Coeur Mining Misses Q3 Earnings and Revenue Estimates

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Coeur Mining ($NYSE:CDE) is a publicly-traded company that explores, develops, and produces precious metals, with a focus on silver, gold, and zinc, in the United States, Mexico, Bolivia, and Argentina. The company’s press release for Q3 showed Non-GAAP EPS of -$0.16, missing the mark by $0.10. Revenue of $183M also missed the estimate by $17.91M. Coeur’s CEO, Mitchell J. Krebs, said that “while we are disappointed in our third quarter results, we continue to make significant progress on a number of fronts.”

He cited the company’s recent acquisition of the Palmarejo silver-gold complex in Mexico as a key positive step. Looking forward, Krebs said that Coeur is “well-positioned to capitalize on improving precious metals markets.” The company is expecting to complete its Guadalupe underground mine in Mexico by the end of the year, which should help boost production and lower costs.

Earnings

Coeur Mining Inc. reported third-quarter earnings and revenue that missed analysts’ expectations on Tuesday. Total revenue rose 2.9% to $808.4 million from $785.5 million a year earlier. Coeur Mining’s total revenue has grown from $785.5 million to $808.4 million over the past three years. The company’s net income has fluctuated during that time, registering a loss in the most recent quarter.

Share Price

This news has caused the stock to drop by 8.1% from the previous close of $4.3. The company attributed the miss to “lower-than-expected gold and silver grades and recoveries at the Palmarejo mine in Mexico.” This is not the first time that Coeur Mining has missed earnings estimates. In fact, the company has missed estimates in three of the last four quarters.

Investors are now worried that the company is not meeting its production targets. Coeur Mining is the largest primary silver producer in the world and the largest U.S.-based primary silver producer. The company also has significant gold production and landholdings in the United States, Mexico, Bolivia, and Argentina.

VI Analysis

According to VI, Coeur Mining is a medium risk investment. Two risk warnings were detected in the income sheet and balance sheet. However, the company’s fundamentals reflect its long term potential.

VI Peers

The company operates mines and projects in the United States, Mexico, Bolivia, and Argentina. The company’s primary competitors in the gold mining industry are Mining Global Inc, Hochschild Mining PLC, and Metals Exploration PLC.

– Mining Global Inc ($OTCPK:MNGG)

Mining Global Inc is a Canadian company that is engaged in the business of mineral exploration and development. The company has a market capitalization of 5.78 million as of 2022 and a return on equity of 3.18%. Mining Global Inc is focused on the exploration and development of gold and silver projects in the Americas. The company’s primary asset is the San Juan Silver Property, located in the San Juan Mountains of Colorado, USA.

– Hochschild Mining PLC ($LSE:HOC)

Hochschild Mining PLC is a precious metals mining company with a focus on silver production. The company has a market capitalization of 298.56 million as of 2022 and a return on equity of 6.23%. Hochschild Mining PLC operates mines in Peru, Mexico, and Argentina. The company was founded in 1911 and is headquartered in London, the United Kingdom.

– Metals Exploration PLC ($LSE:MTL)

Metals Exploration PLC is a UK-based company engaged in the exploration, development, and production of minerals, primarily gold. The company has a market capitalization of 17.23 million as of 2022 and a return on equity of 130.94%. Metals Exploration is focused on the development of its flagship property, the Runruno Gold-Molybdenum Project in the Philippines. The company also has several other exploration projects in the Philippines, as well as in Papua New Guinea, Indonesia, and Fiji.

Summary

Coeur Mining is a precious metals mining company with operations in the United States, Mexico, Bolivia and Argentina. The company’s primary focus is on gold and silver, but it also has exposure to other metals such as lead and zinc. Despite its small size, the company has a strong portfolio of assets and is one of the largest primary silver producers in the world. Investors interested in precious metals mining companies may want to consider Coeur Mining as a potential investment.

The company has a strong portfolio of assets and is a leading silver producer. Although the stock has been volatile in recent years, it may be worth considering for investors with a long-term perspective.