Coeur Mining, the US-based precious metals producer, has announced a $158 million (£122 million) exploration budget for 2026, signalling a continued push to replenish reserves and extend mine lives. The company, which operates mines in the United States, Canada, and Mexico, said the funds would be directed primarily toward brownfield and greenfield projects targeting gold and silver deposits.
The announcement comes as gold prices remain elevated, with spot gold trading near $2,400 per ounce in recent weeks, driven by geopolitical uncertainty and central bank buying. Silver has also rallied, hovering around $30 per ounce. For UK investors, the move is a reminder that mining companies are investing heavily to capitalise on sustained demand for safe-haven assets.
While Coeur is not listed on the London Stock Exchange, its exploration spend is part of a broader trend among global miners increasing capital expenditure. Analysts at RBC Capital Markets noted that higher exploration budgets often lead to supply growth, which could temper metal prices in the longer term. However, they added that discovery costs are rising as easily accessible deposits become scarcer.
The FTSE 100-listed miners, including Rio Tinto and Anglo American, have also boosted exploration spending this year, though their focus is more on copper and battery metals. Coeur's emphasis on precious metals may appeal to UK pension funds that hold diversified commodity exposure through exchange-traded products or mining equities.
For UK readers with exposure to mining stocks or precious metals funds, the investment signals confidence in the long-term outlook for gold and silver. However, exploration is inherently risky, and not all spending will translate into economically viable discoveries.