10 Best Canadian Penny Stocks to Buy Now

02. New Gold Inc. (NYSE:NGD)

Number of Hedge Fund Holders: 21

New Gold Inc. (NYSE:NGD) holds the number two spot on our list. New Gold Inc. (NYSE:NGD) is a well-established gold mining company with a diversified portfolio that includes the Rainy River, New Afton, and Cerro San Pedro mines. The company, headquartered in Toronto, Canada, has a strong track record of delivering on its operational goals, which is evident from its consistent performance in recent quarters.

In the second quarter of 2024, New Gold Inc. (NYSE:NGD) reported solid production figures, with Rainy River producing approximately 50,300 ounces of gold and New Afton contributing around 18,300 ounces of gold and 13.6 million pounds of copper. The company’s all-in sustaining costs (AISC) were $1,381 per gold ounce on a byproduct basis, and it managed to keep costs under control, with expectations of further reductions in the second half of the year. This focus on cost management, coupled with increased production, has positioned New Gold Inc. (NYSE:NGD) to generate positive free cash flow.

New Gold Inc. (NYSE:NGD) financial health is robust, with Q2 2024 revenue of $218 million, a 10% increase in copper production, and net earnings of $52 million. The company has a healthy liquidity position with $184 million in cash on hand. New Gold Inc. (NYSE:NGD) strategic initiatives, including the expansion of its interest in New Afton to 80.1%, further strengthen its financial position, making it well-prepared to leverage the higher metal price environment.

The company’s exploration efforts, particularly at Rainy River and New Afton, have been promising, with significant progress in drilling and development. This positions New Gold for long-term growth, with the potential for extended mine lives and increased production. With strong fundamentals, a disciplined operational approach, and strategic growth initiatives, New Gold Inc. (NYSE:NGD) is well-positioned to capitalize on future opportunities in the gold and copper markets.

The number of hedge funds in Insider Monkey’s database owning stakes in New Gold Inc. (NYSE:NGD) grew to 21 in Q2 2024, as compared to 17 in the preceding quarter. The consolidated value of these stakes is nearly $169.45 million. Among these hedge funds, Ryan Schedler And Bradley Shisler’s Condire Investors was the company’s leading stakeholder in Q2.