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CDE Trades at a Cheaper Valuation: Should Investors Be Bullish?
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Key Takeaways
CDE produced 96,503 ounces of gold and 4.4 million ounces of silver in Q1 2026.
Coeur generated $340.8 million in operating cash flow after closing the New Gold acquisition.
CDE added Rainy River and New Afton mines, expanding gold, silver and copper exposure.
Coeur Mining, Inc. (CDE - Free Report) is currently trading at a forward 12-month price-to-earnings multiple of 12.73X, below the Zacks Mining-Non Ferrous industry’s average of 24.14X and its five-year median.
Image Source: Zacks Investment Research
The forward 12-month price-to-earnings multiples for First Majestic Silver Corp. (AG - Free Report) and Hecla Mining Company (HL - Free Report) are 28.57X and 28.34X, respectively.
CDE has a Value Score of B, while AG and HL have a score of F.
Let’s look at the CDE’s fundamentals to analyze the stock better.
Coeur Q1 Output Rises on New Gold Asset Contributions
Coeur delivered a solid production performance in the first quarter of 2026, supported by contributions from both its existing operations and the newly acquired New Gold assets. The company produced 96,503 ounces of gold and 4.4 million ounces of silver during the quarter. This represented a year-over-year increase of 11% in gold production and 18% in silver production.
The newly acquired Rainy River Mine emerged as a significant contributor during the quarter. Following the closing of the New Gold transaction on March 20, 2026, the mine produced 12,494 ounces of gold and 19,000 ounces of silver over approximately 11 days of ownership. Underground production ramp-up continued during the quarter, while Phase 5 open-pit stripping activities remained on schedule.
The New Afton Mine also contributed meaningfully after the acquisition closed. The operation produced 1,651 ounces of gold, 4,000 ounces of silver and 1.4 million pounds of copper during the quarter. Operational progress continued at the C-Zone, where cave construction was finalized with drawbell blasting completed.
At the Las Chispas Mine, production improved modestly compared with the previous quarter. The operation delivered 15,031 ounces of gold and 1.5 million ounces of silver. The increase was driven by higher tons milled, though partially offset by lower grades during the quarter.
The Palmarejo Mine reported lower production sequentially. The mine produced 22,918 ounces of gold and 1.5 million ounces of silver during the quarter compared with 25,662 ounces of gold and 1.6 million ounces of silver in the prior quarter. The decline was mainly due to fewer tons milled, partially offset by improved recovery rates.
The Rochester Mine also recorded lower production levels during the quarter. Silver production totaled 1.4 million ounces, while gold production reached 14,112 ounces. The decline from the prior quarter reflected lower planned grades, crusher maintenance downtime and reduced placement rates tied to ongoing leach pad expansion.
At the Kensington Mine, gold production fell to 20,525 ounces from 29,567 ounces in the previous quarter. The decrease was primarily attributed to mine sequencing and planned mill maintenance activities during the period.
The Wharf Mine experienced the sharpest sequential decline in output. Gold production dropped to 9,772 ounces from 24,759 ounces in the fourth quarter of 2025. The decline was mainly due to lower ore tons placed following fire damage to portions of the tertiary crusher in late 2025.
Robust Operating and Free Cash Flow Surge Aids CDE
The company’s financial performance in the first quarter of 2026 reflected continued operational strength, robust cash generation and enhanced liquidity following the completion of the New Gold transaction. Coeur ended the quarter with a significantly stronger balance sheet and record financial results. Cash and cash equivalents totaled $843.2 million at the end of the quarter, representing a 52% increase from the prior quarter and nearly an 11-fold increase compared with the year-ago period.
During the quarter, the company generated $340.8 million in cash flow from operating activities, compared with $67.6 million in the prior-year quarter. The sharp increase was driven by higher realized gold and silver prices, stronger metal sales and contributions from newly acquired assets. Free cash flow for the first quarter was approximately $266.8 million.
Total debt increased to approximately $761.4 million at quarter-end from $340.5 million at the end of 2025, primarily reflecting the completion of the New Gold acquisition. However, the company strengthened its liquidity profile by entering into a new $1 billion revolving credit facility during the quarter.
Capital expenditures for the quarter totaled $74.1 million compared with $61.4 million in the prior quarter. Approximately 85% of the quarterly spending was allocated to sustaining capital expenditures, while the remaining 15% supported development activities across the company’s operating assets.
Coeur Expands Operations With Key Strategic Initiatives
Coeur continued to advance several strategic expansion and development initiatives during the first quarter of 2026. These efforts reinforce the company’s long-term growth strategy and strengthen its position as a leading North American precious metals producer.
One of the most significant developments during the quarter was the completion of the acquisition of New Gold Inc. on March 20, 2026. The transaction added the New Afton and Rainy River mines to Coeur’s portfolio, significantly expanding its production base and diversifying its exposure to gold, silver and copper.
At New Afton, Coeur continued advancing the C-Zone development project, where cave construction has now been finalized, with drawbell blasting completed. The company expects throughput to ramp up to 15,000 tons per day during the first half of 2026. In addition, Coeur announced an initial resource estimate for the K-Zone deposit, which added a substantial new growth opportunity to the company’s long-term pipeline.
Rainy River also remains a major growth driver for the company. Coeur updated the operation’s technical report during the quarter, highlighting a two-year mine life extension through 2035. The company continues to ramp up underground mining activities while advancing Phase 5 open-pit stripping operations.
At Rochester, Coeur continued advancing the next phase of the Stage 6 leach pad expansion project. Development activities included overliner hauling and infrastructure work to support future placement capacity and operational flexibility. The company is also progressing exploration drilling to support the future POA 12 expansion and broader district-scale growth opportunities.
Coeur also continued advancing exploration and development initiatives at its Silvertip project in British Columbia. The company plans to invest approximately $35 million in 2026 toward scouting, expansion and infill drilling programs aimed at supporting future study work and expanding the project’s resource base.
The Zacks Consensus Estimate for 2026 and 2027 for CDE has been revised lower over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CDE’s 2026 earnings is currently pegged at $1.46 per share, suggesting year-over-year growth of 82.5%. The same for 2027 is pegged at $1.49 per share, indicating year-over-year growth of 2.05%
Image Source: Zacks Investment Research
Price Performance of CDE vs. Industry, AG, HL and S&P 500
CDE has gained 166.4% over the past year compared with the Zacks Mining-Non Ferrous industry’s 95.5% increase. It has surpassed AG’s 323.7%, HL’s 335.8% and the S&P 500’s 29.7% rise.
Image Source: Zacks Investment Research
Final Thoughts: Hold Coeur Now
Coeur delivered a solid first-quarter 2026 performance, supported by higher gold and silver prices, stronger production and contributions from its newly acquired assets. The company posted healthy revenue and EBITDA growth, generated solid free cash flow and strengthened its liquidity position, while operational improvements at Rochester and steady output from Rainy River and New Afton support its reaffirmed 2026 outlook.
However, elevated operating costs, integration risks related to the New Gold assets and ongoing volatility in precious-metals prices could continue to pressure margins and create earnings uncertainty in the near term. Despite strong long-term growth prospects and a discounted valuation relative to the industry, near-term operational and market uncertainties warrant a Hold stance on the stock.
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CDE Trades at a Cheaper Valuation: Should Investors Be Bullish?
Key Takeaways
Coeur Mining, Inc. (CDE - Free Report) is currently trading at a forward 12-month price-to-earnings multiple of 12.73X, below the Zacks Mining-Non Ferrous industry’s average of 24.14X and its five-year median.
The forward 12-month price-to-earnings multiples for First Majestic Silver Corp. (AG - Free Report) and Hecla Mining Company (HL - Free Report) are 28.57X and 28.34X, respectively.
CDE has a Value Score of B, while AG and HL have a score of F.
Let’s look at the CDE’s fundamentals to analyze the stock better.
Coeur Q1 Output Rises on New Gold Asset Contributions
Coeur delivered a solid production performance in the first quarter of 2026, supported by contributions from both its existing operations and the newly acquired New Gold assets. The company produced 96,503 ounces of gold and 4.4 million ounces of silver during the quarter. This represented a year-over-year increase of 11% in gold production and 18% in silver production.
The newly acquired Rainy River Mine emerged as a significant contributor during the quarter. Following the closing of the New Gold transaction on March 20, 2026, the mine produced 12,494 ounces of gold and 19,000 ounces of silver over approximately 11 days of ownership. Underground production ramp-up continued during the quarter, while Phase 5 open-pit stripping activities remained on schedule.
The New Afton Mine also contributed meaningfully after the acquisition closed. The operation produced 1,651 ounces of gold, 4,000 ounces of silver and 1.4 million pounds of copper during the quarter. Operational progress continued at the C-Zone, where cave construction was finalized with drawbell blasting completed.
At the Las Chispas Mine, production improved modestly compared with the previous quarter. The operation delivered 15,031 ounces of gold and 1.5 million ounces of silver. The increase was driven by higher tons milled, though partially offset by lower grades during the quarter.
The Palmarejo Mine reported lower production sequentially. The mine produced 22,918 ounces of gold and 1.5 million ounces of silver during the quarter compared with 25,662 ounces of gold and 1.6 million ounces of silver in the prior quarter. The decline was mainly due to fewer tons milled, partially offset by improved recovery rates.
The Rochester Mine also recorded lower production levels during the quarter. Silver production totaled 1.4 million ounces, while gold production reached 14,112 ounces. The decline from the prior quarter reflected lower planned grades, crusher maintenance downtime and reduced placement rates tied to ongoing leach pad expansion.
At the Kensington Mine, gold production fell to 20,525 ounces from 29,567 ounces in the previous quarter. The decrease was primarily attributed to mine sequencing and planned mill maintenance activities during the period.
The Wharf Mine experienced the sharpest sequential decline in output. Gold production dropped to 9,772 ounces from 24,759 ounces in the fourth quarter of 2025. The decline was mainly due to lower ore tons placed following fire damage to portions of the tertiary crusher in late 2025.
Robust Operating and Free Cash Flow Surge Aids CDE
The company’s financial performance in the first quarter of 2026 reflected continued operational strength, robust cash generation and enhanced liquidity following the completion of the New Gold transaction. Coeur ended the quarter with a significantly stronger balance sheet and record financial results. Cash and cash equivalents totaled $843.2 million at the end of the quarter, representing a 52% increase from the prior quarter and nearly an 11-fold increase compared with the year-ago period.
During the quarter, the company generated $340.8 million in cash flow from operating activities, compared with $67.6 million in the prior-year quarter. The sharp increase was driven by higher realized gold and silver prices, stronger metal sales and contributions from newly acquired assets. Free cash flow for the first quarter was approximately $266.8 million.
Total debt increased to approximately $761.4 million at quarter-end from $340.5 million at the end of 2025, primarily reflecting the completion of the New Gold acquisition. However, the company strengthened its liquidity profile by entering into a new $1 billion revolving credit facility during the quarter.
Capital expenditures for the quarter totaled $74.1 million compared with $61.4 million in the prior quarter. Approximately 85% of the quarterly spending was allocated to sustaining capital expenditures, while the remaining 15% supported development activities across the company’s operating assets.
Coeur Expands Operations With Key Strategic Initiatives
Coeur continued to advance several strategic expansion and development initiatives during the first quarter of 2026. These efforts reinforce the company’s long-term growth strategy and strengthen its position as a leading North American precious metals producer.
One of the most significant developments during the quarter was the completion of the acquisition of New Gold Inc. on March 20, 2026. The transaction added the New Afton and Rainy River mines to Coeur’s portfolio, significantly expanding its production base and diversifying its exposure to gold, silver and copper.
At New Afton, Coeur continued advancing the C-Zone development project, where cave construction has now been finalized, with drawbell blasting completed. The company expects throughput to ramp up to 15,000 tons per day during the first half of 2026. In addition, Coeur announced an initial resource estimate for the K-Zone deposit, which added a substantial new growth opportunity to the company’s long-term pipeline.
Rainy River also remains a major growth driver for the company. Coeur updated the operation’s technical report during the quarter, highlighting a two-year mine life extension through 2035. The company continues to ramp up underground mining activities while advancing Phase 5 open-pit stripping operations.
At Rochester, Coeur continued advancing the next phase of the Stage 6 leach pad expansion project. Development activities included overliner hauling and infrastructure work to support future placement capacity and operational flexibility. The company is also progressing exploration drilling to support the future POA 12 expansion and broader district-scale growth opportunities.
Coeur also continued advancing exploration and development initiatives at its Silvertip project in British Columbia. The company plans to invest approximately $35 million in 2026 toward scouting, expansion and infill drilling programs aimed at supporting future study work and expanding the project’s resource base.
CDE’s Falling Earnings Estimates Reflect Weakening Sentiment
The Zacks Consensus Estimate for 2026 and 2027 for CDE has been revised lower over the past 60 days.
The Zacks Consensus Estimate for CDE’s 2026 earnings is currently pegged at $1.46 per share, suggesting year-over-year growth of 82.5%. The same for 2027 is pegged at $1.49 per share, indicating year-over-year growth of 2.05%
Price Performance of CDE vs. Industry, AG, HL and S&P 500
CDE has gained 166.4% over the past year compared with the Zacks Mining-Non Ferrous industry’s 95.5% increase. It has surpassed AG’s 323.7%, HL’s 335.8% and the S&P 500’s 29.7% rise.
Final Thoughts: Hold Coeur Now
Coeur delivered a solid first-quarter 2026 performance, supported by higher gold and silver prices, stronger production and contributions from its newly acquired assets. The company posted healthy revenue and EBITDA growth, generated solid free cash flow and strengthened its liquidity position, while operational improvements at Rochester and steady output from Rainy River and New Afton support its reaffirmed 2026 outlook.
However, elevated operating costs, integration risks related to the New Gold assets and ongoing volatility in precious-metals prices could continue to pressure margins and create earnings uncertainty in the near term. Despite strong long-term growth prospects and a discounted valuation relative to the industry, near-term operational and market uncertainties warrant a Hold stance on the stock.
CDE currently carries a Zacks Rank #3 (Hold).
You can see the complete lists of Zacks Rank #1 (Strong Buy) stocks here.