Coeur Mining to buy New Gold in $7B all-stock deal

[Gold nuggets against black background]
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New Gold (NGD [https://seekingalpha.com/symbol/NGD]) +10.2% pre-market Monday after Coeur Mining (CDE [https://seekingalpha.com/symbol/CDE]) agreed to acquire [https://seekingalpha.com/pr/20289214-coeur-announces-acquisition-of-new-gold-to-create-a-new-all-north-american-senior-precious] the company for ~$7 billion in an all-stock deal, creating a mining company that will rank among the top 10 largest precious metals companies and top five largest silver producers globally, with silver representing 30% of total metals reserves.

The combined company will include seven North American operations generating $3 billion of expected EBITDA and $2 billion of expected free cash flow in 2026 from production of ~20 million oz of silver, 900,000 oz of gold and 100 million lbs of copper.

Under the deal terms, New Gold (NGD [https://seekingalpha.com/symbol/NGD]) shareholders will receive 0.4959 shares of Coeur (CDE [https://seekingalpha.com/symbol/CDE]) common stock for each New Gold common share, implying consideration of $8.51/share based on the October 31 closing price of Coeur shares on the New York Stock Exchange, which represents a 16% premium to the closing price of New Gold on the NYSE American.

Upon completion of the transaction, existing Coeur (CDE [https://seekingalpha.com/symbol/CDE]) shareholders and New Gold (NGD [https://seekingalpha.com/symbol/NGD]) shareholders will own ~62% and 38% of the outstanding common stock of the combined company, respectively.

Coeur (CDE [https://seekingalpha.com/symbol/CDE]) said the strong financial position of the combined company is expected to accelerate investment in multiple high-return organic growth opportunities including New Afton's K-Zone, brownfield exploration at Rainy River and across all of Coeur's portfolio in the U.S., Mexico, and Canada.

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