CDE to Create Leading Global Silver Company With SilverCrest Buyout

Core Viewpoint - Coeur Mining, Inc. has signed a definitive agreement to acquire SilverCrest Metals Inc., aiming to create a leading global silver company with projected silver production of 21 million ounces by 2025 [1]. Deal Details - SilverCrest stockholders will receive 1.6022 Coeur common shares per share, valuing the transaction at $1.7 billion based on Coeur's closing price of $11.34 on October 3, 2024 [2]. - Post-transaction, Coeur investors will own 63% and SilverCrest shareholders will own 37% of the combined firm [2]. - SilverCrest's CEO and another director will join Coeur's board, enhancing the board's expertise [2]. Benefits of the Acquisition - The acquisition includes SilverCrest's Las Chispas underground mine, which is expected to improve Coeur's cost and margin profile [3]. - The combined company is projected to generate approximately $700 million in EBITDA and $350 million in free cash flow in 2025 [3]. - Coeur will become a significant global silver player, with 40% of revenues derived from silver and an expected production of 432,000 ounces of gold by 2025 [4]. Financial Position - SilverCrest has a debt-free balance sheet with $122 million in treasury assets, which will aid in Coeur's debt reduction, leading to a 40% immediate decrease in Coeur's leverage ratio upon closing [5]. Recent Performance - Coeur reported a second-quarter 2024 loss of 1 cent per share, which is an improvement compared to a loss of 6 cents per share in the same quarter of 2023 [6]. - The company generated revenues of $222 million in Q2 2024, which was below the consensus estimate of $236 million but an increase from $177 million in the previous year [6]. - Coeur's share price has increased by 182.3% over the past year, outperforming the industry growth of 49.1% [7].