10 Best Small-Cap Gold Mining Stocks to Buy Now

3. New Gold Inc. (NYSE:NGD)

Number of Hedge Fund Investors: 26

New Gold Inc. (NYSE:NGD) operates as a mid-tier gold mining company with main sites in Canada – the Rainy River gold mine in Ontario and the New Afton copper-gold mine in British Columbia.

For Q4 2024, New Gold Inc. (NYSE:NGD) brought in $262 million in revenue, setting a quarterly record, thanks to higher metal prices and strong copper sales. In full-year 2024, the company extracted just under 300,000 ounces of gold and 54 million pounds of copper. Nevertheless, Q4 net earnings hit $55 million ($0.07 per share), a big jump from the adjusted net loss of $5 million in Q4 2023. Total cash costs averaged $1,239 per ounce for the year, with Q4 costs dropping to $1,018 per ounce, making it the company’s cheapest quarter in 2024.

As a result of cost saving and favorable prices, full-year cash flow from operations reached over $390 million, backing capital spending and debt cuts. Therefore, as the year closed, New Gold Inc. (NYSE:NGD) had $105 million in cash and $482 million in total liquidity, after paying down $100 million in credit facility debt. The two leading assets of the company, Rainy River and New Afton, contributed with $90 million and $24 million in free cash flow, showcasing their strength and efficiency.

Looking ahead, New Gold Inc. (NYSE:NGD) expects output to grow notably in 2025. Gold production is set to rise by 20%, reaching between 325,000 and 355,000 ounces, while copper output is expected to hit 50-60 million pounds. As higher grades and better efficiencies come online, costs should fall sharply. By 2027, the company expects total costs to drop by 64%, setting up New Gold Inc. (NYSE:NGD) for strong free cash flow. With these improvements, management anticipates generating over $1.7 billion in free cash flow through 2027, driven by growing underground operations and reduced capital spending.

New Gold Inc. (NYSE:NGD) stands as one of the best gold stocks to buy, with its strategic investments and operational advances ensuring its position for long-term growth and profits in the gold mining industry.