SilverCrest’s Stock Shines On $1.7B Buyout Bid From Coeur Mining, Grabs Retail Attention

Shares of SilverCrest Metals Inc. (SILV) surged over 10% in pre-market trading Friday after the Canada-based silver miner announced it agreed to be acquired by Chicago-based Coeur Mining Inc. (CDE) in a stock deal valued at $1.7 billion.

The deal caught the attention of retail investors, with SILV ranking among the top 15 trending tickers on Stocktwits ahead of the market open.

Under the terms of the agreement, SilverCrest shareholders will receive 1.6022 Coeur shares for each share they hold, valuing SilverCrest at $11.34 per share—a 22.1% premium over Thursday’s close.

SilverCrest’s shares have not reached that level since early 2021. If pre-market gains hold, SILV will be on track to hit a new 52-week high.

In a statement, Coeur highlighted SilverCrest’s strong financial position, which includes $122 million in treasury assets, no debt, and a healthy cash flow profile.

This acquisition is expected to accelerate Coeur’s debt reduction, potentially reducing its leverage ratio by 40% once the deal closes.

Coeur Mining has total debt of $629 million and reported negative free cash flow of $36.2 million in the second quarter.

Adding SilverCrest’s Las Chispas mine in Mexico is projected to bolster Coeur’s production portfolio, with the combined company expected to generate 21 million ounces of silver annually and 432,000 ounces of gold by 2025.

“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,” said Mitchell J. Krebs, CEO of Coeur Mining

SilverCrest’s stock has gained 44% year-to-date, while Coeur’s stock has more than doubled, benefiting from the rally in gold futures.

CDE shares were down more than 7% pre-market.

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