stockwatch Globe says RBC's Siperco hikes New Gold to "outperform"
2022-10-04 08:16 ET - In the News
The Globe and Mail reports in its Tuesday, Oct. 4, edition that RBC Dominion Securities analyst Michael Siperco has upgraded New Gold to "outperform" from "sector perform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Siperco boosted his share to $1.25 (U.S.) from $1 (U.S.). Analysts on average target the shares at $1.10 (U.S.). Mr. Siperco says his rating boost "is driven by the rerate potential versus peers over the next several quarters as production growth starts to accelerate." Mr. Siperco says he now has a higher confidence in a production rebound from its Rainy River open pit mine in Northwestern Ontario after a tour of the project. Mr. Siperco says in a note: "Overall we came away with more certainty that open pit issues have been resolved, boding well for revised 2H production guidance, while having more confidence in the longer term shift from open pit to underground mining at Rainy River. The pit has been dewatered and normal mining operations have resumed, with 41koz AuEq [gold equivalent] produced in July/Aug (RBC estimate 64koz for 3Q22). We expect higher grade, lower cost production in 2H (up 32 per cent half-over-half), inline with guidance."