Coeur Mining (NYSE: CDE) will acquire New Gold Inc. (TSE: NGD) in an all-stock deal valued at about USD$7 billion, creating one of North America’s largest precious metals producers.
Announced on Monday, the merger combines Coeur’s U.S. and Mexican operations with New Gold’s two Canadian mines, forming a company worth roughly USD$20 billion. The combined miner is expected to produce about 900,000 ounces of gold and 20 million ounces of silver next year.
The move comes amid record gold prices, which recently surged past USD$4,000 an ounce and could top USD$5,000 within the next year. The rally has lifted both companies’ shares, which have tripled in 2025 as investor confidence in gold and silver reached new highs.
Coeur Chief Executive Officer Mitchell J. Krebs said the acquisition marks a turning point for the company, transforming it into a larger and more efficient producer. He noted that Coeur’s earnings before interest, taxes, depreciation, and amortization (EBITDA) were only USD$142 million two years ago, with negative free cash flow of USD$297 million. By contrast, the merged company is projected to generate approximately USD$3 billion of EBITDA and USD$2 billion of free cash flow in 2026.
Krebs said the addition of New Gold’s assets will lower costs and expand margins while strengthening Coeur’s long-term stability. The combined company will operate seven high-quality mines across North America, producing an estimated 1.25 million gold-equivalent ounces in 2026. More than 80 per cent of total revenue will come from the U.S. and Canada, positioning the miner as a fully North American operation.
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Company anticipates strong free cash flow
Under the agreement, New Gold shareholders will receive 0.4959 Coeur shares for each New Gold share they hold, representing about a 16 per cent premium based on recent closing prices. Coeur will maintain New Gold’s Toronto office and plans to seek a secondary Canadian listing following completion of the transaction.
Additionally, Coeur expects the merger to be highly accretive on all key per-share metrics. Additionally, a few of these include net asset value, operating cash flow, and free cash flow. The company anticipates strong free cash flow will reduce debt and improve its credit rating. Consequently, Coeur could soon qualify for investment-grade status, giving it access to financing and the potential to boost shareholder returns.
“The combination will provide New Gold shareholders with value from combined operational synergies including rapidly unlocking the potential of K-Zone at New Afton and the exploration potential of Rainy River while also diversifying our asset base by adding five high quality precious metals operations with significant upside,” said Patrick Godin, New Gold’s president and CEO.
The firm also outlined plans to use its improved financial position to fund growth projects across its portfolio. These include brownfield exploration around Rainy River and continued investment in the U.S. and Mexico. Furthermore, the company said its growth pipeline is already fully funded and capable of delivering high-return opportunities without diluting shareholders.
Coeur’s 2025 outlook shows a sharp improvement compared with prior years. The company expects about $1 billion in EBITDA and $550 million in free cash flow before the merger closes. By 2026, the combined miner’s earniRngs and cash flow are forecast to triple, thanks to operational synergies and lower per-ounce production costs.
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Merger brings leadership changes
Analysts say the deal could reshape the North American gold and silver sector by creating a miner with the scale and liquidity to attract major institutional investors. The merged company will rank among the world’s top 10 precious-metal producers and within the top five silver producers, with silver accounting for roughly 30 per cent of total reserves.
The merger also brings leadership changes. Several New Gold executives will join Coeur’s management team. Meanwhile, while Godin and one other New Gold director will take seats on Coeur’s board after closing. Krebs said these additions will strengthen the organization and ensure continuity across operations.
Industry observers note that consolidation among miners often signals confidence in the market. With gold and silver prices performing well, larger companies are using their stronger balance sheets to acquire strategic assets. Coeur’s acquisition of New Gold reflects that trend. It creates a more diversified, efficient, and financially sound producer. If projections hold, the merger could make Coeur one of the most competitive and profitable mining companies in North America.
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