13 Best Canadian Penny Stocks to Invest in Now

5. New Gold Inc. (NYSE:NGD)

Closing Stock Price as of April 17^th: $3.64

Number of Hedge Fund Holders: 26

​New Gold Inc. (NYSE:NGD) is a mining company with two primary gold operations in Canada: the Rainy River Mine in Ontario and the New Afton Mine in British Columbia. The Rainy River is an open-pit gold-silver mine that has recently extended its mine life to 2028, with processing expected to continue until 2029 due to optimized pit designs and increased underground reserves.

New Gold Inc. (NYSE:NGD) delivered strong operational performance in 2024, producing nearly 300,000 ounces of gold and 54 million pounds of copper at an all-in sustaining cost of $1,239 per ounce, beating the low end of their cost guidance. The company generated significant cash flow from operations of over $390 million and free cash flow of $85 million, while successfully achieving key project milestones, including commercial production at C-Zone field and commissioning of crusher systems at New Afton, as well as mining first development ore from Rainy River’s underground Main Zone. The company’s stock price closed at $3.64 per share during the most recent trading day; its substantial progress in its key fields makes NGD one of the best penny stocks on our list.

New Gold Inc. (NYSE:NGD) projects substantial growth over the next three years, with gold production expected to increase 30% to reach 410,000 ounces by 2027, while copper production is forecasted to grow 90% to 405 million pounds. At current consensus commodity prices, NGD expects to generate over $1.7 billion in free cash flow over the next three years, with potential to exceed $2 billion at spot prices, representing over 80% of their market capitalization. This growth trajectory is supported by mine life extensions at both assets and positions the company for significant value creation through increasing production and robust free cash flow generation in a strong commodity cycle.