TORONTO - New Gold Inc. (TSX: NYSE:NGD) (NYSE American: NGD), an intermediate mining company, announced today the appointment of Christian Milau to its Board of Directors. Milau brings over two decades of experience in the mining sector, notably as the CEO of Equinox Gold (NYSE:EQX), where he oversaw significant company growth through mergers and acquisitions.
Milau's career has spanned various leadership roles, including CEO of True Gold Mining and CFO of Endeavour Mining. He is currently the CEO of Saudi Discovery (NASDAQ:WBD) Company and serves on the boards of several other mining and resource companies.
Nick Chirekos, Chair of the Corporate Governance and Nominating Committee of the Board, expressed confidence in Milau's strategic and capital markets expertise as New Gold aims to transition into a more substantial free cash flow generator.
New Gold, headquartered in Canada, operates two core producing assets: the Rainy River gold mine and the New Afton copper-gold mine. The company also holds several Canadian-focused investments. New Gold emphasizes its commitment to environmental and social responsibility in its operations.
The company's news release included forward-looking statements regarding its anticipated performance as a significant free cash flow generator and its future success. These statements are based on management's current expectations and involve risks and uncertainties.
The information in this article is based on a press release statement from New Gold Inc.
In other recent news, New Gold Inc. has announced an agreement to increase its stake in the New Afton Mine to 80.1%, up from its current interest. This change comes as a result of a transaction with Ontario Teachers' Pension Plan, which will see its interest decrease from 46.0% to 19.9%.
The transaction is aimed at enhancing the value for New Gold shareholders by increasing the company's share in the expected free cash flow growth from the mine, particularly with the C-Zone expected to commence commercial production in the latter half of 2024.
In analyst news, BMO Capital Markets has maintained an Outperform rating on New Gold, following the company's first-quarter earnings report, which revealed better-than-expected results. New Gold reported an adjusted earnings per share of C$0.02 for the first quarter of 2024, surpassing BMO Capital's estimate of a C$0.03 loss per share.
Further, New Gold has reported its first-quarter earnings, showcasing a strong operational performance and progress on growth initiatives. Despite a net loss of $44 million for the quarter, adjusted net earnings stood at $13 million.
The company expects a significant uptick in production and cash flow in the latter half of the year and remains on track to meet its annual guidance targets. These are recent developments in the company's operations.
InvestingPro Insights
As New Gold Inc. (TSX: NGD) (NYSE American: NGD) welcomes Christian Milau to its Board of Directors, the company's financial performance and market dynamics offer a mixed landscape for investors. Based on the latest data from InvestingPro, here are some key insights and metrics:
InvestingPro Tips suggest that analysts are optimistic about New Gold's future profitability, with two analysts revising their earnings upwards for the upcoming period and predictions that the company will be profitable this year. This optimism is mirrored in the stock's performance, with a significant price uptick of 68.33% over the last six months and a year-to-date price total return of 38.36%.
However, it is important to note that the company has not been profitable over the last twelve months, and the stock price movements have been quite volatile. Moreover, New Gold does not pay a dividend to shareholders, which may be a consideration for income-focused investors.
From a financial standpoint, the company's revenue over the last twelve months as of Q1 2024 stood at 777 million USD, with a notable revenue growth of 23.08%. Despite this, revenue growth on a quarterly basis saw a slight decline of 4.71%. The gross profit margin remains robust at 43.37%, reflecting the company's ability to maintain profitability in its core operations.
For those considering an investment in New Gold, these insights can be further enriched with additional InvestingPro Tips available at: https://www.investing.com/pro/NGD. There are currently 10 additional tips listed, providing a deeper dive into the company's financial health and market performance.
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