New Gold Inc T.NGD

Alternate Symbol(s): NGD

New Gold Inc. is a Canada-based intermediate gold mining company, which is engaged in the development and operation of mineral properties. The assets of the Company, directly or through its subsidiaries, are comprised of the Rainy River Mine in Canada (Rainy River), the New Afton Mine in Canada (New Afton), and the Cerro San Pedro Mine in Mexico (for reclamation) (Cerro San Pedro). The Company also holds approximately a 5% equity stake in Artemis Gold Inc., and other Canadian-focused investments. The Rainy River is a gold mine located in Northwestern Ontario, Canada, approximately 50 kilometers (km) northwest of Fort Frances, Ontario. The New Afton mine is located approximately 10 km west of Kamloops, approximately 350 km northeast of Vancouver, British Columbia, Canada. The Cerro San Pedro Mine is located approximately 20 km northeast of San Luis Potosi, Cerro San Pedro, Mexico.

TSX:NGD - Post by User

New Gold Inc

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Post by goldguy007on Oct 22, 2014 11:37am

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Post# 23051039

Why is gold mining such a crappy business?

Here are two excellent essays that explain why gold miners shares tend to under-perform the metal over the long run.

Saville
https://www.321gold.com/editorials/saville/saville102014.html

Pollitt

https://www.denvergoldforum.org/assets/downloads/MarketLetter-Keynote-Denver-Final.pdf

And it is why I like royalty companies such as FNV, RGLD, and SLW since they also avoid the pitfalls that miners face.

That having been said I currently a large portfolio of PM miners, including NGD, because there are times when miners present good speculation opportunities, but I always treat them as speculations and use short hedges to control risk when they are in down moves.

goldguy

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