Stock Analysis & Valuation Coeur Mining, Inc. (CDM1.DE)

• Previous Close: €18.07
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	20.30	12
Intrinsic value (DCF)	2.33	-87
Graham-Dodd Method	3.10	-83
Graham Formula	4.60	-75

Strategic Investment Analysis

Company Overview

Coeur Mining, Inc. (CDM1.DE) is a leading precious metals mining company focused on gold, silver, zinc, and lead exploration and production. Headquartered in Chicago, Illinois, Coeur Mining operates key assets in the United States, Canada, and Mexico, including the Palmarejo gold-silver mine in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. The company also holds interests in development-stage projects such as the Crown and Sterling projects in Nevada and the La Preciosa project in Mexico. Coeur Mining markets its concentrates to third-party smelters under off-take agreements, ensuring steady revenue streams. With a history dating back to 1928, Coeur Mining has established itself as a mid-tier producer in the gold and silver mining sector, leveraging its diversified asset base to mitigate geopolitical and operational risks. The company's strategic focus on high-grade, low-cost operations positions it well in the volatile precious metals market.

Investment Summary

Coeur Mining presents a mixed investment case. On the positive side, the company benefits from a diversified portfolio of producing mines and development projects across North America, reducing single-asset risk. Its revenue streams from both gold and silver provide exposure to multiple precious metals, which can be advantageous in varying market conditions. However, the company's financials show modest profitability (net income of €58.9M in the latest period) and significant capital expenditures (€183.2M), which may pressure cash flows. The lack of a dividend could deter income-focused investors. Additionally, the mining sector is highly sensitive to commodity price fluctuations, and Coeur's beta of 1.245 indicates higher volatility than the broader market. Investors should weigh the potential upside from rising gold and silver prices against operational risks and capital intensity.

Competitive Analysis

Coeur Mining operates in the competitive gold and silver mining sector, where scale, cost efficiency, and jurisdictional safety are critical. The company's competitive advantage lies in its diversified asset base across stable mining jurisdictions (U.S., Canada, Mexico), reducing geopolitical risk compared to peers focused on single regions. Its Palmarejo and Rochester mines are key revenue drivers, with the latter benefiting from expansion potential. However, Coeur's production costs are higher than some larger peers, limiting margins in low-price environments. The company's mid-tier size means it lacks the economies of scale of industry giants like Newmont or Barrick, but it maintains greater operational flexibility. Coeur's focus on high-grade deposits helps offset cost pressures, and its exploration pipeline (e.g., Silvertip) provides growth optionality. A weakness is its relatively high debt load (€601.7M), which could constrain flexibility during downturns. Competitively, Coeur is positioned as a mid-cap producer with a balanced risk-reward profile, appealing to investors seeking diversified precious metals exposure without the premium valuation of top-tier miners.

Major Competitors

• Newmont Corporation (NEM): Newmont is the world's largest gold miner, with massive scale and low-cost operations globally. Its diversified portfolio and strong balance sheet provide stability, but its size can limit growth agility. Compared to Coeur, Newmont offers lower-risk exposure but less leverage to silver prices.
• Barrick Gold Corporation (GOLD): Barrick is a top-tier gold producer with Tier 1 assets and a focus on the Americas and Africa. Its strong free cash flow generation and copper byproduct credits are advantages. Barrick's larger scale gives it cost advantages over Coeur, but it has less silver exposure.
• Pan American Silver Corp. (PAAS): Pan American is a leading silver producer with mines in the Americas. Its strong silver focus differentiates it from Coeur's more balanced gold-silver mix. Pan American's larger silver reserves and lower costs in that segment make it a pure-play alternative, though it has less gold diversification.
• First Majestic Silver Corp. (AG): First Majestic is a primary silver miner with operations in Mexico. Its high silver purity is a contrast to Coeur's mixed production. First Majestic offers stronger leverage to silver prices but higher geopolitical risk due to its Mexico concentration and smaller scale.
• Hecla Mining Company (HL): Hecla is a U.S.-focused silver and gold producer with long-life mines. Its Lucky Friday mine is one of the few U.S. primary silver producers. Hecla's U.S. focus reduces geopolitical risk versus Coeur's Mexico exposure, but its smaller size limits diversification.