Mitchell Krebs on M&A
From Coeur Mining Makes “Massive Leap Forward” With New Gold | Mitch Krebs · · Kitco Mining
“Yeah, it's a massive leap forward. I mean, we're going to be in a completely different peer group, different snack bracket, you know, $25 billion market cap. It was just 3 years ago our company's EBITDA was $142 million — on the back of the new gold deal we'll be over $3 billion of EBITDA and it'll be over $2 billion of free cash flow.”
On , Mitchell Krebs, President, Chief Executive Officer & Chairman at COEUR MINING INC, spoke about M&A during Coeur Mining Makes “Massive Leap Forward” With New Gold | Mitch Krebs on Kitco Mining.
About Mitchell Krebs
Coeur Mining President and CEO Mitch Krebs has described the company’s acquisition of New Gold as a “massive leap forward,” stating that the all-stock deal, valued at approximately $7 billion, will move Coeur into a new peer group with a projected pro forma market capitalization of roughly $25 billion, over $3 billion in EBITDA, and more than $2 billion in free cash flow. Krebs said the transaction builds on the prior year’s SilverCrest acquisition and is intended to create a more resilient North American silver, gold, and copper producer. He acknowledged that the use of shares at a premium typically puts pressure on the acquirer’s stock price in the near term, but argued that such dilution fears are short-lived, citing the example of SilverCrest shareholders who he said are up triple on their investment if they held onto Coeur shares. Krebs has also commented on the broader precious metals market, stating that the global silver shortage is not ending soon, noting five consecutive years of supply deficits driven by industrial demand, particularly from solar panels and electronics. He described the current cycle as being in the “early innings” and said that gold and silver stocks remain undervalued when current spot prices are applied to company models. Regarding Mexico, Krebs said the mining environment is improving under new leadership, with permits that had been stalled for six years under the previous administration being issued in the first six to eight months of the new government. He added that Coeur is focused on disciplined capital allocation, prioritizing high-return investments and organic growth, including the Rochester mine expansion in Nevada and the Silver Tip project in British Columbia.