Coeur lifts 2026 production after closing New Gold deal

Coeur Mining (TSX: 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 oz. of gold, 18.68 million to 21.93 million oz. of silver, and 50 million to 65 million lb. 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 oz. of gold and 17.9 million oz. of silver, with management estimating the deal lifts gold production by about 80% while introducing a meaningful copper stream.

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

Costs vary widely across the portfolio. New Afton is pegged to cost $1,000 to $1,200 per oz. of gold and $1.20 to $1.35 per lb. of copper, while Rainy River is expected to operate at $2,150 to $2,350 per oz., 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 oz. and $12.50 to $14.50 per silver oz., while Rochester is expected at $1,350 to $1,550 per gold oz. 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.

“Coeur invests more in exploration than any other company we cover by some distance,” Canaccord Genuity Capital Markets mining analyst Dalton Baretto said Monday in a note. The 2026 exploration spending target for 2026 “is well above our forecast of $120 million.”

The miner’s seven North American operations are expected to generate strong free cash flow, supporting both increased shareholder returns and a stronger balance sheet, CEO Mitchell J. Krebs said.

Coeur shares rose 2% to $18.02 in afternoon U.S. trading Monday. That gave the company a market capitalization of about $11.6 billion (C$15.9 billion).