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« Portfolio Update 08 March 2009 | Main | Silver Standard Resources Inc: Issues 5.45 Million Common Shares »

Coeur D’Alene Mines: Watch!


A number of our readers are investors in Coeur D'Alene Mines (CDE) and from time to time ask us why we do not own the this stock. We did own CDE many moons ago but we bailed out as it did not perform as well as other silver producers at that time.

However we have taken another look recently and although this is not a buy signal the company does appear to be shaping up and is better placed today than it has been for some time.

To get a feel for the changes that are going within Coeur we suggest that you listen to Mitchell Krebs, chief financial officer of CDE being interviewed at PDAC by BNN, click here to watch the interview in full.

In a nutshell they operate in Alaska, Mexico, Bolivia and have two new mines coming on stream which will lift their silver production from 12 million ounces to 20 million ounces, with up to 80,000 ounces of gold thrown in for good measure. Operating cash flow should increase from $12 million to $100 million in 2009. Mitchell also mentions that for every 10% increase in the price of silver adds $35m incremental operating cash flow for the company.

Coeur D'Alene Mines has a market capitalization of $369.07 million, with an average daily volume 567.80 shares traded, a 52 week high of $5.16 and a 52 week low of $0.36 and closed yesterday at $0.65.

Coeur D'Alene Mines trades on the New York Stock Exchange under the symbol of CDE and on the Toronto Stock Exchange under the symbol of CDM.

Got a comment – then fire it in.

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Reader Comments (8)

The problem with CDE is that on a fully diluted basis they have over 700M shares outstanding. Very little of any operating improvement trickles down to the bottom line. IMO there are better bets in the Ag space.

March 6, 2009 | Unregistered Commenternot4profit

I own 15000+ shares of this company . i dont understand how this company can have a book value of 3.00+ share and only trade at .65 cents a share . Jim Cramer Of mad money has stated he does not like the companies constant use of stock dilution which they have done to pay off preffered convertables.Now they want to do it again of which they have stated in there 4th quarterly call. According to the company that wiil bring an estimate of 730,000,000 shares outstanding. no doubt this will deflate the price of the stock further.
Mr krebs in the interview never answered the question why the companies stock is tankin while the companies production is increasing.In the conference call the corperateers just kept mentioning about cash flow and no mention about net profit. Am I wrong or isn't net profit is what drive the price of the shares up.
Does anyone have any idea why our stock is getting constantly run into the ground.
Sincerely, Doug

March 6, 2009 | Unregistered CommenterDoug

Hello Doug--and all I am a hard-money advocate & retired stockbroker whose clients have triumphed & becpme rich during the past 3 monetary scrambles since 1965. During the present hyperinflation-depression, I expect the capital gains made from holding shares of silver producers to far surpass gold. One of the main arguments for this is the few straight silver producers as compared to the hundreds of gold mining issues,

CDE used to be a favorite of mine & in years past we made plenty of profits from holding the shares, So--other than tremendous dilution factor of the shares---why is the stock sick, and why are people turned off it?

To find out, go to MSN money, type-in CDE and click on "Insider Transactions" Hmmm! During the first 13 days of February a big long string of "suits" were awarded rights, total approaching 1 million shares--to buy stock at "undisclosed" prices.

Good 'ol Dennis Earl Wheeler -the Prez- came out best with over 325 thousand shares. Don Birak and Don Gray didn't do so good at only 71 thousand shares apiece, all at "undisclosed" prices. (What--two cents a share?)

All the above is for recognition of "performance" which the stock displays very well by working it's way to the bottom and staying there, for months on end.

In short, the current execs of grand old CDE have been mining the hell out of the stock price--and the shareholder's value. The silver mining operation being a front for staying on the payroll.

The shareholders of CDE should get together and vote the greedy execs out, but with all the shares the execs now hold, perhaps that option is out.

Prediction: Ahead of us is the gold-silver mania stage, caused by virulent inflation. CDE will go up somehat because people will be searching for a precious metals producer which is still low in price.

We should keep in mind that GREED has no limit! Mere millions are not enough for a crook. He wants Billions! As the shares of CDE climb slowly, the top execs will exercise their options and sell their thousands of (free) shares into the amrket, simultaneously granting themselves new shares at "undisclosed" prices.
Neat huh?

And don't forget, crooks hire other crooks, who agree with their methods of doing "business."

No wonder Doug Casey once termed CDE as being "Notoriously badly managed." Now, you've been told. Henry

March 6, 2009 | Unregistered CommenterHenry J Bendinelli

Its a pretty sad situation when you read this sort of thing, but the comments are more than welcome.

March 6, 2009 | Unregistered CommenterSilver Prices

Dear Sir,
have you got any comments about bullion vault.

March 9, 2009 | Unregistered CommenterK

K, Sorry, we have not looked at them for some time - maybe one of our readers can comment for you.

March 11, 2009 | Unregistered CommenterSilver Prices

Dear Todd and everyone at Silver Prices,
can you please write a piece on Apex Silver and how the company came into bankruptcy.
What is reorganization and how will the company exist in the future? will be a different company? Who will get all the assets that are in Bolivia. Does the Bolivain Goverment have receivership the assets? ect. ect.
i don"t know much about mining and running this kind business. So i was just wondering how a company like Apex That had so much promise could come to ruin so easily.

March 12, 2009 | Unregistered CommenterDoug

We did do a post on Apex some time ago:

We were not keen on it and did not buy it, nevertheless we are sorry to see it go.

March 13, 2009 | Unregistered CommenterSilver Prices

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