Editor’s Note
Coeur Mining’s stock surged 7.2% on Monday, recovering from recent losses and approaching its late-January highs. Continued momentum could see it return to levels last seen in January.
On Monday afternoon in the US stock market, shares of precious metals mining company Coeur Mining (CDE) surged significantly by 7.2%, recovering from the sideways losses of the past week and gradually approaching the highs seen in late January. If this upward momentum continues, the company’s stock price is expected to return to levels near January 21st.
The immediate driver behind the stock’s rise was a notable rebound in gold and silver prices. After hitting a historic high of $5,419.80 per ounce on January 28th, the gold price underwent a deep correction, approaching the $5,000 mark by last week’s close. This Monday, gold successfully broke through this key psychological level, rising approximately 2.3% to around $5,080 per ounce. Silver performed even more strongly, gaining 7.3% on the day to near $83.50 per ounce, following a sell-off that was more severe than gold’s.
As a mining company that extracts various metals including gold, silver, zinc, and lead, Coeur Mining’s stock price is closely linked to precious metals market trends. The simultaneous climb in gold and silver prices naturally became the core factor driving its stock higher.
Market analysis indicates the company’s valuation is quite attractive. Although its current price-to-earnings (P/E) ratio is close to 30 times, according to analyst forecasts compiled by Yahoo Finance, Coeur Mining’s earnings for 2025 are expected to be four times those of 2024, with 2026 earnings potentially doubling again. Based on this year’s projected earnings, its P/E ratio is only about 13 times. If gold and silver prices maintain their upward trend, the company’s earnings growth momentum will continue to strengthen.
Further observation of valuation metrics shows that while the trailing P/E ratio is high, the forward P/E ratio has fallen below 10 times due to current precious metals prices being significantly higher than the same period last year. Coupled with an expected earnings growth of about 90% next year, its price/earnings-to-growth (PEG) ratio is only around 0.3, suggesting the stock may still be undervalued relative to its growth potential.
Overall, against the backdrop of a recovering precious metals market, Coeur Mining has attracted renewed market attention due to its clear prospects for profit improvement and relatively reasonable valuation levels. Its future performance will remain closely tied to fluctuations in gold and silver prices and the effectiveness of the company’s cost control measures.