Coeur Mining: Assessing the Rally’s Staying Power

Coeur Mining has emerged as one of the standout performers in 2025, with its share price surging more than 140% since the start of the year. This remarkable advance has left many competitors in the precious metals sector trailing. However, this impressive run now prompts a critical market evaluation: are the shares fairly valued after such a climb, or does the company's operational trajectory suggest further upside potential?

The company's recent stock performance has been fueled by strong operational results, particularly in the third quarter. Gold production saw a significant increase to 111,364 ounces, up from 94,993 ounces in the prior-year period. Silver output also rose, reaching 4.8 million ounces.

Beyond current production, Coeur is advancing its most substantial exploration program in over a decade at the Palmarejo complex in Mexico. Initial drilling there has yielded promising results, indicating a potential expansion of mineralization. This operational strength is supported by a robust balance sheet. The company's cash position has more than doubled to approximately $266 million, providing management with considerable financial flexibility.

Analyst Community Presents Divergent Views

Market experts are divided in their assessment of the current situation. On one side, Cantor Fitzgerald downgraded its rating on the stock from "Buy" to "Hold," citing a view that the shares are now fully valued following their substantial advance. Similarly, Cormark adjusted its recommendation to "Market Perform," pointing to a balanced risk-reward profile despite acknowledging the company's operational successes.

Should investors sell immediately? Or is it worth buying Coeur Mining?

In contrast, Raymond James maintains a positive outlook with an "Outperform" rating. Their analysts base this stance on Coeur's diversified portfolio of four operating mines and its strong market position as a primary silver producer with significant gold output.

Valuation Debate and Strategic Horizon

The discussion surrounding the stock's fair value is intensified by conflicting valuation methodologies. While cash flow-based analyses, such as DCF models, point to a notable undervaluation, relative market comparisons tell a different story. Coeur Mining currently trades at a price-to-earnings (P/E) ratio of around 27, which sits above the industry average of 24.4.

A key factor for the future is the recently announced acquisition of New Gold, set for November. This strategic move is designed to create a purely North America-focused mining entity with a combined market capitalization of roughly $20 billion. The merged company is projected to produce approximately 1.25 million gold equivalent ounces in 2026. With gold prices sustaining levels above $4,300 per ounce, market observers anticipate that over 80% of the revenue will originate from the politically stable regions of the United States and Canada.