Coeur Mining’s Transformative Acquisition Gains Momentum

Coeur Mining US1921085049

Significant progress on a major acquisition is reshaping the investment case for Coeur Mining. As the company advances toward its planned merger with New Gold Inc., institutional investors are building substantial positions. This strategic move coincides with a record-breaking operational and stock performance year for Coeur, creating a compelling narrative for market participants.

Parallel to the merger's advancement, major investment firms have been significantly increasing their stakes. Recent regulatory filings reveal a wave of institutional buying. Voya Investment Management LLC reported on December 23, 2025, that it expanded its holding by 246.5% during the third quarter, purchasing an additional 432,683 shares. Its total position now stands at 608,227 shares, valued at approximately $11.4 million.

This trend is echoed by other prominent investors:
* Assenagon Asset Management S.A. established a new position worth about $15.2 million.
* Thrivent Financial for Lutherans initiated a stake valued at roughly $1.26 million.
* Hudson Bay Capital Management LP acquired shares amounting to around $1.07 million.

Collectively, institutional investors now control 63.01% of Coeur's outstanding shares, indicating strong professional backing for the company's direction.

Merger Milestones Achieved and Upcoming

The core strategic development is the all-stock acquisition of New Gold Inc. A crucial regulatory hurdle was cleared on December 22, 2025, when New Gold announced the filing of its management information circular and received approval from the Canadian competition authority under the Competition Act.

The next pivotal event is scheduled for January 27, 2026, when New Gold shareholders will vote on the transaction at a special meeting. The New Gold board of directors unanimously recommends approval. Under the agreed terms, New Gold shareholders will receive 0.4959 Coeur common shares for each New Gold share they own. Upon completion, former New Gold shareholders would own approximately 38% of the combined entity. Richard O'Brien, Chair of New Gold's Board, described the potential fusion as creating a "unique North American precious metals producer."

A New Precious Metals Contender Emerges

Pro-forma projections for the merged company outline its scale and financial power within the sector:
* Pro-forma market capitalization: Approximately $20 billion.
* 2026 EBITDA forecast: $3.0 billion.
* Expected 2026 Free Cash Flow: $2.0 billion.
* 2026 production estimate: Roughly 1.25 million gold equivalent ounces, comprising:
* 900,000 ounces of gold
* 20 million ounces of silver
* 100 million pounds of copper
* Anticipated average daily trading liquidity: Over $380 million.

This would position the combined Coeur/New Gold among the world's ten largest precious metals producers and elevate it into the top five global silver producers. The enhanced market cap and liquidity are expected to broaden its appeal to larger funds and ETFs.

Record Operational Performance Provides Foundation

The optimistic outlook is underpinned by Coeur's exceptionally strong 2025 operational results, which have strengthened its balance sheet ahead of the integration:
* A record third quarter in 2025, with revenue of $555 million.
* Q3 GAAP net earnings of $267 million.
* Q3 Adjusted EBITDA of $299 million, contributing to a last-twelve-months total of $808 million.
* Five consecutive quarters of positive free cash flow.
* Gross margin expanded to 78.6%.
* Debt-to-equity ratio reduced to 0.01.

The company's liquidity position has solidified markedly, with cash and equivalents doubling to $266 million by the end of Q3 2025. Concurrently, over $228 million in financial debt has been repaid year-to-date. This robust financial health provides ample flexibility for integrating New Gold and funding future projects.

Exploration Success Drives Organic Growth

Beyond acquisitions, Coeur is demonstrating organic growth potential through exploration. In a December 8, 2025 update, the company reported on an extensive program at its Palmarejo complex in Mexico, involving approximately 68,000 meters of diamond drilling across a 300 km² area—its largest such program since 2012.

Significant results included extensions of the Hidalgo, Libertad, and San Juan veins, as well as new discoveries in the San Miguel, La Union, and Camuchin trends in East Palmarejo. Based on these findings, management raised its 2025 production guidance for Palmarejo:
* Gold: 96,000–106,000 ounces.
* Silver: 6.0–6.8 million ounces.

Market Sentiment and Valuation

Analyst sentiment remains largely positive. The consensus rating sits at "Moderate Buy," with an average price target near $16.75. Several firms have recently reaffirmed or raised their assessments:
* TD Securities increased its price target from $23.00 to $25.00, maintaining a "Buy" rating.
* Roth Capital continues with a "Buy" rating and a $23.00 target.
* TD Cowen upgraded the stock to "Strong Buy" in early December.

Trading at a price-to-earnings ratio of about 27 based on the past twelve months, Coeur commands a premium to the U.S. metals and mining sector average of 24.4. The market appears to be pricing in the growth narrative and the anticipated scale from the New Gold merger.

Share Price Trajectory and Next Steps

The fundamental strength has fueled impressive share performance. The stock is up approximately 187% over the past twelve months and about 167% year-to-date. Following this rally, shares trade around €16.13, roughly 18% below the 52-week high of €19.77 but still significantly above the 52-week low of €4.39. A distance of over 52% from the 200-day moving average indicates the extent of the advance beyond its longer-term trend, while an RSI of 50 suggests neutral short-term momentum.

The path forward for the stock is likely tied to the remaining milestones in the acquisition process. Beyond the shareholder votes on January 27, 2026, conditions include approval from the Supreme Court of British Columbia, listing approvals from the NYSE and TSX, and additional regulatory clearances. If all conditions are satisfied as planned, the transaction is expected to close in the first half of 2026, positioning Coeur Mining as a leading global precious metals enterprise.