Coeur Mining Shares Surge on Major Acquisition and Record Silver Prices

Shares of Coeur Mining experienced a significant rally this week, propelled by a confluence of favorable market developments. The stock advanced by as much as 9.5 percent to $17.48, a move closely tied to the latest interest rate cut by the U.S. Federal Reserve. This surge coincides with silver achieving an unprecedented milestone, reaching a record high of $64.03 per ounce. Furthermore, the company is poised to join the ranks of the world's top ten precious metals producers following the announcement of a transformative $7 billion deal.

Beyond the headline-grabbing acquisition, Coeur Mining's underlying business performance remains robust. For the third quarter of 2025, the company reported a net profit of $266.82 million, a threefold increase year-over-year. Revenue saw a substantial 77 percent climb to $555 million. Concurrently, the firm has strengthened its balance sheet, with net debt reduced to a ratio of 0.1.

Exploration efforts are also yielding positive results. At the Palmarejo mine in Mexico, which spans 300 square kilometers, drilling has only covered an estimated 3 percent of the total area. Recent core samples from the San Juan vein have indicated the presence of high-grade gold and silver deposits.

Despite the recent share price advance to $17.48, market analysts see considerable upside. The consensus fair value estimate stands at $29.89 per share, implying a discount of more than 40 percent. Earnings projections for 2025 are set at $0.87 per share, which would represent growth of 383 percent. When trading in Frankfurt on December 13, the stock closed at €14.71, approximately 26 percent below its 52-week high of €19.77. This valuation gap suggests the market continues to price in integration risks, even as fundamental metrics point to a higher intrinsic value.

A $7 Billion Transaction Reshapes the Landscape

The primary catalyst for the recent market activity is a definitive agreement signed in November 2025 for Coeur Mining to acquire New Gold Inc. The all-stock transaction carries an estimated value of $7 billion. Under the terms, New Gold shareholders will receive 0.4959 shares of Coeur Mining for each share they own.

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

The market's response to the merger has been pronounced. Following the Fed's policy decision, shares of New Gold ascended to $8.77, a level not seen in twelve years. This strategic combination is expected to catapult Coeur Mining into a new tier of production scale. Company forecasts for 2026 anticipate an EBITDA of $3 billion and a free cash flow generation of $2 billion.

Unprecedented Tailwinds from the Silver Market

The macro environment for precious metals miners is exceptionally supportive. On December 12, 2025, silver prices settled at a historic peak of $64.03 per ounce, marking a staggering 116 percent increase since the start of the year.

This remarkable price appreciation is driven by three interconnected factors:

• Structural Supply Deficit: Global demand for silver has consistently outpaced supply for five consecutive years.
• Robust Industrial Demand: Consumption by the solar panel industry, a major silver consumer, has surged by 64 percent year-over-year.
• Monetary Policy Shift: The recent reduction in U.S. interest rates has enhanced the investment appeal of non-yielding assets like precious metals.

Adding to the positive outlook, research teams at J.P. Morgan and Deutsche Bank have issued 2026 price forecasts for gold, another key metal for Coeur, ranging from $4,450 to $5,055 per ounce. These projections provide further momentum for the company's expanding operations.