Coeur Mining, New Gold Join Forces

Coeur Mining has announced the acquisition of New Gold  in an all-stock transaction valued at approximately US$7 billion, forming a major North American mining company. Coeur said the acquisition will strengthen its balance sheet, enhance cash flow, and provide greater operational flexibility. The addition of New Gold’s assets is anticipated to lower production costs and improve profit margins.

Coeur Mining operates in the United States and Mexico. It will integrate New Gold’s two producing mines in Canada, creating a combined entity valued at about US$20 billion. The new company is expected to produce around 900,000oz of gold and 20Moz of silver in the coming year.

“With the addition of New Gold’s two Canadian operations to our five existing mines, we expect to generate roughly US$3 billion in EBITDA and US$2 billion in free cash flow by 2026, supported by lower overall costs and higher margins,” said Coeur CEO Mitchell Krebs. “This transaction marks a significant step in our transformation into a larger, more resilient, and cost-efficient company.”

New Gold President and CEO Patrick Godin emphasized that the merger will create value through synergies and expanded growth opportunities. “It unlocks development at the K-Zone of New Afton, enhances exploration at Rainy River, and broadens our portfolio with five high-quality precious metal operations,” he said.

Under the terms of the deal, New Gold shareholders will receive 0.4959 Coeur shares for each New Gold share, representing a 16% premium based on last Friday’s closing prices. Coeur will maintain New Gold’s Toronto office and pursue a Canadian market listing.