Coeur Mining (NYSE:CDE) just delivered the biggest quarter in its history on August 6. Quarterly revenue crossed $1 billion for the first time, powered by the first full quarter of contributions from the newly acquired New Afton and Rainy River mines. Free cash flow hit a record, the cash balance topped $1 billion, and the company started paying a dividend for the first time in 30 years. But an accounting quirk dented reported earnings, and the two new Canadian mines are still finding their footing.
Bull Case: A Balance Sheet Suddenly Loaded With Cash
For the quarter reported August 6, revenue reached $1.1 billion, up 27% from the prior quarter, while EBITDA hit a record $478 million and free cash flow came in at $388 million, up 45% quarter-over-quarter and more than $4 million a day. The Canadian assets, despite still ramping up, contributed 45% of that free cash flow, roughly $175 million. Cash on hand doubled from year-end 2025 to $1.1 billion by June 30, with total liquidity over $2 billion.
Management is putting that strength to work. It expanded its buyback authorization to $750 million and repurchased $110 million of stock through June 30, alongside paying an inaugural $0.02 dividend, the company’s first payout in three decades. Rochester also had a standout quarter, crushing a record 6.8 million metric tons, a 15% jump from the prior quarter, and finished its Phase IIa leach pad expansion, which should support stronger silver output in the second half. Wharf returned to normal operations after last November’s crusher fire damage, exploration results at Palmarejo and Las Chispas continued to look promising, and Coeur joined the S&P 400 MidCap Index effective June 22 (announced June 8). Full-year guidance now calls for roughly $2.3 billion of EBITDA and $1.5 billion of free cash flow.
Bear Case: Two New Mines Still Have Work To Do
The quarter had real friction. Realized gold and silver prices came in lower, especially in June, and diesel costs pushed overall expenses higher. Grades ran below plan at Kensington, Rochester, and Palmarejo. A noncash accounting charge tied to the fair value uplift of acquired Rainy River inventory shaved $140 million, or about $0.10 per share, off second-quarter EPS and EBITDA, part of a full-year total of $244 million at Rainy River and $20 million at New Afton, with another $38 million expected in the third quarter.
The ramp-ups themselves have been bumpy. New Afton averaged roughly 12,000 tonnes of daily mining in the quarter, and management now expects to reach its 16,000-tonne target only early in the fourth quarter, later than originally planned. At Rainy River, underground rates averaged just 2,300 tonnes per day after execution problems with the mining contractor, prompting roughly $30 million in extra operating costs, a 10% increase, though rates climbed to about 3,300 tonnes per day in July. Guidance for both mines was recalibrated downward to reflect the slower pace.
Where Street Stands Right Now
Hedge fund ownership ticked up from 51 funds to 52 quarter-over-quarter, a modest sign of accumulating interest rather than an exodus. Short interest sits at 5.68% of the float, enough to signal a real but not overwhelming bear camp. The stock trades at a forward P/E of 11.21 as of August 13, a multiple that does not look like it is pricing in aggressive growth. Rising fund ownership paired with a still-modest earnings multiple suggests the market has not yet fully rewarded the cash flow story.
What Happens From Here
Coeur enters the second half with more cash, a new dividend, and an expanded buyback, all funded by a business that just posted its best quarter ever. Whether that continues depends largely on execution at New Afton and Rainy River, where mining rates are recovering but still trail original plans. The noncash accounting charges from the acquisition should fade after the third quarter, removing a source of reported earnings noise. For the growth story to hold, both Canadian mines need to keep closing the gap toward their targeted tonnage rates in the coming quarters.
While we acknowledge the risk and potential of CDE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CDE and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In.
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center