Coeur Mining’s CDE expansion in Nevada stands as a beacon of accomplishment. The newly expanded Rochester mine has officially commenced commercial operations, signaling a new era of success for the company.
On Mar 7, the mine’s modern three-stage crushing circuit and truck load-out facility were inaugurated with much fanfare. Subsequently, the crusher circuit has consistently processed over 70,000 tons daily, peaking at 88,000 tons per day. These figures paved the way for the triumphant declaration of commercial production by the end of the first quarter.
With the road to full planned capacity set at 88,000 tons per day (equivalent to 32 million tons per year), Coeur is on track to achieve this feat by mid-2024. As steady ramp-up continues and successful commissioning prevails, the company will pivot its efforts towards mine optimization and business development initiatives geared towards maximizing the potential of this top-tier, long-lasting asset.
Upon reaching full operational capacity, throughput at the site is projected to surge to 2.5 times its past levels, positioning Rochester as one of the world’s premier open-pit heap leach operations. The mine is poised to become the largest domestic silver producer in the United States, driving substantial cash flow growth for CDE.
In the final quarter of 2023, Coeur reported an adjusted loss of 2 cents per share, falling short of the Zacks Consensus Estimate which had forecasted a breakeven scenario. Revenues for the quarter amounted to $262 million.
Coeur’s Steady Growth Trajectory
Coeur’s performance in the market has displayed resilience, with its shares climbing 15.3% in the past year amidst the industry’s overall growth spurt of 34.7%.
Market Outlook and Stock Analysis
Within the realm of basic materials, Coeur currently holds a Zacks Rank #3 (Hold). Standing alongside Coeur are notable industry players like Ecolab Inc. ECL, Carpenter Technology Corporation CRS, and Innospec Inc. IOSP. Of the mentioned, ECL and CRS boast a Zacks Rank #1 (Strong Buy), while IOSP holds a Zacks Rank #2 (Buy).
The future looks promising for Ecolab, with the Zacks Consensus Estimate pegging its 2024 earnings at $6.39 per share—a notable 22.7% rise from the previous year. The company has demonstrated an average trailing four-quarter earnings surprise of 1.7% and has seen its shares appreciate by 41.8% over the past year.
Carpenter Technology’s 2024 earnings are anticipated to hit $4 per share, reflecting a 1% upward revision in the consensus estimate over the last 60 days. Noteworthy is the average trailing four-quarter earnings surprise of 14.3%, with CRS shares up by 33.5% in the past year.
Innospec is gearing up for a fruitful year, with the Zacks Consensus Estimate projecting its 2024 earnings at $6.72 per share, a 10.3% increase from the prior year. The company’s shares have surged by 19.3% over the past year, buoyed by a 2% upward revision in the current-year earnings estimate in the past 60 days.
