CDE - Coeur Mining: Limited Margin Of Safety At Current Levels

2024-04-12 10:44:07 ET

Summary

• Coeur Mining, Inc. had a tough year in 2023 with massive share dilution compared to its producer peers, continued net losses, and significant free cash outflows.
• Fortunately, it's past the hump of higher capex at Rochester, the mine has begun commercial production, and it will bear the fruits of this significant work in 2024/2025.
• In this update, we’ll dig into the company’s FY2023 results and the stock's updated valuation relative to peers after its significant rally.

While it was a rough start to the year for the Gold Miners Index ( GDX ), the index has bounced back sharply since March. This has continued the pattern of back-to-back 5% plus declines in January and February for the Gold Bugs Index resulting in significantly above-average returns in March, with the Gold Bugs Index outperforming nearly all other ETFs in March 2024 with a double-digit gain. Fortunately, the index has seen continued follow-through into April and is now even outperforming the Nasdaq Composite (COMP.IND) year-to-date.

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