New Gold Stock Hits 52-Week High: What's Aiding Its Performance?

New Gold Inc. NGD shares scaled a new 52-week high of $5.33 on Wednesday before closing the session lower at $5.26. The increase was fueled by rising gold prices and the company’s solid second-quarter 2025 results.

NGD has a market capitalization of $4.16 billion and currently carries a Zacks Rank #3 (Hold).

What’s Driving New Gold?

Increase in Gold Prices: Several factors have contributed to the upward trajectory of gold prices in 2025, including increased geopolitical tensions, a depreciating U.S. dollar, the potential for monetary policy easing, continuous purchasing by central banks and tariff conditions. Backed by these, the yellow metal broke through the $3,500-per-ounce threshold for the first time in April 2025 and is currently near the record high of around $3,340. This momentum in the prices of gold is likely to improve New Gold’s results in the upcoming quarters.

Solid Q2 Performance: The company reported sequential improvement in its gold and copper production to 78,595 ounces of gold and 13.5 million pounds of copper in the second quarter of 2025. Its revenues increased 41.3% year over year to $308 million, driven by higher gold prices and higher gold sales volume.

NGD posted adjusted earnings of 11 cents per share, beating the Zacks Consensus Estimate of 10 cents. The bottom line improved 38% year over year.

NGD remains on track to deliver its 2025 consolidated production guidance of 325,000 to 365,000 ounces of gold and 50 to 60 million pounds of copper.

Advancements in Exploration: The company has made significant progress in exploration efforts at both New Afton and Rainy River, with a focus on organic growth initiatives.

As part of its 2025 strategic goals, New Gold aims to ramp up New Afton’s C-Zone. It also plans to advance the development of the East Extension.

Solid Financial Position: The company ended the second quarter of 2025 with a strong financial position. It had cash and cash equivalents of $226 million at the end of June 30, 2025. NGD reported a record $63 million in free cash flow in the second quarter of 2025, backed by solid production and cash flow from operations.

NGD Stock’s Price Performance

Shares of New Gold have surged 95.5% in the past year compared with the industry’s 44.9% growth.

Stocks to Consider

Some better-ranked stocks from the basic materials space are Idaho Strategic Resources IDR, Carpenter Technology Corporation CRS and CF Industries Holdings, Inc. CF, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Idaho Strategic Resources has an average trailing four-quarter earnings surprise of 2.6%. The Zacks Consensus Estimate for its 2025 earnings is pegged at 76 cents per share, indicating year-over-year growth of 13.4%. IDR shares skyrocketed 110% last year.

Carpenter Technology has an average trailing four-quarter earnings surprise of 8.4%. The Zacks Consensus Estimate for CRS’ 2025 earnings is pegged at $9.36 per share. Its shares surged 68% in the last year.

The Zacks Consensus Estimate for CF’s 2025 earnings is pegged at $8.10 per share, indicating a 20.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 25.3%. CF’s shares have gained 9.2% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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