There were no S&P 500 earnings reactions on Wednesday, but we want to tell you about the latest developments in precious metals.
Everybody’s talking about precious metals right now - and for good reason. Gold, Silver, Palladium, and Platinum prices are screaming higher, and dominating the global commodity conversation.
When metal prices go vertical, the miners that dig them out of the ground start printing cash - and the market takes notice. That’s exactly what’s happening today.
Miners around the world are being re-rated higher as investors finally wake up to the power of these balance sheet transformations.
This is a full-blown profitability renaissance across the entire mining complex.
After years of struggle, Coeur Mining has flipped the script. The company's cash flow and margins are exploding higher.
They expect adjusted EBITDA to top $800M next year, with free cash flow surging past $400M - a staggering turnaround from consistent losses just a few quarters ago.
This is what happens when operational leverage meets rising metal prices. The combination of higher commodity prices with years of internal investment is driving a step-change in profitability.
The smart money saw this coming:
After getting punished through 2023, Coeur Mining has flipped the script with one of the cleanest sentiment reversals in the entire mining sector.
Over the past year, the stock has delivered positive earnings reactions in nearly every quarter, most recently rallying by more than 20% after its May earnings report.
That’s the market rewarding execution, leverage, and a clear path to sustainable profitability.
While the fundamentals are booming, the technicals are confirming the story:
Coeur Mining just broke out from a multi-decade base, completing a massive bearish-to-bullish reversal and entering a brand-new primary uptrend.
After rallying more than 350% since the April low, the stock is printing fresh multi-decade highs, signaling that this is likely the beginning of a much larger move.
So long as CDE holds above 17, the path of least resistance is likely to remain higher for the foreseeable future.
At the Beat Report, we love to buy stocks that have technical and fundamental tailwinds, like Coeur Mining.
Thank you for reading
-The Beat Team
P.S. For years, Sam Gatlin & Jason Perz have been highlighting the best risk/reward opportunities in precious metals.
