NGD recent pullback??This may account for the recent correction:
1:10 PM EST, 01/10/2019 (MT Newswires) -- RBC Capital has reiterated its Underperform rating on New Gold, but raised TP slightly, from US$1, to US$1.25.
"We believe addressing balance sheet risk is required in order to further improve the long-term investment outlook for New Gold. While deferral of underground capital at Rainy River is prudent, free cash flow will remain challenged over the next couple of years given development of the C-Zone at New Afton and elevated near-term spending at Rainy River. Until balance sheet risk is adequately addressed, we remain cautious on New Gold and reiterate our Underperform rating."
RBC noted that Rainy River ramp-up appears back on track. Following multiple challenges earlier in 2018, the ramp-up of Rainy River appears to be back on track with a solid performance the last few months. With ramp-up headwinds abating, demonstrating sustainable free cash flow is likely to be a key factor.
Price: 1.51, Change: -0.10, Percent Change: -6.21