What's Happening?
Coeur Mining, Inc. has announced a significant merger with New Gold Inc., valued at approximately $7 billion. This all-stock transaction will create a new North American senior precious metals producer with a market capitalization of around $20 billion. The
merger has been unanimously approved by the boards of both companies. Under the terms of the agreement, New Gold shareholders will receive 0.4959 shares of Coeur common stock for each New Gold share held, valuing New Gold at $8.51 per share, a 16% premium to its closing price as of October 31. The combined entity will operate seven mines across the U.S., Canada, and Mexico, with an annual production potential of 900,000 ounces of gold, 20 million ounces of silver, and 100 million pounds of copper. The merger is expected to generate $3 billion in EBITDA and $2 billion in free cash flow by 2026.
Why It's Important?
This merger is poised to create one of the top ten global precious metals producers and one of the five largest silver producers, with over 80% of its revenue coming from North America. The deal is expected to deliver significant operational and financial synergies, including a strengthened balance sheet, lower costs, and expanded organic growth potential. The merger will also enhance the companies' exploration and development pipeline, benefiting from the combined scale and liquidity. This strategic move positions the new entity as a formidable player in the precious metals market, potentially increasing its competitiveness and market share.
What's Next?
The transaction will be implemented through a court-approved plan of arrangement and is expected to close in the first half of 2026, pending shareholder, court, and regulatory approvals. Several members of New Gold's management team will join Coeur, with Patrick Godin, New Gold's President and CEO, joining Coeur's Board of Directors. The companies are hosting a joint investor call to discuss the merger details. Financial advisors for the transaction include BMO Capital Markets and RBC Capital Markets for Coeur, and National Bank Capital Markets and CIBC Capital Markets for New Gold.
