New Gold (NGD) AI Stock Analysis

• Market Cap: $6.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 33.6
• Beta (1Y): 1.72
• Revenue Growth: 31.32%
• EPS Growth: N/A
• Country: CA
• Employees: 1,337
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Gold
• EPS (TTM): 0.15
• Shares Outstanding: 791,700,000
• 10 Day Avg. Volume: 1,425,496
• 30 Day Avg. Volume: 1,583,330
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 5.79
• Enterprise Value/Gross Profit: 16.65
• Enterprise Value/Ebitda: 13.87
• 1Y Price Target: $7.93
• Price Target Upside: -6.98% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: C$8.00 ▼(-6.10% Downside)

New Gold's strong technical momentum and positive earnings call insights are key strengths, though financial performance concerns and high valuation limit the overall score.

Positive Factors

Future Opportunities

The company continues to have opportunities to extend mine life from the prospective K-Zone, HW Zone, and D-Zone which could provide additional upside in the future.

Mine Life Extension

Rainy River's mine life was extended by 5 years due to the Phase 5 pushback, despite a decrease in mineral reserves.

Mineral Reserves

New Afton's Copper and Gold Mineral Reserve inventories increased, allowing the company to extend the mine life by one year.

Negative Factors

Free Cash Flow

Near-term free cash flow is expected to decrease compared to previous estimates.

Production Guidance

The updated 3-year production guidance featured a ~10% decrease for 2025.

New Gold Business Overview & Revenue Model

Company Description

New Gold Inc., an intermediate gold mining company, engages in the exploration, development, and operation of mineral properties. It primarily explores for gold, silver, and copper deposits. The company's principal operating properties include 100% interests in the Rainy River mine located in Ontario, Canada; and New Afton mine situated in British Columbia, Canada. It also operates the Cerro San Pedro mine in San Luis Potosí, Mexico. The company was incorporated in 1980 and is headquartered in Toronto, Canada.

How the Company Makes Money

New Gold generates revenue primarily through the sale of gold and copper. The company operates its mines, extracting these minerals and selling them to the market, where prices fluctuate based on global supply and demand. Key revenue streams include gold sales from the Rainy River and New Afton mines, as well as copper production from these operations. Additionally, New Gold benefits from hedging strategies that can stabilize cash flows against commodity price volatility. The company may also engage in partnerships and joint ventures to enhance project development and operational efficiencies, contributing to its overall earnings.

New Gold Financial Statement Overview

Summary

New Gold shows strong revenue growth and improved profitability, with a stable balance sheet. However, rising debt levels and negative free cash flow growth are concerns that need addressing.

Income Statement

New Gold's income statement shows a strong performance with a notable revenue growth rate of 9.58% in the TTM period. The gross profit margin improved to 33.66%, and the net profit margin increased to 14.11%, indicating enhanced profitability. The EBIT and EBITDA margins also reflect positive trends, suggesting efficient operations. However, the company has experienced fluctuations in profitability in previous years, which could pose risks if not managed well.

Balance Sheet

The balance sheet of New Gold reveals a moderate debt-to-equity ratio of 0.60 in the TTM period, which is manageable but has increased from previous years. The return on equity stands at 13.96%, showing effective use of equity to generate profits. The equity ratio is stable, indicating a solid capital structure. However, the increasing debt levels could be a concern if not controlled.

Cash Flow

New Gold's cash flow statement indicates challenges with a negative free cash flow growth rate of -148.19% in the TTM period. The operating cash flow to net income ratio is healthy at 1.15, but the free cash flow to net income ratio is negative, highlighting cash flow management issues. The company needs to focus on improving free cash flow generation to support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	924.50M	786.50M	604.40M	745.50M	643.40M
Gross Profit	359.10M	240.70M	336.10M	78.10M	172.50M	110.40M
EBITDA	430.90M	339.10M	182.90M	177.50M	322.90M	167.70M
Net Income	144.90M	102.60M	-64.50M	-66.80M	140.60M	-79.30M
Balance Sheet
Total Assets	2.46B	2.00B	2.29B	2.24B	2.48B	2.25B
Cash, Cash Equivalents and Short-Term Investments	233.00M	110.30M	192.60M	236.40M	541.00M	231.70M
Total Debt	658.80M	399.70M	401.20M	396.20M	501.70M	508.70M
Total Liabilities	1.36B	951.50M	1.50B	1.28B	1.52B	1.46B
Stockholders Equity	1.10B	1.05B	789.20M	959.50M	955.90M	789.30M
Cash Flow
Free Cash Flow	-77.20M	121.70M	21.70M	-102.20M	76.40M	10.60M
Operating Cash Flow	507.90M	392.80M	287.60M	190.70M	323.70M	294.80M
Investing Cash Flow	-579.10M	-263.40M	-234.00M	-281.90M	57.40M	-173.20M
Financing Cash Flow	112.80M	-207.80M	-68.60M	-185.00M	-86.50M	-21.90M

New Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NGD, the sentiment is Positive. The current price of 8.52 is above the 20-day moving average (MA) of 7.49, above the 50-day MA of 6.78, and above the 200-day MA of 5.22, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 84.44 is Negative, neither overbought nor oversold. The STOCH value of 91.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NGD.

New Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NGD	73 Outperform	$6.67B	33.64	14.11%	―	31.32%	―
Sector *	61 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
SAND	―	$3.32B	97.17	2.41%	0.56%	―	―
OLA	57 Neutral	C$5.10B	161.22	4.89%	―	123.03%	―
TORXF	―	$3.18B	14.62	12.84%	―	―	―
EQX	―	$6.94B	10.94	-0.54%	―	―	―
ARGTF	―	$5.05B	81.22	12.71%	―	―	―

New Gold Corporate Events

New Gold Achieves Record Cash Flow in Q2 2025, Driven by Strong Mine Performance

New Gold Inc. reported strong financial results for the second quarter of 2025, driven by increased production at its Rainy River and New Afton mines. The company achieved record free cash flow, with Rainy River contributing significantly to this success. New Afton’s B3 cave exceeded expectations, and Rainy River saw a record production month in June, indicating a positive outlook for the remainder of the year. Exploration efforts continue to support organic growth, with significant drilling activities at both sites. The company remains on track to meet its annual production guidance, underscoring its robust operational performance.

The most recent analyst rating on (TSE:NGD) stock is a Buy with a C$3.90 price target. To see the full list of analyst forecasts on New Gold stock, see the TSE:NGD Stock Forecast page.

New Gold to Announce Q2 2025 Results and Host Conference Call

New Gold Inc. announced it will release its second quarter 2025 operational and financial results on July 28, 2025, before the market opens. The company will also host an earnings conference call and webcast on the same day. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, which could impact its market positioning and investor relations.

The most recent analyst rating on (TSE:NGD) stock is a Buy with a C$3.90 price target. To see the full list of analyst forecasts on New Gold stock, see the TSE:NGD Stock Forecast page.

New Gold to Redeem Remaining 7.50% Senior Notes

New Gold Inc. has announced the redemption of its remaining $111 million 7.50% Senior Notes due 2027, scheduled for July 15, 2025. This move is funded by proceeds from a previous senior notes offering and cash on hand, potentially strengthening the company’s financial position and enhancing its market standing.

The most recent analyst rating on (TSE:NGD) stock is a Buy with a C$3.90 price target. To see the full list of analyst forecasts on New Gold stock, see the TSE:NGD Stock Forecast page.

New Gold Unveils 2024 Sustainability Achievements

New Gold has released its 2024 Sustainability Report, highlighting significant achievements in sustainability practices and performance. The report, aligned with global standards, showcases a 7.8% reduction in greenhouse gas emissions and a decrease in the total recordable injury frequency rate, reflecting the company’s commitment to safety and environmental responsibility. Additionally, New Gold emphasizes its dedication to community engagement and local employment, with substantial investments in local communities and a significant portion of its workforce being Indigenous and locally hired.

The most recent analyst rating on (TSE:NGD) stock is a Buy with a C$3.90 price target. To see the full list of analyst forecasts on New Gold stock, see the TSE:NGD Stock Forecast page.