NGD - New Gold: Digging Into The FY2020 Reserve Update
- New Gold released its FY2020 Reserve & Resource statement in mid-February, reporting a sharp decrease in mineral reserves.
- The majority of the decline was related to the sale of its non-core Blackwater Project acquired from the Richfield Ventures deal, with New Gold retaining a stream on the project.
- While reserves are materially lower, New Gold still has a 10+ year mine life at New Afton, and a 9-year mine life at Rainy River based on reserves.
- Based on New Gold's copper exposure, and satisfactory reserve life for a smaller producer, I continue to believe that pullbacks below $1.50 will provide low-risk buying opportunities.
For further details see:
New Gold: Digging Into The FY2020 Reserve Update