drowsy syrups of the world

New Gold (NGD): A White Oliphant

On the back of its NR this morning, here’s a chart of the ongoing capex blowout at the New Gold (NGD) Rainy River project, with data ripped from the decent update note out of Dundee this morning:

Please note cut down Y-axis, used to show change and not to trick your eye
It’s even more impressive to think that when NGD framed the capex at U$885m in 2014 because this project is in Canada and at that time the Loonie was trading around 1.05 to the greenback. What you see above is the blowout in USD terms, it’s even worse in the local currency.
White Elephant, Mister Oliphant?

UPDATE: Reader B is reminded of this Monty Python clip. He’s right.
“That burnt down fell over and then sank into the swamp…but the fourth one stayed up”

UPDATE 2: For those of you joining us from Seeking Alpha, this will be of interest.

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