10:26 AM EDT, 07/28/2025 (MT Newswires) -- (Adds National Bank commentary after first look at NGD's Q2 result)

New Gold ( NGD ) on Monday reported a jump in second-quarter adjusted net earnings per share that beat analyst estimates compiled by FactSet.

Adjusted net earnings were US$89.8 million, or US$0.11 per share, rising from US$17 million, or US$0.02 per share. The result beat the EPS consensus estimate of US$0.10 compiled by FactSet.

Revenue rose to US$308.4 million from US$218.2 million. The increase was driven by higher gold prices and higher gold sales volume, partially offset by lower copper prices and lower copper sales volume.

The company produced 78,595 ounces of gold, up from 68,598 ounces. Sales came in at 75,596 ounces, up from 67,697 ounces.

Copper production was 13.5 million pounds, down from 13.6 million pounds. The company sold 12.7 million pounds of copper, down from 13.3 million pounds.

New Gold ( NGD ) kept its Outperform rating and C$8 price target at National Bank of Canada after the bank had a first look at the Q2 result. The bank said it derived the target price from a 100% weighted 3.75x NTM EV/EBITDA target multiple.

New Gold's ( NGD ) adjusted earnings of US$0.11 per share beat National Bank's forecast and the consensus estimate of US$0.10 per share, while CF of $0.19 was in line with the bank's estimate but slightly below the street at $0.22. The financial beat was driven by better costs and depreciation, National Bank said.

"Overall," National Bank added, "we expect the good cost control demonstrated and guidance reiterated to offset the lower ounces produced and sold vs. our and consensus estimates. We would expect New Gold ( NGD ) to trade in line or above peers in today's trading and would be buyers on any weakness. We continue to expect strong FCF through the year given an improving production and cost profile expected in H2/25. The company is also well advanced on the exploration front at both Rainy River and New Afton with an update expected in September 2025. We continue to expect New Gold ( NGD ) to look for a "third leg of the stool", over the next several quarters to help supplement a declining production profile beyond 2026."

New Gold ( NGD ) traded more than 7% lower at last look to $5.60 on the TSX.

Price: 5.60, Change: -0.45, Percent Change: -7.44