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New Found Gold Corp. (TSE:NFG)
:NFG

New Found Gold (NFG) AI Stock Analysis

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New Found Gold

(NYSE MKT:NFG)

39Underperform
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.

New Found Gold (NFG) vs. S&P 500 (SPY)

New Found Gold Business Overview & Revenue Model

Company DescriptionNew Found Gold (NFG) is a mineral exploration company focused on the discovery and development of gold resources in Canada. The company operates primarily in the mining sector, leveraging its expertise to identify and explore promising mineral properties. With a significant land position in Newfoundland, New Found Gold aims to advance its projects through strategic exploration efforts to enhance shareholder value.
How the Company Makes MoneyNew Found Gold makes money primarily through the exploration and development of its mineral properties. The company's revenue model is based on increasing the value of its mining assets through successful exploration and potential future production. Key revenue streams include raising capital through equity financing to fund exploration activities and partnerships with other mining companies for joint ventures or property sales. As a junior exploration company, it does not yet generate revenue from gold production but focuses on increasing the value of its assets to attract investment or potential acquisition by larger mining companies.

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
10
Very Negative
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
55
Neutral
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
30
Negative
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
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
0.000.000.000.000.000.00
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 SheetCash, Cash Equivalents and Short-Term Investments
53.54M57.48M89.64M132.43M68.82M7.45M
Total Assets
79.03M84.58M110.69M148.06M73.54M9.36M
Total Debt
137.58K157.80K150.23K100.85K53.20K0.00
Net Debt
-50.11M-53.73M-82.02M-100.38M-47.68M-7.34M
Total Liabilities
14.61M19.08M27.21M25.40M635.08K392.85K
Stockholders Equity
64.42M65.50M83.47M122.65M72.90M8.96M
Cash FlowFree 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
27.12M75.43M56.80M118.34M55.20M9.69M

New Found Gold Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.68
Price Trends
50DMA
2.43
Negative
100DMA
2.48
Negative
200DMA
3.09
Negative
Market Momentum
MACD
-0.23
Positive
RSI
32.33
Neutral
STOCH
24.13
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 1.68 is below the 20-day moving average (MA) of 2.27, below the 50-day MA of 2.43, and below the 200-day MA of 3.09, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 32.33 is Neutral, neither overbought nor oversold. The STOCH value of 24.13 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

Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSORE
78
Outperform
C$515.60M5.4927.12%6.15%10.69%
47
Neutral
$2.66B-3.14-22.17%3.33%3.73%-29.29%
TSGFG
47
Neutral
C$59.21M33.854.96%
TSNFG
39
Underperform
C$338.02M-76.48%41.94%
TSGLD
33
Underperform
C$1.98M-188.34%83.95%
TSBTR
31
Underperform
C$35.05M-91.29%7.15%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NFG
New Found Gold
1.73
-3.28
-65.47%
TSE:ORE
Orezone Gold
0.98
0.13
15.29%
TSE:GLD
GoldON Resources
0.04
0.00
0.00%
TSE:GFG
GFG Resources
0.20
0.12
150.00%
TSE:BTR
BonTerra Resources
0.20
-0.04
-16.67%

New Found Gold Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
New Found Gold Strengthens Management Amid Strategic Realignment
Neutral
Feb 18, 2025

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.

Business Operations and Strategy
New Found Gold Reports High-Grade Discoveries at Dropkick Zone, Advances Queensway Project
Positive
Feb 11, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
New Found Gold Appoints Keith Boyle as CEO to Lead Queensway Project
Positive
Jan 20, 2025

New Found Gold Corp. has announced the appointment of Keith Boyle as its new Chief Executive Officer. Boyle, who has a wealth of experience in leading successful mining operations, is set to guide the company’s Queensway Project through its next phase of growth. This leadership change follows the resignation of Collin Kettell, who will remain as a director and significant shareholder of the company. The appointment is seen as a strategic move to capitalize on the untapped potential of the Queensway Project in the emerging gold district of Newfoundland, promising value creation for stakeholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.