Coeur Mining, Inc. (NYSE: CDE) has finalised its US$1.7 billion acquisition of SilverCrest Metals Inc., marking a transformative step in the U.S.-based company’s growth strategy.
The deal, first announced in October 2024, was executed through a stock-for-stock transaction, with SilverCrest shareholders receiving 1.6022 Coeur common shares for each SilverCrest share.
This exchange resulted in the issuance of 239.3 million new Coeur shares, giving Coeur shareholders 63 per cent ownership of the combined entity, while SilverCrest shareholders hold the remaining 37 per cent.
The acquisition significantly enhances Coeur’s portfolio by adding SilverCrest’s Las Chispas mine in Sonora, Mexico — one of the world’s lowest-cost and highest-grade silver-gold operations.
This addition brings Coeur’s total producing assets to five, including operations in Nevada, Alaska, South Dakota, and Mexico.
The combined company is now positioned to produce approximately 21 million ounces of silver annually, alongside substantial gold output, making it a leading player in the North American precious metals sector.
The transaction is expected to deliver peer-leading EBITDA and free cash flow, leveraging rising gold and silver prices to drive shareholder value.
Coeur plans to release detailed production and cost guidance for 2025 during its fourth-quarter and full-year 2024 financial results announcement on February 19, 2025.
BMO Capital Markets and Goldman Sachs & Co. LLC acted as financial advisors for Coeur Mining during the transaction.
Legal counsel was provided by Goodmans LLP and Gibson, Dunn & Crutcher LLP.
The acquisition also received regulatory clearance from Mexico’s Comisión Federal de Competencia Económica (COFECE), ensuring compliance with antitrust laws.
The deal underscores Coeur’s strategic focus on scaling its operations and diversifying its asset base amid volatile commodity markets.
By integrating SilverCrest’s high-grade assets with its existing operations, Coeur aims to enhance operational efficiency and improve cost structures.
The transaction also reflects a broader trend of consolidation within the mining industry as companies seek to optimise resources and achieve greater economies of scale.
Coeur’s next steps will be closely watched by investors as it outlines the full benefits of this acquisition during its upcoming earnings report.
