New Gold Shares Up After Profit Tops Targets
New Gold
(NGD) - Get New Gold Inc. Report
shares bucked the broader downward market trend Wednesday after the company announced profits that topped estimates.
Thanks to a jump in sales volumes of gold -- and in spite of declining gold prices -- the company reported a first-quarter EPS of 6 cents a share, a nickel better than analysts' targets. That represents profit growth of 23%, to $12 million from last year's $9.8 million. Revenue growth was a bit slower: 5% to $58.8 million.
The company said it sold about 55,400 ounces of gold in the quarter, up from about 52,000 a year ago. Prices, meanwhile, dropped to $898 an ounce on average from last year's $933 an ounce.
New Gold kept its production guidance the same: it expects to mine 190,000 to 210,000 ounces of gold for the rest of the year, at a cost of $465 to $485 an ounce.
Shares of the Vancouver mining company were up as much as 2% to $2.24 in afternoon trading Wednesday on more than double the daily average volume. New Gold stock has been under pressure since spiking to near its 52-week high of $10 back in September.
Other mining and metals stocks didn't fare so well Wednesday. Bellwethers
Freeport McMoRan
(FCX) - Get Freeport-McMoRan, Inc. Report
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and
Newmont Mining
(NEM) - Get Newmont Corporation Report
were down 6% and 3.3%, respectively, while
Eldorado Gold
(EGO) - Get Eldorado Gold Corporation Report
was off 4% and
Ivanhoe Mines
(IVN)
had dropped nearly 12%.
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