Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Coeur Mining were looking stronger today, gaining as much as 10% after announcing that it increased its investment in International Northair Mines.
So what: Coeur will nearly double its stake in Northair, adding 9,600,000 common shares to bring its total to 20,350,000 or 19.4% of the company. The agreement was part of a private placement, and Coeur agreed to a purchase price of $0.14 for the stock, which rose to $0.18 by midday. However, the total market cap of Northair is just $16 million, making that gain insignificant.
Now what: The new investment gives Coeur an increased stake in an exploration-stage miner currently focused on Northern Mexico. It's hard to say whether this investment will bear fruit in the near future, but it gives the company an additional potential revenue stream. Coeur also recently noted that production improved this quarter as silver extraction jumped 21% and gold production 7% as the miner's stock seems to be bouncing back from a four-year low it hit two weeks ago. Coeur will report quarterly earnings August 8 with analysts expecting a profit of $0.06 a share.
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The article Why Coeur Mining Shares Popped originally appeared on Fool.com.
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