Coeur Mining to acquire SilverCrest Mining for $1.7 billion

October 4, 2024

Coeur Mining announced that it will acquire SilverCrest Mining in an all-share deal valued at $1.7 billion. As part of the merger, Coeur will acquire the Las Chispas silver mine in Mexico, one of the lowest cost, highest grade silver mines in the world.

Coupled with Coeur’s recently completed expansion at its Rochester Mine in Nevada, this merger advances the company to become one of the leading silver producers in the world. Once completed, Coeur Mining will own five mines in North America and is expected to produce 21 million ounces of silver and 432,000 ounces of gold. Three of the mines, Rochester, Las Chispas and Palmarejo in Mexico are considered top silver producers.

SilverCrest’s Las Chispas underground mine in Sonora, Mexico is one of the world’s highest-grade, lowest cost, and highest-margin silver and gold operations. Las Chispas commenced production in late 2022 and has delivered strong operational and financial results in 2023, selling approximately 10.25 million silver equivalent ounces at average cash costs of $7.73 per ounce.

“The acquisition of SilverCrest creates a leading global silver company by adding low-cost silver and gold production and significant free cash flow to our rapidly growing production and cash flow driven by the recent expansion of our Rochester silver and gold mine in Nevada,” said Mitchell J. Krebs, Chairman, President and Chief Executive Officer of Coeur. “Together with SilverCrest’s large and growing cash balance and no debt, our balance sheet is expected to be materially strengthened on day one. This immediate deleveraging, along with the significant combined expected free cash flow, will allow for rapid debt repayment and investment in other organic growth opportunities while offering shareholders an unparalleled re-rating opportunity. With over 15 years of experience operating our Palmarejo underground silver and gold operation next door in Chihuahua, we look forward to adding the high-quality Las Chispas mine to create a leading global silver company at a time when the demand for silver in renewable energy and a wide range of electrification end uses is rapidly rising.”

N. Eric Fier, Chief Executive Officer, and Director of SilverCrest said, “I’m exceptionally proud of what the SilverCrest team has accomplished over the past nine years taking Las Chispas from discovery to production and creating one of the world’s premier silver operations. Our operational consistency since declaring commercial production in late 2022 is a testament not only to the asset quality, but also our outstanding team and strong stakeholder relationships. I feel confident that the Coeur team will extend this track record of success at Las Chispas and believe this transaction is the best opportunity for shareholders to not only receive an immediate premium, but also have the opportunity to become meaningful owners of a growing, multi-asset, U.S.-based, NYSE-listed silver and gold company with tremendous upside potential. I am excited to continue to be involved as an ongoing Director of Coeur.”

 

 

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