New Gold (NYSEAM:NGD) M&A Announcement Transcript

Summary of the Conference Call on Coeur's Acquisition of New Gold Industry and Company Involved - Industry: Precious Metals Mining - Companies: Coeur Mining (NYSE: CDE) and New Gold (NYSEAM: NGD) Core Points and Arguments 1. Transaction Overview: Coeur announced the acquisition of New Gold, creating the only all-North American senior precious metals mining company with a combined market capitalization of $20 billion [4][11][22] 2. Financial Projections: The combined company is expected to achieve approximately $3 billion in EBITDA and $2 billion in free cash flow by 2026, leading to a sector-leading free cash flow yield [4][15] 3. Production Estimates: The merger will result in an expected production of around 20 million ounces of silver, 900,000 ounces of gold, and 100 million pounds of copper in the next year [5][15] 4. Shareholder Benefits: New Gold shareholders will receive a 16% premium on their shares, with the transaction expected to be accretive across all key metrics [11][22] 5. Operational Synergies: The combination is seen as a way to enhance operational efficiency and unlock value through shared resources and expertise, particularly in exploration and production [19][55] 6. Market Positioning: The new entity will be one of the top 10 largest precious metals companies globally and a top five silver producer, with over 80% of revenue coming from U.S. and Canadian operations [4][5][6] 7. Cultural Fit: Both companies emphasize the importance of cultural alignment and shared values, which are expected to facilitate a smooth integration process [3][8][20] Additional Important Content 1. Regulatory Approval: The transaction is subject to customary deal protections and requires shareholder approval, with meetings expected in Q1 2026 [11][12] 2. Exploration Potential: The acquisition will allow for increased investment in exploration, particularly at New Afton and Rainy River, which are seen as key growth areas [12][19] 3. Debt Management: Coeur plans to maintain a flexible capital structure, focusing on high-return opportunities while managing existing debt [52][53] 4. Future Growth: The combined company is positioned to be more resilient and opportunistic in low-price environments, with a strong balance sheet and cash flow generation capabilities [18][22] 5. Community Engagement: Coeur emphasizes its commitment to responsible stewardship and maintaining strong relationships with local communities and stakeholders [20][21] This summary encapsulates the key points discussed during the conference call regarding the acquisition of New Gold by Coeur Mining, highlighting the strategic rationale, financial implications, and operational synergies expected from the merger.