I Know First Review: Market Saves Coeur Mining After Q4 Loss

I Know First Review

I Know First Review

Coeur Mining, Inc. owns and operates silver and gold mines which explore for and develop gold and silver properties. The company operates on a global scale with mines in the United States, Mexico, Bolivia, and Australia among other countries. Coeur Mining, Inc. markets its silver and gold concentrates to third-party refiners and smelters in the United States, China, and Japan. Formerly known as Coeur d’Alene Mines Corporation, Coeur Mining, Inc. was founded in 1928 and is based in Chicago, Illinois.

The company reported a 4Q loss, but share prices got a boost regardless due to current market conditions.

Coeur Mining, Inc. (CDE) stock rose 33.20% in the 3-day time horizon in accordance with the algorithm’s bullish forecast from February 11th. This outstanding growth for the company occurred despite the loss revealed in the 4Q earnings report on February 10th. Coeur Mining, Inc. suffered a small slump around this time, likely due to the earnings report, but has continued an upward trend that began mid-January reaching a market cap of $601.8 million on February 12th.

Coeur Mining reported 4Q15 revenues of $164.32 million, up 1.14% from the previous quarter, while earnings were -$303.00 million, down 2,030.94% from Q3. The company’s change in cash flow was approximately the same as the change in earnings for the quarter. Despite losses from Q3, the company reported revenue growth (%YOY) of 16.91% and earnings growth (%YOY) of 71.92% in the earnings report that was released on February 10th.

Production reports were also released, revealing fourth quarter production of 4.0 million ounces of Silver and 91,551 ounces of Gold (equivalent to 9.5 million ounces of Silver). Coeur expects production to increase in 2016 with numbers reaching 14.6-16 million ounces of Silver and 320,000-347,000 ounces of Gold (equivalent to 33.8-36.8 ounces of Silver).

Current market conditions and a weak U.S. dollar have led to a surge in gold prices, causing them to reach a one-year high on the 11th of this month. Dipping stock prices have pushed investors towards gold with its relatively stable prices. Silver, as a precious metal and an industrial metal, is affected both positively and negatively by the bearish market. Still, Silver has maintained its fourth place ranking in commodity performance on the S&P GSCI (Goldman Sachs Commodity Index) since the beginning of the year.

Surging Gold and Silver prices have helped boost share prices for Coeur Mining but in order to create sustainable profitability, the company will need to increase its operational efficiency. Coeur should continue to work towards this efficiency before investors are likely to be impressed with long-term prospects. While the rally of precious metals reduces the impact of operational costs for the moment, it doesn’t fix the problem that this high-cost structure poses in the long-term.

I Know First’s predictive algorithm forecasted CDE’s bullish price movement for the 3-day period from February 11th to February 14th, 2016. As predicted, the stock increased an incredible 33.20% in those 3 days. The overall package performance was impressive with 8 out of 10 stocks correctly forecasted to increase and an average return of 5.14% compared to the S&P 500’s return of just 0.70%.

I Know First Review