New Gold Q3 revenue beats expectations on record Rainy River output

Overview

• New Gold Q3 revenue beats analyst expectations, driven by record Rainy River production

• Adjusted net income for Q3 surpasses estimates

• Company repaid $260 mln of debt, strengthening financial position

Outlook

• New Gold expects 2025 gold production in line with 325,000-365,000 oz guidance range

• Copper production expected at mid-point of 50-60 mln lbs guidance range

• All-in sustaining costs trending at high end of $1,025-$1,125/oz guidance range

Result Drivers

• RAINY RIVER PRODUCTION - Record production at Rainy River mine drove strong cash flow and free cash flow generation

• NEW AFTON PERFORMANCE - B3 cave at New Afton mine enhanced shareholder value without additional capital

• DEBT REPAYMENT - Strong cash flow enabled repayment of $260 mln of debt, improving financial stability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the gold peer group is "buy"

• Wall Street's median 12-month price target for New Gold Inc is C$11.04, about 20% above its October 27 closing price of C$8.83

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nCNW1xHpNa

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