Coeur Mining (CDE) Climbs 9.5% as Fed Rate Cut Bolsters Silver, Gold

We recently published 10 Firms Stealing the Spotlight; 4 Are Climbing to Record Highs. Coeur Mining, Inc. (NYSE:CDE) is one of the best performers on Thursday.

Coeur Mining rebounded by 9.46 percent on Thursday to finish at $17.48 apiece as investors took heart from the jump in spot prices of silver and gold during the day, supported by the Federal Reserve’s official decision to cut interest rates.

Typically, rate cuts favor precious metals as they weaken the US dollar, making it cheaper for foreign investors to buy silver and gold, and thus benefitting mining companies like Coeur Mining, Inc. (NYSE:CDE).

The rally was likewise buoyed by the successful exploration of resources at its Palmarejo gold-silver complex in Chihuahua, Mexico.

In a statement, Coeur Mining, Inc. (NYSE:CDE) said that the ongoing drilling program successfully identified numerous resource growth opportunities, particularly strong gold and silver grades, particularly at the San Juan vein along the Hidalgo corridor.

According to the company, it has so far drilled only 3 percent of the 300-square-kilometer land area, and the initial drilling results suggest that the site still holds a significant untapped resource potential.

Coeur Mining, Inc. (NYSE:CDE) is underway with an aggressive expansion program through a combination of mining site expansion and acquisition initiatives.

Last month, the gold miner said that it signed a definitive agreement to acquire New Gold Inc. for $7 billion, paving the way for an expansion in Canada.

Image by Angel Chavez from Pixabay

Under the agreement, Coeur, through a wholly-owned subsidiary, would acquire all of New Gold’s outstanding shares in an all-stock deal.

Under the terms of the agreement, New Gold Inc. (NYSEAmerican:NGD) shareholders are set to receive an equivalent of 0.4959 Coeur shares for every NGD they own.