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New Gold (NGD) Q4 Earnings Miss Estimates, Sales Rise Y/Y
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New Gold (NGD - Free Report) reported an adjusted loss per share of 1 cent in the fourth quarter of 2023, which missed the Zacks Consensus Estimate of earnings of 2 cents per share. The bottom-line figure was in line with the year-ago quarter.
Including one-time items, the company reported a loss of 4 cents per share compared with 2 cents reported in the fourth quarter of 2022.
Net sales improved 22.4% year over year to around $199 million in the fourth quarter of 2023 on higher sales volumes and higher gold prices, partially offset by lower copper prices.
NGD reported consolidated gold equivalent production of 105,082 ounces in the fourth quarter of 2023, which marked a 7% increase year over year. The figure included 79,187 ounces of gold, 12.0 million pounds of copper and 157,788 ounces of silver. The New Afton mine delivered a strong quarter with a 53% year-over-year improvement in gold equivalent production as a result of higher tons processed, higher gold and copper grades and higher recovery rates.
The company sold 103,504 gold equivalent ounces in the quarter under review, up 9% from the year-ago quarter’s sales of 95,161 ounces. While gold sales dipped 1% to 77,870 ounces, copper sales improved 75% year over year to 11.9 million pounds.
In the fourth quarter of 2023, average realized gold prices were $2,001 per ounce and average realized copper prices were $3.72 per pound. While average realized gold prices were 14.3% higher than the year-ago quarter, average realized copper prices dipped 0.5%.
Operating expenses increased 11% year over year to $121 million in the fourth quarter of 2023 due to higher production reported in the quarter.
Despite investing more than $61 million in advancing growth projects, New Gold generated a free cash flow of $1 million in the fourth quarter of 2023. New Gold generated net cash from operating activities of $288 million in 2023, up from $191 million in 2022, aided by increased revenues.
Performance in 2023
NGD reported earnings per share of 7 cents in 2023, which marked a turnaround performance from the loss of 4 cents per share in 2022. The improvement was attributed to higher revenues and lower finance costs, partially offset by higher operating expenses and depreciation and depletion. The bottom-line figure, however, missed the Zacks Consensus Estimate of earnings of 10 cents per share.
Including one-time items, the company reported a loss of 9 cents per share in 2023 compared with a loss of 10 cents in 2022.
Net sales surged 30% year over year to $787 million, missing the consensus estimate of $789 million.
New Gold’s production for 2023 was 423,517 gold equivalent ounces, which was 22% higher than the 2022 reported figure. With this performance, NGD achieved the top end of its gold equivalent production guidance range. Consolidated all-in sustaining costs in 2023 were at $1,545 per gold equivalent ounce, which came in at the midpoint of the company’s cost guidance for the year.
Guidance for 2024
New Gold expects to produce 310,000 to 350,000 ounces of gold in 2024 compared with 321,178 in 2023. Anticipated production is set to notably increase in the latter half of the year, with approximately 60% of the planned production earmarked for this period due to the sequencing of waste stripping activities at Rainy River during the first half of the year.
Copper production in 2024 is expected to be in the range of 50 to 60 million pounds. This suggests a 16% increase from 2023 aided by increased contribution from C-Zone at New Afton.
The company has also outlined its growth projections for the next three years. In 2026, NGD expects consolidated gold production in the range of 410,000-460,000 ounces. This suggests a 35% increase from 2023. Copper production is expected to increase 60% from 2023 levels to the range of 71-81 million pounds in 2026.
All-in sustaining costs (on a by-product basis) are expected to decrease more than 50% to $650-$750 per ounce in 2026 compared with the 2023 level.
The higher production, lower total cash costs and lower capital spend over the next three years are expected to drive significant free cash flow for the company.
Price Performance
Shares of New Gold have gained 22.4% in the past year against the industry’s 3.3% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
New Gold currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 19.7% in a year.
United States Steel beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 54.8%. X shares have gained 52% in a year.
Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05 per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares have rallied 127% in the last year.
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New Gold (NGD) Q4 Earnings Miss Estimates, Sales Rise Y/Y
New Gold (NGD - Free Report) reported an adjusted loss per share of 1 cent in the fourth quarter of 2023, which missed the Zacks Consensus Estimate of earnings of 2 cents per share. The bottom-line figure was in line with the year-ago quarter.
Including one-time items, the company reported a loss of 4 cents per share compared with 2 cents reported in the fourth quarter of 2022.
Net sales improved 22.4% year over year to around $199 million in the fourth quarter of 2023 on higher sales volumes and higher gold prices, partially offset by lower copper prices.
New Gold Inc. Price, Consensus and EPS Surprise
New Gold Inc. price-consensus-eps-surprise-chart | New Gold Inc. Quote
NGD reported consolidated gold equivalent production of 105,082 ounces in the fourth quarter of 2023, which marked a 7% increase year over year. The figure included 79,187 ounces of gold, 12.0 million pounds of copper and 157,788 ounces of silver. The New Afton mine delivered a strong quarter with a 53% year-over-year improvement in gold equivalent production as a result of higher tons processed, higher gold and copper grades and higher recovery rates.
The company sold 103,504 gold equivalent ounces in the quarter under review, up 9% from the year-ago quarter’s sales of 95,161 ounces. While gold sales dipped 1% to 77,870 ounces, copper sales improved 75% year over year to 11.9 million pounds.
In the fourth quarter of 2023, average realized gold prices were $2,001 per ounce and average realized copper prices were $3.72 per pound. While average realized gold prices were 14.3% higher than the year-ago quarter, average realized copper prices dipped 0.5%.
Operating expenses increased 11% year over year to $121 million in the fourth quarter of 2023 due to higher production reported in the quarter.
Despite investing more than $61 million in advancing growth projects, New Gold generated a free cash flow of $1 million in the fourth quarter of 2023. New Gold generated net cash from operating activities of $288 million in 2023, up from $191 million in 2022, aided by increased revenues.
Performance in 2023
NGD reported earnings per share of 7 cents in 2023, which marked a turnaround performance from the loss of 4 cents per share in 2022. The improvement was attributed to higher revenues and lower finance costs, partially offset by higher operating expenses and depreciation and depletion. The bottom-line figure, however, missed the Zacks Consensus Estimate of earnings of 10 cents per share.
Including one-time items, the company reported a loss of 9 cents per share in 2023 compared with a loss of 10 cents in 2022.
Net sales surged 30% year over year to $787 million, missing the consensus estimate of $789 million.
New Gold’s production for 2023 was 423,517 gold equivalent ounces, which was 22% higher than the 2022 reported figure. With this performance, NGD achieved the top end of its gold equivalent production guidance range. Consolidated all-in sustaining costs in 2023 were at $1,545 per gold equivalent ounce, which came in at the midpoint of the company’s cost guidance for the year.
Guidance for 2024
New Gold expects to produce 310,000 to 350,000 ounces of gold in 2024 compared with 321,178 in 2023. Anticipated production is set to notably increase in the latter half of the year, with approximately 60% of the planned production earmarked for this period due to the sequencing of waste stripping activities at Rainy River during the first half of the year.
Copper production in 2024 is expected to be in the range of 50 to 60 million pounds. This suggests a 16% increase from 2023 aided by increased contribution from C-Zone at New Afton.
The company has also outlined its growth projections for the next three years. In 2026, NGD expects consolidated gold production in the range of 410,000-460,000 ounces. This suggests a 35% increase from 2023. Copper production is expected to increase 60% from 2023 levels to the range of 71-81 million pounds in 2026.
All-in sustaining costs (on a by-product basis) are expected to decrease more than 50% to $650-$750 per ounce in 2026 compared with the 2023 level.
The higher production, lower total cash costs and lower capital spend over the next three years are expected to drive significant free cash flow for the company.
Price Performance
Shares of New Gold have gained 22.4% in the past year against the industry’s 3.3% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
New Gold currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , United States Steel Corporation (X - Free Report) and Alpha Metallurgical Resources, Inc. (AMR - Free Report) . Each of these companies sports a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 19.7% in a year.
United States Steel beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 54.8%. X shares have gained 52% in a year.
Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05 per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares have rallied 127% in the last year.