Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

New Gold: Low Costs And High Growth? It's More Complicated Than That

New Gold (NYSEMKT:NGD) is often cited as a favorite investment among gold bulls given two attributes: low production costs and significant growth potential. In this article, I argue that the company's production costs really aren't that low, and that while the company has three large projects that are more or less ready for development, only one is compelling at current metal prices.

Let us look at each of the bullish claims and then at the company's projects and assets/liabilities to get a better picture of New Gold's true value going forward.

1: New Gold's "Low Costs"

In 2013, the company reported all in sustaining costs (AISC) of just $900/ounce while the rest of the industry saw AISC at...

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