Mega-deal in the mining sector: Coeur Mining (NYSE: CDE) buys New Gold (TSX: NGD) in an all-stock transaction worth approximately USD 7 billion! The merger is taking place against the backdrop of high gold prices and increased investor demand for precious metal assets.
The combined company is expected to produce approximately 900,000 ounces of gold and 20 million ounces of silver in the coming year and, according to reports, has a valuation of approximately USD 20 billion. Coeur Mining expects the deal to result in a more robust financial profile, lower costs and a broader production base in the USA, Mexico and Canada.
Deal Structure and Valuation: Coeur Mining Relies on All-Stock Model
As part of the transaction, New Gold shareholders will receive 0.4959 Coeur shares for each share held – a premium of approximately 16% compared to the closing prices on the Friday before the announcement. Coeur Mining is taking over New Gold’s two Canadian production sites and intends to retain the Toronto office and seek a Canadian stock exchange listing. With the purchase against shares, Coeur does not have to use any cash, thus protecting the balance sheet and distributing the transaction risks to the future earnings power of the combined group.
According to the company, the merger should also strengthen the capital structure and increase free cash flow. New Gold’s mine portfolio is expected to improve Coeur Mining’s cost profile and increase margins. For New Gold’s shareholders, the exchange offer means participation in a larger, geographically diversified producer with immediate synergy potential.
Synergies, Cost Profile and Outlook of Coeur Mining
With New Gold’s two Canadian operations – namely Rainy River (Ontario) and New Afton (British Columbia) – Coeur Mining is expanding its existing set of five operating mines in the USA and Mexico. Coeur’s management estimates the potential effects at approximately USD 3 billion EBITDA and approximately USD 2 billion free cash flow in 2026, each with lower overall costs and higher margins. For comparison: Just two years ago, annual EBITDA was USD 142 million and free cash flow was –297 million. The transaction is expected to accelerate this turnaround and increase Coeur Mining’s operational and financial size.
From New Gold’s perspective, added value is created through operational synergies and growth paths: The merger is expected to accelerate the development of New Afton’s K-Zone and intensify exploration at Rainy River. Together, this leads to a broader asset base with a total of seven precious metal operations, spread across three countries, which both spreads operating risks and increases predictability in investments and maintenance.
Market Environment: Gold Rally, Silver Leverage and Investor Demand
The announcement comes during a phase of record high gold prices, in which the gold price has risen above USD 4,000 per ounce in 2025. Industry circles see the possibility that the USD 5,000 mark will be exceeded in the coming twelve months. In this environment, the shares of Coeur Mining and New Gold have multiplied in the current year. For producers with a high gold and silver content, scaling is therefore moving to the foreground: Larger units can bundle investments, better manage input costs and optimise the utilisation of plants.
For Coeur Mining, the combination opens up access to Canadian mining know-how, the regulatory environment and infrastructure, while New Gold is integrated into a larger, more capital-intensive setup. The leverage effect on silver – as a co-product in several mines – complements the gold cash flow and supports revenue diversification.
For the industry, the transaction is a further indication of the consolidation trend in the precious metals sector. Larger platforms promise scale-related cost advantages and more stable cash flows, especially in phases of high but volatile metal prices. With the merger, Coeur Mining is positioning itself as a North American gold-silver player with an expanded project pipeline and financial flexibility.
