NEW GOLD $11.17 - Toronto symbol NGD

NEW GOLD $11.17 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold.com; Shares outstanding: 461.4 million; Market cap: $5.2 billion; No dividends paid) produced a record 387,155 ounces of gold in 2011, up 1.1% from 369,077 ounces in 2010.

The company’s production could rise as high as 445,000 ounces in 2012. That growth will come mostly from its New Afton mine, which should start up in the middle of this year.

Even if the New Gold doesn’t expand its mines or make acquisitions, its production could top one million ounces within six years. Most of that rise will come from the successful development of the Blackwater project, which could hold up to 6.8 million ounces of gold.

New Gold is still a buy

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