New Gold Inc (TSE: NGD) (NYSEAMERICAN: NGD) (FRA: 32N) just soared to a high not observed since the early 2010s on the back of record production at the Rainy River gold mine.
Shares were up by over 11 per cent at the end of the session on Wednesday after the mid-tier dropped its Q3 results.
At the Ontario operation, New Gold produced 63 per cent more gold than last quarter with a 39 drop in all-in sustaining costs. Rainy River yielded a total of 100,301 ounces during the 3-month period, contributing US$301 million to cash flow from operations.
At New Gold’s other primary mine in British Columbia, New Afton, the company reported a 9.5 per cent year-over-year drop in gold ounces produced at 14,912
“The performance from our two assets led to a record US$205 million of free cash flow, a 225 per cent quarter-over-quarter improvement over our previous record last quarter,” said CEO Patrick Godin.
He added that the high rate of production last quarter enabled the company to pay off US$260 million in debt during the period.
New Gold says it is on track to achieve its guidance this year. The mining company is aiming to produce approximately 345,000 ounces of gold and 55 million pounds of copper.
Rainy River achieved commercial production in 2017 and New Afton has been producing at full-scale since 2012. New Gold has 12-month trailing revenue exceeding US$1 billion and a market cap in excess of US$5.5 billion.
Analysts from Bank of America Corp (NYSE: BAC), the Bank of Nova Scotia (TSE: BNS) (NYSE: BNS) (FRA: BKN) and Canadian Imperial Bank of Commerce (CIBC) (TSE: CM) just boosted their share targets for New Gold in line with a bullish outlook for the precious metals market. There is now a consensus target among these and other speculators ranging between US$8.50 and US$9.50.
$NGD New Gold generated $200M in free cash flow in Q3 and could be debt free by end of Q4; stock is trading at 7x free cash flow at $3400 AU. Imagine being bearish on miners and believing they can never make money.
The HUI Mining Index underperformed Gold and the S&P 500 for… pic.twitter.com/0uqLDDBIWu
— Garic Moran (@GaricMoran) October 29, 2025
Read more: NevGold targets U.S. critical mineral supply chain with new antimony-gold find
New Gold made this year’s TSX30 list
The mid-tier gold producer was one of many precious metal mining companies on the 2025 list of the Toronto Stock Exchange’s top performers over the past three years.
New Gold has seen 394 per cent dividend-adjusted share price growth during that time frame.
The company was joined by other industry leaders such as Lundin Gold (TSE: LUG) (OTCMKTS: LUGDF) (FRA: F1YN), Avino Silver & Gold Mines Ltd (TSE: ASM) (NYSEAMERICAN: ASM) (FRA: GV6) and Kinross Gold Corp (TSE: K) (NYSE: KGC) (ETR: KIN2).
October has seen an unprecedented rate of trading volume among mining companies in the North American sector. Data compiled by Bloomberg has shown that the number of shares being traded this month was the highest since November of 2013.
Gold and silver companies accounted for approximately one third of the US$2.9 billion worth of stock sold during the month.
“We haven’t seen that much capital come into the space in a long time,” said John Ciampaglia, CEO and senior managing director at Sprott Asset Management LP.
Meanwhile, many analysts foresee the high pricing for precious metals persisting with continued gains. The London Bullion Market Association, for instance, just predicted that gold would hit US$4,980 per ounce in 2026. Bank of America also estimated earlier this month that gold could hit US$5,000 per ounce next year while silver potentially ascends to US$65 per ounce.
Read more: NevGold Expands Gold-Antimony Potential at Limousine Butte in Nevada
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