New Gold Inc. /FI (: NGD)

New Gold Inc. is an intermediate gold mining company engaged in the development and operation of mineral properties. The company's primary assets are the Rainy River Mine in Ontario and the New Afton Mine in British Columbia, both located in Canada. It also holds full ownership of the Cerro San Pedro mine in Mexico, which moved to a post closure phase at the start of 2024. As of December 31 2024, New Gold employed 1607 people, with 52 at the corporate office, 857 at the Rainy River Mine and 698 at the New Afton Mine. The firm is committed to sustainable mining practices, having updated its sustainability strategy in 2024, set a target to cut greenhouse gas emissions by 30% by 2030 using 2020 as a baseline, and participates in the Mining Association of Canada’s Towards Sustainable Mining framework, achieving AAA ratings for tailings management and water stewardship at both operating sites. In addition, New Gold released an inaugural Task Force on Climate Related Financial Disclosures report in 2022 and an updated version in 2024, and it has established a company wide Climate Committee to oversee progress toward its emissions goal. The company's shares are listed on the Toronto Stock Exchange and the NYSE American under the ticker symbol NGD.

New Gold generates revenue primarily from the sale of gold and copper. In 2024 gold sales amounted to approximately $708 million while copper sales contributed about $209 million. Gold doré produced at the Rainy River Mine is refined by third party refiners and sold to bullion banks or gold trading counterparties at prevailing market prices. Copper concentrate from the New Afton Mine is sold to smelters or concentrate marketing firms. The company may also enter into derivative contracts such as options or swaps to hedge exposure to gold and copper prices. These hedging activities aim to protect cash flows from volatile commodity prices while maintaining flexibility to benefit from favorable market movements. Silver is recovered as a by product at both mines and adds to overall revenue. The firm operates in global gold and copper markets and is not dependent on any single purchaser, refiner, smelter or marketing firm. Additionally, New Gold reports that its revenue streams benefit from the liquidity and transparency of worldwide metal exchanges, allowing it to sell its output to a diverse range of buyers.

The company reports its operating results by mine and therefore operates through two segments: the Rainy River Mine and the New Afton Mine.

• Rainy River Mine: This segment extracts ore from open pit and underground operations, processes the material to produce gold and silver doré, which is then refined by third party refiners into gold sold to bullion banks or gold trading counterparties; in 2024 the mine yielded approximately 298,300 ounces of gold and associated silver as a by product, supporting the company’s gold revenue stream.

• New Afton Mine: This segment extracts ore from open pit and underground operations, processes the material to produce copper concentrate and recovers gold and silver as by products; in 2024 the mine generated approximately 54,000,000 pounds of copper and also yielded gold and silver as by products, contributing to both copper and precious metal revenues.

Within the competitive precious and base metal mining sector, New Gold positions itself as an intermediate producer that emphasizes operational excellence, responsible mining and a strong environmental, social and governance framework. The company competes with other mid tier gold producers for the acquisition of attractive mineral properties and seeks to maintain cost effective operations through disciplined capital allocation and continuous improvement initiatives. Its sustainability efforts include a climate committee, a decarbonization roadmap and adherence to the Towards Sustainable Mining program, which help differentiate it from peers. New Gold also benefits from a diversified asset base that reduces reliance on any single operation and provides flexibility to adjust production in response to market conditions. This asset base also enables the company to pursue growth projects at its existing mines while maintaining a disciplined approach to capital expenditures. The firm’s focus on safety, community engagement and transparent reporting further strengthens its standing among investors and stakeholders.

New Gold sells its gold to bullion banks and gold trading counterparties, and its copper concentrate to smelters or concentrate marketing firms. The company does not rely on a single customer; instead it accesses a broad network of global metal traders and processors. Silver by product is also sold through the same channels as gold and copper, ensuring consistent market access for all of its output. This diversified customer base reduces counterparty risk and supports stable revenue generation across the gold and copper cycles. By serving a wide array of counterparties, New Gold reduces the risk of revenue disruption due to any single market or regional issue.