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The M&A activity in the gold sector is heating up with today's news by Coeur Mining (NYSE: CDE), which announced a $7 billion all-stock acquisition of New Gold (TSX: NGD; NYSE American: NGD)—a deal that instantly creates one of North America’s largest precious metals producers. New Gold shareholders will receive 0.4959 Coeur shares for each NGD share, representing a 16% premium over recent prices.

The new combined company will control seven operating mines across the U.S., Mexico, and Canada, producing roughly 1.25 million gold-equivalent ounces per year by 2026. Coeur expects its EBITDA to surge to around $3 billion, with $2 billion in free cash flow, marking a dramatic turnaround from just $142 million in EBITDA two years ago. For Coeur, this isn’t just a merger—it’s a reinvention and expansion.

“This transaction accelerates our repositioning as a larger, more resilient, lower-cost company,” said Coeur CEO Mitchell Krebs.

New Gold’s operations in Ontario and British Columbia complement Coeur’s U.S. and Mexico footprint, creating a geographically diversified North American producer with scale and staying power. While Coeur’s shares fell roughly 6% on the news—a typical reaction for the acquirer—this short-term dip may offer a compelling entry point for investors looking beyond the headlines.

The M&A Wave Is Picking Up Steam

Mining M&A activity is heating up again. In just the second quarter of 2025, global mining deals topped $28 billion, up more than 100% from the year prior. Gold dominated the space, accounting for nearly 70% of 2024’s $26 billion in transactions.

With gold prices now around $4,000 per ounce and central banks continuing to diversify reserves, the incentive for consolidation has never been stronger. Companies are finding it cheaper—and faster—to buy ounces than to drill for them.

We’ve already seen Orla Mining’s (NYSE: ORLA) $850 million purchase of Newmont’s Musselwhite mine (NYSE: NEM) and BHP’s (NYSE: BHP) $6.7 billion lithium expansion play. The Coeur-New Gold deal fits the same theme: mid-tier consolidation in a market chasing scale, cost efficiencies, and long-term sustainability.

We are in an era of cheap financing and now record gold prices, so the trend for stronger companies to start absorbing the smaller ones will continue, and investors get a clearer picture of winners, which I think Coeur will be once this sell-off is over.

The narrative has shifted over the last 2 years; mining is no longer seen as a dirty word and hated industry—it’s essential for the global energy transition, supply chain security, and gold for inflation protection. Investors are rediscovering that real assets, especially gold, still matter in a world of financial noise and overvaluation in the Tech sector.

CDE Looks Attractive at $15, Add More Around $13

At around $15 per share, Coeur Mining (CDE) looks like a buy, with room to add more on dips near $13. The short-term weakness tied to dilution could be an opportunity in disguise, and I think it's a good entry point to start a new position if you don't already own shares.

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Once the merger closes, Coeur will emerge as a stronger, more diversified mid-tier producer with growing free cash flow and direct leverage to both gold and silver prices. If gold’s current momentum continues—and pushes toward the $5,000 mark many now see as realistic—CDE could easily outperform its peer group over the next 12–18 months.

Bottom Line

The Coeur-New Gold merger isn’t just a headline—it’s a signal, the market now likes the sector once again. The mining industry is consolidating fast, and capital is pouring back into hard assets. For investors who’ve been waiting for a breakout in the gold space that we have seen over the last few years, this might be the early innings of a new M&A supercycle.  I think the sector will consolidate at the current gold price, but many of the mining stocks have come off last month's highs, and we are given an opportunity to buy the miners with this pullback and consolidation phase.

Coeur Mining now has the scale, balance sheet, and positioning to capitalize on the rising gold price. The short-term volatility we see now could be a great long-term entry point.  I don't have any positions in Coeur, but I am considering starting one soon, especially if we still see a bit more weakness in the stock price.

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