In one of the largest transactions in the gold sector in recent years, Coeur Mining (NYSE: CDE) announced it will acquire New Gold Inc. (TSX: NGD) in an all-stock merger valued at approximately $7 billion, forming a new heavyweight in North American precious metals production. The move comes during a historic rally in gold prices, which have surged above $4,000 per ounce this year, with expectations across the industry that the metal could surpass $5,000 per ounce within the next 12 months.

Under the agreement, investors in New Gold will receive 0.4959 shares of Coeur for each New Gold share, representing a premium of about 16% based on Friday’s closing prices. The merged entity will have a combined valuation of roughly $20 billion, positioning it among the leading gold and silver producers in North America.

Combined Operations and Production Outlook

The new company will merge Coeur’s existing operations in the United States and Mexico with New Gold’s two producing mines in Canada, bringing together a geographically diversified portfolio of assets across the continent. The combined group is expected to produce approximately 900,000 ounces of gold and 20 million ounces of silver next year, significantly expanding Coeur’s current production profile.

Coeur stated that the transaction will strengthen its balance sheet and cash flow, providing “greater strategic flexibility.” The company also indicated that the integration of New Gold’s operations is expected to lower overall production costs and improve profit margins.

Following the merger, Coeur will maintain New Gold’s Toronto office and pursue a Canadian stock market listing, reflecting its expanded presence in Canada and commitment to maintaining ties with the country’s mining sector and investor base. Coeur, currently headquartered in Chicago, said the move will help facilitate broader North American market engagement.

Market Context and Industry Trends

The deal comes amid an environment of strong investor sentiment toward precious metals, driven by record gold prices and a surge in global demand for safe-haven assets. The gold price rally has propelled the valuations of mining companies across the sector, and both Coeur Mining and New Gold have seen their shares triple in 2025, reflecting renewed market confidence in the long-term fundamentals of gold and silver.

The merger continues a wave of consolidation in the mining industry as producers seek to scale up operations, reduce costs, and diversify geographically. The combined entity’s size and output will place it among the most significant gold producers operating in North America, with exposure to both gold and silver markets.

Coeur emphasized that absorbing New Gold’s assets will enhance its production base while providing a stronger platform for growth in both precious metals. New Gold’s established operations in Canada are viewed as complementary to Coeur’s existing portfolio, which includes mines in Nevada, Alaska, and northern Mexico.

Analysts have noted that the transaction gives Coeur a stronger footing in politically stable jurisdictions and adds operational diversity at a time when resource nationalism and regulatory risks are rising in some global mining regions. The expected cost efficiencies from the merger are also anticipated to improve the company’s ability to weather potential price fluctuations in the metals markets.

As gold prices continue to hover near all-time highs, the newly merged miner will begin operations in a favorable economic environment, supported by strong bullion demand and robust silver prices. With an annual gold output projected at nearly one million ounces, the new Coeur-New Gold entity will stand as one of North America’s major players in precious metals production, reflecting the broader trend of consolidation reshaping the mining landscape.