Investing.com — Coeur Mining Inc (NYSE:CDE) stock dropped 7% in Monday premarket trading after announcing a $7 billion all-stock acquisition of New Gold Inc (NYSE:NGD), while New Gold shares rose 4.9%.
Under the terms of the agreement, New Gold shareholders will receive 0.4959 shares of Coeur common stock for each New Gold common share, representing a 16% premium to New Gold’s October 31 closing price. Upon completion, existing Coeur stockholders will own approximately 62% of the combined company, with New Gold shareholders owning the remaining 38%.
The transaction creates a North American precious metals producer with a combined market capitalization of approximately $20 billion. The merged entity will operate seven mines producing approximately 1.25 million gold equivalent ounces in 2026, including 20 million ounces of silver and 900,000 ounces of gold.
Coeur expects the combined company to generate approximately $3.0 billion in EBITDA and $2.0 billion in free cash flow in 2026, significantly higher than Coeur’s expected 2025 figures of $1 billion in EBITDA and $550 million in free cash flow.
“This transaction provides clear and compelling benefits for New Gold and Coeur shareholders by bringing together two companies with similar cultures to create a stronger, more resilient, and larger scale precious metals mining company,” said Mitchell J. Krebs, Coeur’s Chairman, President and Chief Executive Officer.
The deal requires approval from both companies’ shareholders and is expected to close in the first half of 2026. New Gold CEO Patrick Godin and one other New Gold director will join Coeur’s board upon completion of the transaction.
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