New Gold shareholders approve merger with Coeur Mining
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2025
0mins
Should l Buy NGD?
Source: Business Insider
New Gold Inc. shares fell 9.67% and hit a 5-day low amid broader market weakness, with the Nasdaq-100 down 0.56% and the S&P 500 down 0.27%.
The shareholders of New Gold overwhelmingly approved the merger plan with Coeur Mining, with 99.22% support. Under the agreement, New Gold shareholders will receive 0.4959 shares of Coeur for each New Gold share held, resulting in a combined ownership structure of approximately 62% for Coeur and 38% for New Gold. The transaction is pending final regulatory approvals, with an expected closing in the first half of 2026, which is a significant step in enhancing market competitiveness and shareholder value.
This merger is expected to create a stronger North American precious metals producer, providing exploration upside and opportunities to extend mine life, which could drive future growth in net asset value.
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Analyst Views on NGD
Wall Street analysts forecast NGD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NGD is 9.37 USD with a low forecast of 8.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 9.430
Low
8.00
Averages
9.37
High
12.00
Current: 9.430
Low
8.00
Averages
9.37
High
12.00
About NGD
New Gold Inc. is a Canadian intermediate gold mining company, which is engaged in the development and operation of mineral properties. The assets of the Company, directly or through its subsidiaries, comprise the New Afton Mine in British Columbia, Canada (New Afton) and the Rainy River Mine in Ontario, Canada (Rainy River). The Rainy River is located approximately 65 kilometers (km) northwest of Fort Frances, Ontario, Canada. The New Afton mine is located approximately 10 km west of Kamloops, 350 km northeast of Vancouver, British Columbia, Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Regulatory Compliance: The transaction remains subject to approval under the Investment Canada Act and the satisfaction of other customary closing conditions, highlighting the company's commitment to compliance and helping to mitigate potential legal risks in the future.
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