Coeur Mining Shares Surge on Acquisition and Precious Metals Rally

Coeur Mining US1921085049

Shares of the precious metals producer Coeur Mining have delivered a remarkable performance, gaining approximately 26% over a six-day trading period ending January 24. This surge, which has added roughly $3.4 billion to the company's market capitalization, now valued near $17 billion, is fueled by a powerful convergence of corporate action and soaring commodity prices.

The company's financial performance has shown significant improvement, providing a solid foundation for investor optimism. Recent quarterly results highlight a positive trajectory:

• Q2 2025: Revenue of $480.6 million with net earnings of $70.7 million.
• Q3 2025: Revenue increased to $554.6 million, accompanied by net earnings of $266.8 million.

For the full year 2024, Coeur Mining reported a net profit of $58.9 million, a substantial turnaround from a loss of $103.6 million in the prior year. The market awaits further data, with Q4 and full-year 2025 results scheduled for release after the market closes on February 18, followed by an earnings conference call on February 19 at 5:00 PM CET.

A Transformative Acquisition Vote

A primary driver of the recent equity advance is the pending acquisition of New Gold, initially announced in November 2025. The transaction, which aims to establish Coeur as a leading North American precious metals producer, faces a key milestone. A special shareholder meeting is set for January 27 at 4:00 PM CET to vote on the deal.

Confidence in the acquisition's completion received a boost from proxy advisory firm Glass Lewis, which recommended shareholders approve the transaction. This corporate development has coincided with positive analyst sentiment, including Roth Capital raising its price target to $23 per share. Year-to-date, Coeur's stock has climbed 46.4%, dramatically outperforming the S&P 500's 1% gain over the same period.

Record Commodity Prices Provide Sector Tailwinds

The broader precious metals sector is experiencing a historic rally, creating a favorable environment for producers. Gold breached the $5,100 per ounce threshold on January 26, setting a new all-time high. The move in silver has been even more pronounced, vaulting past $109 per ounce and leaving the $100 level far behind.

Key factors underpinning silver's strength include:

• A persistent structural supply deficit that has lasted several years.
• Rising industrial demand, particularly from solar panel manufacturing and electric vehicle production.
• Its official designation as a critical mineral by the U.S. Department of the Interior.

A significant portion of global silver supply is mined as a by-product of other metals, a fundamental constraint that makes resolving the supply-demand imbalance particularly challenging.