02. Coeur Mining, Inc. (NYSE:CDE)
Upside Potential: 54%
Forward P/E Ratio: 9.04
Year To Date Share Price Gain: 77%
Coeur Mining, Inc. (NYSE:CDE) stands out as a compelling choice for the best gold stocks to invest in right now. With a forward P/E ratio of just 9.04 as of December 20 and an impressive upside potential of 54% based on a target price of $8.88 compared to its current share price of $5.77, the stock’s fundamentals make it hard to ignore. Year-to-date, the stock has gained a remarkable 77%, further cementing its place as a top contender.
The company, headquartered in Chicago, has a long history dating back to 1928. It focuses on exploring and producing gold, silver, zinc, and lead across the U.S., Canada, and Mexico. In Q3 2024, Coeur delivered one of its strongest quarters in over a decade, with substantial production increases across its operations and favorable gold and silver prices. These factors contributed to multiyear highs in free cash flow, revenue, and adjusted EBITDA.
Coeur generated $69 million in free cash flow and $126 million in adjusted EBITDA during the quarter. This success was bolstered by a 12% reduction in operating costs per ounce and a 15% rise in metal prices, leading to cost efficiencies of $1,113 per ounce for gold and $15.67 for silver. Importantly, the company utilized its cash flow to reduce $50 million of debt, bringing its net debt-to-EBITDA ratio below two times for the first time in three years.
Operations like Rochester and Palmarejo are key drivers of growth. Rochester saw gold and silver production surge by 20%, while Palmarejo’s gold and silver output rose by 8% and 14%, respectively. Meanwhile, Wharf delivered record-breaking gold production of nearly 34,000 ounces, generating $49 million in free cash flow.
Looking ahead, Coeur’s strategic acquisition of Silvercrest, expected to close in early 2025, is set to enhance its portfolio further. With robust operational metrics, improving cost efficiencies, and disciplined debt reduction, Coeur Mining is well-positioned for sustained growth, making it a solid pick for investors seeking exposure to the gold market.