Coeur Mining’s acquisition of New Gold represents one of the largest consolidations in the North American mining sector in recent years.
Mid-tier precious metals miner Coeur Mining (NYSE:CDE) announced on Monday (November 3) it plans to acquire New Gold (TSX:NGD,NYSEAMERICAN:NGD) in an all-stock deal valued at US$7 billion.
Set to be completed in the first half of 2026, New Gold shareholders will receive 0.4959 shares of Coeur common stock for each New Gold common share, leaving existing Coeur shareholders with 62 percent ownership of the new company.
Coeur currently has five precious metals mines operating in the US and Mexico, while New Gold holds the Rainy River gold mine in Ontario and the New Afton copper-gold mine in British Columbia. The addition of New Gold’s Canadian assets to Coeur’s portfolio is expected to transition the company into a senior metals producer with a US$20 million market cap and significant footprint in North America.
The deal will not only bolster Coeur’s gold and silver production, it will further diversify the miner into the copper market at a time when demand is growing for all three metals.
“Both companies are in the early stages of generating significant cash flow after several years of heavy investment. We believe this is an extraordinary opportunity to create an unrivaled North American-only, mining powerhouse at just the right time,” said Coeur Chairman, President and CEO Mitchell J. Krebs.
For 2026, Coeur estimates production of approximately 20 million ounces of silver, 900,000 ounces of gold and 100 million pounds of copper. Notably, the merger will position the company as one of the five largest silver producers in the world with the white metal representing 30 percent of its total metals reserves.
Coeur’s management is forecasting US$3 billion in EBITDA and US$2 billion in free cash flow in 2026 which will allow the company to pursue more growth opportunities including the development of the significant copper-gold porphyry discovery at New Afton’s K-Zone.
Following the announcement, Coeur Mining’s stock fell by 7 percent, while New Gold’s received a 4.9 percent bump.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
