Should You Buy Coeur Mining Stock For Its Cash?

October 9th, 2026 · by Trefis Team
CDEYTD-5.3%SPYYTD+14.1%XLBYTD+9.5%
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Coeur Mining (CDE) stock currently trades 37.9% below its high of the past two years, presenting a different equation for prospective buyers. The company has generated free cash flow over the last twelve months that now equals 6.8% of its market value, compared with 4.5% for the median S&P 500 company. A yield that high typically signals either a discounted asset or a business the market expects to shrink. So is Coeur’s cash growing or shrinking?

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How Coeur Mining’s Cash Grew So Fast

Coeur’s cash is growing. The company produced $1.2 billion of free cash flow over the last twelve months, an increase from $0.2 billion in the twelve months before. Two years ago, the operation was spending more than it brought in.

This accumulation matters because retained cash ultimately belongs to shareholders, whether or not the company distributes it as dividends. Equity value tends to track this underlying cash once the broader market recognizes the trend.

Coeur, which mines gold, silver and copper, now keeps more of every sales dollar. Its operating margin reached 36% over the last twelve months, up from 28% a year earlier. The company also purchased two Canadian mines, New Afton and Rainy River. The second quarter of 2026 marked their first full quarter of operation, during which Coeur’s free cash flow hit $388 million. Management indicated that the two new sites delivered 45% of that total.

Furthermore, little of this cash is consumed by capital spending or lenders. Coeur allocated about a fifth of its operating cash flow toward capital projects over the last twelve months. Its operating profit covers its interest expense 42 times. The balance sheet also holds $1.1 billion of cash, exceeding its $0.7 billion of total debt.

Why Does Coeur Mining Stock Yield So Much?

The two new mines are scaling up more slowly than planned, which may help explain why the market prices the stock at such a high yield. Coeur has already trimmed its forecasts for both properties. In an August release, management lowered its gold production guide for 2026 to 0.69 million ounces at the midpoint, down from 0.75 million. The company lowered its silver and copper guides as well.

During its August 6, 2026 call, management noted that underground mining at Rainy River is developing more gradually than previously assumed. The company now expects Rainy River to reach its underground target by year end, rather than in the third quarter. Similarly, the target for New Afton moved to early in the fourth quarter, delayed from the end of the second.

Pricing and operational costs present a second area of concern. Coeur sold its gold and silver at lower prices in the second quarter than it did in the first. Management also cited signs of higher diesel costs.

Despite these headwinds, management maintains that its five older mines remain on track for their full-year guidance. The company expects about $1.5 billion of free cash flow for 2026, a forecast that assumes significantly lower metal prices in the second half.

Are Coeur Mining’s New Mines Catching Up?

Upcoming third-quarter results will reveal whether New Afton and Rainy River are catching up. Prospective buyers are left with two open questions: whether the cash keeps growing, and whether Coeur can carry what it owes. The debt load is the easier question to answer, given that Coeur holds more cash than it owes. Free cash flow above the second quarter’s $388 million would show that Coeur’s cash is still growing at a faster pace.

Does This Mean You Should Act On CDE?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.

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