7 Cheapest Penny Stocks to Buy Now

2. New Gold Inc. (NYSE:NGD)

Share Price: $2.80

Forward P/E Ratio: 16.22 

Earnings Growth This Year: 142.90%    

Number of Hedge Fund Holders: 21

New Gold Inc. (NYSE:NGD) is another Canadian mining company that focuses on exploring and mining precious metals including gold, silver, and copper. The company operates by acquiring new mining properties and developing them to make them mineable to maximize resource extraction.

Two of its core assets include Rainy River Mine and New Afton Mine. The Rainy River Mine is located in Northwestern Ontario with projected mine life until at least 2031. On the other hand, its New Afton Mine is situated in Kamloops, British Columbia, and produces large quantities of copper and gold.

New Gold Inc. (NYSE:NGD) gold production for the second quarter was significantly lower during the second quarter of 2024. This might make you shy away from investing in the company. But the point to notice here is that this decrease in production was all in line with management’s expectations. The company is undergoing a waste stripping process and is focusing on building a strong all-in-sustaining cost to enhance its mining discipline.

If we look at the overall production during the second quarter, gold consolidated production was lower as mentioned earlier however, it increased from 16,645 ounces in Q2 2023 to 18,300 ounces during the recent quarter. What’s more impressive is its ability to significantly decrease the all-in-sustaining cost per gold ounce sold. During the second quarter, the cost stood at $1,381, representing a significant decrease from the year before when the cost amounted to $1,582.

These financial achievements become more interesting with their cheap valuation. The stock is trading at around 16 times its forward earnings with analysts expecting its earnings growth to be positive during the year, making it one of the cheapest penny stocks to buy now.