New Gold To Implement Plan To Boost Gold, Copper Production
Portfolio Pulse from Stjepan Kalinic
New Gold (AMEX:NGD) announced a three-year plan to increase gold and copper production by 35% and 60% respectively by 2026. The Toronto-based company aims to achieve this through higher output at its current mines and completing growth projects, expecting significant free cash flow generation as costs decrease. The plan includes boosting gold production to between 410,000 and 460,000 ounces, and copper to between 71 million and 81 million pounds, with the first results expected in 2024. New Gold anticipates $75 million in free cash flow in the second half of the year, with $185.9 million in cash and $395.7 million in debt currently.
February 12, 2024 | 3:21 pm
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New Gold plans to significantly increase gold and copper production by 2026, aiming for substantial free cash flow as production costs decrease.
The announcement of a strategic plan to boost production significantly by 2026 is likely to be viewed positively by investors, as it outlines a clear path to increased free cash flow and reduced costs. The focus on enhancing output at existing mines and completing growth projects could lead to improved operational efficiency and financial performance. Given the detailed production targets and the expected impact on the balance sheet, this news is highly relevant and important for investors in NGD. The positive outlook on free cash flow generation, coupled with the strategic initiatives to overcome past challenges, supports a positive short-term impact on NGD's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100