Coeur Mining (NYSE: CDE) is acquiring Canada’s New Gold (TSX: NGD) in an all-stock deal valued at about $7 billion, creating a new North American mining heavyweight amid record gold prices and renewed investor enthusiasm for precious metals.
Chicago-based Coeur, which operates mines in the US and Mexico, will combine with New Gold’s two Canadian gold-producing sites to form a company valued at roughly $20 billion. The merged miner will produce an estimated 900,000 ounces of gold and 20 million ounces of silver next year.
The deal strengthens Coeur’s balance sheet and cash flow, giving it greater strategic flexibility, the company said. New Gold’s assets are expected to lower Coeur’s production costs and boost margins.
“With the addition of New Gold’s two Canadian operations to our five current operating mines we expect to generate approximately $3 billion of EBITDA and approximately $2…
