NGD - New Gold: A Much Better Year Ahead For Rainy River
- New Gold released its Q4 and FY2021 results last month, reporting annual production of ~418,900 gold-equivalent ounces, coming in just below its updated guidance mid-point (~427,000 ounces).
- However, New Gold had a solid year overall despite the miss, with an improved balance sheet following the stream sale, and a better year from a margin standpoint at Rainy River.
- Looking ahead to FY2022, costs will remain elevated due to increased sustaining capital, but we should see another decent year ahead for Rainy River, with further improvements in FY2023.
- At a current share price of $1.88, I don't see enough margin of safety to justify entering new positions, but NGD is a name worth monitoring on pullbacks given its improving cash flow profile.
For further details see:
New Gold: A Much Better Year Ahead For Rainy River