Coeur Mining Gains Momentum as Key Shareholder Vote Approaches

The proposed acquisition of New Gold by Coeur Mining has received a significant boost, with both leading proxy advisory firms now endorsing the deal. This support has provided positive momentum for Coeur's shares as the critical shareholder vote scheduled for late January draws near. The merger aims to create a substantially larger North American precious metals producer, projecting a transformative impact on revenue, cash flow, and competitive positioning.

In a crucial development for the transaction, Institutional Shareholder Services (ISS) and Glass Lewis have each issued recommendations for shareholders to vote in favor of the merger. Glass Lewis endorsed the arrangement for New Gold stockholders and also supported the related resolution proposals from Coeur Mining.

The advisory firm justified its stance by citing the transaction's "sound strategic logic." It emphasized that the combined entity would achieve greater scale through higher production volumes, an increased market capitalization, and significantly enhanced EBITDA and cash flow generation. The backing from these two influential firms is seen as a pivotal step toward securing the necessary shareholder approvals.

Transaction Mechanics and Timelines

Shareholder meetings for both companies are set for January 27 at 11:00 AM Eastern Time. New Gold shareholders have an earlier voting deadline, with their cut-off set for 11:00 AM Eastern Time on the preceding Friday, January 23.

The terms, agreed upon in November 2025, stipulate that New Gold shareholders will receive 0.4959 Coeur common shares for each of their shares. This exchange ratio represents an approximate 16% premium based on New Gold's share price prior to the deal announcement.

Upon completion, existing Coeur shareholders are expected to own about 62% of the merged company, with former New Gold investors holding the remaining 38%.

Creating a Major Precious Metals Contender

The combined group would operate seven producing mines across the United States, Canada, and Mexico. Management forecasts for 2026 include roughly $3 billion in EBITDA and approximately $2 billion in free cash flow.

Annual production is projected to reach around 900,000 ounces of gold and 20 million ounces of silver. This expanded scale is anticipated to improve the company's profile for potential inclusion in major U.S. stock indices and enhance the liquidity of its shares.

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

Diverging Market Sentiment: Short Sellers vs. Institutional Buyers

Recent data reveals a notable rise in short interest for Coeur Mining. As of December, short interest increased by 20.5% to 66,576,252 shares, meaning roughly 10.5% of the company's outstanding shares are sold short. This volume equates to a short-interest ratio of 3.4 days based on average trading volume.

Conversely, several institutional investors have been expanding their holdings. Goldman Sachs raised its position by 18.1% to 8.35 million shares. UBS Asset Management increased its stake more dramatically, by 122.6%, to 2.43 million shares.

Analyst Consensus Remains Favorable

Ahead of the vote, analyst sentiment is predominantly positive. In November, TD Securities raised its price target from $23 to $25 and reaffirmed a "Buy" rating. Subsequently, on December 29, 2025, Zacks Research upgraded the stock to a "Strong Buy" recommendation.

Among eleven analysts tracked by MarketBeat, three currently rate the shares as "Strong Buy," six as "Buy," and two as "Hold."

Coeur's latest quarterly report, for Q3 2025 released on October 29, showed earnings per share of $0.23 on revenue of $554.57 million. This sales figure represents a 76.9% increase year-over-year. The company is scheduled to report its fourth-quarter and full-year 2025 results on February 19, 2026.

The Path Forward: January 27 Vote in Focus

All attention is now fixed on the January 27 shareholder meetings. With the recommendations from ISS and Glass Lewis, alongside public commitments from the boards and senior management of both companies to vote for the transaction, the prospects for approval appear strong.

A successful vote would lead to the delisting of New Gold shares from the TSX and NYSE American. The resulting entity would rank among the world's ten largest precious metals producers, boasting a more diversified asset base, greater financial flexibility, and the strategic objective of leveraging its expanded scale for a stronger market position.