| Roth Capital: New Gold Still Worth $3.25 Following Financing Agreement With Royal Gold | |
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On Monday, July 20, New Gold Inc. (USA) (NYSE: NGD) announced it has entered a $175 million gold and silver stream agreement with Royal Gold, Inc (USA) (NASDAQ: RGLD). According to the contract, the latter will help the former fund the development of its Rainy River project. In return, Royal Gold will receive a percentage of all gold and silver production, while paying, upon delivery, 25 percent of the prevailing spot prices for gold and silver.
The Implications
In a report issued Monday, Roth Capital analyst Joe Reagor looks into the agreement and concludes that the announcement “demonstrates the strength of the project” (and confidence in its economic viability), even amidst a depressed gold price environment.
Furthermore, the gold stream demonstrates New Gold is “committed to moving forward with Rainy River despite a six month delay announced in early 2015,” the analyst adds.
Including the $175 million from the aforementioned agreement, New Gold now counts with $738 million for the development of Rainy River (the total estimated capital cost ascends to $760 million), in available cash and credit. Based on Roth Capital’s estimates, the analysts believe “the remaining capital will be funded by cash flow from existing operations.”
Consequently, Reagor reiterates a Buy rating and $3.25 12-month price target on shares of New Gold.
Latest Ratings for NGD
Date | Firm | Action | From | To |
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Jul 2015 | Roth Capital | Upgrades | Neutral | Buy | Jul 2015 | Morgan Stanley | Downgrades | Overweight | Equal-weight | May 2015 | Barclays | Maintains | | Equal-weight |
View More Analyst Ratings for NGD
View the Latest Analyst Ratings
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VanEck Vectors Global Alternative Energy ETF
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PRODUCTEUR |
CODE : RGLD |
ISIN : US7802871084 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Royal Gold est une société basée aux Etats-Unis D'Amerique. Royal Gold est productrice d'or, d'argent, de cuivre, de plomb et de zinc en USA, au Burkina Faso, au Canada, au Chili, au Mexique, au Nicaragua, en Argentine, en Bolivie et en Guinee, en développement de projets d'argent, de cuivre, d'or, de plomb et de zinc au Burkina Faso, au Canada, au Chili et en Australie, et détient divers projets d'exploration au Canada, en Argentine, en Bulgarie et en Finlande. Ses principaux projets en production sont BALD MOUNTAIN en USA, LIMON, LEEVILLE MINING COMPLEX et GOLDSTRIKE OPEN PIT au Nicaragua, DON MARIO (CERRO PELADO) et ROBINSON (NEVADA) en Bolivie, EL CHANATE, PEÑASQUITO, WHARF, MARIGOLD, DOLORES MINE, MULATOS MINE -ESTRELLA et GOLDSTRIKE UNDERGROUND au Mexique, SIGUIRI en Guinee, TAPARKO au Burkina Faso, MARTHA MINE en Argentine, ANDACOLLO HYPOGENE, TOQUI et ANDACOLLO au Chili et WILLIAMS, TWIN CREEKS, PIPELINE MINING COMPLEX et TROY au Canada, ses principaux projets en développement sont GOLD HILL et PASCUA LAMA au Chili, HOLT MINE & MILL et PINE COVE (MINGS BIGHT) au Canada, BALCOOMA en Australie et BOUROUM au Burkina Faso et ses principaux projets en exploration sont CANADIAN MALARTIC (QUEBEC), GOLDSTRIPE WILLA, MANHATTAN (WHITE CAPS) et CAMP BIRD MINE au Canada. Royal Gold est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 6,6 milliards (6,1 milliards €). La valeur de son action a atteint son plus bas niveau récent le 28 février 1992 à 0,03 , et son plus haut niveau récent le 10 octobre 2024 à 140,04 . Royal Gold possède 47 442 200 actions en circulation. |