July 26, 2018 / 2:24 PM / 2 years ago

BUZZ-New Gold: shares lose luster on lowered guidance, CS downgrade

** Shares of Canada-based mining co New Gold Inc plunged ~21 pct, hitting a 9 1/2-year low early Thurs as Credit Suisse downgrades to “underperform” from “neutral” following its Q2 earnings miss

** NGD last down 16.9 pct at $1.52, worst percentage loser in the Philadelphia SE Gold/Silver index

** Lead analyst Anita Soni cites continued weakness at Rainy River, which was primary driver of lowered production guidance and increased cost projections

** NGD’s Q2 gold production from continuing ops came in at 109k oz, below the 132.9k oz estimated by CS, says Soni

** On Jul 25, NGD reported after-market Q2 adj break-even results, missing the penny/sh analysts expected, per Thomson Reuters data

** Gold prices edged lower on Thurs in response to easing trade tensions between the U.S. and the EU

** Of 13 analysts covering NGD, 1 rates stock “buy”, 8 recommend “hold” and 4 say “sell” or “strong sell”

** So far this year, U.S. exchange-traded NGD has lost more than half its value, compared with the XAU’s ~9 pct drop (Reporting by Stephen Culp)

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