NGD - New Gold: On Track For An Earnings Breakout Year
- New Gold released its Q1 results last month, reporting a weaker quarter due to a mud rush incident at New Afton.
- Fortunately, guidance has been maintained, and the company's Rainy River Mine picked up the slack with output up more than 10% year-over-year.
- On a blended NPV/earnings multiple basis using FY2022 earnings estimates of $0.30, I see a fair value for New Gold of $2.75, more than 30% above current levels.
- So, if we do see further weakness in the stock, I would view this as a low-risk buying opportunity.
For further details see:
New Gold: On Track For An Earnings Breakout Year