UPDATE: BMO Capital Downgrades Coeur d'Alene Mines to Underperform on Lower Metal Prices, Questionable Growth

In a report published Monday, BMO Capital Markets analyst Andrew Kaip downgraded the rating on Coeur d'Alene Mines Corporation (NYSE: CDE) from Market Perform to Underperform, and lowered the price target from $16.50 to $10.00.

In the report, BMO Capital Markets noted, “BMO Research has ranked 24 proposed silver mines outlined in the report titled ‘Silver Sector Analysis – Potential New Silver Mines Assessed.' In the report, BMO Research recommends that investors increase their exposure to low-cost producers with high-quality development projects due to the declining metal price environment. The lower quartile ranking of La Preciosa (CDE's key growth project) and the expected continuation of the downward trend in silver and gold prices in conjunction with CDE's high all-in-costs negatively impacted CDE's valuation in the near term. The decline in precious metal prices has stretched CDE's valuation and the shares currently trade at 80x the 10% nominal NPV estimate.”

Coeur d'Alene Mines Corporation closed on Friday at $13.30.