Coeur Mining Acquires New Gold in a $7B Deal, Establishing a Mining Colossus
U.S. gold miner Coeur Mining has announced a $7 billion all-stock acquisition of Canada’s New Gold, thereby creating a North American precious metals powerhouse with a projected market capitalization of $20 billion.
The deal, which was unveiled on Monday, merges seven operating mines across the U.S., Canada, and Mexico. This positions the newly merged entity to produce 1.25 million gold equivalent ounces by 2026, including 900,000 ounces of gold and 20 million ounces of silver. New Gold shareholders will benefit from a 16% premium, receiving 0.4959 Coeur shares for each New Gold share.
“This merger creates one of North America’s largest gold and silver producers,” said industry analysts, highlighting the deal’s significance amid record gold prices exceeding $4,000 per ounce. New Gold’s Canadian operations include the Rainy River mine in Ontario and the New Afton mine in British Columbia.
The transaction is a reflection of the accelerating consolidation in the mining sector as companies seek scale and efficiency. New Gold shares experienced a surge of over 10% on the news, while Coeur stock initially dipped as investors weighed integration risks. The combined company expects to generate $3 billion in EBITDA and $2 billion in free cash flow by 2026.
Source: Bloomberg