NGD builds a mine; YRI readies for a spinoff

Article Excerpt

NEW GOLD $3.86 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold.com; Shares outstanding: 508.9 million; Market cap: $2.1 billion; No dividends paid) has four mines: the Mesquite project in the U.S., Cerro San Pedro in Mexico, the Peak mine in Australia and the New Afton mine in B.C. New Gold also owns 30% of the El Morro copper/ gold project in Chile, 100% of the Blackwater property in B.C. and 100% of Ontario’s Rainy River project. In the three months ended March 31, 2015, the company’s cash flow per share fell 27.8%, to $0.13 from $0.18 a year earlier. Gold production rose 4.0%, to 94,977 ounces from 91,317, but an 11.2% fall in copper output from New Afton, along with lower realized gold prices, cut New Gold’s cash flow. The company is now starting construction of a mine at Rainy River. It aims to start production in mid-2017 at an average of 325,000 ounces of gold annually over nine years. …