10 Cheap Gold Stocks to Invest In Right Now

6. New Gold Inc. (NYSE:NGD)

Forward P/E: 8.77

Number of Hedge Fund Holders: 26

New Gold Inc. (NYSE:NGD) is a Canada-based intermediate gold mining company that acquires, explores, and develops natural resources properties, including gold. It operates two core-producing assets in the country: the Rainy River gold mine and the New Afton copper-gold mine. New Gold Inc. (NYSE:NGD) also holds other Canadian-focused investments.

In fiscal year 2024, the company produced 298,303 ounces of gold and 54 million pounds of copper. The all-in-sustaining costs for gold were $1,239 per ounce, below the company’s guidance range of $1,240 to $1,340 per ounce. The increased gold and copper prices also benefited New Gold Inc. (NYSE:NGD), resulting in a free cash flow generation of $85 million in 2024.

Fiscal Q4 2024 was the company’s strongest quarter in terms of production, with 80,438 ounces of gold and 14.5 million pounds of copper reflecting increases of 2% and 20%, respectively, over the prior-year period. These trends highlight the company’s strong production capabilities. New Gold Inc. (NYSE:NGD) also generated $85 million in free cash flow in 2024 while continuing to invest in growth projects. It ranks sixth on our list of the 10 cheap gold stocks to invest in.

Heartland Value Fund stated the following regarding New Gold Inc. (AMEX:NGD) in its Q3 2024 investor letter:

“For example, our research indicated the outlook for New Gold Inc. (AMEX:NGD), a pure Canadian gold and copper producer, was steadily improving. NGD has met guidance for eight consecutive quarters, as both of its mines are hitting their production stride. The company is forecast to tap approximately 600,000 ounces of gold equivalent in FY2026, up 42% compared with last year’s output. Excellent drilling results coupled with better efficiencies have reduced New Gold’s all-in sustaining costs (AISC) to $1,381 per ounce of gold, down from a recent high of $1,657. The company is on track to slash AISC’s more than 50% by 2026.

Under new management headed by CEO Patrick Godin, who joined in 2022, NGD is enjoying financial flexibility that allows for exploration to grow reserves and extend the life of mines. The team continues to execute significantly increasing production, cutting costs, and posting exceptionally strong free cash flows. Our research process was validated by strong insider buying in the company. Yet despite doubling in value, NGD was priced at 8x our estimated 2025 earnings, less than 6.5x free cash flow, and scored 8/10 on our research grid. We added to the position.”