Coeur Mining, Inc. (CDE): A Bull Case Theory

We came across a bullish thesis on Coeur Mining, Inc. on Value investing subreddit by Itchy-Criticism9208. In this article, we will summarize the bulls’ thesis on CDE. Coeur Mining, Inc.'s share was trading at $24.57 as of January 29th. CDE’s trailing and forward P/E were 34.61 and 11.27 respectively according to Yahoo Finance.

Coeur Mining (CDE) is positioned as an undervalued North American precious metals producer with a clear growth trajectory into 2026, supported by expanding operations, improving profitability, and a strengthening balance sheet. The stock recently closed at $19.19, while third-party valuation estimates suggest a materially higher intrinsic value, highlighting a potential disconnect between market price and fundamentals.

The investment case is underpinned by a pending merger with New Gold (NGD), which would significantly scale the combined platform to seven operating assets across North America, with pro forma annual production capacity of approximately 900,000 ounces of gold and 20 million ounces of silver. This increased scale enhances operational diversification, asset longevity, and cash flow resilience.

Operationally, Coeur has delivered substantial progress, posting six consecutive profitable quarters alongside strong revenue growth. Production expansion initiatives, including the Rochester expansion and the successful integration of Las Chispas, indicate that the company remains firmly in growth mode rather than harvest mode.

These investments are expected to drive higher output and margins, supporting meaningful free cash flow generation, which already stands at a positive $188 million. The balance sheet further reinforces the thesis, with $266 million in cash against $363.5 million of largely long-term, fixed-coupon debt, providing financial flexibility and limited refinancing risk. Management expects to generate hundreds of millions in cash over the coming year, strengthening deleveraging capacity.

Jurisdictional risk is limited, with existing mines located primarily in the U.S. and Mexico, alongside an exploration asset in British Columbia, and additional Canadian assets expected post-merger. With no active equity issuance and a $75 million share repurchase authorization in place through May 2026, Coeur offers a compelling combination of operational momentum, capital discipline, and upside potential as production ramps and the merger catalyst materializes.

Previously, we covered a bullish thesis on Harmony Gold Mining Company Limited (HMY) by Intelligent_Okra5374 in April 2025, which highlighted the company’s defensive positioning in gold and other metals, strong revenue growth, record free cash flow, and strategic shift to high-grade assets. HMY’s stock price has appreciated by approximately 89.04% since our coverage. Itchy-Criticism9208 shares a similar bullish perspective but emphasizes Coeur Mining’s (CDE) undervaluation, North American expansion through a pending merger, and disciplined capital allocation supporting growth.

Coeur Mining, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held CDE at the end of the third quarter which was 44 in the previous quarter. While we acknowledge the potential of CDE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.