Coeur Mining set to acquire New Gold in $7.0 billion deal
Coeur Mining Inc. [CDE-NYSE] has announced a definitive agreement to acquire New Gold Inc. (NGD-TSX, NYSE American) for $7.0 billion all-share transaction, a move that creates a new all-North American senior precious metals producer.
The combined company is expected to have a $20 billion market cap, seven high-quality operations producing approximately 1.25 million gold equivalent ounces in 2026, including 20 million ounces of silver and 900,000 ounces of gold. Over 80% of future revenue is expected to be generated from the U.S. and Canada.
Coeur, a diversified U.S. miner with five wholly-owned operations, is offering 0.4959 Coeur shares for each New Gold share, representing a 16% premium on the closing price ($8.51) on October 31, 2025. Upon completion, existing shareholders of Coeur and New Gold will own 62% and 38% respectively of the combined company. A 66 and 2/3 approval is required at a special New Gold meeting to be held in the first quarter of 2026 in order for the deal to proceed. The directors and senior offices of New Gold and Coeur have entered into customary voting support agreements. Additionally, upon closing of the transaction, New Gold CEO Patrick Godin and one other New Gold director are expected to join the Coeur board.
On Monday, New Gold shares rose 1.3% or $0.14 to $10.47 and trade in a 52-week range of $10.59 and $3.43. Coeur shares were unchanged at US$17.17 and trade in a 52-week range of $23.62 and $4.58.
“This transaction provides clear and compelling benefits for New Gold and Coeur shareholders by bringing together two companies with similar cultures to create stronger, more resilient, and larger scale precious metals mining company,’’ said Mitchell J. Krebs, Coeur’s Chairman, President and CEO.
New Gold has previously said it expects its consolidated gold production this year to be in the 325,000 to 365,000 ounces range, marking a roughly 16% increase from 2024, driven by increased production from the company’s Rainy River mine in Ontario.
The gold production target for 2025 includes 60,000 to 70,000 ounces from the New Afton mine in British Columbia, and 265,000 to 295,000 ounces from Rainy River, where the company is anticipating a 20% increase over the previous year due to a 25% rise in the gold grade as the underground mining rate is expected to increase.
Copper production this year is expected to be in the 50 to 60 million pounds range.
“With the addition of New Gold’s two Canadian operations to our five current operating mines, we expect to generate approximately $3.0 billion of cash of EBITDA (earnings before interest, tax, depreciation and amortization) and approximately $2.0 billion of free cash flow in 2026 at significantly lower overall cash costs and higher margints,” Krebs said.
The strong financial position is expected to accelerate investment in multiple high-return organic growth opportunities, including New Afton’s K-Zone, brownfield exploration at Rainy River and across all of Coeur’s portfolio in the U.S. Mexico and Canada.