Last Update 06 Dec 24
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Coeur Mining: Stock Price Estimate at $4,000 Gold and $100 Silver
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Step 1: Revenue Estimation
1. Production Estimates for 2024:
Silver: 12M oz.
Gold: 330K oz.
2. Projected Revenue:
Gold Revenue = 330,000 × 4,000 = $1,320,000,000 USD.
Silver Revenue = 12,000,000 × 100 = $1,200,000,000 USD.
Total Revenue = $1,320,000,000 + $1,200,000,000 = $2,520,000,000 USD.
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Step 2: Free Cash Flow (FCF) Estimation
1. Assumed FCF Margin: 30%.
2. FCF Calculation:
FCF = Total Revenue × 0.30.
FCF = $2,520,000,000 × 0.30 = $756,000,000 USD.
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Step 3: Market Capitalization
1. Valuation Multiple: 10x FCF.
2. Market Cap:
Market Cap = FCF × 10.
Market Cap = $756,000,000 × 10 = $7,560,000,000 USD.
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Step 4: Stock Price Calculation
1. Shares Outstanding: 350M.
2. Stock Price:
Stock Price = Market Cap ÷ Shares Outstanding.
Stock Price = $7,560,000,000 ÷ 350,000,000 = $21.60 USD.
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Conclusion
If gold rises to $4,000/oz and silver to $100/oz, Coeur Mining’s estimated stock price could be approximately $21.60 per share. This reflects the company’s significant upside potential with higher metal prices, assuming strong operational efficiency and favorable market conditions.
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Disclaimer
The user RockeTeller has a position in NYSE:CDE. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
