- New Gold released its preliminary Q1 results last week, reporting quarterly production of ~87,700 gold-equivalent ounces, which was the company's weakest quarter in more than two years.
- This was related to lower throughput and grades at New Afton, and COVID-19 related headwinds which impacted equipment utilization at Rainy River.
- Fortunately, higher grades offset the lower throughput year-over-year, with Rainy River having another solid quarter, and helping to pick up the slack at New Afton.
- While the company has a much stronger year ahead with back-end weighted production and a bright future as costs decline at both assets vs. 2022 levels, I think there are more attractive opportunities elsewhere.
For further details see:
New Gold: A Brighter Future For Rainy River