On Wednesday, BMO Capital Markets adjusted its price target on shares of Coeur Mining Inc (NYSE:CDE), increasing it to $4.25 from the previous $3.50, while maintaining a Market Perform rating. The revision comes on the heels of the mining company's announcement that its expanded Rochester mine reached commercial production at the end of the first quarter on March 31.
Coeur Mining stated that the commissioning of the new crushing circuit and truck load facility, which was completed on March 7, paved the way for the mine's commercial production status. Since the completion, the crushing circuit has been operating at an average rate of nearly 70,000 short tons per day (kstpd) and has achieved peak rates exceeding 88,000 kstpd.
The company has indicated that the ramp-up to the full capacity of 88,000 tons per day is progressing as planned and is expected to be completed in the first half of 2024. Throughout the year, production levels are anticipated to increase as the mine continues to develop.
The analyst from BMO Capital Markets cited the mine's successful ramp-up and the potential for increased production capacity as reasons for the adjusted price target. The new target reflects slightly higher multiples based on the mine's recent achievements and future prospects.
InvestingPro Insights
With Coeur Mining Inc (NYSE:CDE) reaching commercial production at its expanded Rochester mine, investors are closely monitoring the company's financial health and stock performance. According to the latest data from InvestingPro, Coeur Mining has a market capitalization of $1.97 billion and has experienced a significant price total return of 51.12% over the last month, and an impressive 112.11% over the last six months. This robust performance is reflected in strong returns, with the company's stock price nearing its 52-week high, trading at 93.29% of the peak.
However, InvestingPro Tips suggest that potential investors should exercise caution. The company is trading at a high EBITDA valuation multiple, and analysts are not expecting profitability this year, given that Coeur Mining has not been profitable over the last twelve months. Moreover, the Relative Strength Index (RSI) indicates that the stock is currently in overbought territory, which could signal a potential pullback. Despite the recent price uptick, the company does not pay a dividend, which may be a consideration for income-focused investors.
For those considering an investment in Coeur Mining, it's worth noting that there are additional InvestingPro Tips available that could provide deeper insights. To explore these further, visit https://www.investing.com/pro/CDE and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional InvestingPro Tips available that can help you make an informed decision.
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