What's Happening?
Coeur Mining, Inc. (NYSE: CDE) experienced a significant stock price increase on December 22, 2025, with shares rising approximately 6.7% to $18.25. This surge is attributed to two major developments: the initiation of a shareholder vote process for Coeur's acquisition of New Gold and positive exploration results at Coeur's Palmarejo site. New Gold has set a special shareholder meeting for January 27, 2026, to vote on the acquisition, where New Gold shareholders would receive 0.4959 shares of Coeur for each New Gold share, resulting in New Gold shareholders owning about 38% of the combined company. Additionally, Coeur's exploration at Palmarejo has shown promising results, suggesting potential for extended mine life and increased production.
Why It's Important?
The developments are significant for Coeur Mining as they reduce uncertainty surrounding the acquisition, which is often a concern for investors due to regulatory and shareholder approval processes. The acquisition is expected to create a larger North American precious metals producer with an estimated market cap of $20 billion and projected 2026 production of 1.25 million gold-equivalent ounces. The exploration success at Palmarejo further strengthens Coeur's production capabilities, potentially enhancing its long-term growth prospects. These factors contribute to investor confidence, as reflected in the stock's performance.
What's Next?
The next steps include the shareholder vote on January 27, 2026, and the anticipated closing of the acquisition in the first half of 2026, pending necessary approvals. Coeur will also need to manage integration and operational execution post-acquisition to realize the projected synergies and financial benefits. Continued exploration success at Palmarejo will be crucial in maintaining investor confidence and supporting future production growth.
