New Gold outlook shines

Article Excerpt

NEW GOLD $4.10 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold.com; Shares o/s: 575.5 million; Market cap: $2.4 billion; No dividends paid) reported cash flow per share of $0.10 in the three months ended September 30, 2017. That was down 16.7% from $0.12 a year earlier. However, the lower cash flow was mostly due to the timing of gold and copper sales— gold production actually rose 17.5%. Copper production rose 7.0%. New Gold’s new mine in Rainy River, Ontario, has just started up. The company aims to produce an average of 325,000 ounces of gold annually. Like most gold stocks, New Gold’s shares are heavily influenced by gold prices. Still, the company’s positive cash flow and rising production give it speculative appeal. New Gold is a buy. buy…