New Gold recently announced its Q2 2025 results with significant sales and net income growth, alongside a basic EPS increase to USD 0.09. These strong financial results, coupled with strategic moves like acquiring full interest in the New Afton Mine, played a role in the company's remarkable 32% price surge last quarter. This movement aligned with a broadly positive market sentiment, highlighted by major indices like the S&P 500 and Nasdaq reaching record highs. New Gold's robust performance added to the momentum in the market, despite the backdrop of trade discussions and economic announcements.
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The recent news of New Gold's substantial sales and earnings growth, heightened by its acquisition of full interest in the New Afton Mine, aligns with its efforts to boost future production and enhance shareholder value. Over the past three years, the company's total shareholder return, incorporating both share price appreciation and dividends, was a very large 476.19%. This long-term performance underscores the company's ability to generate value, surpassing the Canadian Market's one-year return of 17.6% and outpacing the Canadian Metals and Mining industry, which saw a return of 33.7% over the past year.
New Gold's recent operational milestones, such as achieving commercial production in the C-Zone at New Afton, are anticipated to elevate future revenue and earnings forecasts. The expected 30% increase in gold production and 90% increase in copper production, alongside cost reductions, should further support these upward trends. However, New Gold's current share price of CA$6.05 remains at a 38.4% discount to the analysts' consensus price target of CA$8.3, suggesting potential upward movement. This price alignment with the predicted earnings and revenue growth highlights analysts' confidence in New Gold's future prospects.
Our valuation report unveils the possibility New Gold's shares may be trading at a discount.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TSX:NGD.
This article was originally published by Simply Wall St.
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