- New Gold released its Q1 results earlier this month, reporting an 8% decline in gold-equivalent ounce production on the back of lower grades at New Afton.
- Given the lower sales volumes, costs increased sharply and margins took a hit in the period, sliding below $150/oz.
- While it's easy to be pessimistic about the soft results, it makes sense to skate to where the puck will be, and NGD will look completely different in 2024.
- Given New Gold’s improving margin profile, further weakness should present a buying opportunity.
For further details see:
New Gold: Ignore The Weak Q1 Results