- CDE is a go-to mining stock in a precious metals bull market. But lately, I've been avoiding it.
- Since last summer, CDE is down 40-45% compared to 5% drop in the HUI.
- In the short-term, there is too much Capex and not enough profits. At current metal prices, the balance sheet will get worse before it gets better.
- Tougher environmental regulations in Mexico and potential disappointing Q4 2021 results and 2022 guidance are key short-term risks.
- If the sector can't break out of these doldrums, then I believe there will be a very good buying opportunity in CDE sometime this year.
For further details see:
Coeur Mining: It Will Get Worse Before It Gets Better