What happened
Shares of New Gold (NGD -1.71%) were moving higher today after the gold miner posted strong operating results in its first-quarter earnings report. The company also named a new chief operating officer and received a positive analyst note.
As a result, the gold stock was up 9.8% as of 10:12 a.m. ET.
Image source: Getty Images.
So what
In the report, the company said it produced 104,857 ounces of gold equivalent, up 20% from 87,696, and it saw solid increases at both its New Afton mine and the Rainy River mine.
Management said that the quarter represented its strongest start to the year in four years, and said that Rainy River had its best first quarter ever, saying it achieved an increase in production and delivery of nearly 13% from the quarter a year ago.
Separately, the company also announced several new hires and promotions, including Yohann Bouchard as COO and executive vice president, and Ankit Shah as executive vice president, strategy and business development.
Bouchard was most recently the COO at Yamana Gold and brings more than 25 years of technical and operations experience to New Gold.
Now what
New Gold has struggled with high production costs, which explains why the stock is trading in penny stock range. But at least one analyst thinks the company is turning the corner.
Scotiabank resumed coverage on the stock with a sector perform rating and a $1.25 price target, which might not sound particularly favorable, but the analyst said the company was reaching a free-cash-flow inflection point, and expected FCF to improve in 2024.
We'll learn more when New Gold reports its full first-quarter earnings report on April 26. Analysts are expecting revenue to fall 6.8% to $162.8 million and see break-even earnings per share, down from a $0.02 adjusted earnings per share in the quarter a year ago.
