Core Viewpoint - Coeur Mining (CDE.US) is acquiring New Gold (NGD.US) in an all-stock deal valued at approximately $7 billion, creating a new giant in the North American precious metals sector with a combined market capitalization of about $20 billion [1] Group 1: Acquisition Details - The acquisition will allow Coeur Mining to operate in Canada for the first time, as New Gold has two gold production sites in Canada: Rainy River and New Afton [1] - Following the merger, the new entity is expected to produce approximately 900,000 ounces of gold and 20 million ounces of silver annually by 2026, positioning it among the largest in North America [1] Group 2: Market Reactions - Coeur Mining's stock price fell over 8% to $15.63, while New Gold's stock price increased nearly 3% to $7.58 following the announcement of the acquisition [1]

Core Viewpoint - Coeur Mining (CDE.US) is set to acquire New Gold (NGD.US) in an all-stock deal valued at approximately $7 billion, creating a new giant in the North American precious metals sector with a combined market capitalization of about $20 billion [1] Group 1: Acquisition Details - The acquisition will allow Coeur Mining to operate in Canada for the first time, as New Gold has two gold production sites in Canada: Rainy River and New Afton [1] - Following the merger, the new entity is expected to produce approximately 900,000 ounces of gold and 20 million ounces of silver annually by 2026, positioning it among the largest in North America [1] Group 2: Market Reactions - Coeur Mining's stock price fell over 8% to $15.63, while New Gold's stock price increased nearly 3% to $7.58 following the announcement of the acquisition [1]

Summary of Coeur Mining and New Gold Acquisition Conference Call Company and Industry Overview - **Companies Involved**: Coeur Mining (NYSE:CDE) and New Gold - **Industry**: Precious metals mining Key Points and Arguments 1. **Transaction Announcement**: Coeur Mining announced the acquisition of New Gold, creating the only all-North American senior precious metals mining company with a strong production and cash flow profile [2][4] 2. **Market Position**: The combined entity will be a $20 billion US-based precious metals producer, ranking among the top 10 largest precious metals companies globally and remaining a top five silver producer [4][11] 3. **Financial Projections**: The merger is expected to increase 2026 EBITDA to approximately $3 billion and free cash flow to about $2 billion, leading to a sector-leading free cash flow yield [4][16] 4. **Production Estimates**: The combined operations are projected to produce around 20 million ounces of silver, 900,000 ounces of gold, and 100 million pounds of copper in the next year [5][15] 5. **Shareholder Benefits**: The transaction is per share accretive for shareholders, with New Gold shareholders receiving a 16% premium on their shares [11][19] 6. **Operational Synergies**: The merger aims to leverage the strengths of both companies, enhancing operational efficiency and creating a more resilient business model [53][54] Additional Important Insights 1. **Cultural Fit**: Both companies emphasize the importance of cultural alignment and shared values in the success of the merger [3][8] 2. **Geographic Focus**: Over 80% of the combined company's revenue will come from operations in the US and Canada, positioning it favorably in the North American market [4][6] 3. **Exploration Potential**: The acquisition includes significant growth opportunities in exploration, particularly at New Afton and Rainy River, which are expected to enhance the overall production profile [12][14] 4. **Debt Management**: Coeur has successfully managed its debt levels and plans to continue building cash reserves post-acquisition, allowing for strategic capital allocation [50][51] 5. **Regulatory Considerations**: The transaction is subject to customary regulatory approvals, including potential scrutiny from Investment Canada due to the copper component at New Afton [43][44] Conclusion - The acquisition of New Gold by Coeur Mining is positioned as a transformative move within the precious metals mining industry, promising enhanced production capabilities, financial strength, and shareholder value. The strategic alignment of both companies is expected to create a robust platform for future growth and exploration opportunities.

Transaction Overview - Coeur will acquire all outstanding common shares of New Gold, valuing the transaction at approximately $7 billion based on New Gold's basic common shares outstanding[18] - New Gold shareholders will receive 04959 of a Coeur share for each New Gold share, implying a consideration of $851 per New Gold share, representing a 16% premium[18] - Coeur and New Gold shareholders will own approximately 62% and 38% of the combined company, respectively[18] Combined Company Financial Highlights (2026E) - The combined company is expected to generate approximately $3 billion of EBITDA and approximately $2 billion of free cash flow[10] - The combined entity is projected to have $390 million in cash[40] - The combined entity is projected to have $761 million in debt[40] Production and Revenue - The combined company is expected to produce approximately 20 million ounces of silver, 900000 ounces of gold, and 100 million pounds of copper[12] - The combined company's 2026 estimated gold equivalent production is 1243 Koz Au Eq[46] - Gold is expected to account for 72% of the combined 2026 estimated revenue, silver 20%, and copper 8%[13] New Gold Asset Overview (YTD 2025) - New Afton's operating cash flow is $197 million and free cash flow is $115 million[21] - New Afton's copper production is 391 million pounds and gold production is 502K ounces[21] - Rainy River's operating cash flow is $412 million and free cash flow is $215 million[28] - Rainy River's gold production is 1958K ounces[28]

Transaction Overview - Coeur will acquire all outstanding common shares of New Gold, valuing the transaction at approximately $7 billion based on New Gold's basic common shares outstanding[18] - New Gold shareholders will receive 04959 of a Coeur share for each New Gold share held, implying a consideration of $851 per New Gold share, a 16% premium[18] - Coeur and New Gold shareholders will own approximately 62% and 38% of the combined company, respectively[18] Combined Company Highlights - The combined company will have an approximate $20 billion market capitalization with seven North American operations[10] - The combined company is expected to generate approximately $3 billion of EBITDA and approximately $2 billion of free cash flow in 2026[10] - The combined company is expected to produce approximately 20 million ounces of silver, 900000 ounces of gold, and 100 million pounds of copper[12] Production and Financial Metrics - New Afton Mine's YTD 2025 production includes 391 million pounds of copper and 50200 ounces of gold, with revenue of $323 million, operating cash flow of $197 million, and free cash flow of $115 million[21] - Rainy River Mine's YTD 2025 production includes 195800 ounces of gold, with revenue of $657 million, operating cash flow of $412 million, and free cash flow of $215 million[28] Synergies and Benefits - The transaction is expected to be accretive to Coeur's per share net asset value, operating cash flow, and free cash flow metrics[10] - New Gold shareholders will gain exposure to a combined entity with greater scale and operating diversification, reducing risk[17] - The combined company is expected to have a 2026E EBITDA margin of 66%, compared to Coeur's standalone 61%[52]

Core Insights - Coeur Mining, Inc. is set to acquire New Gold Inc. in an all-stock transaction valued at approximately $7 billion, creating a new North American senior precious metals producer with a market cap of around $20 billion [1][4]. Transaction Details - The merger has been unanimously approved by both companies' boards and will see New Gold shareholders receive 0.4959 shares of Coeur common stock for each New Gold share, valuing New Gold at $8.51 per share, which is a 16% premium to its closing price as of October 31 [3][4]. - Upon completion, Coeur shareholders will own approximately 62% of the combined entity, while New Gold shareholders will hold about 38% [4]. Production and Financial Projections - The combined company will have a portfolio of seven mines across the U.S., Canada, and Mexico, with an annual production potential of 900,000 ounces of gold, 20 million ounces of silver, and 100 million pounds of copper [4][5]. - The company anticipates generating $3 billion in EBITDA and $2 billion in free cash flow by 2026, with over 80% of revenue coming from North America [5]. Synergies and Growth Potential - The merger is expected to deliver significant operational and financial synergies, including a strengthened balance sheet, lower costs, and expanded organic growth potential [6]. - The combined pipeline will include Coeur's Silvertip project and New Gold's K-Zone expansion, benefiting from the merged company's scale and liquidity [6]. Management and Board Changes - Several members of New Gold's management team will join Coeur, including Patrick Godin, who will join Coeur's Board of Directors [7]. Advisory and Timeline - BMO Capital Markets and RBC Capital Markets are advising Coeur, while National Bank Capital Markets and CIBC Capital Markets are advising New Gold. The transaction is expected to close in the first half of 2026, pending necessary approvals [8].

Core Insights - Coeur Mining, Inc. and New Gold Inc. have entered into a definitive agreement for Coeur to acquire New Gold, creating a combined company with seven North American operations expected to generate $3 billion in EBITDA and $2 billion in free cash flow by 2026 [1][2][5] Transaction Details - New Gold shareholders will receive 0.4959 shares of Coeur common stock for each New Gold share, implying a consideration of $8.51 per New Gold share, representing a 16% premium [2] - The total equity value of the transaction is approximately $7 billion, leading to a pro forma combined equity market capitalization of around $20 billion [2] - Upon completion, Coeur stockholders will own approximately 62% and New Gold shareholders will own about 38% of the combined company [2][12] Strategic Rationale - The merger aims to create a leading North American precious metals producer with a market capitalization of approximately $20 billion and a diversified portfolio generating significant free cash flow [5][6] - The transaction is expected to enhance Coeur's financial position, leading to a net cash position at closing and a growing cash balance, which could facilitate a potential investment-grade credit rating [5][6] - The combined company will have a robust growth pipeline, including high-return organic growth opportunities across its operations in North America [5][8] Benefits to Shareholders - Coeur stockholders will benefit from enhanced asset quality and reduced overall costs due to the addition of New Gold's operations [11] - New Gold shareholders will receive immediate value through a significant premium and will gain exposure to a larger, more diversified entity with reduced risk [11][12] - The transaction is expected to be accretive to Coeur's per share metrics, including net asset value and operating cash flow [11] Management and Governance - The combined management team will include members from New Gold, enhancing the organizational strength and resilience [5][8] - Key executives from New Gold, including its President and CEO, will join Coeur's board of directors upon closing [12][17] Regulatory and Approval Process - The transaction requires approval from New Gold shareholders and regulatory bodies, with a special meeting expected in the first quarter of 2026 [12][13] - Both companies' boards have unanimously approved the transaction and recommend that their respective shareholders vote in favor [16][17]

Core Viewpoint - The article highlights a bullish outlook on gold prices from multiple financial institutions, with predictions of significant increases in gold prices by 2026 due to strong demand and geopolitical uncertainties [1] Group 1: Market Performance - U.S. gold stocks are generally rising in pre-market trading, with DRDGOLD up approximately 3%, Harmony Gold up 2%, and AngloGold and Kinross Gold up 1.6% [1] - Other companies such as Coeur Mining and Pan American Silver also show gains in pre-market trading [1] Group 2: Price Predictions - UBS maintains a target price of $4,200 per ounce for gold by the end of the year, suggesting that prices could rise to $4,700 per ounce if geopolitical or market risks escalate [1] - Morgan Stanley forecasts that gold prices could reach $4,500 per ounce by mid-2026, driven by strong physical demand from ETFs and central banks amid economic uncertainties [1] - JPMorgan analysts predict that gold prices will average $5,055 per ounce by the fourth quarter of 2026 [1] Group 3: Investment Recommendations - UBS recommends that investors allocate 4%-6% of a diversified dollar investment portfolio to gold [1]

Core Insights - Coeur Mining, Inc. is a significant player in the mining industry, focusing on the exploration and production of precious metals like gold and silver, with operations across North America [1] - The company is recognized for its commitment to sustainable mining practices and faces competition from major mining companies such as Barrick Gold and Newmont Corporation [1] Financial Performance - On October 30, 2025, Cantor Fitzgerald downgraded Coeur Mining from an "Overweight" rating to a "Hold," with the stock price at $17.84 at the time of the downgrade [2] - The current stock price is $17.70, reflecting a decrease of 3.01% or $0.55, with a daily trading range between $16.34 and $18.13 [3] - Over the past year, the stock reached a high of $23.62 and a low of $4.58, indicating significant fluctuations in investor sentiment [4] - Coeur Mining's market capitalization is approximately $11.38 billion, demonstrating its substantial presence in the mining sector [4] - The trading volume for the day is 14.72 million shares, indicating active investor interest despite the recent downgrade [4]

Financial Data and Key Metrics Changes - The company reported record results for the second consecutive quarter, with cash balance expected to exceed $500 million by year-end, indicating a strong net cash position heading into 2026 [2][4] - Full year EBITDA is now expected to exceed $1 billion, and free cash flow is projected to top $550 million, both higher than previous estimates [2][4] - Metal sales increased by 15% to $555 million during the quarter, driven by a rise in ounces sold and a 15% increase in silver prices [16] Business Line Data and Key Metrics Changes - Las Chispas operation generated $66 million in free cash flow, with silver production increasing to 1.6 million ounces and gold production to 17,000 ounces [3][8] - Palmarejo delivered $47 million in free cash flow, with strong recoveries and mill throughput reaching the highest levels in six quarters [9] - Rochester saw a 3% increase in gold production and a 13% increase in silver production compared to the previous quarter, resulting in $30 million in free cash flow [10][12] - Kensington achieved free cash flow of $31 million, its highest in over six years, with gold production exceeding 27,000 ounces [12][14] - Wharf's gold production increased by 16% to 28,000 ounces, leading to free cash flow of $54 million [13][14] Market Data and Key Metrics Changes - The company noted a strong performance in the context of rising metals prices, benefiting from a balanced North American asset portfolio [14] - The average cash cost per ounce for gold and silver was reported at $1,215 and $14.95, respectively, showing positive trends compared to Q3 2024 [8] Company Strategy and Development Direction - The company is focused on maintaining a free cash flow positive phase while exploring opportunities that align with its operational quality and jurisdictional preferences [33][34] - The integration of the SilverCrest acquisition and ramping up Rochester to steady state were highlighted as key priorities for the year [33] - Future growth opportunities, particularly regarding the Silvertip project, are being assessed with a long-term perspective [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a strong finish to the year and a record year in 2026, driven by operational improvements and favorable market conditions [20][34] - The company is experiencing a favorable cost environment with flat input costs despite higher royalty obligations due to increased metal prices [56] Other Important Information - The company recorded a one-time $162 million non-cash tax benefit related to U.S. net operating losses during the quarter [18] - The net debt ratio was reported at 0.1 times, with a goal of achieving a net debt to EBITDA ratio of nil by Q4 2025 [17] Q&A Session Summary Question: What is needed to get the Rochester operation up to full capacity? - Management discussed recent modifications to improve efficiency and productivity, indicating that unplanned downtime was a challenge but improvements are expected [23][25][26] Question: How does the company view potential M&A opportunities? - The company is focused on internal priorities but remains open to opportunities that meet specific criteria, particularly regarding gold and silver projects [32][34] Question: What should be expected regarding the tax rate next year? - The effective tax rate is expected to change to around 24% due to the utilization of net operating losses, with potential for U.S. income tax payments in the future [42][44] Question: What drove the drop in grade at Palmarejo and Las Chispas? - Management indicated that the drop in grade was related to the processing of stockpiled ore and the nature of underground mining operations [46][47] Question: Are there any cost pressures being faced across the portfolio? - The company reported a favorable cost environment with strong cost controls in place, despite some increased royalty costs [56][57]