Loss-Making Coeur Mining, Inc. (NYSE:CDE) Set To Breakeven

Coeur Mining, Inc. (NYSE:CDE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico. The US$2.4b market-cap company’s loss lessened since it announced a US$104m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$74m, as it approaches breakeven. Many investors are wondering about the rate at which Coeur Mining will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Coeur Mining

Consensus from 5 of the American Metals and Mining analysts is that Coeur Mining is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$27m in 2024. So, the company is predicted to breakeven approximately 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 92% 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, though, keep in mind that generally a metal and mining business has lumpy cash flows which are contingent on the natural resource mined and stage at which the company is operating. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one issue worth mentioning. Coeur Mining currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Coeur Mining's case is 55%. A higher level of debt requires more stringent capital management which 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 essential aspects you should further research:

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.