Investor attention is firmly fixed on Coeur Mining following a significant operational announcement and progress on a transformative merger. The company reported its most substantial exploration success in more than ten years, even as it advances toward a multi-billion dollar combination with New Gold.
Exploration Results Reveal Major New Discovery
On December 8, 2025, Coeur Mining published findings from its most extensive drilling campaign since 2012. Utilizing eleven rigs across a 300-square-kilometer area at its Palmarejo complex in Mexico, the program yielded exceptional results. The headline achievement was the identification of an entirely new mineralized trend named “Camuchín,” located approximately six kilometers northeast of the existing Palmarejo mine.
This discovery is considered a geological breakthrough, effectively filling a four-kilometer gap between two known mining areas that was previously unexplored. Within this new trend, the company intersected precious metals over a strike length exceeding 900 meters in 14 out of 21 drill holes.
Key highlights from the campaign include:
* Hidalgo Corridor: Extension of known veins by up to 500 meters.
* High-Grade Intercepts: Drilling at Hidalgo returned results of 10.6 grams per tonne (g/t) gold and 677 g/t silver over 2.5 meters.
* La Unión: The deposit was extended at depth by 170 meters.
* Camuchín: A new trend with the potential for several kilometers of strike length was identified.
Multi-Billion Dollar Merger Creates Industry Contender
Separate from its exploration success, the planned all-stock merger with New Gold, valued at $7 billion, remains a primary driver for the equity. The combined entity is projected to catapult into the top ten global precious metals producers.
Should investors sell immediately? Or is it worth buying Coeur Mining?
The merged company has set ambitious financial targets, aiming for an EBITDA of $3 billion and a free cash flow of $2 billion by 2026. With seven operational mines across North America, the scale would position it to compete with industry giants. The potential for an improved credit profile is already under review, with Moody’s assessing a possible ratings upgrade.
Market Performance and Analyst Outlook
Despite a remarkable year-to-date rally of over 118%, Coeur’s shares experienced a pullback recently, declining roughly 7% in the past week to trade at €13.20. Analyst perspectives on the stock, however, remain largely constructive.
TD Securities recently reaffirmed a price target of $25 per share. Conversely, Cantor Fitzgerald adopted a more cautious “Neutral” stance, citing the stock’s elevated valuation following its strong run. For the third quarter of 2025, Coeur posted revenue of $554.6 million, surpassing expectations, though its earnings per share narrowly missed analyst forecasts.
The focus now shifts to the operational execution of growth plans, including follow-up drilling in 2026 to further define the new discoveries and the finalization of the New Gold merger. A smooth integration is poised to create a new heavyweight contender in the North American mining sector.
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