New Gold (NGD) Pops to 12-Year High as Rate Cut Sparks Rosy Prospects

We recently published 10 Firms Stealing the Spotlight; 4 Are Climbing to Record Highs. New Gold Inc. (NYSEAmerican:NGD) is one of the best performers on Thursday.

New Gold jumped to a 12-year high on Thursday, as investors continued to load up portfolios after the Federal Reserve slashed interest rates in its last committee meeting for the year.

At intra-day trading, the stock jumped to its highest price of $8.77 before trimming a few cents to finish the session just up by 9.20 percent at $8.55 apiece.

On Wednesday, the central bank announced that it slashed the benchmark rates by 25 basis points, marking the third and final rate cut for the year.

Mining companies such as New Gold Inc. (NYSEAmerican:NGD) stand to benefit from the move, as lower rates typically weaken the US dollar, thus making it cheaper for foreign and local investors to purchase precious metals like silver and gold.

New Gold Inc. (NYSEAmerican:NGD) is a Canada-based gold, silver, and copper miner that owns the Rainy River mine in Ontario as well as the New Afton mine in British Columbia.

Last month, the company announced that it was set to be acquired by Coeur Mining, Inc. for $7 billion, under which, the latter, through its wholly-owned subsidiary, would acquire all its outstanding shares.

Under the terms of the agreement, New Gold Inc. (NYSEAmerican:NGD) shareholders are set to receive an equivalent of 0.4959 Coeur shares for every NGD they own.

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