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New Gold (TSE:NGD)
TSX:NGD
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New Gold
(TSX:NGD)
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Rating:73Outperform
Price Target:
C$8.00
▼(-15.79% 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
Negative Factors
New Gold (NGD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$7.52B
Dividend YieldN/A
Average Volume (3M)2.38M
Price to Earnings (P/E)37.6
Beta (1Y)1.79
Revenue Growth31.32%
EPS GrowthN/A
CountryCA
Employees1,337
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)0.15
Shares Outstanding791,700,000
10 Day Avg. Volume3,814,554
30 Day Avg. Volume2,377,016
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue5.79
Enterprise Value/Gross Profit16.65
Enterprise Value/Ebitda13.87
Forecast
1Y Price Target
$8.42Price Target Upside-11.40% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering8
New Gold Business Overview & Revenue Model
Company DescriptionNew 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 MoneyNew 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 Earnings Call Summary
Earnings Call Date:Jul 28, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant achievements in safety, production, and financial performance, with a record in free cash flow and positive developments at New Afton and Rainy River. However, there were challenges, such as a production delay at Rainy River and financial adjustments related to debt and credit facilities.Q2-2025 Updates
Positive Updates
Safety Achievements
New Afton received three safety awards, including British Columbia's Mine Safety Innovation Award, and Rainy River Mine won Thunder Bay District Mine Rescue Championship.
Gold and Copper Production
Produced approximately 78,600 ounces of gold and 13.5 million pounds of copper at an all-in sustaining cost of $1,393 per ounce, aligning with production guidance.
Record Free Cash Flow
Achieved a record $63 million in free cash flow, with Rainy River reporting a quarterly record of $45 million in free cash flow.
New Afton and Rainy River Developments
Significant progress in C-Zone cave construction at New Afton and completion of pit portal breakthrough and ventilation loop at Rainy River.
Financial Performance
Second quarter revenue of $308 million, higher than the prior year due to higher gold prices and sales. Net earnings were approximately $68 million or $0.09 per share.
Negative Updates
Rainy River Production Delay
A one-week delay in the sequencing of higher-grade open pit material at Rainy River led to a temporary increase in gold circuit inventory.
Debt and Financial Adjustments
Post quarter, $150 million of the credit facility was drawn, and a gold prepayment agreement was entered to fund New Afton buyback.
Company Guidance
During New Gold's Second Quarter 2025 earnings call, the company provided detailed guidance and performance metrics. They reported a production of approximately 78,600 ounces of gold and 13.5 million pounds of copper, with an all-in sustaining cost of $1,393 per ounce. The gold production for the first half of the year was about 38% of the midpoint of their annual guidance range of 325,000 to 365,000 ounces. The company generated over $163 million in cash flow from operations and a record $63 million in free cash flow. Specifically, the Rainy River Mine achieved a quarterly record of $45 million in free cash flow. New Afton's C-Zone cave construction is 65% complete, with a target processing rate of 16,000 tonnes per day by early 2026. Additionally, New Gold completed the acquisition of the remaining 19.9% interest at New Afton, consolidating their ownership to 100%. The company expects substantial growth in gold and copper production over the next three years, projecting $1.86 billion in free cash flow at current commodity prices.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.75
Positive
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.70
Positive
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.60
Neutral
| 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
Positive
9.50
Price Trends
7.47
Positive
6.85
Positive
5.58
Positive
Market Momentum
0.54
Positive
74.10
Negative
84.98
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 9.5 is above the 20-day moving average (MA) of 8.82, above the 50-day MA of 7.47, and above the 200-day MA of 5.58, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 74.10 is Negative, neither overbought nor oversold. The STOCH value of 84.98 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | 4.80B | 101.59 | 1.00% | 0.49% | 17.31% | 19.28% | |
73 Outperform | $7.52B | 37.64 | 14.11% | ― | 31.32% | ― | |
70 Outperform | 11.41B | -174.73 | 0.88% | ― | 79.45% | -109.97% | |
69 Neutral | 4.75B | 16.05 | 12.05% | ― | 11.46% | 105.47% | |
62 Neutral | 7.62B | 88.23 | ― | ― | ― | ― | |
57 Neutral | 4.77B | 149.29 | 5.12% | ― | 123.03% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
Performance Comparison
TSE:NGD
New Gold
9.50
5.30
126.19%
SAND
Sandstorm Gold
11.79
5.59
90.16%
TSE:OLA
Orla Mining
14.63
9.02
160.78%
TORXF
Torex Gold Resources
39.66
19.65
98.20%
EQX
Equinox Gold
10.49
4.03
62.38%
ARGTF
Artemis Gold
23.83
13.84
138.54%
New Gold Corporate Events
Business Operations and StrategyFinancial Disclosures
New Gold Achieves Record Cash Flow in Q2 2025, Driven by Strong Mine Performance
Positive
Jul 28, 2025
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.
Financial Disclosures
New Gold to Announce Q2 2025 Results and Host Conference Call
Neutral
Jul 7, 2025
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.
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.
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.