By Peet Serfontein & Zimele Mbanjwa
Coeur Mining, Inc. is a well-established, US-based precious metals mining company with a primary focus on silver and gold production. Coeur operates a diversified portfolio of mines located across North America, including in Nevada, Alaska, South Dakota, and Mexico.
Coeur's strategy is to be a well-diversified, growing precious metals producer with a focus on generating sustainable, high-quality cash flow and returns from a balanced, prospective asset base in mining-friendly jurisdictions, along with commitment to exploration and expansions.
Technically, the stock is trading in a falling wedge pattern (see the dotted black converging trendlines on the first chart), converging downward-sloping trendlines, where the upper trendline (resistance) declines more steeply than the lower trendline (support). It is regarded as a bullish indicator as it highlights waning bearish momentum and the potential for a trend reversal or continuation of an uptrend.
Increasing volume activity also supports a bullish case for the stock (see the insert). This signals strong market participation and confirms the validity of price movements, especially upward trends
The stock is trading above the 200-day simple moving average (SMA) of ~$5.29. This suggests that the longer-term trend is still positive, which is encouraging.
A trough in the price momentum according to the Coppock Curve indicator as well as sidewards movement of the On-balance Volume indicator, supports our bullish stance.
Share Information
| Share Code | CDE US |
|---|---|
| Industry | Materials |
| Market Capital (USD) | 2.49 billion |
| One Year Total Return | 165.11% |
| Return Year-to-Date | 91.10% |
| Current Price (USD) | 6.23 |
| 52 Week High (USD) | 7.72 |
| 52 Week Low (USD) | 2.30 |
| Financial Year End | December |
| The stock has appreciated firmly over the past year, far outperforming the performance of its underlying products (gold and silver), thanks to the group's robust operational execution. | |
Consensus expectations
(Bloomberg)
| FY24 | FY25E | FY26E | FY27E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | -0.23 | 0.16 | 0.67 | 0.66 |
| Growth (%) | -169.13 | 320.75 | -0.90 | |
| Dividend Per Share (USD) | - | - | - | - |
| Growth (%) | - | - | - | |
| Forward PE (times) | 39.18 | 9.31 | 9.40 | |
| Forward Dividend Yield (%) | - | - | - | |
| Earnings growth is expected to remain volatile, with big swings, over the medium term. | ||||
Buy/Sell Rationale
Technical Analysis:
Fundamental view:
| Share Name and Position | DIS US - Take Profit (Close the position) |
DPZ US - BUY (Continue to hold) |
DELL US (Continue to hold) |
|---|---|---|---|
| Entry | 94.05 | 416.77 | 123.78 |
| Current | 109.12 | 435.97 | 134.43 |
| Movement | +16% | +4.6% | +8.6% |
| We suggest taking profit to reduce overall portfolio exposure. |
Note the pending recommended time to exit the trade of 20 November 2024.
The price action is bouncing off its 200-week SMA, which remains of interest. However, it is below its 200-day SMA, making this a counter-trend strategy. Weak downside price momentum supports the trade strategy. Our profit target is $482.00 with a trailing stop-loss at $409.50. |
A price in wave 5 of an Elliott Wave pattern remains of interest. Remains above its 200-day SMA. Upside price momentum is supportive.
Our profit target is $148.00 with a trailing stop-loss at $122.40. Exit the trade by 10 January 2025. |
| Share Name and Position | CHD US - (Continue to hold) |
KMX US - (Continue to hold) |
YUM US - BUY (Continue to hold) |
|---|---|---|---|
| Entry | 104.14 | 76.44 | 133.97 |
| Current | 107.88 | 78.21 | 136.74 |
| Movement | +3.6% | +2.3% | +2.1% |
|
A developing rising wedge pattern remains of interest. Remains above its 200-day simple moving average. Upside price momentum supports the trade strategy.
Our profit target remains at $114.00 with a trailing stop-loss at $104.00. Exit the trade by 27 May 2025. |
A developing ascending triangle pattern remains of interest. Crossed just above its 200-day simple moving average. Fading downside price momentum supports the trade strategy.
Our profit target remains at $90.00 with a trailing stop-loss at $73.00. Exit the trade by 31 January 2025. |
A period of low volatility in the price remains of interest. Continues to test its 200-day simple moving average.
Our profit target remains at $148.00 with a trailing stop-loss at $132.00. Exit the trade by 29 January 2025. |
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