Future will tell, whether this was wise. I didn't like to let go 25% of Kensington, Rochestor, Palmarejo, San Bart and scrap for that concession across the border. It seems just far too much, unless they find miracles in the PZG Mexico package.
Trading in this crooked market does not make any sense. Buying low and holding does. This is the time to buy more of good companies like Coeur IMO.
So don't do like Snook, who buys high and then complains for the following 25 years. That is bad for the yourself and the bystanders, because they have to listen to the same story for the next 25 years.
I think they should have paid much less. That's why I was against the price paid. But considering the scarcity of good resources in an area of peak gold and peak silver, there is always a possiblility that the PZG resources turn out be much deeper and bigger than they are right now. Particularly, when the price recalibrates.
The "market" maffia will play around as it likes, either with real shares or with fake shares (naked shorty invention as since 2003, when Bush abolished market rules and supervision). So does it really matter, that there are more shares? At least they are backed by real assets.
And for a reason: CDE is way undervalued.
And silver on its way to $18.50 and higher soon, which will bring most pure silver miners into profits again and those that had the guts to increase production, like CDE, into considerable profits.
Why would he do this after Western mainstream media have been hiding the truth for so many years? He has been one of the priciple architects of the bubble concept of the last 15 years, so now he tries to safe his ....face?
With this statement gold has definately bottomed and turned around.
These professional bashers didn't get their bonus last year and will have no job by the end of this year. They'll have to go back to the gutter, where they came from. This world is getting sicker and sicker by the hour.
Krebbs is there only a few years and he has made the company a healthy company with plenty of growth opportunities, if only the price of gold and silver is no longer surpressed. On top of that, with the acquisition of Wharf and PZG he has meade sure that this company will even make profits at the present suppressed gold and silver prices from 2016 onwards.
The short sellers are TOAST, Snook, one way or another.
If they have to sell Coeur Capital, what's the big deal? In Peru they use guinea pigs or swines as "emergency" savings. Coeur Capital is their emergency saving? That's ok.
I don't understand why you are talking about disposal of Coeur capital all the time.
They don't have to dispose of anything for the time being as long as gold and silver remain where they are. First, their costs are going down fast in mexico and Bolivia due to the strong dollar. Second, the price of oil is to their advantage. Three, their cost reduction programme is working through. Fourth, QWharf has started bringing down average cost.
Fifth, gold and silver have bottomed. The sales price is rising.
Lower cash balance, but we don't know what the new asset is worth as collateral for additional debt, if required. I would say, that this has been a very sound investment.
According CICB analyst (source Kitco).
Coeur's Wharf Mine Acquisition Narrows Margin For Error – CIBC
Tuesday March 31, 2015 10:44 AM
Coeur Mining Inc.’s (NYSE:CDE) acquisition of Goldcorp Inc.’s Wharf gold mine, located in South Dakota, for $105 million cash will bridge a near-term cash flow gap for the company’s turnaround strategy, but also makes the margin for error much slimmer, say analysts at CIBC. “The lower cash balance implies a much lower margin of error, with the deal thus adding additional financing risk to the company, in our view,” they say. “Still, given the additional cash flows from Wharf and the planned strong operating turnaround that starts to show far better numbers from about mid-2016, delivery on strategy is now critical.” CIBC adds that, “[e]ven with Wharf now bedded in and delivering good cash flows, Coeur is not out of the woods, but if metal prices stay around $1,200 per ounce gold and $17 per ounce silver, the high-risk play will likely pay off.”
New quarter always interesting vis-a-vis sector rotation. Gold and silver starting strong. If silver breaks $17.50 this week it will be on the way to $18.50 and Coeur will become profitable again. CIBC had something to say about increased risk due to acquisition of Wharf. In favour of short positions that have to be covered.
Your title is a bit misleading IMO. Ok, you found a miner, which according to you can produce at break even or a small profit at $17 (Hecla). But as an average for the sector of primary silver miners AISC is still above $19, according to research done by SRS Rocco. Coeur AISC must be by now below $19 and maybe at $18, where losses are limited.
What I am trying to say, is that the price of silver is below average cost of production for the entire sector of primary silver miners and won't stay there for very long, unless silver demand collapses or producers of base metal with silver as a by-product start producing more, which isn't the case.
I think that at today's artificially established price of $17 (ask the Morgue more about it), it does not make sense to look at which producer produces at below $17 and thus is the more attractive, because it is obvious that the price of silver cannot stay here for long (ofcourse sufficient buffer against bankrupcy is an issue).
IMO the analysis should be which company will benefit most once the price of silver gets back to a normal supply-demand equilibrium. This shift from below cost to above cost can go very fast. An increase of $5 within a month in not exceptional in silver. That could still mean that HL is the more interesting company, by the way.