0.8800 -0.01 (-0.58%)
After hours: 7:53PM EST
|Bid||0.8601 x 1400|
|Ask||0.8919 x 800|
|Day's Range||0.8787 - 0.9799|
|52 Week Range||0.6100 - 1.5600|
|Beta (5Y Monthly)||1.52|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||4.01|
(Bloomberg) -- New Gold Inc. surged after forming an unusual partnership with Ontario Teachers’ Pension Plan that gives the miner $300 million in exchange for selling a portion of the free cash flow from its flagship operation.Miners often sell rights to future production called streams, as well as royalties, to help finance development of big projects.But in the agreement announced Tuesday with the Canadian pension fund, New Gold will sell a 46% free cash flow interest from its New Afton mine over four years. After the term ends, Teachers’ has the option to convert it into a 46% joint venture interest in the British Columbia mine, while New gold retains an “overriding” right to buy back the stake under certain conditions.Investors showed their approval by pushing shares of the Vancouver-based miner up as much as 16% in Toronto, the most since July, while gold was down. Before Tuesday, New Gold gained 2.6% in the past 12 months, underperforming both bullion futures and its peers.The deal is positive because it allows New Gold to help reduce its debt, while it makes the company a potential takeover target, according to Canaccord Genuity Capital Markets analyst Dalton Baretto.“This transaction makes New Gold a more attractive takeover target to deep-pocketed, mid-cap gold producers who are looking to acquire production in safe jurisdictions,” Baretto said. However, the deal, with high costs to New Gold, has lowered the company’s net asset value, he added.Rising gold prices have given miners of the precious metal a steady lift in the past year as investors flock to safe-haven assets amid turbulent global macroeconomic environment such as the coronavirus outbreak. However, New Gold has struggled to benefit from this surge amid missteps at its Rainy River mine in Ontario.The New Afton deal may allow the gold miner to regain its footing, said Laurentian Bank Securities analyst Ryan Hanley, who upgraded the stock to a buy rating last week. “While we note the cost of funds may seem a bit high, the increase in financial flexibility and the potential impact of being able to use the funds to offset additional debt is a benefit,” he said in a note.For its part, Ontario Teachers’ move appears to be part of a larger strategy to diversify its portfolio. Lower-for-longer interest rates have pushed pension funds to cast their nets far and wide in search for returns amid a slew of geopolitical risks and trade tensions. Investors looking to diversify are seeking shelter in low-volatility assets that tend to be illiquid.The fund is diversifying so it doesn’t “regret being overexposed to one asset class in particular,” Ziad Hindo, the chief investment officer of the C$201.4 billion ($152 billion) fund, said in August.Ontario Teachers’ said it wasn’t available to comment on the New Gold deal Tuesday.To contact the reporters on this story: Aoyon Ashraf in Toronto at firstname.lastname@example.org;Paula Sambo in Toronto at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, ;Luzi Ann Javier at email@example.com, Steven Frank, Jacqueline ThorpeFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
New Gold Inc. ("New Gold" or the "Company") (TSX and NYSE American: NGD) is pleased to announce that it has entered into a strategic partnership with Ontario Teachers’ Pension Plan ("Ontario Teachers’"). Under the terms of the strategic partnership, Ontario Teachers’ has agreed to acquire a 46.0% free cash flow interest in the New Afton mine ("New Afton") with an option to convert the interest into a 46.0% joint venture interest in four years, or have their interest remain as a free cash flow interest at a reduced rate of 42.5%, for upfront cash proceeds of $300 million payable upon closing of the transaction (the "Transaction"). The proceeds from the Transaction will be used to improve New Gold’s financial flexibility and to reduce net indebtedness.
New Gold Inc. ("New Gold" or the "Company") (TSX and NYSE American: NGD) reports fourth quarter and annual results for the Company as well as its operational outlook for 2020. (All amounts are in U.S. dollars unless otherwise indicated). An earnings conference call and webcast will begin at 12:00 pm Eastern Time to discuss the fourth quarter and year-end financial results and will be followed by a technical session to discuss the updated life of mine plans that were released today in a separate news release. (Details provided at the end of this news release).
New Gold Inc. ("New Gold" or the "Company") (TSX and NYSE American: NGD) reports results of the updated Life of Mine plans for the Rainy River ("Rainy River") and New Afton ("New Afton") Mines. A National Instrument 43-101 ("NI 43-101") Technical Report for each operation will be filed within 45 days. (All amounts are in U.S. dollars unless otherwise indicated). The Company is also providing updated Mineral Reserves and Resources as of December 31, 2019. A technical session will be webcast directly following the Company’s fourth quarter earnings call, which is scheduled to begin at 12:00 p.m. Eastern time. (webcast details are provided at the end of this press release. The Technical Session presentation is available on the Company’s website at newgold.com).
New Gold Inc. ("New Gold" or the "Company") (TSX and NYSE American: NGD) announces drill results for the New Afton Mine from an underground exploration program completed during the year 2019, which identifies gold and copper mineralization within the newly defined East Extension zone located directly beneath the Sub-level cave (SLC) and to the east of the planned C-zone block cave (Figure 1). Results to date confirm the East Extension as a 300 x 40 metres in plan and 700 metres down dip target area (Figure 2). The zone has been subdivided based upon different styles of alteration and mineralization in two distinct zones defined as Upper and Lower East Extension, which appears to represent the down-plunge extension of the Afton Pit, East Cave and SLC zone. Upper East Extension encompasses the higher 250 metres of the area with the Lower East Extension representing the down plunge continuity of it. Both zones are open to the east.
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...
New Gold Inc. ("New Gold" or the "Company") (TSX and NYSE American: NGD) reports preliminary fourth quarter and annual results from the Rainy River and New Afton Mines, achieving annual production guidance. (All amounts are in US dollars unless otherwise indicated).
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Amid an overall bull market, many stocks that smart money investors were collectively bullish on surged through October 17th. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 45% and 39% respectively. Our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted returns. […]
Every investor in New Gold Inc. (TSE:NGD) should be aware of the most powerful shareholder groups. Insiders often own...
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of New Gold Inc. Toronto, September 24, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of New Gold Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.