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Topic: 2Q 2020  (Read 208 times) previous topic - next topic

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2Q 2020
Quarterly results will be released on July 29.
Should we deduce from this press release yesterday that production and sales volumes will not be published beforehand (as for Q1).
If so, this would be regrettable and would be a further disrespect for the public!

  • edthelorax
  • [*][*][*][*][*]
  • Administrator
Re: 2Q 2020
Reply #1
Silver is about to break out and the rising tide will lift all boats.
For Entertainment Purposes Only.

Re: 2Q 2020
Reply #2
Quarterly results will be released on July 29.
Should we deduce from this press release yesterday that production and sales volumes will not be published beforehand (as for Q1).
If so, this would be regrettable and would be a further disrespect for the public!
As in the first quarter of 2020, production and sales volumes will be published in conjunction with profits (so on July 29, it's a shame CDE abandons pre-publication). An update of the 2020 targets will also be provided on July 29. Another three weeks to wait, hoping that there will not be yet another quarterly disappointment!


Re: 2Q 2020
Reply #3
There have never been so many uncertainties and doubts before the publication of the quarterly results (Wednesday)!
There are positive elements (in particular the price of metals), but they will not be canceled by the consequences of the health crisis.
On the other hand, management does nothing to help investors since production and sales volumes are no longer published before the results!

  • Nikko
  • [*][*][*][*][*]
Re: 2Q 2020
Reply #4
If I was a betting man. Id say bad earnings ( again ) and stock goes down 15% on earnings. Garbage management and garbage company. Stay away.

  • ken
  • [*][*][*][*][*]
  • Global Moderator
Re: 2Q 2020
Reply #5
Yep. I agree. All these garbage companies. I learned the hard way and won't deal in them. Only the best. Why fuck around with losers,. Not worth the lost sleep.

Re: 2Q 2020
Reply #6
CDE is out with earnings of ZERO, maybe maybe not, but in the news release they reveal they have hedged in this paragraph:

"Hedging Update
Coeur continued to add to its hedge position by executing additional ZCC hedges on a portion of its expected
gold production. The structure allows for downside protection against potential decreases in the price of gold,
while enabling participation in the potential upside to a specified ceiling price.
The Company implemented the program in preparation for POA 11 at Rochester, which it expects to fund
with a combination of cash on hand, internally generated cash flow and existing debt capacity. Coeur has
completed its gold hedging program for 2021 and will look to continue opportunistically executing ZCC
5
hedges on up to 50% of expected gold production in 2022. The Company's silver price exposure is currently
unhedged. An overview of the hedges currently implemented is outlined below:"

Table does not C&P well but for 2021 and 2022 the max - min hedged price for gold is $ 1600 -$1875 and $1626 - $2036 respectively on 158,700oz and 126,000oz respectively. Given gold near month futures are approaching $2000/oz in mid 2020, I would say CDE management has lived up to expectation shooting themselves and their shareholder owners in the foot. where was the BOD? Probably clambering to be first to bless the the foolish move. CDE is not a company to invest in until the management team and BOD are replaced in y opinion. DYODD

I can see no reason to buy into this company.

Quote taken from:

https://www.coeur.com/_resources/news/nr_20200729.pdf

Re: 2Q 2020
Reply #7
I expected more chatter from the above message as CDE has committed to selling 158,700 ounces of gold at a maximum of $1875 per ounce with gold around $1950. They have guaranteed to leave $75 and probably a lot more on the table. It is going to take a lot of atta boys to erase that blunder!

  • Nikko
  • [*][*][*][*][*]
Re: 2Q 2020
Reply #8
what can I say...garbage management, garbage company

Re: 2Q 2020
Reply #9
I expected more chatter from the above message as CDE has committed to selling 158,700 ounces of gold at a maximum of $1875 per ounce with gold around $1950. They have guaranteed to leave $75 and probably a lot more on the table. It is going to take a lot of atta boys to erase that blunder!
You may be going a bit fast to see a mistake. I am not sure that gold will not be able to come back under 1600 and it seems to me good that CDE has secured 46% of its production given the importance of future investments (in Rochester in particular). If the price of gold increases sharply, CDE will still benefit even if it is reduced by almost half, if the price decreases sharply CDE will avoid having to enter into damaging agreements like the one with Franco Nevada.
I do not find these results to be bad given the health crisis.
It is good that the annual production forecasts are almost unchanged for gold and reduced quite a bit for silver!
Based on production forecasts and prices of $ 1700 and $ 18 for gold and silver (reasonable it seems to me), I forecast revenues for 3Q and 4Q of 199.9M.
Since we are in equilibrium with revenues of 154.2M for 2Q, we should be able to hope for good profits for the second semester!

Re: 2Q 2020
Reply #10
There is no way PM's are not going up with all the currency printing and debt increases over the recent past. Couple that with GDP reported at a 32.9% drop for the second quarter and the government revenue situation is in dire straights with demand for services only exacerbated with the Wuhan virus response that will further push governments to borrow more only to have the fed print money to buy the debt. The US is in a severe downward spiral. Also, the printed money in the past has been mostly directed at banks with their lending directed toward large corporations and real estate investors. Result was stock, bond and real estate prices went up but over all inflation was muted. Now some printed money is going directly to the people (helicopter money) and they will spend what they get pushing pushing money velocity and general inflation up. The counter to increased velocity is the lower GDP.

Gold is now selling for $1950 give or take and for the second half of 2020CDE has a ceiling of $1875 on 105,000 AU ounces.  Certainty has costs, and CDE share holders are already giving up $125 an ounce. However, there might be a bright side to this; that being CDE shares will likely underperform the rest of the PM market so Krebs and company will not be receiving bonuses as big as they hoped for.

  • Nikko
  • [*][*][*][*][*]
Re: 2Q 2020
Reply #11
and an excellent miner with good management reported stellar eanings today. KL
Why own garbage like CDE when you can go with a proven winner is my question??

  • edthelorax
  • [*][*][*][*][*]
  • Administrator
Re: 2Q 2020
Reply #12
Silver is about to break out and the rising tide will lift all boats.
July 8 CDE $5.50 Today $7.88 that's +%50 in less than a month.  Bot too bad.
I'm not going to take sides on the management issue. Forward selling like 1/3 of production has it's good and bad sides. Kinda like wearing a mask. Both sides are right.
I see 3 gaps up. If I were to guess, the top 2 will fill the bottom one won't. The highest has filled, that would mean I would go with $7 as a buy, may as well make it $7.03.
For Entertainment Purposes Only.

Re: 2Q 2020
Reply #13
I share your disappointment.
However, if CDE has often disappointed us, should we rule out the possibility of improvement? There have been significant structural and management changes. Some acquisitions have proven to be particularly beneficial to Warf, others much less. With particular regard to Silvertip and La Preciosa, these operations may seem unfortunate at the moment, will they still be in a few months if the exploration is successful and the price of silver continues to recover?
The latest CDE forecasts for both production and CAS seem to me to be cautious and I now tend to give a little more credit to management, which seems to me to have succeeded rather well in transforming CDE into a period of low metal prices. , even if the weakness of the cash flow generated is to be deplored.
In the July 30 conference, it was said that Rochester's free cash flow will exceed $ 100 million per year after the expansion is completed with prices of 1615 and 16.5, which based on current prices of gold and silver would give at least 40% more. Krebs also noted the possibility of having five to seven assets, each of which generates over $ 50 million in free cash flow per year, for a total of + - 250M + 100M (Rochester) = 350 * 140/100 (gold at 1900 $ and silver at 24 $) = 490M. A valuation of 10 times the annual cash flow would give + - 490M, or $ 20 per CDE share! But, I am probably too optimistic and experience has taught me to be wary of any enthusiasm with CDE!
In a fortnight, we will have the latest exploration results, especially for Silvertip. We will then be able to check whether on this point the optimism displayed by management was justified or whether it is still powder in the eyes of investors!

  • edthelorax
  • [*][*][*][*][*]
  • Administrator
Re: 2Q 2020
Reply #14

For Entertainment Purposes Only.