The gold price is now below production costs for six of 19 mining companies tracked by Bloomberg including Harmony Gold Mining Co. (HMY) , South Africa's third-largest producer, and Primero Mining Corp. (PPP) .
Gold prices had been sharply falling in recent weeks raising the prospect of another round of dividend cuts from mining companies if prices hover around $1,100 an ounce, Bloomberg reports.
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New Gold is an integrated mining company engaged in acquisition, exploration, extraction, processing and reclamation with operating assets in the U.S., Mexico, and Australia.
Separately, TheStreet Ratings team rates NEW GOLD INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEW GOLD INC (NGD) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity and generally disappointing historical performance in the stock itself."