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:

On February 13, 2020, the company reported total production (excluding production from the Cerro San Pedro Mine) for the fourth quarter was 101,423 gold equivalent (gold eq.) ounces (66,856 ounces of gold, 140,475 ounces of silver and 18.3 million pounds of copper). revenues for the fourth quarter were $139 million and $631 million for the year.

On February 12, 2020, the company announced 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.

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. Its revenue has increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, the MACD is trying to cross back up and the RSI stands at 48.64 with positive bias. We rate New Gold Inc. (NGD) a STRONG BUY.