Scotiabank, Canaccord Lift New Gold Targets; Q3 Free Cash Flow Up 225%
Scotiabank raised New Gold’s price target to $12.75 from $10.50 and Canaccord boosted its target to C$18 from C$15, both maintaining buy/outperform ratings. In Q3 2025, New Gold generated a record $205 million in free cash flow (up 225%), with 115,200 oz of gold and 12 million lbs of copper at $966/oz AISC.
1. Analyst Price Target Increases
On January 26, Scotiabank analyst Eric Winmill raised New Gold’s price target to $12.75 from $10.50 with an Outperform rating, citing higher gold and silver forecasts. Three days earlier, Canaccord Capital upped its target to C$18 from C$15 while retaining a Buy rating, driven by economic uncertainty and central bank purchases.
2. Q3 2025 Production and Cash Flow Record
In the third quarter of 2025, New Gold achieved record consolidated production of 115,200 ounces of gold and 12 million pounds of copper. The company generated $205 million in free cash flow—a 225% increase over Q2—and saw Rainy River contribute a record $183 million.
3. All-In Sustaining Costs and Operational Efficiency
New Gold lowered its all-in sustaining costs to $966 per gold ounce, reflecting improved mining efficiencies and cost control. This reduction enhances margins and positions the company to capitalize on elevated metal prices amid ongoing economic and geopolitical uncertainty.
4. Corporate Profile and Future Drivers
New Gold is an intermediate gold producer operating Canadian mineral properties, primarily Rainy River and other assets. Future performance will hinge on sustained metal prices, exploration success, and further operational efficiencies to drive cash flow growth.