New Gold And Coeur Mining: Bigger Might Really Be Better

Gold Mining Bull14.94K FollowersFollow5ShareSavePlay(11min)CommentsSummaryCoeur Mining’s $7B all-stock acquisition of New Gold creates a top-10 precious metals and top-5 silver producer, offering diversified gold, silver, and copper exposure.The combined company targets 900K oz gold, 20M oz silver, and 100M lbs copper production in 2026, with $2B free cash flow and 80% revenue from U.S./Canada.Management aims for a 20% AISC reduction, potentially lowering costs to $950–$1,000/oz, positioning CDE-NGD among the lowest-cost senior producers.I initiate New Gold with a Buy rating, expecting outperformance versus GDX and a potential re-rating post-merger, supported by organic growth and M&A tailwinds. Andy Andrews/DigitalVision via Getty Images New Gold & Coeur Mining Merger Coeur Mining’s (CDE) $7 billion acquisition of New Gold (NGD) creates a top-10 precious metals company and top-5 silver producer globally. The combined entity, upon closing, willThis article was written byGold Mining Bull14.94K FollowersFollowGold Mining Bull is a gold analyst with more than a decade of investing experience in commodities, hard assets (gold and silver miners), exploration companies, oil and gas producers, MLPs, and more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NGD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.