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New Gold Inc (TSE:NGD)
:NGD

New Gold (NGD) AI Stock Analysis

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New Gold

(NYSE MKT:NGD)

Rating:77Outperform
Price Target:
C$7.50
▲(12.61%Upside)
New Gold's overall stock score reflects its solid financial performance and strong technical indicators, which are slightly offset by valuation concerns and recent production challenges. The company's proactive corporate events also positively impact its market position, suggesting a well-managed operation with growth potential.
Positive Factors
Future Free Cash Flow
The company is finishing a capex heavy period but should generate significant free cash flow in future years.
Mine Life Extension
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 Expectations
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 (NGD) vs. iShares MSCI Canada ETF (EWC)

New Gold Business Overview & Revenue Model

Company DescriptionNew Gold Inc. (NGD) is a Canadian-focused intermediate gold mining company engaged in the development and operation of mineral properties. The company operates primarily in North America, with a strong focus on sustainable mining practices. Its core products include gold, silver, and copper, which are extracted from its portfolio of mines, including the Rainy River Mine in Ontario, Canada, and the New Afton Mine in British Columbia, Canada.
How the Company Makes MoneyNew Gold Inc. generates revenue primarily through the extraction and sale of gold, silver, and copper. The company owns and operates mines where it extracts these precious metals and sells them on the global market. Revenue is largely driven by the market prices of these metals, which can fluctuate based on supply and demand dynamics, economic conditions, and geopolitical factors. In addition to its mining operations, New Gold may also enter into strategic partnerships or joint ventures to optimize its operations and reduce costs. The company focuses on maintaining efficient production processes and exploring new mineral deposits to ensure long-term sustainability and profitability.

New Gold Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 44.78%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in safety metrics, cash flow generation, and financial flexibility, with successful advancement in critical projects and exploration efforts. However, challenges remain with decreased gold production, high all-in sustaining costs at Rainy River, and a net loss in the quarter.
Q1-2025 Updates
Positive Updates
Improvement in Safety Metrics
Achieved a total recordable injury frequency rate of 0.55, marking a 40% improvement compared to the first quarter of the previous year.
Solid Cash Flow Generation
Generated over $107 million in cash flow from operations and $25 million in free cash flow, with New Afton contributing $52 million.
Successful Refinancing and Financial Flexibility
Refinanced senior notes to 2032 and extended revolving credit facility to 2029 at lower rates, enhancing financial flexibility.
Completion of Critical Path Items
Achieved several critical path items, including over 50% completion in cave construction at New Afton and pit portal breakthrough at Rainy River.
Exploration and Development Progress
Exploration efforts at New Afton and Rainy River are proceeding well, with plans to define K-Zone resources by year-end and continued underground development.
Negative Updates
Decreased Gold Production
Gold production decreased compared to Q1 2024 due to planned lower feed grades, with production totaling approximately 52,200 gold ounces.
High All-In Sustaining Costs at Rainy River
Rainy River's all-in sustaining costs were $2,758 in the quarter, though expected to trend lower as production ramps up.
Net Loss in Q1
Recorded a net loss of approximately $17 million or $0.02 per share during Q1.
Company Guidance
During the first quarter of 2025, New Gold provided comprehensive guidance on its operational and financial performance. The company achieved a total recordable injury frequency rate of 0.55, marking a 40% improvement from the previous year. It produced over 52,000 ounces of gold and 13.6 million pounds of copper at an all-in sustaining cost of $1,727 per ounce. This gold production accounted for approximately 15% of the midpoint of the consolidated production guidance, slightly surpassing the planned 14% for the quarter. New Gold generated over $107 million in cash flow from operations and $25 million in free cash flow, with New Afton contributing $52 million in quarterly free cash flow. The company also focused on financial flexibility, refinancing its senior notes to 2032 and extending its revolving credit facility to 2029 at lower rates. Additionally, New Gold acquired the remaining 19.9% free cash flow interest in New Afton for $300 million, consolidating its interest to 100%, and anticipates substantial free cash flow and mine life extension opportunities moving forward.

New Gold Financial Statement Overview

Summary
New Gold demonstrates solid financial performance with strong revenue growth, improved profitability, and effective cash flow management. Despite a balanced leverage profile, historical volatility in net income and free cash flow may pose potential risks.
Income Statement
78
Positive
The company shows strong revenue growth with a 4.5% increase in TTM revenue compared to the previous year. Gross profit margin is healthy at 28.3%, and net profit margin has improved significantly to 13.7% from prior losses, indicating enhanced profitability. EBIT and EBITDA margins are robust at 20.1% and 39.9% respectively, pointing to efficient operational management. However, past volatility in net income presents potential risk.
Balance Sheet
72
Positive
The debt-to-equity ratio stands at 0.49, indicating a balanced leverage level. ROE is a strong 12.5%, reflecting effective use of equity to generate profits. The equity ratio is 48.8%, showing a solid equity base. While the balance sheet is stable, the company's net debt position has fluctuated, which could lead to financial instability if not managed properly.
Cash Flow
80
Positive
Operating cash flow to net income ratio is impressive at 3.44, indicating strong cash generation relative to net income. Free cash flow has grown significantly, with a 31.6% increase in TTM free cash flow, showcasing effective capital expenditure management. The company's ability to convert income into cash is a key strength, although past free cash flow volatility should be monitored.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue941.50M924.50M786.50M604.40M745.50M643.40M
Gross Profit266.60M240.70M336.10M78.10M172.50M110.40M
EBITDA375.90M339.10M182.90M177.50M322.90M167.70M
Net Income129.40M102.60M-64.50M-66.80M140.60M-79.30M
Balance Sheet
Total Assets2.12B2.00B2.29B2.24B2.48B2.25B
Cash, Cash Equivalents and Short-Term Investments219.60M110.30M192.60M236.40M541.00M231.70M
Total Debt509.30M399.70M401.20M396.20M501.70M508.70M
Total Liabilities1.09B951.50M1.50B1.28B1.52B1.46B
Stockholders Equity1.03B1.05B789.20M959.50M955.90M789.30M
Cash Flow
Free Cash Flow160.20M121.70M21.70M-102.20M76.40M10.60M
Operating Cash Flow445.40M392.80M287.60M190.70M323.70M294.80M
Investing Cash Flow-278.50M-263.40M-234.00M-281.90M57.40M-173.20M
Financing Cash Flow-109.20M-207.80M-68.60M-185.00M-86.50M-21.90M

New Gold Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.66
Price Trends
50DMA
5.96
Positive
100DMA
5.24
Positive
200DMA
4.59
Positive
Market Momentum
MACD
0.19
Positive
RSI
57.74
Neutral
STOCH
51.37
Neutral
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 6.66 is above the 20-day moving average (MA) of 6.64, above the 50-day MA of 5.96, and above the 200-day MA of 4.59, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 51.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NGD.

New Gold Peers Comparison

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSNGD
77
Outperform
C$5.36B28.8414.62%23.61%
TSTXG
73
Outperform
$3.83B20.318.12%20.97%-24.55%
TSSSL
73
Outperform
$3.76B93.912.05%0.63%6.23%36.40%
TSOLA
69
Neutral
C$4.45B40.45-0.28%72.95%97.10%
TSEQX
67
Neutral
$5.97B9.448.27%60.05%
62
Neutral
C$5.78B-3.49%-154.04%
43
Neutral
AU$1.37B-6.17-40.62%4.19%-4.78%-42.91%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NGD
New Gold
6.66
3.72
126.53%
TSE:SSL
Sandstorm Gold
12.80
5.19
68.22%
TSE:EQX
Equinox Gold
7.93
0.02
0.25%
TSE:TXG
Torex Gold Resources
43.17
21.13
95.87%
TSE:OLA
Orla Mining
13.68
8.37
157.63%
TSE:ARTG
Artemis Gold
25.12
14.60
138.78%

New Gold Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
New Gold to Redeem Remaining 7.50% Senior Notes
Positive
Jun 11, 2025

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.

Business Operations and Strategy
New Gold Unveils 2024 Sustainability Achievements
Positive
Jun 4, 2025

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.

Executive/Board ChangesShareholder Meetings
New Gold Announces Board Election Results and Shareholder Approvals
Positive
May 7, 2025

New Gold Inc. announced the results of its Board of Directors election, with all nominees receiving overwhelming support from shareholders. The meeting also included the appointment of an auditor and a ‘Say on Pay’ advisory vote, both of which received strong approval. These results reflect shareholder confidence in New Gold’s leadership and strategic direction, potentially strengthening its position in the mining industry.

M&A TransactionsBusiness Operations and Strategy
New Gold Completes Full Consolidation of New Afton Mine Cash Flow Interest
Positive
May 1, 2025

New Gold Inc. has completed the acquisition of the remaining 19.9% free cash flow interest in its New Afton Mine from the Ontario Teachers’ Pension Plan, consolidating its free cash flow interest to 100%. This consolidation is expected to enhance New Gold’s operational efficiency and financial performance, potentially strengthening its position in the mining industry.

M&A TransactionsBusiness Operations and Strategy
New Gold Achieves Full Ownership of New Afton Mine Cash Flow Interest
Positive
May 1, 2025

New Gold Inc. has completed the acquisition of the remaining 19.9% free cash flow interest in its New Afton Mine from Ontario Teachers’ Pension Plan. This consolidation to 100% ownership of the free cash flow interest strengthens New Gold’s operational control and financial benefits from the New Afton Mine, potentially enhancing its market position and value to stakeholders.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
New Gold Achieves Strong Q1 2025 Results, Sets Stage for Production Ramp-Up
Positive
Apr 29, 2025

New Gold Inc. reported strong financial and operational results for the first quarter of 2025, achieving significant milestones that enhance its strategic objectives. The company increased its future free cash flow by consolidating its interest in New Afton to 100%, refinanced and extended its senior notes and credit facility, and delivered new Technical Reports with strong production profiles and lower costs. Operationally, New Gold exceeded planned production at New Afton due to higher B3 grades and is on track for a production increase at Rainy River. The company is advancing its exploration efforts, particularly targeting the K-Zone at New Afton and growth opportunities at Rainy River, which are expected to ramp up aggressively.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
New Gold Consolidates Full Ownership of New Afton Mine
Positive
Apr 7, 2025

New Gold Inc. has announced its acquisition of the remaining 19.9% free cash flow interest in the New Afton Mine from Ontario Teachers’ Pension Plan, consolidating its ownership to 100%. This transaction, valued at $300 million, will be funded through cash on hand, borrowings, and a gold prepayment financing. The consolidation is expected to enhance New Gold’s financial performance by increasing its exposure to the mine’s cash flow, driven by anticipated production growth and cost improvements. The company also plans to invest in exploration activities to extend the mine’s life and increase its value. This strategic move is positioned to benefit shareholders by maximizing free cash flow without equity dilution.

Financial Disclosures
New Gold to Release Q1 2025 Results and Host Conference Call
Neutral
Apr 3, 2025

New Gold Inc. announced it will release its first quarter 2025 operational and financial results on April 29, 2025, followed by an earnings conference call and webcast on April 30, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 12, 2025