New Gold's Q2 adjusted net income beats estimates
Overview
New Gold Q2 adjusted EPS beats analyst expectations, revenue missed estimates
Record quarterly free cash flow of $63 mln driven by Rainy River
Company on track to meet annual production guidance, exploration supports growth
Outlook
Company expects increased gold production in second half of 2025
New Gold on track to meet 2025 guidance of 325,000-365,000 oz gold
Company anticipates higher copper and gold production at New Afton
New Gold sees improved copper and gold recoveries post upgrades
Result Drivers
RAINY RIVER PRODUCTION - Record production month at Rainy River in June, driving record quarterly free cash flow
NEW AFTON PERFORMANCE - B3 cave at New Afton exceeded expectations, contributing to higher head grades
MILL IMPROVEMENTS - Improved mill performance at Rainy River supports processing of higher-grade material
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $308.40 mln | $320.90 mln (1 Analyst) |
Q2 Adjusted EPS | Beat | $0.11 | $0.1 (5 Analysts) |
Q2 Adjusted Net Income | Beat | $89.80 mln | $80.70 mln (1 Analyst) |
Q2 Net Income |
| $68.60 mln |
|
Q2 Operating Expenses |
| $111 mln |
|
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$7.75, about 21.9% above its July 25 closing price of C$6.05
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nCNW2XgkGa
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