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Coeur Mining Inc(CDE-N)

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Why Coeur Mining Stock Soared Today

Motley Fool - Fri Sep 22, 2023

What happened

Shares of Coeur Mining (NYSE: CDE) climbed as much as 10.4% early Friday, then settled to trade up 6.6% as of 3:30 p.m. ET following a notable analyst upgrade for the precious metals mining company.

So what

In a note to clients early Friday, RBC Capital analyst Michael Siperco raised his rating on Coeur Mining shares to outperform from sector perform. The analyst also reiterated his firm's per-share price target of $4 on the stock -- a roughly 88% premium from the mining stock's close yesterday.

The timing of this call is no coincidence; Coeur Mining recently participated in RBC Capital's Global Mining and Materials Conference in mid-June 2023. And RBC analysts recently completed a tour of the company's open pit, heap leach silver-gold Rochester mine operation in Pershing County, Nevada.

"The expansion at Rochester is almost complete, and execution on the ramp up through mid-2024 is the key catalyst for the stock in our view," Siperco wrote. "The site visit we attended highlighted the $700 million investment in throughput expansion, which should lead to 120% higher production once at full capacity in 2025."

Now what

This news shouldn't be entirely surprising considering Coeur Mining management told investors, along with their latest earnings report in early August, that the multiyear Rochester expansion was 97% complete as of July 31, 2023. Coeur Mining CEO Mitchell Krebs pledged at the time that its crushing facility was expected to be complete in the current quarter, followed by a ramp-up of the expanded operation through the end of 2023 and into early 2024.

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Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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