Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, December 18, 2009

Article Excerpt

NEW GOLD, $3.77, symbol NGD on Toronto, is reopening its Cerro San Pedro mine in Mexico after a Mexican court granted an injunction against a mining-suspension order from the Mexican environmental protection agency. The mine accounts for about one-third of New Gold’s 290,000 ounces per year of gold production. Cerro San Pedro has long been the subject of disputes with local groups and environmentalists, who claim it is harming a historically important area. They also argue that the operation threatens local watersheds. However, New Gold believes that the mine complies with its permits and environmental regulations. Moreover, New Gold has helped preserve endangered plant species and participated in reforestation efforts as part of its environmental plans, which the government originally approved. The company plans to appeal the mining-suspension order. Mexico has a good reputation as a mining-friendly country, so the dispute will likely be resolved. Meanwhile, New Gold will continue to operate the mine throughout the course of the appeal…