Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Coeur Mining Inc (CDE), Endeavour Silver Corp. (CAN) (EXK): Consider This Silver Miner That Trades at a Discount to Book

The fact that Coeur Mining Inc (NYSE:CDE) d’Alene is not profitable could worry investors. However, the company has $250 million in cash on its balance sheet. In addition to that, Coeur Mining Inc (NYSE:CDE) d’Alene has $100 million of undrawn credit facility. The company has lost $35 million in the second quarter, and has a sufficient cushion to turn itself to profitability.

Coeur Mining Inc (NYSE:CDE) d’Alene has just $300 million of long-term debt. The absolute majority of its debt portfolio consists of 7.875% notes due 2021. This is a relatively light debt load.

In the meantime, Coeur d’Alene trades at 0.65 times book value. In comparison, Endeavour Silver Corp. (CAN) (NYSE:EXK) Silver trades at 1.48 P/B and First Majestic Silver Corp (NYSE:AG) trades at 2.77 P/B. Coeur d’Alene looks cheap compared to its peers.

Bottom Line
Coeur d’Alene has suffered a hefty drop this year, leading shares to trade at a significant discount to book value. If you believe that silver prices will continue to rebound, Coeur d’Alene could be a cheap option.

It’s important to notice that silver miners are overwhelmingly dependent upon the price of silver, so if the price continues to fall, there’s little they can do to prevent their shares from depreciating further.

The article Consider This Silver Miner That Trades at a Discount to Book originally appeared on is written by Vladimir Zernov.

Vladimir Zernov has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.