Coeur Mining Shares Retreat Amid Silver Surge as Major Acquisition Vote Looms

Despite silver prices breaking through the historic $80 per ounce barrier, shares of Coeur Mining closed down approximately 3.7% on Friday, trading near $18. This counterintuitive move is attributed to investors securing profits following a remarkable 222% gain in the stock's value during the previous year. Adding to the dynamic is an impending shareholder vote on the company's proposed $7 billion, all-stock acquisition of New Gold Inc.

The acquisition, set for a decisive shareholder vote on January 27, 2026, is a cornerstone of Coeur's growth strategy. In a recently published interview, CEO Mitch Krebs defended the move, stating that the promised growth trajectory is already underway and that upcoming projects are fully financed. The transaction would grant Coeur control of New Gold's two Canadian mining operations, Rainy River and New Afton.

Upon completion, the combined entity is projected to become one of North America's largest diversified precious metals producers, with an estimated EBITDA approaching $3 billion. A key strategic aim of the deal is to diversify Coeur's revenue stream more heavily toward gold and copper, providing a hedge against the inherent volatility of the silver market. Institutional investor Allspring Global Investments demonstrated confidence by increasing its stake by 29.5% in the fourth quarter, holding about 2.37 million shares valued at roughly $44.7 million.

Should investors sell immediately? Or is it worth buying Coeur Mining?

Valuation Concerns Trump Commodity Strength

The stock's weakness in the face of soaring silver prices reflects market concerns more about valuation than the commodity's outlook. As the standout performer of 2025, Coeur Mining's valuation has reached elevated levels. Furthermore, the market is currently pricing in the execution risks associated with integrating a company of New Gold's scale, creating a layer of uncertainty.

Operationally, the company's foundation appears solid. Its Rochester mine in Nevada has been operating at full capacity since late 2025, leading to a significant reduction in production costs. This successful transition from a high-cost developer to a cash-flow-positive producer was the fundamental driver behind last year's substantial share price appreciation.

Critical Milestones on the Horizon

While the January 27 shareholder vote is widely anticipated to pass, it may introduce short-term volatility. Attention will then quickly turn to the quarterly earnings report scheduled for February 25. Analysts will scrutinize whether Coeur can maintain its profit margins with silver above $80 per ounce and assess management's accuracy in forecasting integration costs for the New Gold deal. From a technical analysis perspective, the support zone between $16.75 and $17.00 remains a crucial level for maintaining the longer-term upward trend.