In my previous article in July , the view on New Gold (NYSE: NGD ) was cautiously optimistic: I saw the company finally orderly, showing clear signs of operational improvement, but it still needed to demonstrateI am an individual investor with over five years of experience in personal investing, holding a PhD in Economics from UCEMA. My investment approach focuses on value companies with solid long-term potential. I share my knowledge with the community by offering analysis to support individual investors. ...

Alluvial Gold Research offers in-depth research on my favorite miners ranked in order to aid in positioning in the most undervalued miners with upcoming catalysts to drive portfolio outperformance. Subscribers also get access to my current portfolios and real-time buy/sell alerts as well as the following:Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article m ...

New Gold (NGD) Q2 2025 Earnings Call July 28, 2025 08:30 AM ET Company ParticipantsAnkit Shah - EVP & Chief Strategy OfficerTravis Murphy - VP - OperationsKeith Murphy - EVP & CFOPatrick Godin - President, CEO & DirectorMichael Siperco - Director, Global Mining ResearchConference Call ParticipantsLawson Winder - Senior Metals & Mining Research AnalystAnita Soni - Managing Director - Senior Precious Metals Research AnalystMohamed Sidibé - Equity Research AnalystOperatorGood morning. My name is Jean Louis, an ...

Financial Data and Key Metrics Changes - The company reported second quarter revenue of $308 million, an increase compared to the prior year quarter due to higher gold prices and sales, slightly offset by lower copper prices and sales [20] - Cash generated from operations before working capital adjustments was $161 million or $0.20 per share for the quarter, higher than the prior year period [20] - The company achieved a record quarterly free cash flow of $63 million, driven by higher revenue [20] - Net earnings for the second quarter were approximately $68 million or $0.09 per share, with adjusted net earnings of $90 million or $0.11 per share [21] Business Line Data and Key Metrics Changes - Gold production totaled approximately 78,600 ounces and copper production was 13.5 million pounds, with all-in sustaining costs at $13.93 per gold ounce [6][12] - New Afton achieved an all-in sustaining cost of negative $537 per ounce after considering copper credits, while Rainy River had all-in sustaining costs of $16.96 per ounce [13][15] - Rainy River produced 61,600 ounces of gold in the second quarter, with a significant increase in production in June [19] Market Data and Key Metrics Changes - Gold production for the first half of the year was about 38% of the midpoint of the consolidated production guidance range of 325,000 to 365,000 ounces [7] - The company generated over $163 million in cash flow from operations in the first half of the year [7] Company Strategy and Development Direction - The company is focused on generating meaningful value for shareholders and achieving production growth over the next three years [10][25] - Significant investments in exploration efforts are planned, with a combined $30 million targeted for 2025 [27] - The company aims to ramp up production at both New Afton and Rainy River while maintaining a strong focus on health and safety [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production and cost guidance for 2025, with expectations of significant free cash flow generation [25][26] - The company is actively evaluating shareholder returns and potential M&A opportunities while prioritizing organic growth [38][46] Other Important Information - The company completed undercutting at New Afton, unlocking remaining extraction drives for development and construction [8] - The C Zone cave construction is approximately 65% complete, with plans to ramp up processing rates to 16,000 tons per day by early 2026 [7][16] Q&A Session Summary Question: Can you provide additional color on the split in production between Q3 and Q4 of 2025? - Management indicated that production is expected to be consistent across both quarters, with Rainy River generating the majority of cash [31] Question: Do you expect to replace reserves in 2025? - The company aims to increase end-skidded resources and convert inferred resources to reserves, particularly at the Northwest trend [33] Question: What are the capital allocation priorities regarding buybacks and dividends? - Management stated that shareholder returns are a focus, but the current priority is on internal and organic growth [38] Question: Can you clarify the transition to primary C zone mining at New Afton? - Management confirmed that the transition will not delay C zone mining and that production guidance remains intact [43] Question: Is there an expectation to recover the high-grade material delayed in the open pit at Rainy River? - Management confirmed that guidance remains unchanged and the expectation is to recover the material in the second half of the year [50]

Financial Performance - The company generated a record quarterly free cash flow of $63 million in Q2 2025 [10] - Revenue increased to $308.4 million in Q2 2025 from $218.2 million in Q2 2024 [29], representing a 41% increase - Net earnings increased to $68.3 million in Q2 2025 from $53.1 million in Q2 2024 [29], representing a 28.6% increase - Adjusted net earnings increased significantly to $89.8 million in Q2 2025 from $17.0 million in Q2 2024 [29] - The company has a strong liquidity position with $226 million in cash and cash equivalents as of June 30, 2025 [30] Operational Performance - Consolidated gold production was 78,595 ounces in Q2 2025 compared to 68,598 ounces in Q2 2024 [17], representing a 14.6% increase - Rainy River achieved record monthly production and generated a record $45 million in free cash flow during the quarter [10] - New Afton's C-Zone cave construction is approximately 65% complete [10], with the undercut level completed in May [10] - Rainy River underground development achieved pit portal breakthrough in early April [10], with fresh air commissioning and ventilation loop completion in June [10] Outlook - The company anticipates generating approximately $2.2 billion in cumulative free cash flow from 2025-2027, averaging around $720 million per year, assuming gold at $3,000/oz and copper at $4.00/lb [41, 42]

Core Viewpoint - New Gold Inc. reported strong financial and operational results for Q2 2025, achieving record free cash flow and production growth, positioning the company to meet its annual guidance for gold and copper production [1][2][10]. Financial Highlights - Q2 2025 revenue reached $308.4 million, up from $218.2 million in Q2 2024, driven by higher gold prices and sales volume [9][14]. - Operating expenses for Q2 2025 were $111 million, slightly higher than $109.5 million in Q2 2024 [9][14]. - Net earnings for Q2 2025 were $68.6 million, compared to $53.1 million in Q2 2024, with adjusted net earnings of $89.8 million [9][14]. - Free cash flow for Q2 2025 was $63 million, significantly up from $20.4 million in Q2 2024 [11][14]. Operational Performance - Total gold production in Q2 2025 was 78,595 ounces, with copper production at 13.5 million pounds [5][12]. - New Afton Mine produced 16,991 ounces of gold and 13.5 million pounds of copper, while Rainy River Mine produced 61,604 ounces of gold [12][16]. - All-in sustaining costs for gold sold were $1,393 per ounce, reflecting a decrease from previous periods [12][14]. Production Growth and Guidance - The company is on track to meet its annual production guidance of 325,000 to 365,000 ounces of gold and 50 to 60 million pounds of copper [10][12]. - Rainy River achieved a record production month in June 2025, producing 37,341 ounces of gold at an average grade of 1.44 g/t [5][10]. - New Afton’s B3 cave is expected to exhaust later than planned, contributing to higher production levels [3][10]. Exploration and Development - Exploration efforts are ongoing at both New Afton and Rainy River, with a focus on increasing underground ore inventory and testing open pit extensions [4][10]. - New Afton’s exploration program is at an all-time high, with significant drilling activities aimed at expanding the K-Zone [10][12]. - Rainy River is advancing both open pit and underground exploration, with plans for further drilling in the third quarter [10][12]. Capital Expenditures - Total capital expenditures for Q2 2025 were $92 million, with $34 million allocated to sustaining capital and $58 million to growth capital [12][18]. - The company invested approximately $58 million in growth projects during the quarter, contributing to its strong cash flow generation [10][14].

Core Viewpoint - New Gold (NGD) is expected to report a significant increase in earnings per share (EPS) for Q2 2025, with a projected 400% rise year-over-year to $0.10, driven by improved gold prices and higher production levels [1][4][23] Financial Performance - The Zacks Consensus Estimate for NGD's EPS has remained stable at 10 cents over the past 60 days, indicating a substantial increase from the previous year's EPS of 2 cents [1] - New Gold has consistently beaten earnings estimates in the past four quarters, with an average surprise of 79.2% [2][3] Production and Costs - For Q2 2025, total gold production is expected to range between 71,314 ounces and 86,514 ounces, reflecting a growth of 4-26% compared to the same quarter in 2024 [9] - The company anticipates consolidated gold production for 2025 to be between 325,000 and 365,000 ounces, marking a 16% increase year-over-year [7] - All-in sustaining costs (AISC) are projected to be $1,025-$1,125 per ounce in 2025, a 17% decrease at the midpoint due to higher production and lower operating costs [14] Market Conditions - Gold prices averaged around $3,301.42 per ounce in Q2 2025, a 41% year-over-year increase, influenced by various economic factors including geopolitical tensions and strong demand from central banks [6] - The favorable pricing environment for gold is expected to positively impact New Gold's upcoming earnings, as well as those of other gold mining companies [16] Valuation and Investment Thesis - New Gold's stock has increased by 76.6% year-to-date, outperforming the industry average of 57.3% [17] - The company is trading at a forward price/sales ratio of 2.19X, which is lower than the industry average of 3.39X, indicating a potentially attractive valuation [18] - The consolidation of interest in the New Afton mine to 100% is expected to enhance future free cash flow, with gold output projected to grow by 38% from 2024 to 2027 [19][22]

New Gold (NYSE: NGD ) is a gold-copper miner that operates 2 mines in Canada and improved significantly in recent years. With a good balance sheet, significant ramp-ups in the following couple of years, investments and cost savings, the company Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving c ...

Company Performance - New Gold's stock increased by 1.11% to $4.54, outperforming the S&P 500's daily gain of 0.06% [1] - Over the past month, New Gold's shares have depreciated by 8.93%, underperforming the Basic Materials sector's gain of 4.69% and the S&P 500's gain of 5.88% [1] Earnings Expectations - New Gold is scheduled to release its earnings report on July 28, 2025, with analysts expecting earnings of $0.1 per share, indicating a year-over-year growth of 400% [2] - For the full year, Zacks Consensus Estimates project earnings of $0.47 per share and revenue of $1.31 billion, reflecting changes of +135% and +41.81% from the previous year [2] Analyst Estimates - Recent changes to analyst estimates for New Gold are important as they reflect evolving short-term business trends, with positive revisions indicating analysts' confidence in the company's performance and profit potential [3] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a history of outperforming, with 1 stocks returning an average annual gain of +25% since 1988 [5] - New Gold currently holds a Zacks Rank of 1 (Strong Buy), with the consensus EPS projection moving 11.24% higher in the past 30 days [5] Valuation Metrics - New Gold is currently traded at a Forward P/E ratio of 9.55, which is a discount compared to the industry average Forward P/E of 11.86 [6] - The Mining - Gold industry, part of the Basic Materials sector, has a Zacks Industry Rank of 11, placing it in the top 5% of over 250 industries [6] Industry Performance - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

New Gold (NGD) has been beaten down lately with too much selling pressure. While the stock has lost 10% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price mov ...