New Gold Rises 120% in a Year: What's Aiding the Stock's Performance?

New Gold Inc. NGD shares have gained 119.6% over the past year compared with the industry's growth of 78.2%. The stock also hit a fresh 52-week high of $7.09 yesterday, before ending the session lower at $6.83.

What’s Aiding New Gold?

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.

On Sept. 8, the company announced that its underground drilling at New Afton mine has confirmed and expanded K-Zone mineralization. The exploration efforts discovered additional copper-gold mineralization, which doubled the system's known extent.

New Gold has extended mineralization at Rainy River, which now shows potential for further growth. The company’s exploitation results are expected to positively impact mineral reserve and resource estimates.

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

Strong Financial Position: The company ended the second quarter of 2025 with a strong financial position. It had cash and cash equivalents of $226 million as 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.

Record Gold Prices: Gold prices have rallied this year, gaining 40.5% year to date. The metal has been supported by geopolitical tensions, tariff concerns and continuous purchasing by central banks. Gold prices are currently trending above $3,750 per ounce, backed by expectations of further interest rate cuts.

NGD’s Zacks Rank & Stocks to Consider

New Gold currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are DRDGOLD Limited DRD, Carpenter Technology Corporation CRS and The Mosaic Company MOS. All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The consensus estimate for DRDGOLD’s 2025 earnings is pegged at $1.62 per share. The estimate indicates year-over-year growth of 13.3%. DRDGOLD’s shares have surged 175% in a 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 have surged 68% in the past year.

The Zacks Consensus Estimate for The Mosaic Company’s 2025 earnings is pegged at $3.17 per share, indicating year-over-year growth of 60.1%. The Mosaic Company’s shares have jumped 31.5% in a year. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research