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What: Shares ofCoeur Mining Inc. fell as much as 12% today after the silver and gold minerreported a fourth-quarter loss.
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So what: Quarterly revenue fell 18% from a year ago to $140.6 million due to lower metal prices and a 24% drop in the ounces of gold sold. Net loss was a whopping $1.08 billion, or $10.53 per share, driven by a $1.02 billion noncash impairment charge to lower the carrying value of gold and silver assets.
Now what: As is the case with any metals miner, results are largely dependent on metals prices. In that respect, I don't see much good news for gold or silver prices, and analysts expect a loss of $1.10 per share next year.
A write-off that is larger than a company's market cap is never good, and that's exactly what happened to Coeur Mining today. That's just the biggest sign that this is a stock long-term investors would be wise to stay far away from.
The article Why Coeur Mining Inc.'s Shares Dropped 12% Today originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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