Coeur lifts 2026 production after New Gold deal closes

Coeur Mining (NYSE: CDE) raised its 2026 production outlook after closing its acquisition of New Gold, adding two Canadian mines and significantly boosting expected output.

The company now expects to produce 680,000 to 815,000 ounces of gold, 18.68 million to 21.93 million ounces of silver, and 50 million to 65 million pounds of copper in 2026, reflecting nine months of contributions from the New Afton and Rainy River mines.

The updated guidance marks a sharp increase from 2025 output of 419,046 ounces of gold and 17.9 million ounces of silver, with management estimating the deal lifts gold production by about 80% while introducing a meaningful copper stream.

Read Analysis

Most of the increase comes from Canada. Rainy River in Ontario is expected to produce 230,000 to 275,000 ounces of gold and 350,000 to 450,000 ounces of silver, while New Afton in British Columbia is forecast to deliver 60,000 to 80,000 ounces of gold, 130,000 to 180,000 ounces of silver, and all of the company’s copper output.

Costs vary widely across the portfolio. New Afton is guided at $1,000 to $1,200 per ounce of gold and $1.20 to $1.35 per pound of copper, while Rainy River is expected to operate at $2,150 to $2,350 per ounce, making it the highest-cost gold asset in the group. The mine extended its reserve-only life to 2035 and continues transitioning to underground mining.

Among legacy operations, Las Chispas is guided at $750 to $950 per gold ounce and $12.50 to $14.50 per silver ounce, while Rochester is expected at $1,350 to $1,550 per gold ounce and $23  to $25 per silver ounce.

Financial shift

The acquisition is also reshaping Coeur’s financial strategy. The company approved a $750 million share buyback program and secured a new $1 billion revolving credit facility, replacing its previous $400 million line. Management said it will maintain a net cash position aligned with senior producer peers to support liquidity.

Coeur continues to prioritise exploration and reinvestment, with more than $340 million spent over the past five years and about $160 million planned for 2026. The company also expects to invest roughly $500 million in sustaining and development projects this year, including expansions at Rochester and additional tailings capacity at Kensington.

Chief executive Mitchell J. Krebs said the combined portfolio of seven North American operations is expected to generate strong free cash flow, supporting both increased shareholder returns and a stronger balance sheet.

Shares in the company gained more than $1 on the news, trading as high as $18.81. They were also changing hands at $17.83 in mid-afternoon activity, leaving the company with a market capitalization of $11.44 billion.