Coeur Trading at a Premium: Here's How to Play the Stock Now

Core Insights - Coeur Mining, Inc. (CDE) is trading at a forward 12-month price-to-sales multiple of 6.37X, which is higher than the peer group average of 3.95X [1] - The company has experienced a year-to-date stock price increase of 205.5%, significantly outperforming the Zacks Mining-Non Ferrous industry's increase of 37.6% and the S&P 500's rise of 19.4% [3] Financial Performance - Coeur Mining reported Q3 revenue of approximately $555 million, marking a 77% year-over-year increase driven by higher metal prices and increased sales volumes [5][8] - The revenue contributions from Coeur's five North American mines were well-balanced, with Palmarejo contributing 23%, Kensington 22%, Rochester 20%, Wharf 18%, and Las Chispas 17% [9][10] - The company ended Q3 with $266.3 million in cash and equivalents, more than double the previous quarter's balance, and generated $237.7 million in cash flow from operating activities [11][12] Growth Initiatives - Coeur Mining is focusing on major growth projects, including the Rochester silver-gold mine expansion and the acquisition of the Las Chispas asset, which is expected to enhance production and cash flow [15][16] - The company is executing a significant exploration program with a budget of $67-$77 million aimed at extending mine lives and expanding reserves across multiple sites [17] - At the Silvertip project, Coeur has expanded its land position and is conducting drilling programs to assess resource potential [18] Earnings Outlook - The Zacks Consensus Estimate for CDE's 2025 earnings has been revised higher to 87 cents per share, indicating a year-over-year growth of 383.3% [20]