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New Gold: Digging Into The FY2020 Reserve Update

Apr. 07, 2021 1:09 PM ETNew Gold Inc. (NGD), NGD:CA18 Comments
Taylor Dart profile picture
Taylor Dart


  • New Gold released its FY2020 Reserve & Resource statement in mid-February, reporting a sharp decrease in mineral reserves.
  • The majority of the decline was related to the sale of its non-core Blackwater Project acquired from the Richfield Ventures deal, with New Gold retaining a stream on the project.
  • While reserves are materially lower, New Gold still has a 10+ year mine life at New Afton, and a 9-year mine life at Rainy River based on reserves.
  • Based on New Gold's copper exposure, and satisfactory reserve life for a smaller producer, I continue to believe that pullbacks below $1.50 will provide low-risk buying opportunities.

Ore trucks in an open-pit mine
Photo by robas/E+ via Getty Images

The Q4 Earnings Season for the Gold Miners Index (GDX) has finally come to an end, and many companies are now busy releasing their FY2020 Reserve & Resource updates. One of the first companies to release

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Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I am/we are long GLD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

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