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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
Post by Goldwillrun2020on Feb 27, 2020 6:40am
318 Views
Post# 30739301

Good write up on NGD

Good write up on NGD The Financial Post reports in its Wednesday, Feb. 26, edition that New Gold surged after forming an unusual partnership with Ontario Teachers' Pension Plan that gives the miner $300-million in exchange for selling a portion of the free cash flow from its flagship operation. A Bloomberg dispatch to the Post reports that miners often sell rights to future production called streams, as well as royalties, to help finance development of big projects. However, in the agreement announced Tuesday with the Canadian pension fund, Bloomberg says New Gold will sell a 46-per-cent free cash flow interest from its New Afton mine over four years. After the term ends, Teachers' has the option to convert it into a 46-per-cent joint venture interest in the British Columbia mine, while New Gold retains an "overriding" right to buy back the interest under certain conditions. Canaccord Genuity Capital Markets analyst Dalton Baretto says the deal is positive because it allows New Gold to help reduce its debt, while it makes the company a potential takeover target. Laurentian Bank Securities analyst Ryan Hanley says the New Afton deal may allow the gold miner to regain its footing. Last week Mr. Hanley boosted the stock to "buy."
Bullboard Posts