Big year for exploration. Coeur recently provided an update on its 2021 exploration programs at Silvertip in British Columbia and the Crown exploration property in Nevada. A new mineralized zone with bulk mining potential was discovered at Silvertip which enhances the high-grade resource potential near the mine. Management expects to release an updated mine plan and economic analysis by year-end. Drill results at Crown continue to affirm significant resource growth potential at the Daisy, Secret Pass, SNA, and C-Horst zones. Coeur expects to complete an optimized resource and financial model for Crown by year-end which will form the basis of an initial economic assessment expected to be released in mid-2022.Updating estimates. We have lowered our full year 2021 EPS and EBITDA estimates to $0.35 and $280.9 million from $0.45 and $293.4 million, respectively. Our revised estimates reflect additional shares issued during the second quarter associated with Coeur’s investment in Victoria Gold Corp. (TSX, VGCX), modestly higher amortization expense and lower realized gold price assumptions. Our production forecast is unchanged.Second quarter earnings call. Coeur Mining will release second quarter earnings results after the market close on July 28. Management will host a conference call for investors on July 29 at 11:00 am ET. While the focus will largely be on Rochester, Silvertip, and Crown, we would be interested in management’s plans for the Sterling mine in Nevada, its investment in Victoria, and thoughts on extending Kensington’s mine life.Rating is Market Perform. Because the company will be moving into a capital-intensive phase of the Rochester expansion, it will be interesting to see if investors become less focused on near-term quarterly free cash flow and more focused on the long-term value of the capital investment. We believe the investments in Silvertip, Crown, and Rochester will enhance the company’s long-term growth outlook and cash flow generation profile. In our view, the risk/reward associated with the equity appears balanced. Read More >>