The global resources sector is currently witnessing a dramatic bifurcation, yet momentum remains strong across both precious metals and battery materials. Leading the charge in North America is Coeur Mining, which has found itself at the epicenter of a historic market storm. Fueled by a relentless surge in commodity prices and a transformative acquisition strategy, the US-based producer has dominated the 2025 trading year, posting year-to-date gains exceeding 220 percent. While the stock experienced a slight technical correction just ahead of the holiday break, closing down nearly 2 percent at $18.72, the underlying fundamentals suggest the fuel for a rally beyond the $20 mark remains intact.
The macroeconomic backdrop could hardly be more favorable for the Chicago-based miner. With gold shattering the psychological barrier of $4,500 per ounce and silver trading comfortably above $72, the company is enjoying an unprecedented tailwind. This pricing environment has turned the expansion of their Rochester facility in Nevada into a massive strategic win. By ramping up production directly into what traders are calling a “silver squeeze,” Coeur is capturing record margins without suffering the debilitating inflationary pressures that have capped growth in other industrial sectors. This direct correlation between operational leverage and soaring silver prices has been the primary engine driving its significant outperformance of the S&P 500.
A New North American Giant
Beyond mere price action, investor sentiment is being buoyed by the creation of a new regional powerhouse. The strategic acquisition of New Gold Inc., a $7 billion all-stock transaction, is set to forge one of North America’s premier precious metals producers. The merger’s structure will see Coeur shareholders retaining approximately 62 percent of the combined entity, which boasts a projected annual output of 900,000 ounces of gold and 20 million ounces of silver.
Financial projections for the merged entity are equally robust. Estimates for 2026 EBITDA now sit above $3 billion—effectively tripling the forecast Coeur held as a standalone company. The integration of New Gold’s Canadian assets is expected to diversify the portfolio significantly while driving down all-in sustaining costs. Consequently, analysts maintain a bullish outlook. Roth Capital recently reiterated a “Buy” rating, lifting their price target to $23.00. While the stock is currently testing support levels around $18.00 following a rapid 17 percent run-up, holding this line is viewed as critical for a subsequent test of the 52-week high at $23.62. With the deal expected to close in the first half of 2026 and free cash flow projected to top $550 million, the company has ample runway for rapid deleveraging.
Lithium Sector Gains Momentum
While precious metals capture the safe-haven narrative, the battery materials sector is seeing renewed vigor across the Pacific. PLS Group Ltd., a key player in the exploration and evaluation of mineral properties, posted a strong daily performance, advancing 5.32 percent to close at $2.9280. Headquartered in West Perth, Australia, and operating primarily through segments in China and other foreign jurisdictions, the company continues to leverage its massive lithium and tantalum assets at the Pilgangoora Project in the Pilbara region.
The trading session reflected heightened interest, with the stock oscillating between a day range of $2.8000 and $2.9340. This recent price action marks a significant recovery from its 52-week low of $0.6929, bringing the stock closer to its yearly high of $3.0000. With a market capitalization now standing at $9.47 billion and 3.22 billion shares outstanding—of which 3.08 billion are in the public float—PLS Group remains a heavyweight in the clean energy supply chain. Founded in early 2005, the firm’s ability to navigate the volatile lithium market has kept it in focus for institutional investors looking for exposure to the electric vehicle transition, complementing the broader commodities rally led by gold and silver.
