Coeur Acquires Mining Concessions Near Palmarejo Gold-Silver Complex, Mexico
Portfolio Pulse from Shivani Kumaresan
Coeur Mining, Inc. (NYSE:CDE) has acquired mining concessions near its Palmarejo gold-silver complex in Mexico from a subsidiary of Fresnillo plc (OTC:FNLPF) for $25 million in cash and future royalties. The concessions span nearly 7,000 acres and are adjacent to two primary zones within Palmarejo. The transaction is expected to increase Coeur's land holdings by 20% and create a contiguous district of over 70,000 acres. Coeur had $53.22 million in cash and equivalents as of September 30, 2023. CDE shares rose 0.99% to $2.5450.
November 20, 2023 | 3:32 pm
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POSITIVE IMPACT
Coeur Mining acquires strategic mining concessions near its Palmarejo complex, which could significantly enhance its mining potential and operational footprint.
The acquisition of the mining concessions is directly related to Coeur Mining's core business and is likely to be viewed positively by investors, as it expands the company's mining potential and operational area. The positive price action reflects market optimism.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Fresnillo plc sells mining concessions to Coeur Mining, which may impact its operational landscape but provides immediate cash inflow.
While the sale provides Fresnillo with a cash inflow, the impact on its stock is less clear as it depends on how the market perceives the sale of these assets relative to their strategic importance to Fresnillo's overall operations.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50