CDE reports second quarter 2020 earnings. On an adjusted basis, the company reported second quarter earnings of $2.6 million, or $0.01 per share compared to a loss of $23.0 million, or $(0.11) per share, during the prior year period and our estimate of $(0.04). The variance to our estimate was due to lower costs applicable to sales and amortization. Second quarter adjusted EBITDA amounted to $42.2 million. On an unadjusted basis, the company reported a loss of $1.2 million, or $(0.01) per share.Updating estimates. Coeur forecasts 2020 gold production to be in the range of 327 thousand to 363 thousand ounces and silver production in the range of 9.5 million to 11.5 million ounces. In 2019, gold and silver production amounted to 359.4 thousand ounces and 11.7 million ounces, respectively. We are increasing our 2020 and 2021 EPS estimates to $0.05 and $0.23 from $(0.02) and $0.15, respectively. The revisions are largely based on higher gold and silver prices. We forecast 2020 and 2021 EBITDA of $190.6 million and $251.9 million, respectively. Rochester mine expansion. Coeur expects to file an updated technical report in late 2020 but expects to commence construction in early August 2020. Major construction projects are expected to begin in early 2021 and be completed by late 2022. Recall that the mine life extension will facilitate operating at full production until least 2033.Rating lowered to Market Perform. In our opinion, the stock appears fairly valued. While we remain constructive on Coeur's growth outlook, we prefer to wait for a more attractive entry point or greater conviction before justifying a higher valuation. Read More >>