10:02 AM EDT, 09/09/2024 (MT Newswires) -- New Gold ( NGD ) edged higher early on Monday after the company said it appointed two senior mining executives to its board of directors, prompting some speculation the company may be ready to expand through acquisitions.

The company which operates two gold mines in British Columbia and Ontario, said Sophie Bergeron and Ross Bhappu agreed to serve on its board. Bergeron is currently Managing Director, Diamonds for Rio Tinto Iron and Titanium and Diamonds where responsibilities include managing operations and projects in Canada and Africa, Bhappu is currently Senior Strategic Advisory Partner for Resource Capital Funds.

"Sophie's operational discipline and focus on safety, and Ross' technical and financial expertise will be proven assets for New Gold ( NGD ). I am pleased to welcome Sophie and Ross to our Board at a time where New Gold ( NGD ) continues to demonstrate its ability to deliver on its strategic objectives in pursuit of our mission to be a leading intermediate gold producer," board chair Richard O'Brien said in a note.

National Bank Financial speculated the appointments could come ahead of a potential bid for a third mine as the company looks to expand.

"We believe it could be a potential good fit for New Gold ( NGD ) given the company is on the cusp of generating robust FCF for multiple years to come thanks primarily to the ramp-up of the New Afton C-Zone, an expected low-cost block cave operation. New Gold's ( NGD ) senior management has also noted in the recent past a desire to add a "third leg" to its (operating base) stool," analyst Mike Parkin said in a note.

National Bank maintained its outperform rating, speculative risk, rating and C$4.25 price target on the company.

New Gold ( NGD ) shares were last seen up $0.06 to $3.23 on the Toronto Stock Exchange.

Price: 3.23, Change: +0.06, Percent Change: +1.89