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Coeur Mining’s Strategic Acquisition of Las Chispas Drives Buy Rating and Growth Prospects

Coeur Mining’s Strategic Acquisition of Las Chispas Drives Buy Rating and Growth Prospects

Kevin O’Halloran, an analyst from BMO Capital, has initiated a new Buy rating on Coeur Mining (CDE).

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Kevin O’Halloran has given his Buy rating due to a combination of factors related to Coeur Mining’s recent strategic moves and expected financial improvement. The acquisition of SilverCrest Metals, which adds the Las Chispas mine to Coeur’s portfolio, is a pivotal development, boosting silver-equivalent production significantly. This acquisition not only enhances Coeur’s production capacity but also strengthens its balance sheet, with SilverCrest’s treasury and no debt helping to lower Coeur’s net leverage ratio.
Furthermore, the integration of Las Chispas is expected to transform Coeur into a leading silver producer with a substantial contribution to total revenue. The forecasted increase in production and free cash flow from Las Chispas will likely lead to improved financial metrics and valuation multiples. Additionally, the company’s diversified operations across the Americas provide a solid foundation for future growth, supporting the Buy rating with an anticipated target price of $9.

In another report released on February 10, RBC Capital also maintained a Buy rating on the stock with a $10.00 price target.

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