NGD - Sector: Basic Materials---Industry: Nonmetallic Mineral Mining

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New Gold, Inc.
666 Burrard Street
Suite 3400
Vancouver, BC V6C 2X8
Canada - Map
Phone: 604-696-4100
Fax: 604-696-4110
Website: http://www.newgold.com

Details   
Index Membership: N/A
Sector: Basic Materials
Industry: Nonmetallic Mineral Mining
Full Time Employees: N/A


Business Summary   

New Gold Inc. engages in the acquisition, exploration, extraction, processing, reclamation, and production of mineral properties. The company primarily focuses on gold, silver, and copper deposits. Its operating properties include the Mesquite gold mine in the United States; the Cerro San Pedro gold-silver mine in Mexico; and the Peak gold-copper mine in Australia. The company also has development projects, including the New Afton copper-gold project in Canada; and a 30% interest in the El Morro copper-gold project in Chile. New Gold was incorporated in 1980 and is headquartered in Vancouver, Canada.

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Canadian Miners Shine On Takeover Chatter, Earnings News

After taking a breather on Thursday, gold and silver miners are charging higher again today with the Canadian Mining Stocks Index jumping 2.2%, driven higher by some speculative takeover chatter and some impressive profit results from one of the Index's biggest members.

On the mergers and acquisitions front, First Majestic Silver (NYSE: AG) CEO Keith Neumeyer just can't figure out why a larger mining company hasn't acquired his firm yet. "I can't believe it hasn't happened yet," Neumyer said in an interview with Reuters. At a time when silver prices are surging, First Majestic, with a market cap of $1.5 billion, said it is looking to double its silver production to 16 million ounces over the next three years.

Companies such as Hecla Mining (NYSE: HL) and Pan American Silver (NASDAQ: PAAS) recently announced lower silver production forecasts, Reuters reported. First Majestic, which operates exclusively in Mexico, only mines silver and Neumeyer said he sees the price of the white metal going to $100.

Shares of larger rival Silver Wheaton (NYSE: SLW) are up 2% today after the company said it earned 35 cents a share in the fourth quarter, topping the Wall Street estimate of 30 cents. Silver Wheaton also gave investors reason to cheer by announcing it would begin paying a quarterly dividend of three cents a share. The dividend is payable on March 31 to shareholders of record on March 21.

Barrick Gold (NYSE: ABX), the largest Index component by market value, is up 1% while New Gold (AMEX: NGD) is up 6% after the company said its fourth-quarter gold production jumped 11%.
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Day's Range: 10.30 - 10.97
52wk Range: 4.10 - 10.97
Volume: 5,726,619
Avg Vol (3m): 2,796,230
Market Cap: 4.20B
P/E (ttm): 43.40
EPS (ttm): 0.25
Div & Yield: N/A (N/A)

Technicals
Record Price High
Most Actives
Record Price Break Out
Percentage Gainer

Last Price Quote is:
10.77%above 13-day EMA
17.58%above 50-day EMA
RS Rating: N/A 

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New Gold Announces Fourth Quarter and 2010 Year End Results with Increased Gold Production at Lower Costs Resulting in a 131% Increase in Cash Flow from Operations During 2010

Press Release Source: New Gold Inc. On Thursday March 3, 2011, 6:45 pm EST
(All figures are in US dollars unless otherwise indicated)


VANCOUVER, March 3 /PRNewswire-FirstCall/ - New Gold Inc. ("New Gold") (TSX:NGD.to - News) (AMEX:NGD - News) today announces financial and operational results for the fourth quarter and year ended 2010, with the strongest results in the company's history. The company bettered its 2010 guidance with gold production of 382,911 ounces and total cash cost(1) per ounce sold, net of by-product sales, below the guidance range at $428 per ounce. Increasing production, coupled with declining costs and continued strength in commodity prices resulted in record earnings and cash flow. During 2010, earnings from mine operations increased by 129% to $203 million, net earnings increased to $135 million, or $0.35 per share, and cash flow from operations increased by 131% to $182 million. New Gold is also pleased to reiterate its guidance for 2011 with forecast gold production expected to increase further to 380,000 to 400,000 ounces at total cash cost(1) per ounce sold, net of by-product sales, of $430 to $450 per ounce.


Fourth Quarter and Full Year 2010 Highlights


Fourth quarter total cash cost(1) per ounce sold, net of by-product sales, decreased to $354 per ounce from $472 per ounce in the same period in 2009, representing the lowest cost quarter in the company's history
Quarterly gold production increased by 11% to 124,445 from 111,672 in the same period in 2009
Fourth quarter cash flow from operations increased by 62% to $88 million from $54 million in the same period in 2009
2010 total cash cost(1) per ounce sold, net of by-product sales, decreased by $37 per ounce to $428 per ounce from $465 per ounce in 2009
2010 gold production increased by 27% to 382,911 ounces from 301,773 ounces in 2009
2010 cash flow from operations increased by 131% to $182 million from $79 million in 2009
New Afton 2010 underground development of 3,873 metres beat target by 11%
$491 million of cash at December 31, 2010, increased by $219 million since December 31, 2009


"2010 was a very successful year for our company and we are proud of our results. We remain even more excited about 2011 and the coming years," stated Randall Oliphant, Executive Chairman. "We look forward to building on New Gold's strong foundation."

Fourth Quarter and Full Year 2010 Consolidated Financial Results


Consolidated revenue for the fourth quarter of 2010 was $189 million for a full year total of $530 million, compared to $132 million and $324 million in the same periods of 2009. The significant revenue increase in both periods of 2010 was driven by a combination of higher production as well as higher average realized prices.


Earnings from mine operations for the fourth quarter of 2010 were $84 million for a full year total of $203 million, compared to $40 million and $89 million in the same periods of 2009. Earnings from mine operations increased by more than 100% in both periods of 2010 as a result of higher gold production, lower total cash cost(1) and higher average realized gold prices.


Net earnings from continuing operations in the fourth quarter and full year 2010 were $73 million, or $0.19 per share, and $135 million, or $0.35 per share, respectively. This compares to net losses of $2 million, or $0.01 per share, and $183 million, or $0.60 per share, in the same periods of the prior year. The 2009 full year net loss included a $192 million goodwill impairment charge.


Cash flow from operations for the fourth quarter of 2010 was $88 million for a full year total of $182 million, compared to $54 million and $79 million in the same periods of 2009. The cash flow was the highest in New Gold's history and was driven by the company's strong operating performance and the continued strength in commodity prices.


New Gold's cash balance at the end of 2010 was $491 million, an increase of $219 million over the 2009 year end cash balance. New Gold had $230 million of debt outstanding at the end of 2010 comprised of $179 million of 10% senior secured notes due in 2017 (face value of C$187 million), $43 million of 5% convertible debentures due in 2014 (face value of C$55 million and C$9.35 strike price) and $8 million in El Morro project funding loans.


Fourth Quarter and Full Year 2010 Operations Overview


All three of the company's operating mines, Mesquite, Cerro San Pedro and Peak Mines, achieved excellent results in the fourth quarter leading to a strong finish to the year. Collectively, the gold production from the three operations during the quarter was 124,445 ounces at total cash cost(1) per ounce sold, net of by-product sales, of $354 per ounce driving the company to the best annual operating results in its history with 2010 gold production increasing by 27% to 382,911 ounces and total cash cost(1) per ounce sold, net of by-product sales, decreasing by $37 per ounce to $428 per ounce. Both gold production and total cash cost(1) beat the company's 2010 guidance range. With the strong operating results driving record cash flow, New Gold is well positioned as New Afton, the company's most immediate development project, continues to move forward on budget and on schedule with production anticipated in mid-2012.


"The 2010 operating results further demonstrate the strong platform that our three operations provide and are reflective of the tremendous dedication of our operating teams," stated Robert Gallagher, President and Chief Executive Officer. "We are very focused on continuing to deliver operationally, particularly on bringing New Afton into commercial production on time and on budget."


Full year 2009 figures presented below include gold production, sales and total cash cost(1) per ounce sold after the completion of the acquisition of Western Goldfields Inc. and the Mesquite Mine on June 1, 2009.
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Full news story here...
http://finance.yahoo.com/news/New-Gold-Announces-Fourth-prnews-4086172525.html?x=0&.v=67