10 Best Mining Penny Stocks to Buy Now

2. New Gold Inc. (NYSE:NGD)

Number of Hedge Fund Holders: 26

Share Price as of the close of March 7: $2.90

New Gold Inc. (NYSE:NGD) is an intermediate gold mining company based in Canada that operates and develops mineral properties. Majorly producing gold, silver, and copper, the company has 100% interest in the New Afton project in British Columbia and the Rainy River mine in Ontario.

Fueled by higher gold and copper prices and enhanced operational efficiencies, New Gold Inc. (NYSE:NGD) recorded $924.5 million in revenue for the year ended December 31, 2024, a 17.55% growth from 2023. Increased margins and $90 million in free cash flow were supported by the drop in total costs per gold ounce by 31%, from $1,481 in Q4 2023 to $1,018 in Q4 2024. The company ended the year with $105 million in cash and $482 million in total liquidity due to its strong financial standing, enabling it to repay its entire $100 million credit facility.

In addition, New Afton accomplished commercial production at its C-Zone project, improving efficiency and lowering costs. However, production was impacted temporarily as Rainy River faced mechanical downtime. Still, New Gold Inc. (NYSE:NGD) was able to generate its strongest quarter of 2024, demonstrating its capability to maintain cost discipline and maximize output.

The stock price rose by 73.6% over the past year, as of writing this article, as its strong financial execution and strategic mine development increased the investors’ confidence. Moving forward, gold output is anticipated to rise from 300,000 ounces in 2024 to 410,000 ounces by 2027. However, due to mine sequencing, the first half of 2025 production is predicted to be lower, but a stronger second half is forecasted as the C-Zone fully ramps up. Depending upon metal prices and tailings capacity, the ongoing exploration at Rainy River could further expand mine life.

Thus, New Gold Inc. (NYSE:NGD) stands out as one of the most appealing mining stocks for investors, due to its cost reductions, solid operational performance, and significant stock appreciation.