Gold prices steady ahead of Fed decision; weekly weakness noted
TORONTO - New Gold Inc. (TSX: NYSE:NGD) (NYSE American: NGD), a Canadian intermediate mining company with strong financial performance showing an 89.36% return over the past year, announced today its initiation of a $400 million offering of Senior Notes. The proceeds are earmarked to finance the repurchase of its 7.50% senior notes due in 2027 and to cover related fees and expenses. According to InvestingPro data, the company maintains healthy financials with $924.5M in revenue and $428.5M in EBITDA.
Concurrently, New Gold has started a tender offer to buy back any and all of the existing senior notes, contingent on the successful issuance of the new notes. This buyback is not dependent on a minimum tender amount of the existing notes. InvestingPro analysis indicates that the company’s cash flows can sufficiently cover interest payments, with a comfortable debt-to-equity ratio of 0.38.
The newly offered notes are available only to qualified institutional buyers and non-U.S. persons outside the United States, in line with U.S. securities regulations. These notes will not be registered under the U.S. Securities Act of 1933 and will not be offered or sold in the U.S. without registration or an exemption from registration requirements.
New Gold plans to redeem any of the existing notes not acquired in the tender offer on or about July 15, 2025, at their full principal value. The offering’s success is not conditioned upon any specific amount of the existing notes being tendered.
The company’s portfolio includes the Rainy River gold mine and the New Afton copper-gold mine, both located in Canada. New Gold emphasizes its commitment to environmental and social responsibility as part of its vision to become a leading diversified intermediate gold company based in Canada. The company’s operational efficiency is reflected in its strong financial metrics, including a 17.55% revenue growth and a current ratio of 1.39. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.
This press release contains forward-looking statements regarding the completion and timing of the note offering, the intended use of proceeds, and the company’s intention to redeem any outstanding existing notes. These statements are subject to various risks and uncertainties, and there is no guarantee that the anticipated events will transpire as projected.
The information provided is based on a press release statement from New Gold Inc.
In other recent news, New Gold Inc. reported its fourth-quarter 2024 financial results, showcasing record revenue but falling short of earnings expectations. The company achieved revenue of $262 million, which set a new quarterly record, although it missed the forecasted $289.71 million. Earnings per share were reported at $0.07, slightly below the expected $0.0754. Despite the earnings miss, BMO Capital Markets maintained its Outperform rating on New Gold, setting a price target of C$5.50, reflecting confidence in the company’s performance. New Gold’s operational achievements included increasing its ownership in New Afton and repaying a $100 million credit facility, demonstrating a strong cash flow position. The company also disclosed quarterly cash costs of $728 per ounce and all-in sustaining costs of $1,018 per ounce, aligning closely with its guidance. Looking forward, New Gold anticipates significant production increases by 2027, with expectations of substantial free cash flow generation. These developments highlight New Gold’s strategic efforts to strengthen its operational and financial base.
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