Thursday, January 2, 2014

Interview with Coeur Mining

Here's the second video I shot in San Francisco at the 49 North Resource Investment Conference. You can find the first video HERE.  This one is an interview with Bridget Freas, a representative from Couer Mining (Symbol CDE on the NYSE).



I think this Couer interview is especially relevant because the positive action in gold and silver earlier this week may spark new investor interest in mining companies.  Couer recently traded at just 0.48 times book value.  It's being priced for oblivion. Do you think that's accurate, or is the market mispricing this one?

An important note: During the three months ending on Sep. 30, the company's total production cost of silver per ounce stood at $21.92. In addition, the total production cost per ounce of gold sold stood at $1,614 for the period. That's why Ms. Freas emphasizing cost controls so much. Until the company shows otherwise, we have to assume it's producing gold and silver at a loss. However, we also know that bringing down costs is Couer's main focus right now.

One thing Ms. Freas doesn't mention in this video is that Couer should have a new resource estimate coming out fairly soon. That kind of news has NOT been a catalyst for mining stock prices recently. If a new resource estimate DOES move Couer's share price, that would be very interesting indeed.

Remember, just because I'm posting the interview, this is not an immediate endorsement. Do your own due diligence, and know what price you'll sell a stock at before you buy it.

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