Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, August 28, 2015

Article Excerpt

NEW GOLD INC., $3.00, symbol NGD on Toronto, has four mines: Mesquite in the U.S., Cerro San Pedro in Mexico, the Peak mine in Australia and the New Afton mine in B.C. The company also owns 30% of the El Morro copper/gold project in Chile, 100% of the Blackwater property in B.C. and 100% of Ontario’s Rainy River project. New Gold has just agreed to sell its El Morro stake to Goldcorp (Toronto symbol G) for $90 million in cash, 4% of El Morro’s gold production when a mine is built, and the cancellation of a $93-million loan from Goldcorp. Prior to the El Morro sale, New Gold’s $879.3 million of long-term debt was a high, but manageable, 61% of its market cap. It also holds cash of $326.8 million, or $0.64 a share. Like most gold firms, New Gold’s shares will be heavily influenced by the direction of gold prices. Meanwhile, its positive cash flow, strong balance sheet and rising production…