Image: Kensington underground gold mine in Alaska. Source: Coeur Mining
Investment Thesis
Chicago-based Coeur Mining (CDE) released its second-quarter results on July 29, 2020. The results were slightly better than expected, but it was nothing to brag about. However, the big story here is the recent jump in silver, which put this dormant miner into motion.
Silver has largely underperformed gold, but it has ended abruptly. If we take the average ratio for gold versus silver, for the past 20 years, we have approximately 65. But, in March 2020, this ratio increased to