Coeur Mining Inc. (CDE:NYSE) released its Q3/25 results, and they were as expected, reported Kevin O'Halloran, analyst at BMO Capital Markets, in an Oct. 29 research note. BMO raised its target price on the U.S.-based precious metals producer by 9.5%.
"We expect the shares to trade at improved multiples as cash flows increase and leverage decreases," O'Halloran wrote.
26% Gain Implied
BMO's new target price on Coeur is $23 per share, up from $21 before, O'Halloran noted. In comparison, Coeur's share price was about $18.25 on Oct. 29. From this price, the return to target is 26%.
Coeur remains rated Outperform.
The company has 642.7 million shares outstanding and a $11.7 billion market cap.
FCF Grows $43M QOQ
O'Halloran reviewed Coeur's Q3/25 results and pointed out the highlights. Accelerating free cash flow (FCF) was one.
Q3/25 cash flow from operations was $238 million ($238M), up from $207M in Q2/25 and higher than BMO's $224M expectation.
Consequently, FCF was strong at $189M. It was $43M higher than Q2/25 FCF of $146M and more than BMO and consensus' estimates of $173M and $181M, respectively.
Coeur ended Q3/25 with $266M in cash, double the $112M it had at Q2/25's end. This year, the miner repaid $228M of debt, improving its net leverage ratio to 0.1x.
Looking ahead, management expects the company to reach a net cash position by year-end with more than $550M. In comparison, BMO forecasts full-year 2025 (FY25) FCF for Coeur of $606M and Q4/25 FCF of $254M.
Earnings as Anticipated
Earnings were in line, O'Halloran wrote. Adjusted earnings per share was $0.23, an exact match to BMO's estimate and slightly below consensus' $0.25 forecast.
Revenue during Q3/25 was $555M, more than BMO's $529M projection. The beat offset sales-related costs of $249M that were higher than BMO's $219M estimate.
Production Achieved
Coeur's Q3/25 production was slightly better quarter over quarter (QOQ), as expected, noted O'Halloran. As for silver, Coeur produced 4,800,000 ounces (4.8 Moz), more than BMO's estimate and more than Q2/25 production, both 4.7 Moz. However, Q3/25 silver production missed consensus' 5.1 Moz forecast.
Regarding gold, the company produced 111,000 ounces (111 Koz) in Q3/25. This beat BMO and consensus' 108 Koz forecast and Q2/25 gold production of 107 Koz. The modest beat on BMO's forecast is attributed to higher-than-estimated production at Wharf, 28 Koz versus 24.5 Koz, respectively, the analyst explained. The total number of tons placed on the pad at Wharf during the quarter turned out to be 18% more than BMO forecasted.
Guidance Refined
O'Halloran reported the changes Coeur made to is FY25 silver and gold production guidance both for its Rochester operation alone and for all of its operations combined.
For Rochester, Coeur lowered its FY25 silver production guidance by 17% and its FY25 gold production guidance by 13% to account for the decrease in tons put on the pad in Q3/25 due to the crusher being down. The new Rochester guidance is 6–6.7 Moz for silver, 55–62.5 Koz for gold. Year-to-date production at Coeur's four other operations was strong, noted the analyst.
As for its overall FY25 silver production guidance, Coeur reduced it by 2% to 7.1–19.15 Moz. Before, it was 16.7–20.3 Moz. The company raised its FY25 gold production guidance by 1% to 392.5–438 Koz, previously 380–440 Koz. Respectively, YTD silver and gold production, 13.2 Moz and 307 Koz, represent 71% and 75% of Coeur's original guidance.
What to Watch For
Investors should keep an eye out for exploration results, specifically from Kensington, Palmarejo and Silvertip, O'Halloran wrote, as they could catalyze Coeur's stock price.
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