Coeur Mining Shares Surge on Merger Prospects and Record Metals Prices

Coeur Mining US1921085049

Coeur Mining's stock achieved a significant milestone last Friday, closing at a new 52-week high of $25.87. This represented a single-day surge of over 12%, fueled by a powerful dual catalyst: unprecedented prices for gold and silver, coupled with an imminent shareholder vote on its multi-billion dollar acquisition of New Gold Inc.

A critical element driving investor enthusiasm is the pending merger with New Gold. Shareholders of New Gold are currently casting their votes, with a deadline set for today at 11:00 AM Eastern Time. The decisive special meeting is scheduled for January 27.

The proposed transaction has garnered support from leading proxy advisory firms:
* Institutional Shareholder Services (ISS) issued a "For" recommendation on January 13.
* Glass Lewis provided an identical recommendation on January 19.

Under the terms, New Gold shareholders will receive 0.4959 Coeur shares for each share they own, representing a 16% premium to New Gold's undisturbed share price. Upon completion, existing Coeur stockholders will own approximately 62% of the combined entity, with New Gold shareholders holding the remaining 38%.

Soaring Precious Metals Prices Provide Fundamental Support

The broader market context is equally compelling. Coeur Mining, as a significant producer, is a direct beneficiary of the record-setting rally in gold and silver prices. Higher commodity prices translate directly into improved operating margins and stronger cash flows for the company.

This powerful fundamental driver is reflected in the equity's performance. Year-to-date, Coeur's stock has advanced an impressive 47.4%, starkly outperforming the S&P 500's modest 1% gain over the same period. Gains over just the last five trading sessions alone total 24%, elevating the company's market capitalization to $16 billion.

Creating a Leading North American Precious Metals Producer

Announced in November 2025, the merger is designed to create a premier, purely North American precious metals company with seven mining operations across the United States, Canada, and Mexico. The projected scale of the combined entity is substantial.

2026 Forecasts for the Merged Company:
* EBITDA: $3 billion
* Free Cash Flow: $2 billion
* Production: Approximately 20 million ounces of silver, 900,000 ounces of gold, and 100 million pounds of copper.

These projections highlight the transformative nature of the deal. For context, Coeur Mining independently reported an EBITDA of just $142 million and a negative free cash flow of $297 million for the full year 2023. Even its improved 2025 forecasts—around $1 billion in EBITDA and $550 million in free cash flow—are significantly overshadowed by the post-merger estimates.

Recent quarterly results indicate a positive operational turnaround is already underway. For the third quarter of 2025, Coeur posted operating income of $188 million, with net earnings climbing to $267 million.

Final Steps Toward Completion

Following the January 27 shareholder meeting, the transaction still requires regulatory approvals and a court sanction in British Columbia. The parties anticipate closing the merger in the first half of 2026. Upon closing, Patrick Godin and an additional New Gold board member will join Coeur's board of directors. The combined company also plans to pursue a dual listing on the Toronto Stock Exchange in addition to its existing listing on the New York Stock Exchange.

@ boerse-global.de | US1921085049 COEUR