Operating Margin - Coeur Mining Inc (NYSE:CDE)

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Price: 15.525 USD -2.11%

Market Cap: 10B USD

28.4%

Current

Average

5.4%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

28.4%

Operating Profit

483m

Revenue

1.7B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US		Coeur Mining Inc NYSE:CDE	9.9B USD	28%
RU	P	Polyus PJSC LSE:PLZL	70.4T USD	51%
ZA	G	Gold Fields Ltd JSE:GFI	656.7B Zac	53%
ZA	H	Harmony Gold Mining Company Ltd JSE:HAR	208.8B Zac	28%
CN		Zijin Mining Group Co Ltd SSE:601899	837.2B CNY	19%
US		Newmont Corporation NYSE:NEM	98.4B USD	43%
CA		Agnico Eagle Mines Ltd TSX:AEM	115.4B CAD	49%
AU	G	Greatland Gold PLC ASX:GGP	110.6B AUD	44%
CA		Barrick Mining Corp F:ABR0	58.7B EUR	45%
CA		Barrick Gold Corp TSX:ABX	94.3B CAD	45%
CA		Wheaton Precious Metals Corp TSX:WPM	66.8B CAD	58%

Coeur Mining Inc
Glance View

Economic Moat

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Market Cap

10B USD

Industry

Metals & Mining

Coeur Mining Inc., a name synonymous with the extraction of precious metals, has carved its niche in the mining industry over the years. Founded in 1928, this Chicago-headquartered company has grown to become one of the leading North American producers of silver and gold. The essence of Coeur's operations revolves around exploration, development, and sustainable mining practices, focusing keenly on rich deposits primarily in the Americas. With key mines located in the United States, Mexico, and Canada, Coeur wields a significant advantage through its streamlined operations and strategic asset locations, which not only enhance its production capabilities but also mitigate geopolitical risk. Each mine under Coeur's umbrella is a testament to its operational efficiency; for instance, the Palmarejo mine in Mexico is a significant contributor, thanks to its robust silver and gold outputs, while the Kensington mine in Alaska specializes in gold production, leveraging the mineral-rich terrains it sits upon. The business model Coeur Mining operates under is simple yet effective: unearthing precious metals from the earth and bringing them to market. Its revenue streams flow from the sale of these extracted materials to smelters, refineries, and metal traders, where they are further processed and utilized for various industrial and investment purposes. Climate-conscious strategies and state-of-the-art technologies put Coeur in a position to mine responsibly, reducing environmental impact while maintaining strong yields. Furthermore, Coeur's investments in exploration and development continue to uncover new deposits, ensuring a steady pipeline for future production. By aligning itself with exemplary standards of environmental stewardship and actively engaging with communities around its operations, Coeur positions itself as not just a mining entity, but a conscientious custodian of the lands it operates in. The company's commitment to ethical practices and operational transparency continues to bolster its reputation and financial health in the volatile mining market.

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CDE Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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Coeur Mining Inc
NYSE:CDE