2023-05-14 02:34:01 ET
Summary
- New Gold released its Q1 results last month, reporting quarterly production of ~104,900 gold-equivalent ounces, a significant improvement from the year-ago period.
- Given the higher sales volumes and much lower sustaining capital in the period, margins improved materially despite a lower gold price, with AISC margins more than tripling to $404/oz.
- While this has still translated to industry-lagging costs and cash outflows as the company works to develop the C-Zone, 2024 should be a much better year.
- That said, I see some of the positive developments priced into the stock here with NGD up over 130% from its lows, so I would view any rallies above US$1.57 before July as an opportunity to book some profits.
For further details see:
New Gold: Margins Bounce Back In Q1