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New Gold Inc T.NGD

Alternate Symbol(s):  NGD

New Gold Inc. is a Canadian intermediate gold mining company with a portfolio of two core producing assets in Canada, namely the Rainy River gold mine and the New Afton copper-gold mine. The Company also holds other Canadian-focused investments. The Company is engaged in the acquisition, exploration and development of natural resource properties. Rainy River is a gold mine located in Northwestern Ontario, Canada, approximately 65 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.


TSX:NGD - Post by User

Bullboard Posts
Comment by 50centdollarson Jan 17, 2018 12:18pm
161 Views
Post# 27377700

RE:RE:Well boys, what will the market do with these results.

RE:RE:Well boys, what will the market do with these results.
BASTILLEDAY4U wrote: This is stupid cheap for company that produces gold, silver and copper, minimum 10 years at Rainy River, got some this mourning at $3.90.


Not when the company has $2B of debt on its balance sheet, 578M O/S, and its major producing mine is forecast to have AISC of over $900 in 2018.  

Rainy River is looking like a flop at the moment.  Given the amount of capital that went into it, those AISC need to be lower to make it a sound investment.  Obviously since it's almost complete they'll enjoy lots of free cash flow over the next 10 years, but again, relative to the capital (mostly debt financed) to build it, will it be enough to make it worthwhile?
Bullboard Posts