Coeur Mining Forges North American Gold Giant with New Gold Acquisition

In a landmark transaction set to reshape the precious metals landscape, North American gold producer Coeur Mining has unveiled plans to acquire New Gold Inc. through an all-stock deal valued at approximately $7 billion. Announced on November 3, 2025, this represents one of the sector’s most significant consolidation moves for the year.

Market Reaction and Transaction Mechanics

Despite ambitious growth projections outlined by Coeur, the initial market response was marked by skepticism. Following the announcement, share prices for both companies declined, effectively erasing the proposed acquisition premium.

The transaction terms specify that New Gold shareholders will receive 0.4959 Coeur shares for each of their existing shares. This represents a 16% premium over New Gold’s closing price from October 31. Upon completion, current Coeur investors will hold 62% of the combined entity, with New Gold shareholders controlling the remaining 38%.

Creating a Mining Powerhouse

The merger will establish a dominant North American mining entity with operations spanning seven mines across the United States, Canada, and Mexico. The pro-forma market capitalization of the consolidated company is projected to reach approximately $20 billion.

Production forecasts for 2026 indicate substantial growth, with expectations of approximately 1.25 million gold equivalent ounces. This output will comprise 900,000 ounces of gold and 20 million ounces of silver, representing a significant expansion beyond the companies’ previous individual capacities.

Should investors sell immediately? Or is it worth buying Coeur Mining?

Financial Transformation and Analyst Assessment

Coeur anticipates substantial financial improvements from the combination. The company projects 2026 EBITDA of around $3 billion, a notable increase compared to the estimated $1 billion for 2025. Free cash flow is also expected to surge dramatically, from $550 million to approximately $2 billion.

Rating agency S&P Global Ratings responded positively to the transaction, placing Coeur’s rating on CreditWatch with positive implications on November 4. The agency highlighted that the all-stock financing structure preserves balance sheet strength, while enhanced geographical diversification into lower-risk jurisdictions and improved earnings potential could provide greater stability.

Implementation Timeline and Governance

The transaction remains subject to standard closing conditions, including shareholder approvals from both companies and necessary regulatory and court authorizations. The parties anticipate finalizing the deal during the first half of 2026.

Post-acquisition integration will see New Gold’s Chief Executive Officer Patrick Godin and an additional director join Coeur’s board. Coeur has committed to maintaining New Gold’s Toronto office and pursuing a secondary listing on the Toronto Stock Exchange (TSX), underscoring the strategic importance of the Canadian market.

The ultimate success of this ambitious combination now hinges on effective execution. Market participants will be closely monitoring whether Coeur Mining can successfully transition from a regional producer to a North American industry leader and deliver on its projected synergies and growth objectives.