New Gold misses revenue expectations despite record free cash flow

Published 28/07/2025, 11:40
New Gold misses revenue expectations despite record free cash flow

Investing.com - Canadian gold and copper producer New Gold (NYSE:NGD) Inc reported mixed second-quarter results on Monday, with earnings slightly beating expectations but revenue falling short of analyst forecasts.

The company reported adjusted earnings of $0.11 per share for the quarter ended June 30, 2025, exceeding analyst estimates of $0.10 per share.

However, revenue came in at $308.4 million, below the consensus estimate of $321.9 million.

Shares of New Gold fell 2.3% in Monday pre-market trading.

New Gold generated record quarterly free cash flow of $63 million, highlighted by Rainy River’s record $45 million contribution.

The company produced 78,595 ounces of gold and 13.5 million pounds of copper during the quarter, with all-in sustaining costs of $1,393 per gold ounce sold.

"Across the Company, the second quarter successfully built on the momentum from the first quarter, positioning us to deliver on our annual guidance," said Patrick Godin, President and CEO.

"The quarter was highlighted by a record production month at Rainy River, resulting in record quarterly free cash flow for both Rainy River and the Company."

Gold production increased 14.6% YoY from 68,598 ounces in Q2 2024, while copper production remained relatively flat at 13.5 million pounds compared to 13.6 million pounds a year earlier.

Revenue jumped 41.3% YoY from $218.2 million, primarily due to higher gold prices and increased gold sales volume.

The Rainy River mine produced 61,604 ounces of gold at all-in sustaining costs of $1,696 per ounce, while New Afton contributed 16,991 ounces of gold and 13.5 million pounds of copper at negative all-in sustaining costs of $537 per gold ounce due to strong copper by-product credits.

New Gold maintained its 2025 consolidated production guidance of 325,000 to 365,000 ounces of gold and 50 to 60 million pounds of copper at all-in sustaining costs of $1,025 to $1,125 per gold ounce sold.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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