The downgrade is underpinned by the limited implied return to his target price and the heightened technical and financial risks surrounding the company over the next 12 months through the completion of POA11 development at the Rochester mine in Nevada and the Silvertip asset in British Columbia continuing to languish on care and maintenance, despite some encouraging recent exploration results.
The miner on August 3 reported its operating and financial results for the second quarter, posting a loss of $77.4 million after reporting a profit in the same period a year earlier. The Chicago-based company said it had a loss of 28¢ per share. On an adjusted per-share basis removing the non-recurring costs, the headline loss amounted to 5¢ per share.
As of June 30, Coeur had total liquidity of about $$435 million. Baretto’s estimates indicate that the company will need to draw down its entire credit facility and source external funding…
