Coeur to Acquire SilverCrest


SilverCrest operates the Las Chispas underground mine (above) in Sonora, Mexico. In 2023, it sold
more than 10.2 million AgEq oz. (Photo: SilverCrest)
Rio Through a subsidiary, Coeur Mining will acquire all shares of SilverCrest Metals, Inc. Under the terms of the agreement, SilverCrest shareholders will receive 1.6022 Coeur common shares for each Silver- Crest common share, which implies a total equity value of approximately $1.7 billion.

SilverCrest operates the Las Chispas underground mine in Sonora, Mexico. A high-grade, low-cost mine, Las Chispas started production in late 2022 and posted strong results in 2023, selling more than 10.2 million silver equivalent ounces (AgEq oz) at an average cash cost of $7.73/oz.

“The acquisition of SilverCrest creates a leading global silver company by adding low-cost silver and gold production, 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 Mitch Krebs, chairman, president and CEO 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.”

Pro forma the acquisition would improve Coeur’s position as a leading global silver company, with expected 2025 production of approximately 21 million oz of silver from five North American operations, with approximately 56% of revenue generated from U.S.-based mines and approximately 40% of revenue from silver. In addition, the company’s combined 2025 gold production is expected to reach approximately 432,000 oz, equal to approximately 55 million AgEq oz in total.

During February, SilverCrest brought Dumas Contracting on board to improve underground mining operations. For the first six months of 2024, ore production has increased to 186,000 metric tons (mt) from 138,000 mt during H1 2023. The object was to align the mine with the mill’s 1,200 mt/d processing capacity. The mill is currently processing 1,100 mt/d and the head grade is 4.6 g/mt gold and 446 g/mt silver.

As far as total minerals reserves, SilverCrest reported proven and probable mineral reserves of 3.4 million mt, grading 4 g/mt gold and 395 g/mt silver, which would yield 446,000 oz of gold and 43 million oz of silver or 78.6 million AgEq oz. In addition to shareholder and court approvals, the transaction is subject to applicable regulatory approvals, including Mexican antitrust approval.

As featured in Womp 2024 Vol 11 - www.womp-int.com