|
|Net Profit Margin||-16.73%|
How did CDE perform over the long term?See historical performance and comparison
Is CDE undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CDE?
Other financial metrics that can be useful for relative valuation.
|What is CDE's n/a Ratio?|
Price to Sales Ratio vs Peers
How does CDE's PS Ratio compare to its peers?
|CDE PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
BVN Compañía de Minas BuenaventuraA
MUX McEwen Mining
GORO Gold Resource
CDE Coeur Mining
Price-To-Sales vs Peers: CDE is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (1.5x).
Price to Earnings Ratio vs Industry
How does CDE's PE Ratio compare vs other companies in the US Metals and Mining Industry?
Price-To-Sales vs Industry: CDE is expensive based on its Price-To-Sales Ratio (1.2x) compared to the US Metals and Mining industry average (1x)
Price to Sales Ratio vs Fair Ratio
What is CDE's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||1.2x|
|Fair PS Ratio||1.3x|
Price-To-Sales vs Fair Ratio: CDE is good value based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).
Share Price vs Fair Value
What is the Fair Price of CDE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CDE ($3.42) is trading below our estimate of fair value ($33.41)
Significantly Below Fair Value: CDE is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Coeur Mining forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDE is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: CDE is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: CDE is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: CDE's revenue (9% per year) is forecast to grow faster than the US market (7.7% per year).
High Growth Revenue: CDE's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CDE's Return on Equity is forecast to be high in 3 years time
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How has Coeur Mining performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CDE is currently unprofitable.
Growing Profit Margin: CDE is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CDE is unprofitable, and losses have increased over the past 5 years at a rate of 10.8% per year.
Accelerating Growth: Unable to compare CDE's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CDE is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (82.4%).
Return on Equity
High ROE: CDE has a negative Return on Equity (-15.78%), as it is currently unprofitable.
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How is Coeur Mining's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: CDE's short term assets ($379.6M) exceed its short term liabilities ($241.1M).
Long Term Liabilities: CDE's short term assets ($379.6M) do not cover its long term liabilities ($762.1M).
Debt to Equity History and Analysis
Debt Level: CDE's net debt to equity ratio (37.6%) is considered satisfactory.
Reducing Debt: CDE's debt to equity ratio has increased from 31.5% to 56.4% over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: CDE has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: CDE has less than a year of cash runway if free cash flow continues to reduce at historical rates of 44.7% each year
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What is Coeur Mining current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Coeur Mining Dividend Yield vs Market|
|Company (Coeur Mining)||n/a|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Metals and Mining)||3.6%|
|Analyst forecast in 3 Years (Coeur Mining)||0%|
Notable Dividend: Unable to evaluate CDE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CDE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CDE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CDE's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as CDE has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mitch Krebs (50 yo)
Mr. Mitchell J. Krebs, also known as Mitch, has been the Chief Executive Officer and President of Coeur Mining, Inc. since July 12, 2011. Mr. Krebs served as the Chief Financial Officer of Coeur Mining, In...
CEO Compensation Analysis
|Mitch Krebs's Compensation vs Coeur Mining Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$4m||US$750k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$4m||US$725k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$3m||US$675k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$3m||US$675k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$4m||US$675k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$5m||US$650k|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$4m||US$650k|
Compensation vs Market: Mitch's total compensation ($USD3.70M) is about average for companies of similar size in the US market ($USD4.14M).
Compensation vs Earnings: Mitch's compensation has been consistent with company performance over the past year.
Experienced Management: CDE's management team is considered experienced (4.7 years average tenure).
Experienced Board: CDE's board of directors are seasoned and experienced ( 10.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|01 Mar 22||BuyUS$4,507||Robert Mellor||Individual||1,000||US$4.51|
|25 Feb 22||BuyUS$42,490||Thomas Whelan||Individual||10,000||US$4.25|
|25 Feb 22||BuyUS$50,086||Michael Routledge||Individual||11,760||US$4.26|
|23 Feb 22||BuyUS$21,995||Mitchell Krebs||Individual||5,000||US$4.40|
|11 Nov 21||SellUS$146,000||Hans Rasmussen||Individual||20,000||US$7.30|
|04 Nov 21||BuyUS$6,965||Robert Mellor||Individual||1,000||US$6.97|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.3%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Coeur Mining, Inc.'s employee growth, exchange listings and data sources
- Name: Coeur Mining, Inc.
- Ticker: CDE
- Exchange: NYSE
- Founded: 1928
- Industry: Gold
- Sector: Materials
- Implied Market Cap: US$960.567m
- Shares outstanding: 280.87m
- Website: https://www.coeur.com
Number of Employees
- Coeur Mining, Inc.
- 104 South Michigan Avenue
- Suite 900
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CDM1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Dec 1972|
|CDM1||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Dec 1972|
|CDE||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Dec 1972|
|0R0U||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Dec 1972|
|CDM1||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Dec 1972|
|CDE||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Dec 1972|
|CDE *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Dec 1972|
|CDE||BASE (Buenos Aires Stock Exchange)||CEDEAR EA REP 1 COM STK USD1.00||AR||ARS||May 2011|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/02 00:00|
|End of Day Share Price||2022/09/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.