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New Gold (NGD) Gains Momentum Following Earnings and Market Developments

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 8/29/2025, 5:48 pm ET | 5 min
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New Gold Inc.’s stocks have been trading up by 2.64 percent amid positive sentiment from successful quarterly results and strategic expansions.

Materials industry expert:

Analyst sentiment – positive

1. Market Position & Fundamentals:
New Gold Inc. (NGD) currently holds a moderate market position within the precious metals mining sector, reflected by its financial metrics. The company’s EBIT and EBITDA margins of 19.1% and 36.6%, respectively, denote reasonable operational efficiency. Despite a pre-tax profit margin of just 7.7%, NGD’s gross margin of 13.8% underscores proficient cost management. The company’s balance sheet shows a total debt-to-equity ratio at 0.6, indicating manageable leverage, while an interest coverage ratio of 10.1 further supports its ability to meet financial obligations. NGD’s price-to-earnings ratio of 30.35 can indicate a premium over peers, suggesting investor confidence factored into future growth potential anchored by a substantial free cash flow generation evidenced at $70.8 million.

2. Technical Analysis & Trading Strategy:
Recent price action in NGD suggests a bullish short-term trend, with the weekly price closing higher from $5.53 to $5.92. Over the last five days, the stock experienced consistent upward movement after stabilizing above $5.68. The high occurred at $5.92, establishing a resistance level. Meanwhile, support is seen around $5.68, where demand has previously emerged. The bullish inclination is supported by higher trading volumes on upward days, indicative of accumulation. Traders may consider a buy strategy as the price approaches the support level of $5.68, with targets set at $5.92 and beyond. Additionally, a close above $5.92 could signal further upside potential and warrant a re-evaluation of the target price.

3. Catalysts & Outlook:
Recent geopolitical updates, including President Trump’s tariff exemptions on gold, are favorable for NGD and peers like Newmont and Agnico Eagle. Additionally, Canaccord’s upward revision of NGD’s price target to C$9, maintaining a Buy rating, reflects confidence following solid Q2 results and increased cash flow. In the context of industry benchmarks, NGD’s recent operational advancements position it competitively within the sector. With no tariff threats and improved financial metrics, NGD is poised for continued growth. Investors should remain vigilant for support at $5.68 and resistance around the revised price target, leveraging these levels for strategic entries and exits. Overall, NGD exhibits a positive outlook rooted in improved operating performance and favorable macroeconomic drivers.

Candlestick Chart

Weekly Update Aug 25 – Aug 29, 2025: On Friday, August 29, 2025 New Gold Inc. stock [NYSE American: NGD] is trending up by 2.64%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

New Gold’s recent earnings report depicts a complex but promising financial landscape. The company showcased substantial improvements with a net income of $68.6M, underlining robust operating revenue of $308.4M. Its EBITDA stood at $149.7M, highlighting the company’s profitability potential. The organization enjoys a gross margin of 13.8%, suggesting efficiency in controlling production costs relative to revenue generation.

Additionally, New Gold’s total assets reached approximately $2.46B, reflecting a solid balance sheet. The firm maintains a total liabilities balance of $1.36B, alongside an equity of $1.1B. Despite a current ratio of 0.9 and a quick ratio of 0.6, indicating potential liquidity challenges, the company’s long-term debt payments show diligent financial management strategies. With a price-to-sales ratio standing at 4.38 and an enterprise value of $958.4M, New Gold demonstrates significant valuation strength in its market segment.

The performance of New Gold, as observed in recent trading data, has shown a strong trajectory with the stock closing at $5.92 on August 29, 2025. A five-day analysis reveals the stock’s steady climb, maintaining gains in a volatile market. An upward shift in trading volumes coinciding with tariff announcements may provide additional momentum to propel NGD’s steady advance.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

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In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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