Coeur Mining has firmly established itself as one of the standout performers within the mining sector this year. The precious metals producer, focusing on gold and silver, has seen its equity value surge approximately 150% since the start of 2025. This remarkable performance is not solely attributable to favorable commodity prices but is also driven by promising exploration updates and a significant strategic realignment.
Strategic Acquisition Captures Market Attention
A major catalyst for investor enthusiasm is the planned all-stock acquisition of New Gold Inc., valued at $7 billion. Market observers and analysts have largely responded favorably to this transformative move. Upon completion, the combined entity is projected to rank among the leading precious metals producers in North America, with expectations to generate an EBITDA of $3 billion by 2026. In light of the deal, rating agency Moody’s has announced a review of both companies’ credit ratings for potential upgrades. Despite the stock’s heightened volatility following its substantial rally, it continues to attract investor focus, trading at roughly 13 times expected earnings alongside its aggressive growth targets.
Exploration Success Extends Mine Life
The recent wave of optimism is significantly rooted in operational progress, particularly at the Palmarejo complex in Mexico. Coeur Mining is currently executing its most extensive drilling campaign there since 2012, deploying eleven rigs to drill over 68,000 meters across the 300-square-kilometer property.
Key findings from this program include:
* A Promising Discovery: High-grade gold and silver mineralization has been identified in the San Miguel area.
* Substantial Upside: To date, only an estimated three percent of the total land package has been explored, indicating considerable potential for further discoveries.
* Expanded Resources: The company had already succeeded in increasing Palmarejo’s estimated mineral resources by 75% in 2024.
Should investors sell immediately? Or is it worth buying Coeur Mining?
CEO Mitchell J. Krebs emphasized that these discoveries are likely to substantially extend the mine’s operational lifespan, providing investors with a critical signal regarding the security of Coeur’s organic growth pipeline.
Robust Financials Support the Rally
The share price appreciation is underpinned by strong financial fundamentals, as evidenced by record third-quarter 2025 results. Operational strength was highlighted by a surge in operating cash flow to nearly $238 million. Furthermore, the company’s cash balance more than doubled compared to the previous quarter, reaching $266 million.
Concurrently, Coeur Mining achieved a significant ramp-up in production. Silver output increased by almost 60%, while gold production rose by over 17%. These operational achievements, combined with an exceptionally low leverage ratio—a net debt position of just 0.1x EBITDA—present a balance sheet of notable robustness.
Ad
Coeur Mining Stock: Buy or Sell?! New Coeur Mining Analysis from December 12 delivers the answer:
The latest Coeur Mining figures speak for themselves: Urgent action needed for Coeur Mining investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 12.
Coeur Mining: Buy or sell? Read more here...
