NGD - New Gold: A Free Cash Flow Machine Post-2024
2024-04-22 05:12:11 ET
Summary
- Gold and copper producers like New Gold, K92 Mining, and Evolution Mining have benefited from the recent surge in gold and copper prices.
- While NGD has outperformed its peer group, the company remains very reasonably valued relative to the free cash flow it will generate in 2025/2026.
- In this update, we'll dig into New Gold's FY2023 results, its 2024 outlook, and where the stock's updated buy zone lies.
While most gold and silver producers have seen outperformance from the recent surge in precious metals prices, one breed of companies has also been a significant beneficiary. This group is gold and copper producers like New Gold ( NGD ), Evolution Mining ( CAHPF ), and K92 Mining ( KNTNF ). In New Gold's case, it may not have industry-leading growth like K92 Mining (300% production growth from 2023 to 2027) but it has all of its production coming from Canada and operates a copper-gold block cave operation at New Afton which is on track for significant growth once the C-Zone ramps to full capacity. Simultaneously, costs are set to improve materially at its Rainy River Mine in Ontario, setting up exponential growth in free cash flow post-2024....
New Gold: A Free Cash Flow Machine Post-2024