NEW GOLD $6.89 - Toronto symbol NGD

NEW GOLD $6.89 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold- .com; Shares outstanding: 476.9 million; Market cap: $3.2 billion; No dividends paid) has four operating mines: the Mesquite mine in the U.S., the Cerro San Pedro mine in Mexico, the Peak mine in Australia and the just-completed New Afton mine in B.C. It also owns 30% of the El Morro copper/gold project in Chile and 100% of the Blackwater project in B.C.

In the quarter ended March 31, 2013, New Gold’s cash flow fell 5.6%, to $0.17 a share from $0.18 a year earlier. Lower gold prices offset new production from New Afton, which started up in late 2012.

New Gold’s $854.3 million of long-term debt is a moderate 26.7% of its market cap. It also holds cash of $672.4 million, or $1.41 a share.

The company produced 411,892 ounces of gold in 2012. That could top 1 million ounces within six years. Most of that rise will come from the successful development of its Blackwater project, which could hold up to 8.4 million ounces of gold.

New Gold is a buy.

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