NEW YORK (TheStreet) -- Shares of New Gold (NGD) were falling 7.88% to $5.20 in mid-morning trade on Wednesday after the company issued an update on the construction of its Rainy River mining project in Ontario.
Overall construction of the venture is about 45% complete and is on schedule for a mid-2017 start-up, according to a company statement.
New Gold estimates that once finished the Rainy River project will generate "significant gold production growth" for the company with roughly 325,000 ounces produced annually.
Canaccord cut its rating on the stock following the report to "hold" from "buy," according to the Fly.
The firm cited increased capital expenditure related to the Rainy River construction as reason for the downgrade. New Gold said it is expecting an increase of $105 million in capital costs during the development period for the project.
Additionally, gold for December delivery was up 0.01% to $1,354.10 per ounce on the COMEX this morning.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.
Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.
You can view the full analysis from the report here: NGD