Coeur Mining's Acquisition of New Gold Approved by Shareholders
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Merger Approval: Shareholders of Coeur Mining and New Gold overwhelmingly approved the merger plan during a special meeting on January 27, marking a significant step towards creating a new North American precious metals producer.
- Share Exchange Ratio: Under the agreement, New Gold shareholders will receive 0.4959 shares of Coeur for each New Gold share held, resulting in existing shareholders owning approximately 62% and 38% of the combined entity, respectively.
- Regulatory Approvals Pending: The deal is subject to final approval from the Supreme Court of British Columbia and various regulatory bodies, with an expected closing in the first half of 2026, indicating the complexities and uncertainties involved in the merger process.
- Positive Market Reaction: Following the merger announcement, Coeur Mining's stock rose by 1.8% and New Gold's by 2.8%, reflecting strong market optimism and increased investor confidence in the merger's potential benefits.
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Analyst Views on CDE
Wall Street analysts forecast CDE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CDE is 21.86 USD with a low forecast of 16.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 25.710
Low
16.00
Averages
21.86
High
25.00
Current: 25.710
Low
16.00
Averages
21.86
High
25.00
About CDE
Coeur Mining, Inc. is a diversified precious metals producer. The Company has five wholly owned operations: the Las Chispas silver-gold mine in Sonora, Mexico, the Palmarejo gold-silver complex in Chihuahua, Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska and the Wharf gold mine in South Dakota. In addition, the Company wholly owns the Silvertip polymetallic critical minerals exploration project in British Columbia. The Las Chispas Operation is located approximately 180 kilometers (km) northeast of Hermosillo, Sonora, Mexico. The Palmarejo complex consists of the Palmarejo processing facility, three underground mines, exploration targets and a campsite. The Rochester mine is an open pit, heap leach silver-gold operation, located in Pershing County, Nevada. The Kensington mine is an underground gold operation located in southeast Alaska. Wharf is an open pit, heap leach gold operation located in the northern Black Hills of western South Dakota.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
New Gold and Coeur Shareholders Approve Merger Plan
- Shareholder Voting Results: At New Gold's special shareholder meeting, 99.22% of shareholders voted in favor of the merger plan, indicating strong support for this transformative combination, which is expected to significantly enhance both companies' competitiveness in the North American precious metals market.
- Transaction Details: Upon completion, shareholders will receive 0.4959 shares of Coeur common stock for each New Gold share held, resulting in approximately 38% and 62% ownership for New Gold and Coeur shareholders, respectively, thereby strengthening the financial position and market standing of the combined entity.
- Regulatory Approval Process: The transaction is subject to final approval from the Supreme Court of British Columbia and other regulatory bodies, with an anticipated closing in the first half of 2026, marking a critical step in the integration of the two companies.
- Strategic Implications: This merger not only combines two companies with similar cultures and financial strengths but also provides significant exploration upside and the potential for asset value growth, positioning the combined company uniquely within the industry.
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