Coeur Mining's Strategic Acquisition of SilverCrest Metals

Coeur Mining, Inc. (NYSE: CDE) has recently announced its acquisition of SilverCrest Metals Inc. (TSX: SIL; NYSE American: SILV), a strategic move that will significantly enhance Coeur's position in the global silver market. The acquisition, valued at approximately $1.7 billion, is expected to create a leading global silver company with a strong balance sheet and robust cash flow.

The addition of SilverCrest's Las Chispas mine, one of the world's lowest-cost and highest-grade silver/gold operations, will substantially boost Coeur's overall production. The combined company is expected to produce approximately 21 million ounces of silver annually, with peer-leading EBITDA and free cash flow. This will result in a significant increase in Coeur's revenue and profit margins, as the Las Chispas mine is projected to generate substantial free cash flow.

The acquisition will also accelerate Coeur's debt reduction initiative, with SilverCrest's strong balance sheet and cash flow profile expected to result in an immediate 40% reduction in Coeur's leverage ratio upon closing. SilverCrest's cash and equivalents position of $98 million and $24 million of bullion will provide additional financial strength to Coeur's balance sheet.

The combined company is expected to generate approximately $700 million of EBITDA and $350 million of free cash flow in 2025, at lower overall costs and higher overall margins. This significant and immediate addition to Coeur's rising free cash flow will enable rapid debt repayment and investment in other organic growth opportunities, while offering shareholders an unparalleled re-rating opportunity.

The acquisition will also bolster Coeur's board of directors with the addition of two SilverCrest directors, including its current Chief Executive Officer and Director, N. Eric Fier. This will bring extensive and relevant experience to Coeur's already distinguished board, further strengthening the company's governance and leadership.

In conclusion, Coeur Mining's acquisition of SilverCrest Metals is a strategic move that will significantly enhance the company's position in the global silver market. The addition of the Las Chispas mine will boost production, increase revenue and profit margins, and accelerate debt reduction. The acquisition will also strengthen Coeur's board of directors and governance. This transaction is expected to create a leading global silver company, well-positioned to capitalize on the growing demand for silver in renewable energy and other sectors.