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Wednesday, April 8, 2020
Coeur Mining (CDE)
Lowering 2020 Estimates to Reflect Suspension of Operations at Palmarejo
Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. It is involved in the discovery and mining of gold and silver and generates the vast majority of revenue from the sale of these precious metals. The operating mines of the company are palmarejo, rochester, wharf, and kensington. Its projects are located in the United States, Canada and Mexico, and North America.
Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Mining activities suspended at Palmarejo until April 30. CDE announced the suspension of its Palmarejo mining operations in accordance with the Mexican government's suspension of non-essential activities to contain the COVID-19 virus. Coeur’s other mines continue to operate at full capacity and there are no confirmed cases of COVID-19. Palmarejo throughput was expected to increase ~10% in 2020 compared to 2019. Palmarejo silver production is expected to be the strongest in the second and third quarters, while the first quarter is expected to be the weakest for gold production. Except Silvertip and Palmarejo, all of Coeur’s other producing mines are in the United States. Recall Silvertip’s operations were suspended on February 19, 2020 due to an inability to turn a profit at current zinc and lead prices and persistent operational challenges.
Updating estimates. We are lowering our 2020 EPS and EBITDA estimates to $0.02 and $189.7 million from $0.05 and $211.3 million, respectively. Our 2020 estimate revisions reflect lower production at Palmarejo. We forecast 2021 EPS and EBITDA of $0.12 and $229.0 million, respectively. Departing from previous practice, Coeur does not expect to release...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.