Lundin says buy New GoldLundin says buy New Gold
2009-09-23 19:44 ET - In the News
BrienLundin, in the September, 2009, edition of the Gold Newsletter, saysbuy New Gold Inc., recently $3.36 (all figures U.S.). This is the firsttime Mr. Lundin has recommended the gold company. The newsletter editorsays that 33 days after completing a $1.2-billion (Canadian) businesscombination with Western Goldfields Inc., New Gold had to eat a$190-million goodwill impairment charge on the deal in its secondquarter financials. Add to that foreign exchange losses of $31-millionand the company ended up with a net loss of $203-million or 79 centsper share. Still, notes the goldbug, it was better than expected. Theacquisition will add 140,000 to 150,000 ounces of gold production thisyear. Mr. Lundin says the company expects operational improvements tocontinue for the rest of the year, forecasting a 2009 gold productionof 330,000 to 360,000 ounces at a net cash cost of $490 to $510 perounce. New Gold is also developing its New Afton project which it hopeswill be in production by the second half of 2012. It expects New Aftonto produce 85,000 ounces of gold and 75 million pounds of copper over a12-year mine life. The newsletter editor tells his readers to buy onweakness.