Another major transaction is afoot within the mining sector. Coeur Mining (NYSE: CDE) this morning announced that it has entered into a definitive agreement to acquire New Gold (TSX: NGD) in an all-stock transaction.
The arrangement will see Coeur expand its North American operations to a total of seven operating mines, with estimated average annual production of 900,000 ounces of gold, 20 million ounces of silver, and 100 million pounds of copper. 2026 EBITDA on a post-closing basis is estimated at $3.0 billion for Coeur, while free cash flow is expected to amount to $2.0 billion.
“With the addition of New Gold’s two Canadian operations to our five current operating mines we expect to generate approximately $3 billion of EBITDA and approximately $2 billion of free cash flow in 2026 at significantly lower overall costs and higher margins. Just two years ago, Coeur’s full-year EBITDA totaled $142 million and its free cash flow was ($297) million. Even comparing to our expected approximate $1 billion of EBITDA and $550 million of free cash flow in 2025 highlights the extent to which this transaction helps accelerate Coeur’s ongoing repositioning as a larger, more resilient, lower cost, and lower risk company,” commented Mitchell J. Krebs, CEO and Chairman of Coeur Mining.
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For Coeur shareholders, the arrangement is said to be accretive on all per share metrics, including net asset value, operating cash flow and free cash flow, with the deal set to move the company into the top ten global precious metals producers.
As part of the arrangement, Coeur has committed to apply for listing on the TSX, while maintaining corporate offices in both Toronto and Vancouver and accelerating exploration investment within Canada.
Under the terms of the arrangement, New Gold shareholders are set to receive 0.4959 shares of Coeur for each share of New Gold currently held. The figure implies consideration of $8.51 per share, which is a 16% premium to Friday’s closing price, valuing New Gold at approximately $7.0 billion.
Post transaction, the resulting company is to be 62% owned by Coeur shareholders, and 38% owned by New Gold shareholders. Additionally, New Gold CEO Patrick Godin is to join the board of directors alongside one additional New Gold nominee
The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals. 38% of the required votes have already been locked up in favor of the transaction, while a break fee of $414 million for Coeur and $255 million for New Gold are also in play.
New Gold last traded at $10.33 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
