Coeur Mining’s $7bn Acquisition of New Gold
- Álvaro Aguilar de Nalda
- 2 days ago
- 6 min read
By Krissa Mou, Rakan Aqrouq, Scarlet Park, and Terry Zhang (University of British Columbia); Alvaro Aguilar De Nalda; Arthus Marande, Christopher Putnis, Mattia Colombo (ESCP)
Photo: Dominic Kurniawan Suryaputra (Unsplash)
Overview of the deal
Acquirer: Coeur Mining, Inc. (Coeur)
Target: New Gold Inc. (New Gold)
Implied Equity Value: N/A
Total Transaction Size: N/A
Closing Date: The first half of 2026 (Estimated)
Target Advisor: National Bank Capital Markets and CIBC Capital Markets (financial), Davies Ward Phillips & Vineberg LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP (legal)
Acquirer Advisor: BMO Capital Markets and RBC Capital Markets (financial), Goodmans LLP and Gibson, Dunn & Crutcher LLP (legal)
On 10 December 2025, Coeur Mining, Inc. announced its acquisition of New Gold Inc., a Canadian-focused intermediate mining company with two core producing assets, Rainy River and New Afton. The transaction is structured as a combination of equity and cash and implies an approximately 16% premium to New Gold’s unaffected share price. Upon completion, the combined entity will operate seven producing mining assets across the United States, Canada, and Mexico, with ownership split approximately 62% to existing Coeur shareholders and 38% to former New Gold shareholders.
While the transaction was not entirely unexpected given Coeur’s recent acquisitive activity in the precious metals space, it reflects a deliberate strategic pivot toward scale, geographic diversification, and enhanced cash flow generation. New Gold had been trading at modest valuation multiples relative to its asset base, despite generating over US$1.2 billion in LTM revenue and maintaining a strong gold-weighted production profile. Operational challenges and market volatility around gold and copper prices had weighed on investor sentiment, creating an opportunity for Coeur to acquire high-quality, long-life Canadian assets at an attractive entry point.
For Coeur Mining, the acquisition materially strengthens its North American footprint and positions the group among the leading precious metals producers in the region, with consolidated production of approximately 1.25 million gold-equivalent ounces. The enlarged asset base enhances near-term free cash flow generation, improves reserve depth, and introduces copper as a complementary growth lever. For New Gold, the transaction provides greater financial flexibility, operational expertise, and access to a broader exploration and development platform. Overall, the acquisition underscores Coeur’s confidence in the long-term fundamentals of precious metals and the strategic value of scale under private-market-style execution discipline.
Company Details (Acquirer - New Gold Inc.)
New Gold Inc. is a Canadian-focused intermediate mining company with a portfolio of two core producing assets in Canada: the Rainy River gold mine and the New Afton gold-copper mine. New Gold is engaged in the operation, development and exploration of mineral properties. The company also operates the Cerro San Pedro gold-silver mine, which is currently in the reclamation phase. The Rainy River accounts for roughly 65% of sales, while the New Afton accounts for about 35%. Overall, about 80% of sales were generated from gold operations, and some 20% came from copper.
Founded: 1980
Headquartered: Toronto, Canada
CEO: Patrick Godin
Number of employees: N/A
Market Cap*: $6.53 billion USD
EV*: $6.80 Billion USD
LTM Revenue*: $1.24 billion USD
LTM EBITDA*: $695.5 million USD
LTM EV/Revenue: 5.47X
LTM EV/EBITDA: 9.77X
*As of 28/11/2025
Company Details (Target - Coeur Mining, Inc.)
Coeur Mining, is a metals producer focused on the exploration and mining of precious metals, primarily gold and silver. The company operates several mines, including Palmarejo, Rochester, Wharf, and Kensington, and generates most of its revenue from these operations. Coeur Mining employs 2,116 people and has projects located in the United States, Canada, and Mexico.
Founded: 1928
Headquartered: Chicago, Illinois, USA
CEO: Mitchell Krebs
Number of employees: 1898
Market Cap*: $10.26 billion USD
EV*: $10.37 billion USD
LTM Revenue*: $1.05 billion USD
LTM EBITDA: $326 million USD
LTM EV/Revenue: 3.84X
LTM EV/EBITDA: 14.18X
Recent Transactions: Coeur Mining has recently acquired SilverCrest Metals, and made investments in mining concessions and exploration companies like Fresnillo and Integra Resources
*As of 10/12/2025
Projections and Assumptions
Short-Term Consequences
The acquisition of New Gold by Coeur Mining creates a leading force in the precious metals producer in North America, through the combination of 7 mining assets across the U.S., Canada and Mexico. The transaction is structured as a mix of equity and cash, implying an approximately 16% premium to New Gold’s unaffected share price, yielding positive returns for shareholders.
The immediate market movement on the announcement of the transaction was limited. However, the growing investor confidence in the transaction’s perceived benefit, since then, New Gold shares have increased by approximately +25% and Coeur Mining shares by +26%. Analyst reactions have been largely constructive, with several firms, including Roth Capital, raising their price targets on Coeur Mining, while others have maintained a more neutral stance.
Post-transaction, the combined entity will be owned 62% by existing Coeur Mining shareholders and 38% by existing New Gold shareholders. Next, the integration of both management teams will expand the combined company's operational and technical expertise in the near term.
Operationally, the enlarged asset base consolidates 7 producing mining assets across North America alongside Coeur Mining’s existing exploration projects. In the short term, Coeur’s experience in transitioning assets from open-pit to underground operations is expected to benefit New Gold’s assets.
From a financial perspective, the combined company is expected to present a strong near-term cash generation profile, with an estimated 2026E FCF yield of ~12%, supporting improved credit perception and financial flexibility.
Long-Term Upsides
The combined entity is projected to accelerate investments across Canada, the U.S., and Mexico, including brownfield exploration at Rainy River and New Afton. These projects offer high-return organic growth opportunities supported by consolidating annual production to approximately 1.25 million gold-equivalent ounces, including 900,000 ounces of gold, 20 million ounces of silver, and 100 million pounds of copper. This scale positions Coeur among the top-tier producers in the region.
Financially, the transaction is expected to transform Coeur into a cash flow powerhouse. Management projects $3 billion in EBITDA and $2 billion in free cash flow in 2026, nearly tripling Coeur’s standalone guidance. These resources will support reinvestment in high-return brownfield projects, extending mine life and unlocking exploration upside. The addition of 7 million ounces of reserves and $17.5 billion in reserve equivalents strengthens the company’s long-term resource base, reducing reserve replacement risk.
Strategically, the merger diversifies Coeur’s commodity exposure, adding copper as a growth lever amid electrification trends while maintaining strong gold and silver positions. Meanwhile, Coeur’s planned TSX listing will broaden its investor base and improve liquidity. Dual listing on one of the most active mining exchanges could support higher trading multiples over time and attract specialized institutional investors.
Risks and Uncertainties
Despite the attractive scale benefits, the transaction carries several material risks and uncertainties. Commodity prices pose a material risk as the acquisition of New Gold increases exposure to copper through the Afton mine and expands reliance on silver, which will account for over 30% of reserves post-merger. Copper prices have fluctuated approximately 25-30% YoY, and a slowdown in industrial demand could pressure silver and copper prices, reducing cashflow.
From the operation side, underperformance at flagship assets such as Rainy River or New Afton would materially affect consolidated output targets. Any unexpected technical challenges, such as permitting delays, equipment shutdown, or weather events at these key operations, could disrupt production schedules and reduce cash flow generation, leading to weak confidence in the company's long-term growth projections.
The all-equity structure amplifies dilution risk, reducing Coeur shareholders’ ownership to 62%. With no cash component or immediate deleveraging, shareholder value depends entirely on synergy realization and earnings growth. While the combined entity expects a net cash position of $1.2 billion at closing, failure to achieve projected $3 billion EBITDA and $2 billion free cash flow in 2026 would leave investors exposed to dilution without offsetting returns. Regulatory approvals and environmental compliance across multiple jurisdictions further add complexity. These factors underscore that while the deal is strategically compelling, execution risk remains high.
“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,” - Mitchell J. Krebs, Coeur’s Chairman, President and Chief Executive Officer.