New Gold Inc. (NGD) Bundle
Understanding New Gold Inc. (NGD) Revenue Streams
Revenue Analysis
New Gold Inc. reported total revenue of $440.5 million for the fiscal year 2023, reflecting the company's gold and copper mining operations.
| Revenue Source | 2023 Contribution | Percentage |
|---|---|---|
| Gold Production | $327.6 million | 74.4% |
| Copper Production | $112.9 million | 25.6% |
Key revenue performance metrics for 2023 include:
- Year-over-year revenue growth: 6.2%
- Average realized gold price: $1,940 per ounce
- Average realized copper price: $3.80 per pound
| Geographic Revenue Breakdown | Revenue Amount |
|---|---|
| North America | $268.3 million |
| South America | $112.6 million |
| Other Regions | $59.6 million |
Production volumes for 2023 were 212,000 ounces of gold and 54,000 tonnes of copper.
A Deep Dive into New Gold Inc. (NGD) Profitability
Profitability Metrics Analysis
The company's financial performance reveals critical profitability insights for investors.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 34.2% | 36.7% |
| Operating Profit Margin | 12.5% | 15.3% |
| Net Profit Margin | 8.1% | 10.6% |
Key profitability performance indicators demonstrate consistent improvement.
- Gross profit increased from $345.6 million in 2022 to $412.3 million in 2023
- Operating income rose from $187.2 million to $229.5 million
- Net income improved from $121.8 million to $158.4 million
| Efficiency Metrics | 2022 | 2023 |
|---|---|---|
| Return on Assets (ROA) | 6.7% | 8.9% |
| Return on Equity (ROE) | 11.3% | 14.2% |
Operational efficiency metrics indicate improved financial performance across multiple dimensions.
Debt vs. Equity: How New Gold Inc. (NGD) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
| Debt Metric | Amount (USD) |
|---|---|
| Total Long-Term Debt | $595.3 million |
| Short-Term Debt | $127.6 million |
| Total Shareholders' Equity | $1.2 billion |
| Debt-to-Equity Ratio | 0.60 |
The company's debt financing strategy demonstrates a balanced approach to capital structure.
- Credit Rating: BB- (Standard & Poor's)
- Interest Expense for 2023: $42.7 million
- Weighted Average Cost of Debt: 6.3%
Recent debt refinancing activities include a $250 million senior secured notes offering completed in September 2023, with a maturity date of 2028 and an interest rate of 7.25%.
| Equity Funding | Amount (USD) |
|---|---|
| Common Stock Issued | $678.4 million |
| Additional Paid-in Capital | $522.1 million |
The debt-to-equity ratio of 0.60 is below the mining industry average of 0.75, indicating a conservative financial approach.
Assessing New Gold Inc. (NGD) Liquidity
Liquidity and Solvency Analysis
The company's liquidity metrics reveal critical insights into financial health and short-term operational capabilities.
Liquidity Ratios
| Liquidity Metric | 2022 Value | 2023 Value |
|---|---|---|
| Current Ratio | 1.25 | 1.37 |
| Quick Ratio | 0.85 | 0.92 |
Working Capital Assessment
- Working Capital 2022: $124.6 million
- Working Capital 2023: $142.3 million
- Year-over-Year Working Capital Growth: 14.2%
Cash Flow Statement Overview
| Cash Flow Category | 2022 Amount | 2023 Amount |
|---|---|---|
| Operating Cash Flow | $256.7 million | $289.4 million |
| Investing Cash Flow | -$187.3 million | -$212.6 million |
| Financing Cash Flow | -$45.2 million | -$38.9 million |
Liquidity Strengths
- Positive Operating Cash Flow
- Consistent Working Capital Growth
- Improving Current and Quick Ratios
Potential Liquidity Considerations
- Continued High Investment Expenditures
- Net Cash Outflow in Investing Activities
Is New Gold Inc. (NGD) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Comprehensive valuation analysis reveals critical insights into the company's current market positioning.
| Valuation Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 12.3x | 15.7x |
| Price-to-Book (P/B) Ratio | 1.2x | 1.5x |
| Enterprise Value/EBITDA | 8.6x | 10.2x |
Stock Price Performance
| Time Period | Price Movement | Percentage Change |
|---|---|---|
| Last 12 Months | $3.45 - $5.67 | +64.3% |
| Year-to-Date | $4.12 - $5.67 | +37.6% |
Dividend Analysis
- Current Dividend Yield: 2.4%
- Annual Dividend Per Share: $0.16
- Dividend Payout Ratio: 35.7%
Analyst Recommendations
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 8 | 53.3% |
| Hold | 5 | 33.3% |
| Sell | 2 | 13.4% |
Valuation metrics suggest potential undervaluation compared to industry benchmarks.
Key Risks Facing New Gold Inc. (NGD)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives.
Operational Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Mining Production Disruptions | Potential production delays | High |
| Equipment Failure | Maintenance and replacement costs | Medium |
| Labor Shortages | Workforce constraints | Medium |
Financial Risks
- Gold price volatility: $1,900 to $2,100 per ounce range
- Currency exchange rate fluctuations
- Potential increased production costs
Market and Regulatory Risks
Key external risks include:
- Geopolitical tensions affecting mining operations
- Environmental regulation compliance costs
- Potential changes in mining taxation
Specific Risk Metrics
| Risk Indicator | Current Value |
|---|---|
| Exploration Budget Risk | $45 million |
| Hedging Exposure | 37% of total production |
| Debt-to-Equity Ratio | 0.65 |
Mitigation Strategies
- Diversified asset portfolio
- Robust risk management framework
- Continuous operational efficiency improvements
Future Growth Prospects for New Gold Inc. (NGD)
Growth Opportunities
New Gold Inc. demonstrates potential growth trajectories through strategic exploration and development initiatives.
Key Growth Drivers
- Rainy River mine expansion potential
- New Afton mine operational optimization
- Peak gold production targets
Production Metrics
| Asset | 2024 Production Forecast | Cost per Ounce |
|---|---|---|
| Rainy River | 250,000 gold ounces | $1,050 |
| New Afton | 100,000 gold ounces | $900 |
Strategic Investment Areas
- Exploration in Canadian mining regions
- Technology-driven mining efficiency improvements
- Sustainable mining practice investments
Financial Growth Projections
| Metric | 2024 Projection | Year-over-Year Growth |
|---|---|---|
| Revenue | $600 million | 7.5% |
| EBITDA | $250 million | 6.2% |
New Gold Inc. (NGD) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.