New Found Gold (NFG) AI Stock Analysis

• Market Cap: $314.95M
• Dividend Yield: N/A
• Average Volume (3M): 929.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: N/A
• EPS Growth: 41.94%
• Country: CA
• Employees: 62
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): -0.26
• Shares Outstanding: 200,607,990
• 10 Day Avg. Volume: 574,549
• 30 Day Avg. Volume: 929,311
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -9.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.65
• Price Target Upside: 199.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

New Found Gold's stock score reflects challenges typical of a pre-revenue exploration company, including financial instability and negative technical momentum. However, promising corporate developments at the Queensway Project provide potential upside. The company's strong equity position and low leverage are positive, but liquidity concerns and reliance on external financing remain key risks. While current valuation metrics are weak, the stock represents a speculative investment with high risk and potential long-term reward.

New Found Gold Business Overview & Revenue Model

Company Description

New Found Gold (NFG) is a mineral exploration company focused on the discovery and development of gold properties in Canada. The company is primarily engaged in the acquisition, exploration, and evaluation of mineral properties, with a particular emphasis on its flagship Queensway Project in Newfoundland. New Found Gold aims to leverage its expertise in geology and mining to uncover high-grade gold deposits and advance them towards production.

How the Company Makes Money

New Found Gold makes money through the exploration and development of its mineral properties, with a potential future revenue stream from the sale of gold once its projects reach production stage. Currently, the company's primary source of funding is through equity financing, including private placements and public offerings, which provide the necessary capital for ongoing exploration and project development. Partnerships, joint ventures, and strategic alliances with other mining companies may also contribute to their financial resources, enabling them to share risks and costs associated with mineral exploration.

New Found Gold Financial Statement Overview

Summary

New Found Gold's financial performance is weak due to its pre-revenue stage, with significant operational costs and no revenue, resulting in negative profitability metrics. The balance sheet shows strength in equity and low leverage but cash flow issues persist, necessitating careful cash reserve management.

Income Statement

New Found Gold has consistently reported zero revenue, indicating a pre-revenue stage typical for exploration companies. The company has negative gross profit and significant negative net income, reflecting ongoing operational and exploration costs without revenue offset. Despite a reduction in EBIT and EBITDA losses in TTM, the lack of revenue puts the income statement in a weak position, affecting profitability metrics adversely.

Balance Sheet

The company maintains a strong equity position with low debt levels, evidenced by a debt-to-equity ratio close to zero, indicating low leverage. The equity ratio remains high, suggesting financial stability and a strong capital structure. However, declining cash reserves and an overall reduction in total assets over recent periods may signal potential liquidity constraints in the future.

Cash Flow

Operating cash flow remains negative, driven by high operational expenses relative to revenue, reflecting the exploration focus. Free cash flow is similarly negative, although there is some improvement in free cash flow growth in the TTM. The reliance on financing cash flow to sustain operations is evident, but the operating cash flow to net income ratio remains unfavorable, indicating inefficiencies in converting net income to cash.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-813.65K	-940.21K	-880.40K	-582.93K	-129.96K	-12.49K
	EBIT
-60.32M	-103.47M	-88.72M	-56.66M	-38.35M	-3.93M
	EBITDA
-48.83M	-102.04M	-89.09M	-50.05M	-32.40M	-4.01M
	Net Income Common Stockholders
-50.27M	-79.89M	-109.63M	-57.27M	-34.31M	-4.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.54M	57.48M	89.64M	132.43M	68.82M	7.45M
	Total Assets
79.03M	84.58M	110.69M	148.06M	73.54M	9.36M
	Total Debt
137.58K	157.80K	150.23K	100.85K	53.20K	0.00
	Net Debt
-50.11M	-53.73M	-82.02M	-100.38M	-47.68M	-7.34M
	Total Liabilities
14.61M	19.08M	27.21M	25.40M	635.08K	392.85K
	Stockholders Equity
64.42M	65.50M	83.47M	122.65M	72.90M	8.96M
Cash Flow		Free Cash Flow
-59.96M	-100.99M	-79.94M	-53.94M	-14.76M	-2.96M
	Operating Cash Flow
-55.53M	-99.27M	-74.38M	-48.51M	-13.22M	-2.65M
	Investing Cash Flow
-3.16M	-4.44M	-737.87K	-17.07M	-1.59M	-26.58K
	Financing Cash Flow
27.12M	75.43M	56.80M	118.34M	55.20M	9.69M

New Found Gold Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NFG, the sentiment is Negative. The current price of 1.55 is below the 20-day moving average (MA) of 1.56, below the 50-day MA of 2.13, and below the 200-day MA of 2.89, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 40.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NFG.

New Found Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORE	74 Outperform	C$631.79M	6.58	27.12%	―	6.15%	10.69%
Sector *	49 Neutral	$1.96B	-1.42	-21.96%	3.81%	0.71%	-27.38%
NFG	46 Neutral	$314.95M	―	-76.48%	―	―	41.94%
GFG	45 Neutral	C$51.14M	29.23	4.96%	―	―	―
GLD	34 Underperform	C$3.75M	―	-188.34%	―	―	83.95%
BTR	31 Underperform	C$43.39M	―	-108.81%	―	―	7.15%

New Found Gold Corporate Events

New Found Gold Advances Queensway Project with Promising Resource Estimate

New Found Gold Corp. has released an overview and plans for its Queensway Gold Project, highlighting a significant initial mineral resource estimate with 70% of resources in the indicated category. The company is advancing its preliminary economic assessment, aiming for high-grade starter pits and potential project expansion, with a fully funded PEA and ongoing drilling campaigns to further explore and expand the resource base.

Spark’s Take on TSE:NFG Stock

According to Spark, TipRanks’ AI Analyst, TSE:NFG is a Underperform.

New Found Gold’s stock score reflects significant challenges due to a lack of revenue, resulting in financial instability and negative momentum. However, promising corporate events offer potential upside, making it a speculative investment with high risk and potential future reward.

To see Spark’s full report on TSE:NFG stock, click here.

New Found Gold Strengthens Management Amid Strategic Realignment

New Found Gold Corp. announced key management changes with the appointment of Dr. Fiona Childe as Vice President of Communications and Corporate Development, Dr. Jared Saunders as Vice President of Sustainability, and Robert Assabgui as Study Manager. These strategic appointments come as the company prepares for significant milestones, such as the maiden mineral resource estimate and preliminary economic assessment of the Queensway Project. Additionally, there are significant leadership changes with the resignation of COO Greg Matheson, who will transition to an advisory role, and CDO Ron Hampton stepping down, signaling a period of strategic realignment for the company.

New Found Gold Reports High-Grade Discoveries at Dropkick Zone, Advances Queensway Project

New Found Gold Corp. announced significant high-grade gold intercepts from their drilling program at the Dropkick Zone within the Kingsway property, part of the Queensway Project. The results, including 89.5 g/t Au over 5.85m and 26.2 g/t Au over 16.15m, highlight the potential expansion of the gold mineral system along the Appleton Fault Zone. This discovery marks a pivotal development for the company, indicating substantial growth opportunities and enhancing its exploration strategy. The company is also advancing its maiden resource estimate and preliminary economic assessment for the Queensway Project, with results expected by early Q2 2025, underscoring the project’s economic potential and strategic importance.