Coeur Mining Forges Industry Titan with Landmark New Gold Acquisition

The North American precious metals sector is poised for a significant realignment as producer Coeur Mining embarks on a transformative consolidation. A definitive agreement to acquire Canadian peer New Gold Inc. in an all-stock transaction valued at approximately $7 billion will create a new mining powerhouse. This strategic move comes as Coeur's stock has already surged over 150% since the start of the year, prompting market observers to question whether this momentum is sustainable.

Under the terms finalized by both companies, New Gold shareholders will receive 0.4959 Coeur shares for each share they own. This exchange ratio represents a 16% premium to New Gold's closing price in late October 2025. Upon completion, existing Coeur investors will hold approximately 62% of the combined entity, with New Gold shareholders owning the remaining 38%. The merged company is projected to command a market capitalization nearing $20 billion, establishing a dominant North American-focused miner with operations exclusively in politically stable regions—a distinct competitive advantage over rivals operating in higher-risk global markets.

Financial and Operational Metrics Set to Soar

The combined operational profile presents compelling statistics. The unified company's seven mines across the United States and Canada are forecast to produce approximately 900,000 ounces of gold and 20 million ounces of silver in 2026. The financial projections are even more striking, with anticipated EBITDA around $3 billion and projected free cash flow estimated at approximately $2 billion.

Should investors sell immediately? Or is it worth buying Coeur Mining?

These figures represent a dramatic escalation from Coeur's standalone projections for 2025, which estimated EBITDA of about $1 billion and free cash flow of $550 million. The merger effectively more than doubles EBITDA and nearly quadruples free cash flow, catapulting the combined entity into an entirely different competitive tier.

Robust Balance Sheet Supports Ambitious Growth

Even before announcing this landmark transaction, Coeur Mining had substantially strengthened its financial position. The company reported operating cash flows of nearly $238 million during the third quarter of 2025. Simultaneously, Coeur aggressively reduced its debt burden, repaying over $228 million since the beginning of the year and driving its net leverage ratio down to just 0.1x—effectively a debt-free position.

The company maintained cash and equivalents of $266 million as of the third quarter's conclusion. This solid financial foundation not only facilitates the funding of future growth initiatives but also provides flexibility for potential shareholder returns—a luxury many mining companies currently cannot afford.