New Gold Inc. engages in the acquisition, exploration, development, and operation of mineral properties in Canada, United States, Australia, Mexico, and Chile. The company was founded in 1980 and is based in Vancouver, Canada.
NGD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for New Gold Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that New Gold Inc ranked in the 0th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 100%. The most interesting components of our discounted cash flow analysis for New Gold Inc ended up being:
The company's compound free cash flow growth rate over the past 1 years comes in at -0.69%; that's greater than only 1.16% of US stocks we're applying DCF forecasting to.
New Gold Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.18. This coverage rate is greater than that of merely 24.92% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, New Gold Inc experienced a tax rate of about 3% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than merely 24.74% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NGD, try AEM, BIOX, GSTX, HUN, and OSN.
New Gold Inc. is turning to a new test that can diagnose COVID-19 cases in as little as one hour outside a lab setting in the hope of keeping its gold and silver mine in northern Ontario free of the disease.
New Gold, Inc. (NGD) Q2 2020 Earnings Conference Call July 30, 2020, 08:30 ET Company Participants Anne Day - VP, IR Renaud Adams - President, CEO & Director Robert Chausse - EVP & CFO Conference Call Participants Nicholas Jarmoszuk - Stifel, Nicolaus & Company Matthew Fields - Bank of America...
TORONTO--(BUSINESS WIRE)--July 30, 2020 – New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) reports second quarter results for the Company as of June 30, 2020 as well as its updated operational outlook for 2020. During the quarter, the Company has been able to execute on numerous key strategic opportunities, including the closing of the $300 million partnership with Ontario Teachers' Pension Plan, the divestment of the Blackwater Project for C$190 million cash and an 8% g