On Friday, BMO (TSX:BMO) Capital Markets raised its rating on shares of Coeur Mining Inc (NYSE:CDE) to Outperform, while also increasing the price target to $5.50 from the previous $4.25.
The upgrade followed the company's first-quarter results, which aligned with market expectations, featuring a consensus earnings per share (EPS) of -$0.05. The mining firm also surpassed anticipated production levels and reported lower operating costs.
Coeur Mining achieved a significant milestone by commencing commercial production at its Rochester mine at the end of March. The operation has been consistently surpassing the 70,000 short tons per day (stpd) mark. The company is on track to reach a full capacity of 88,000 stpd by the end of the second quarter. This increase in capacity is projected to generate positive free cash flow (FCF) in the second half of the year, which the company plans to utilize for debt reduction.
The analyst from BMO Capital Markets highlighted the completion of Rochester's commissioning and the expected improvement in Coeur Mining's balance sheet in the forthcoming quarters as the reasons for the optimistic outlook.
Coeur Mining's recent performance and the operational advancements at Rochester have set the stage for the company's financial growth. The increase in production capacity and the focus on reducing debt are poised to enhance Coeur's financial health, as reflected in the revised rating and price target from BMO Capital Markets.
InvestingPro Insights
Following the positive outlook from BMO Capital Markets, Coeur Mining Inc (NYSE:CDE) shows a blend of challenges and opportunities according to InvestingPro data. The company has a market capitalization of $1.91 billion and is trading at a high EBITDA valuation multiple, which indicates that investors may expect future growth. Despite not being profitable over the last twelve months, analysts are predicting profitability this year, aligning with the company's recent operational advancements. The InvestingPro Tips highlight a strong return over the last three months, with a 74.82% price total return, and a significant 85.66% increase over the last six months. These metrics demonstrate a considerable price uptick, which may interest potential investors.
Investors should note that Coeur Mining does not pay a dividend, which could be a consideration for those seeking income-generating investments. For those looking to delve deeper into Coeur Mining's prospects, there are additional InvestingPro Tips available, offering a comprehensive analysis for a more informed investment decision. To access these valuable insights and to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 at checkout. The company's next earnings date is set for August 7, 2024, which will be a critical time to assess Coeur Mining's financial trajectory and operational progress.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.