Coeur to acquire New Gold through definitive agreement

Core Points - Coeur Mining has entered into a definitive agreement to acquire New Gold, with New Gold shareholders receiving 0.4959 shares of Coeur for each New Gold share [1] - The transaction values New Gold shares at $8.51 based on Coeur's closing price, with an aggregate equity value of approximately $7 billion (C$9.84 billion) [2] - Post-merger, Coeur stockholders will own about 62% of the combined entity, while New Gold shareholders will hold around 38% [2] Company Overview - The merged company will be a North American-based senior precious metals producer with a market capitalization of approximately $20 billion, operating across seven sites [3] - It is projected to produce around 1.25 million gold equivalent ounces in 2026, including 20 million ounces of silver and 900,000 ounces of gold [3] - More than 80% of the combined company's revenue is expected to come from the US and Canada, with sector-leading free cash flow [3] Strategic Benefits - New Gold's CEO highlighted the merger as a significant opportunity for shareholders, combining financial strength and cash flow generation with a diversified portfolio and exploration potential [4][5] - The combined entity is expected to generate around $3 billion in EBITDA and $2 billion in free cash flow in 2026, with lower costs and improved margins [5] - This represents a substantial increase from Coeur's anticipated 2025 full-year EBITDA of $1 billion and free cash flow of $550 million [6] Growth Potential - The merged company will have a fully funded growth pipeline, focusing on high-return organic growth opportunities, including projects in New Afton's K-Zone and brownfield exploration at Rainy River [6]