NGD - New Gold: Limited Margin Of Safety At Current Levels
- New Gold released its Q3 results last week, reporting quarterly production of ~105,600 gold-equivalent ounces, a decline of more than 8% from the year-ago period.
- Despite the lower sales volume, revenue increased, but costs were up year-over-year, offsetting what would have otherwise been much stronger all-in sustaining cost margins.
- Looking ahead, Rainy River is set to become a much more profitable asset as mining heads underground, assuming actual results come in similar to the mine plan.
- However, with New Gold now trading at ~0.90x P/NAV after its recent rally, I see the stock as close to fairly valued, with a limited margin of safety at current levels.
For further details see:
New Gold: Limited Margin Of Safety At Current Levels