Two golds with top-quality mines

Article Excerpt

NEW GOLD $3.02 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold .com; Shares outstanding: 509.1 million; Market cap: $1.4 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 the Rainy River project in Ontario. In the three months ended June 30, 2015, New Gold’s cash flow per share fell 8.3%, to $0.11 from $0.12 a year earlier. That’s because the company’s gold and copper production fell, as did prices. New Gold recently started building a mine at Rainy River; it aims to start production in mid-2017 at an average of 325,000 ounces of gold annually. To help fund the project, New Gold has entered into an agreement with Royal Gold (Nasdaq symbol RGLD). Royal will…