Coeur Announces Acquisition of New Gold to Create a New, All North American Senior Precious Metals Producer

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]