New Gold Gears Up to Report Q1 Earnings: What to Expect?

Core Viewpoint - New Gold (NGD) is expected to report first-quarter 2025 results on April 29, with earnings per share (EPS) estimates showing a shift from a prior anticipated loss to a slight profit, although still reflecting a decline from the previous year [1][3]. Financial Performance - The Zacks Consensus Estimate for NGD's EPS has improved from a loss of four cents to a profit of one cent over the last 60 days, indicating a 50% decline from the year-ago quarter's EPS of two cents [1]. - New Gold has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 79.2% [2]. Market Conditions - Gold prices averaged $2,883.40 per ounce in Q1 2025, a 39$5 per pound in late March due to tariff concerns [4]. Production Expectations - For 2025, New Gold anticipates consolidated gold production of 325,000-365,000 ounces, a 16% increase from the previous year, with Q1 expected to contribute 14% of this total [5]. - Q1 2025 gold production is projected to be between 45,500-51,100 ounces, down from 70,898 ounces in Q1 2024, attributed to significant waste stripping at Rainy River and the depletion of the B3 cave at New Afton [6][12]. - Rainy River's gold production is expected to increase by 20% year-over-year, with Q1 contributing approximately 11% of the annual target [7]. - New Afton's gold output is projected at 60,000-70,000 ounces for 2025, with Q1 production expected between 16,350 and 18,650 ounces [8]. Cost Projections - All-in sustaining costs are expected to be $1,025-$1,125 per ounce in 2025, reflecting a 17% decrease at the midpoint due to higher production and lower operating costs [10]. - Q1 2025 all-in sustaining costs are anticipated to be higher than the $1,396 per ounce reported in Q1 2024, with cash costs also expected to exceed$874 per ounce from the previous year [11]. Stock Performance - New Gold's stock has increased by 93% over the past year, outperforming the industry growth of 42.7% [14].