Coeur Mining Inc (NYSE:CDE) shares are trading lower by 7.06% to $6.58 during Friday's session. The company announced it agreed to acquire SilverCrest Metals for approximately $1.7 billion, pending court approval.
What To Know: Under the terms of the agreement, SilverCrest shareholders will receive 1.6022 shares of Coeur common stock for each SilverCrest share, valuing SilverCrest shares at $11.34, representing an 18% premium based on recent stock prices.
The acquisition is structured as a court-approved plan of arrangement and will give Coeur 63% ownership of the combined entity, with SilverCrest shareholders holding 37%.
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The combined company will become a leading global silver producer, with projected 2025 silver output of approximately 21 million ounces, along with 432,000 ounces of gold from its North American operations.
What Else: The deal adds SilverCrest's Las Chispas underground mine in Mexico to Coeur's portfolio, a high-grade, low-cost silver and gold producer that has been delivering strong results since 2022.
Coeur expects the acquisition to boost its free cash flow significantly and accelerate its debt reduction efforts by 40%. Additionally, two SilverCrest directors, including CEO N. Eric Fier, will join Coeur's board post-acquisition.
Both companies' boards have unanimously recommended the deal, which is anticipated to close in first-quarter 2025, pending shareholder, court, and regulatory approvals.
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Should I Sell My CDE Stock?
When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.
Shares of Coeur Mining have increased by 192.27% in the past year. An investor who bought shares of Coeur Mining at the beginning of the year would make a profit of $3.23 per share if they sold it today. The stock has risen 17.12% over the past month, meaning an investor who bought shares on Sep. 1 would see a capital gain of $0.97.
Coeur Mining shares have an all-time high of $7.51, representing 16.8% upside from current levels.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Coeur Mining stock currently has an RSI of 50.74, indicating neutral conditions.
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CDE has a 52-week high of $7.72 and a 52-week low of $2.00.