Shares of New Gold (NGD +10.59%) climbed 11% on Wednesday after the gold and copper producer reported strong third-quarter operating results.
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This gold miner is gushing cash
New Gold produced 115,213 ounces of gold and 12 million pounds of copper during the third quarter. The company's Rainy River mine in Ontario saw its production increase by 63% from the second quarter to more than 100,000 ounces of gold. At the same time, New Gold's New Afton mine in British Columbia generated a better-than-expected 14,912 ounces of gold.
New Gold's all-in sustaining costs -- which include direct operating expenses and capital expenditures required to maintain existing operations -- came in at $966 per gold ounce sold. With gold prices soaring in 2025, the miner was able to sell the precious metal at an average realized price of $3,458 per ounce.
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Key Data Points
This lucrative spread between production costs and realized sale price, combined with greater production volumes, helped to drive New Gold's cash flow sharply higher. The company's free cash flow skyrocketed 225% compared to the second quarter to a record $205 million.
This bountiful cash generation enabled New Gold to pay down $260 million of debt, thereby strengthening its balance sheet and reducing the risks for shareholders. The company ended the quarter with $123 million in cash and equivalents and $394 million in long-term debt.
New Gold remains on track to hit its full-year targets
Management expects New Gold to achieve its production goals of 325,000 to 365,000 ounces of gold and 50 million to 60 million pounds of copper in 2025. The company also said construction on its New Afton mine is progressing on schedule, which should bolster gold and copper production in the fourth quarter.
