NGD - New Gold: Unfortunate Hedges Continue To Put Pressure On The Company's Performance
New Gold (NGD) has recently reported its second-quarter results, missing analyst estimates on earnings and revenue. The company reported revenues of $128.5 million and GAAP earnings of -$0.07 per share. As I wrote in my previous article on New Gold, the company’s second-quarter production levels were lower than expected due to lower grades, while revenues remained under pressure due to unfortunate hedging programs.
The company produced 98,079 gold equivalent ounces ((GEO)) at all-in sustaining costs (AISC) of $1283 per ounce. The main driver for high AISC was the Rainy River mine, which