New Gold's Q2 adjusted net income beats estimates

New Gold

28/07/2025 11:42

Overview

New Gold Q2 adjusted EPS beats analyst expectations, revenue missed estimates

Record quarterly free cash flow of $63 mln driven by Rainy River

Company on track to meet annual production guidance, exploration supports growth

Outlook

Company expects increased gold production in second half of 2025

New Gold on track to meet 2025 guidance of 325,000-365,000 oz gold

Company anticipates higher copper and gold production at New Afton

New Gold sees improved copper and gold recoveries post upgrades

Result Drivers

RAINY RIVER PRODUCTION - Record production month at Rainy River in June, driving record quarterly free cash flow

NEW AFTON PERFORMANCE - B3 cave at New Afton exceeded expectations, contributing to higher head grades

MILL IMPROVEMENTS - Improved mill performance at Rainy River supports processing of higher-grade material

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$308.40 mln
$320.90 mln (1 Analyst)
Q2 Adjusted EPS
Beat
$0.11
$0.1 (5 Analysts)
Q2 Adjusted Net Income
Beat
$89.80 mln
$80.70 mln (1 Analyst)
Q2 Net Income
$68.60 mln
Q2 Operating Expenses
$111 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the gold peer group is "buy"

Wall Street's median 12-month price target for New Gold Inc is C$7.75, about 21.9% above its July 25 closing price of C$6.05

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nCNW2XgkGa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)