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NGD - New Gold: Struggling With Costs At Rainy River
New Gold Inc.
Image: The Rainy River gold/silver mine in northwestern Ontario. Source: New Gold, Inc.
Investment Thesis
The Canadian-based New Gold, Inc. (NGD) is mainly a gold producer with two producing mines in North America: the New Afton and the Rainy River mines. The company also owns the Blackwater project.
New Gold presents some potential growth, particularly in 2020, when the Rainy River mine will be fully operational and CapEx will drop much lower. However, the company is struggling with mounting cost issues that cause a severe concern as regards its ability to succeed.