Coeur Mining Is Soaring on Golden Wings in 2016



Coeur Mining is soaring

Among precious metals and mining stocks, Coeur Mining (CDE) is one of the stocks that’s been returning more than 300% since the start of the year. The uptrend has been driven by gains in gold and silver prices. Coeur’s peers have also gained handsomely since the start of the year, but Coeur has outperformed them.

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Coeur’s outperformance

Coeur Mining is highly leveraged operationally compared to its closest peers. It’s a high-cost operator, and its operational leverage is the major reason for Coeur’s outperformance.

As the above graph shows, Coeur has risen 378% year-to-date as of July 7, 2016. Pan American Silver (PAAS) has risen 160%, Hecla Mining (HL) has risen 200%, and Silver Standard Resources (SSRI) has risen 174%. The prices of silver (SLV) and gold (GLD) have risen by 42% and 26%, respectively.

Series overview

In this series, we’ll look at analysts’ recommendations and 2Q16 earnings expectations for Coeur Mining. It’s important to note that analysts’ estimates usually lag behind price movements. We see upgrades coming when stocks have already risen. As for downgrades, they come when a company has already seen a downward price action.

That said, changes in analysts’ estimates are key drivers of short-term price movements. Investors should keep track of changes in analysts’ estimates since they provide insight into what the Market is expecting from a given company.

Coeur Mining reported its 2Q16 production results on July 7, 2016. Before we move on to look at the company’s 2Q16 earnings expectations, let’s briefly look at its 2Q16 production numbers.


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