CDE - Coeur Mining: Turning Free Cash Flow Positive With Strong Gold/Silver Price Leverage

2024-01-29 11:15:58 ET

Summary

• Coeur Mining is expected to generate significant free cash flow during 2024-25, due to rising gold/silver prices and the Nevada Rochester mine expansion.
• The discovery of additional silver resources at the Silvertip property in Canada could further boost Coeur's performance in the precious metals sector.
• A large spike in gold/silver bullion quotes this year could launch/leverage underlying Coeur share worth.

Coeur Mining ( CDE ) is a stock I have mentioned in a bullish manner since October 2022. My two arguments to own it are gold/silver are ready to move dramatically higher, and the business setup is turning free cash flow positive in 2024 (assuming slightly rising precious metals) after years of high capital spend on the Rochester mine expansion in Nevada.

Yes, management has issued shares to keep the business operating with little debt on the balance sheet, during a period of abnormal capital spending and flattish precious metal quotes. However, I am more forward looking. Given a sizable uptick in gold and silver in particular, huge free cash flow generation could be approaching in 2024-25....

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