Can Coeur Mining Sustain and Expand Its Free Cash Flow in 2026?

Core Insights - Coeur Mining, Inc. (CDE) experienced a significant increase in free cash flow in Q4 2025, rising 66% sequentially to a record $313 million, driven by higher gold and silver prices of $3,184 and $40.01 respectively [1][9] Group 1: Operational Performance - Higher production volumes and improved cost discipline, particularly at the Palmarejo mine in Mexico, Rochester in Nevada, and Kensington in Alaska, enhanced overall operating performance [2] - Operational stabilization and successful ramp-up at Rochester contributed to increased throughput rates and improved margin realization, significantly aiding cash flow growth [2] Group 2: Financial Strength - The surge in cash generation strengthened CDE's balance sheet, allowing for meaningful debt reduction, enhanced liquidity, and greater financial flexibility [3] - Sustained free cash flow at these levels could support further deleveraging, opportunistic growth investments, and enhanced shareholder returns [3] Group 3: Peer Comparison - Kinross Gold Corporation (KGC) reported attributable free cash flow of $769.4 million in Q4 2025, a 77% year-over-year increase, driven by stronger operating cash flow and a higher realized gold price of $4,144 [4] - IAMGOLD Corporation (IAG) achieved record mine-site free cash flow of $626.6 million in Q4 2025, a 701.3% year-over-year increase, supported by a higher realized gold price of $4,191 and strong operational performance [6][7] Group 4: Market Performance - CDE shares increased by 340.7% over the past year, outperforming the industry average rise of 85.3% [8] - CDE is currently trading at a forward 12-month price-to-sales ratio of 5.75X, above the industry average of 4.96X, and has a Value Score of D [11]