CDE - Coeur Mining: A Mediocre Q1 But A Much Better H2 On Deck

2024-05-06 01:09:02 ET

Summary

• Coeur Mining reported higher production & revenue in Q1 2024, but free cash flow remained deeply negative.
• Fortunately, the company expects a stronger H2-2024 and is approaching a free cash flow inflection point, with construction on its Rochester Expansion finally complete.
• In this update, we’ll dig into the Q1 results, why the second half of 2024 should be much better and if its recent correction has improved CDE’s valuation:

We’re nearly halfway through the Q1 Earnings Season for the Gold Miners Index ( GDX ) and we’ve seen decent results overall. This included strong performances and positive free cash flow from most of the intermediate and major producers despite the fact that gold averaged just ~$2,070/oz in Q1. One of the more recent names to report its results was Coeur Mining ( CDE ) and while production and revenue were higher, free cash flow has remained sharply negative for the time being. In this update, we’ll dig into the Q1 results, why the second half of 2024 should be much better and if its recent correction has improved CDE’s valuation:

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