Bright future for New Gold

Article Excerpt

NEW GOLD $9.93 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315- 9715; www.newgold.com; Shares outstanding: 476.0 million; Market cap: $4.7 billion; No dividends paid) produced 411,892 ounces of gold in 2012, up 6.4% from 387,155 ounces in 2011. New Gold now has four operating mines. The company also owns 30% of the El Morro copper/gold project in Chile and 100% of the Blackwater gold project in B.C. There is still room to increase production at New Gold’s mines and expand their reserves through exploration drilling. But even if the company doesn’t expand its operations or make acquisitions, its production could still top 1 million ounces within six years. Most of that rise will come from the successful development of the Blackwater project, which could hold up to 8.4 million ounces of gold. New Gold is still a buy. buy…