Core Points - New Gold Inc. announces the resignation of Christian Milau from the Board of Directors effective immediately to pursue other opportunities [1] - Richard O'Brien, Chair of the Board, expressed gratitude for Milau's contributions over the past year and highlighted the company's active corporate development and operational achievements during his tenure [2] - New Gold is focused on becoming a leading intermediate gold producer with two core producing assets in Canada: the New Afton copper-gold mine and the Rainy River gold mine [2]

Group 1 - The previous analysis on New Gold (NYSE: NGD) was cautiously optimistic, indicating operational improvements but highlighting the need for further demonstration of stability [1] - The company is showing clear signs of operational improvement, suggesting a positive trend in its performance [1] Group 2 - The article reflects personal opinions and does not constitute financial advice, emphasizing the importance of individual research in investment decisions [2][3]

Core Insights - The article emphasizes the importance of identifying undervalued miners with upcoming catalysts to enhance portfolio performance [1] Group 1 - Alluvial Gold Research provides detailed analysis on miners, ranking them to assist in investment positioning [1] - Subscribers receive access to current portfolios and real-time buy/sell alerts [1]

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 [18] - 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 [18] - The company achieved a record quarterly free cash flow of $63 million, driven by higher revenue [18] - 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 [19] Business Line Data and Key Metrics Changes - Gold production for the second quarter totaled approximately 78,600 ounces, with copper production at 13.5 million pounds, reflecting a planned increase in feed grade at Rainy River [6][11] - New Afton achieved an all-in sustaining cost of negative $537 per ounce after considering copper credits, while Rainy River's all-in sustaining costs were $16.96 per ounce [12][14] - Rainy River generated a quarterly record of $45 million in free cash flow, with production in June reaching over 37,300 ounces at an average grade of 1.44 grams per tonne [17][18] 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 expects to generate significant free cash flow over the next three years, with projections of approximately $1.86 billion at current consensus commodity prices [23] Company Strategy and Development Direction - The company is focused on achieving its 2025 production and cost guidance while maintaining a strong emphasis on health and safety [24] - Exploration efforts are being increased at both New Afton and Rainy River, with a combined investment of $30 million for 2025 targeting further reserve replacement [25] - The company aims to consolidate its assets and evaluate opportunities for mergers and acquisitions that align with its strategic objectives [36][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on its stated strategic goals and generate meaningful value for shareholders [25] - The company anticipates a smooth transition to primary C zone mining at New Afton, with expectations of increased throughput and grade [41] - Management remains vigilant in evaluating acquisition opportunities while prioritizing organic growth [44][46] Other Important Information - The company has cash on hand of $226 million and a liquidity position of $452 million at the end of Q2 [19] - A gold prepayment agreement was entered into, committing to deliver approximately 2,770 ounces of gold per month at an average price of $3,157 per ounce [20] 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 due to planned production increases [28][29] Question: Do you expect to replace reserves in 2025? - The company aims to increase end-of-year resources and convert inferred resources to reserves, particularly at New Afton and Rainy River [30][32] Question: What are the capital allocation priorities regarding buybacks and dividends? - Management stated that shareholder returns are a focus, with plans to evaluate buybacks and dividends as free cash flow increases towards the end of the year [34][36] Question: Can you clarify the transition to primary C zone mining at New Afton? - Management confirmed that the transition is expected to be smooth, with the B3 zone extending the mine life of C zone and not affecting production guidance [40][41] Question: What is the grade profile expected for the second half of the year? - The company expects a similar high-grade profile in the second half, aligning with production guidance [58][61]

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]

Company Overview - New Gold (NYSE: NGD) is a gold-copper mining company operating two mines in Canada, showing significant improvement in recent years [1] - The company has a strong balance sheet and is expected to experience significant ramp-ups in production over the next couple of years [1] Investment Insights - New Gold is focusing on investments and cost-saving measures to enhance its operational efficiency [1] - The company is part of a broader industry trend where mining stocks, particularly in metals, are gaining attention from investors [1]

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]