New Gold (NGD) Balance Sheet and Results

By Otto Rock

…as at December 31st, 2018. Unpretty.

Blackwater is now carried by NGD at $340.3m (it was $552.1m). Even that seems expensive to me and I doubt they’d find a buyer willing to pay that amount of cash for the dog, but selling Blackwater and paying down a lump of that would be corporate alternative now (and stranger things have happened). Either that or kill the goose that lays golden eggs and sell New Afton (a deposit so good that even the numbskulls that ran this company couldn’t fark it up). If not, that debt is going to continue to eat NGD the way it’s been eaten over the last couple of years, bright and shining new CEO or not.

New Gold (NGD) 4q18 results and 2019 guidance

ND’s 4q18 is out, the NR is here and there’s plenty to chew on. I have two observations, the first ebing that we should all admire Renaud Adams greatly for doing this:

Net loss from continuing operations was $727.7 million ($1.26 per share) for the quarter, which includes a $671.1 million ($1.16 per share) impairment loss related to the Rainy River Mine ($452.9 million) and the Blackwater project ($218.2 million). Net loss from continuing operations for the year was $1,070.8 million ($1.85 per share), which includes a $953.2 million ($1.65 per share) after tax impairment loss related to the Rainy River Mine ($735.0 million) and the Blackwater project ($218.2 million).

Seriously. That’s what a good dozen gold stocks need to do, he has the chops to be honest with the market and it gives a tangible idea of just how much money was flushed down the toilet by the blithering idiots who ran this company before (write the words ‘Randall Oliphant’ right at the top of that list). As for 2019 at NGD, this sticks out like a sore thumb:

Not good. At all.

Support 100% ad-free Biiwii.com by making a donation of your choice!

Or better yet, subscribe to NFTRH Premium for an in-depth weekly market report, interim updates and NFTRH+ chart and trade ideas to get much more bang for your buck. Also keep up to date with actionable public content at NFTRH.com. Follow NFTRH & Biiwii via Twitter @BiiwiiNFTRH, StockTwits.

Published by

Gary

NFTRH.com & Biiwii.com