Yahoo Finance Coeur Mining, Inc. (NYSE:CDE) Could Be Less Than A Year Away From Profitability
With the business potentially at an important milestone, we thought we'd take a closer look at Coeur Mining, Inc.'s (NYSE:CDE) future prospects. Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico. With the latest financial year loss of US$104m and a trailing-twelve-month loss of US$108m, the US$2.1b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Coeur Mining's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Coeur Mining
According to the 6 industry analysts covering Coeur Mining, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$18m in 2024. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 110% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Coeur Mining given that this is a high-level summary, but, take into account that by and large metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before we wrap up, there’s one issue worth mentioning. Coeur Mining currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Coeur Mining's case is 51%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Coeur Mining, so if you are interested in understanding the company at a deeper level, take a look at Coeur Mining's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:
Valuation: What is Coeur Mining worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Coeur Mining is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Coeur Mining’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
