Friday, May 06, 2022
Coeur Mining (CDE)
First Quarter Miss; Upside Remains Despite Lowered Price Target
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
First quarter 2022 results. Coeur reported a first quarter adjusted net loss of $13.8 million or $(0.05) per share, compared to net income of $13.9 million, or $0.06 per share during the prior year period, and our loss estimate of $7.9 million, or $(0.03) per share. Coeur reported full year adjusted EBITDA of $41.5 million compared to our estimate of $40.5 million. First quarter sales included 1.8 million ounces of silver and 28,242 million ounces of gold. Coeur’s gold hedging program now covers 70% of its 2022 expected gold production at an average forward price of $1,955 per ounce and 38% of its 2023 expected gold production at an average forward price of $1,982 per ounce.
Updating estimates. While we have lowered our full year 2022 EPS estimate to $0.02 from $0.05 to reflect first quarter results and higher interest expense, our EBITDA estimate has been increased to $182.1 from $180.9 to reflect adjustments, including to amortization. During the quarter, Coeur bolstered its balance sheet by increasing available borrowing capacity under its revolving credit facility to $390 million from $300 million and completed a $100 million at-the-market equity offering with the sale of roughly 22 million shares. As of May 2, there were 280,806,345 shares issued and outstanding. For the balance of the year, we expect Coeur to lean on its borrowing capacity if needed. …
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
