Coeur Mining, Inc. (NYSE:CDE) On The Verge Of Breaking Even

With the business potentially at an important milestone, we thought we'd take a closer look at Coeur Mining, Inc.'s (NYSE:CDE) future prospects. Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico. The US$2.6b market-cap company posted a loss in its most recent financial year of US$104m and a latest trailing-twelve-month loss of US$4.5m shrinking the gap between loss and breakeven. The most pressing concern for investors is Coeur Mining's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Coeur Mining

Coeur Mining is bordering on breakeven, according to the 4 American Metals and Mining analysts. They expect the company to post a final loss in 2023, before turning a profit of US$84m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 83% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Coeur Mining's growth isn’t the focus of this broad overview, however, take into account that by and large metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with Coeur Mining is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Coeur Mining's case is 48%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Coeur Mining, so if you are interested in understanding the company at a deeper level, take a look at Coeur Mining's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:

1. Valuation: What is Coeur Mining worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Coeur Mining is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Coeur Mining’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.