New Gold Inc (NYSE:NGD) shares are trading lower by 28.06% to $0.70 Tuesday morning after the company cut its 2022 gold and copper production expectations.
Among updates provided by New Gold, during the second quarter, the company says operations at the Rainy River Mine were adversely impacted by heavy rainfall and flooding around the Fort Frances area in northwestern Ontario. New Gold says total tonnes mined from the open pit in the quarter were below expectations as flooding in the pit due to the unfavorable weather impacted the mining rate, the mine sequencing, and access to higher grade ore planned for the second half of the year.
New Gold added that Rainy River's gold equivalent production for 2022 is now expected to be between 230,000 to 250,000 ounces (previously 265,000 to 295,000 ounces).
RBC Capital analyst Michael Siperco also maintained New Gold with a Sector Perform and lowered the price target from $1.5 to $1.
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New Gold is an intermediate gold mining company.
According to data from Benzinga Pro, New Gold has a 52-week high of $2.02 and a 52-week low of $0.69.
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