Coeur Mining: A Surge in Bullish Bets Amid Major Expansion

Coeur Mining US1921085049

While Coeur Mining's share price has recently moved sideways, a significant spike in options market activity has captured investor attention. This bullish sentiment in derivatives trading is being fueled by a major analyst upgrade, a colossal planned acquisition, and a supportive macroeconomic shift toward lower interest rates. The convergence of these factors paints a complex picture for the precious metals producer.

A key supportive element comes from the Federal Reserve. On December 10, 2025, the U.S. central bank cut its benchmark interest rate by 25 basis points to a target range of 3.50% to 3.75%. Such monetary easing typically weakens the U.S. dollar and reduces the opportunity cost of holding non-yielding assets like gold and silver, creating a favorable margin environment for producers.

Operationally, Coeur has delivered positive news. On December 11, the stock jumped 9.5% following exploration updates for its Palmarejo and Kensington projects. Although some gains were pared over the next three trading sessions, the pullback remained contained, with support holding firm above $16.50.

Financially, the company's position has strengthened. Third-quarter 2025 results showed liquid assets doubling to $266 million, providing a crucial buffer for the capital-intensive integration of new acquisitions. From a valuation perspective, the stock trades at a forward P/E ratio of approximately 23.8. Some market experts find this attractive given an expected earnings growth rate exceeding 380% for 2025.

The Centerpiece: A Multi-Billion Dollar Growth Strategy

At the heart of Coeur's current narrative is an aggressive expansion plan. The company is working to finalize an all-stock acquisition of New Gold Inc., a deal valued at approximately $7 billion that was announced on November 3, 2025. A shareholder vote is scheduled for the first quarter of 2026. The strategic goal is to create a leading North American precious metals company with a projected combined EBITDA of around $3 billion.

This move follows the recent integration of SilverCrest Metals, a $1.7 billion transaction completed on February 14, 2025. These acquisitions have dramatically reshaped Coeur's production profile, adding low-cost, high-grade assets such as the Las Chispas mine in Mexico and the Rainy River and New Afton mines in Canada. However, this rapid growth also introduces significant complexity and integration risk, a point underscored by more cautious analysts.

Diverging Analyst Views and Speculative Trading

The analyst community reflects this dichotomy. On Tuesday, Roth Capital reaffirmed its "Buy" rating for Coeur Mining, having already raised its price target to $23 the previous day. From the price at that time, this implied a potential upside of more than 36%.

Contrasting this optimistic stance, Wall Street Zen downgraded the stock to "Hold" on the same Tuesday. These opposing ratings highlight market uncertainty regarding the company's ability to execute its ambitious strategy smoothly.

This uncertainty hasn't dampened speculative interest. Trading activity on Tuesday saw a notable surge in call option volume. A total of 25,690 call contracts changed hands, representing a jump of roughly 79% above the average daily volume of about 14,339 contracts. This activity is widely interpreted as a bet on a near-term price breakout from a consolidation phase.

Technical Perspective and Market Structure

From a technical standpoint, the stock is currently trading within a consolidation range between $16.30 and $17.20. A decisive break above the upper boundary could pave the way toward the 52-week high of $23.61, while a drop below the immediate support at $16.56 would signal short-term weakness.

Reviewing European trading data, the share recently closed at €14.36, maintaining a position well above the 200-day moving average of €10.30. This reinforces the broader long-term upward trend. The Relative Strength Index (RSI) reading of 50 indicates a neutral market condition, neither overbought nor oversold.

Chart analysts also note the presence of an active "Golden Cross," a pattern where a short-term moving average crosses above a long-term one. Combined with the robust call option volume and improved liquidity, this creates a setup where near-term upside potential is currently viewed as more probable. This optimistic technical outlook, however, remains contingent on the company's major acquisitions delivering expected synergies and financial results in the coming months.