NGD - New Gold: A Brighter Future For Rainy River

• New Gold released its preliminary Q1 results last week, reporting quarterly production of ~87,700 gold-equivalent ounces, which was the company's weakest quarter in more than two years.
• This was related to lower throughput and grades at New Afton, and COVID-19 related headwinds which impacted equipment utilization at Rainy River.
• Fortunately, higher grades offset the lower throughput year-over-year, with Rainy River having another solid quarter, and helping to pick up the slack at New Afton.
• While the company has a much stronger year ahead with back-end weighted production and a bright future as costs decline at both assets vs. 2022 levels, I think there are more attractive opportunities elsewhere.

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