Momentum Stock Watch: New Gold Inc. (NGD)

Company Profile:

New Gold Inc., an intermediate gold mining company, engages in the development and operation of mineral properties. It primarily explores for gold, silver, and copper deposits. The company’s operating properties include the Rainy River project located in Ontario, Canada; the New Afton project located near Kamloops, British Columbia, Canada; and the Cerro San Pedro mine located in the state of San Luis Potosí, Mexico. It also holds interests in the Blackwater project located to the Southwest of Prince George, British Columbia, Canada. The company was founded in 1980 and is headquartered in Toronto, Canada.

Recent News:

The company reported revenues for the third quarter of 2019 were $168 million and $491 million for the nine-month period. Total production for the quarter came to 128,899 gold equivalent (gold eq.) ounces. For the nine-month period, production was 384,719 gold eq. ounces.

The company reaffirmed that the Company remains on-track to achieve consolidated annual production and cost guidance.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

NGD’s strengths can be seen in its better profitability and strong efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator and MACD. The RSI stands at 42.58 with positive bias. We rate New Gold Inc. (NGD) a STRONG BUY.

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