IKN

Every why hath a wherefore

New Gold (NGD) delivers real news on Christmas Eve

Here’s the NR out today, here’s the paydirt:

TORONTO–(BUSINESS WIRE)– December 23, 2020–New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) today announced that it has completed the previously announced partial redemption of $200 million aggregate principal amount of its outstanding 6.375% Senior Notes due 2025. The redemption was funded with cash on hand.

Which means that in the space of 2020, NGD has done this:

  • Cash treasury from U$83.4m (4q19) to U$205m (4q20)
  • Long-term debt from U$714.5m (4q19) to U$460m (4q20 IKNest.)
  • Working capital from U$56.8m (4q19) to U$215m (4q20 IKNest.)

All through this Covid-19 year, to boot. NGD and Renaud Adams have done so while keeping a firm lid on current liabilities (down approx $7m) and building out the remaining and long-overdue capital works at Rainy River. This is the stock IKN named as “Turnaround Story of the Year” in February 2020, the same stock the industry is calling turnaround story of the year in December 2020. One day the trolls might twig on just why The IKN Weekly has remained in business for over a decade without taking a single penny from “sponsors”. You can lead a horse to water.

9 Comments

    My portfolio has has bigger gainers this year but NewGold has been the bedrock investment. Kudos for the analysis and recommendation.

    Reply

    Nailed it. Now we get to see what happens when the hedges roll off, unless someone steps in to take them out before then. Win-win

    Reply

    Great call.

    Reply

    Yes, thank you for that one. Still own. Let it be said, your work is top drawer. It’s up there!

    Reply

    Just another great call and why Ive been a subber from the get-go, Bravo!

    Reply

    Postscript: Years ago when NGD was a fledgling company I held (many) five-years warrants. Those were the longest life warrants I had ever owned and was certain that they would pay off. They didn’t.

    The price decline of 2013 manifested and, as they say, the rest is history. 🙂 C’est la vie.

    Reply

    My 15k of NGD shares thank you!

    Merry Christmas

    Reply

    Brilliant and gutsy call.

    Reply

    […] man, you cannot do any better than pick a stock I’ve never even traded once in my life? Try talking about the stocks I do own instead, dumber than […]

    Reply

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