Why Coeur Mining Stock Popped Today

An investor could get dizzy tracking the meanderings of Coeur Mining (NYSE: CDE) stock.

Up strongly last week and into Monday this week, this gold miner (Coeur also mines silver, zinc, and lead) saw its stock slip on Tuesday, bounce on Wednesday, stumble into Thursday — and today, it’s up 7.1% through 11:45 a.m. ET.

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At least we know why it’s up today: because the price of gold is up! After hitting an all-time high of $5,419.80 per ounce on Jan. 28, gold prices tumbled to almost $4,500 in early February, according to data from TradingEconomics.com. Gold moved back above the $5,000 threshold last week, slipped below it yesterday, and is back above $5,000 today — $5,015 per ounce, to be precise.

The story on silver is similar. Silver prices peaked Jan. 28 at $116.58 per ounce. Silver prices fell to $66, then bounced back above $80, only to fall nearly 10% yesterday. At last report, silver is up a modest 0.7% today, and approaching $78.

It makes sense that with gold and silver up today, Coeur Mining stock is up, too.

What’s next for Coeur stock? Potentially, another leg higher. Yesterday, analysts at RBC Capital raised Coeur’s price target to $26, citing the company’s acquisition of New Gold and “high near-term free cash flow.”

Coeur’s already generating strong FCF by the way — nearly $370 million over the last 12 months, backing up 90% of Coeur’s reported $409 million in net earnings. And analysts polled by S&P Global Market Intelligence think Coeur could do more than $2.3 billion in FCF this year, pushing its price-to-free cash flow ratio below 6.0.

Sounds pretty cheap to me.

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