On Monday, Raymond James updated its stock price target for Coeur Mining Inc (NYSE:CDE), raising it to $4.00 from the previous $3.75 while maintaining a Market Perform rating. The adjustment comes after the firm reviewed first-quarter price forecasts and production expectations.
Coeur Mining, which specializes in precious metals, is anticipated to have a weaker production output in the first quarter. Still, the company's production is expected to increase as the year progresses, particularly with improvements at its Rochester mine. Coeur Mining has projected its 2024 production to be between 10.7 and 13.3 million ounces of silver and 310 to 355 thousand ounces of gold.
The company's cost of sales (CAS) at its Palmarejo mine are estimated to range from $1,075 to $1,275 per ounce of gold and $16.50 to $17.50 per ounce of silver. At Kensington, the CAS are projected to be between $1,525 and $1,725 per ounce of gold, while at Wharf, the expected CAS is $1,100 to $1,200 per ounce of gold. Capital expenditures for the year are forecasted to be within $135 million to $184 million.
For the second half of 2024, Coeur Mining has provided CAS guidance for its Rochester expansion, which is undergoing commissioning and ramp-up during the first half of the year. The CAS for Rochester are anticipated to be $1,200 to $1,400 per ounce of gold and $14.00 to $16.00 per ounce of silver for this period.
At the end of the year, Coeur Mining had hedged approximately 95 thousand ounces of its 2024 gold production at an average price of around $2,076 per ounce, and 3.1 million ounces of its 2024 silver production at approximately $25.16 per ounce. These hedges are part of the company's risk management strategy to mitigate price volatility and ensure stability in its financial performance.
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