BMO Capital Markets on Thursday maintained its outperform rating on the shares of New Gold (NGD.TO, NGD) while raising its price target to C$7.00 from an undisclosed prior level after the miner completed consolidating its ownership of the New Afton mine in British Columbia.

"We are resuming coverage of NGD following the closing of an agreement with Ontario Teacher's Pension Plan (OTPP) to increase its free cash flow interest at New Afton from 80.1% to 100% for a cash payment of US$300M. This was funded with cash on hand, borrowings from its existing revolving credit facility and a gold prepayment financing. With the increased free cash flow interest and Q1/25 financial results added into our model, the corporate NPV increased by ~19%. We maintain our Outperform rating and raise our target price to C$7.00," analyst Brian Quast wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 6.06, Change: -0.02, Percent Change: -0.33