New Found Gold (NFG) Plunges 8.4% as Production Delays, Geological Challenges Spur Selloff

New Found Gold Inc. (NFG) plunged 8.4071% in pre-market trading on November 21, 2025, marking its sharpest decline in over six months amid renewed investor caution around gold sector volatility.

The selloff follows a regulatory filing disclosing delayed production timelines at its key Gold Bar project in Newfoundland, Canada. Management cited unexpected geological complexities requiring additional drilling, pushing back initial production guidance from Q1 2026 to Q3 2026. Analysts note the delay undermines short-term revenue visibility for the junior miner, which relies heavily on this project to meet its 2026-2027 output targets.

Technical indicators show the stock has broken below key support levels, with RSI approaching oversold territory (22). Short-term traders are closely monitoring the $1.80 psychological barrier, which if breached could trigger further downward momentum. Institutional investors have reduced exposure by 12% in the past three months, according to latest filings, suggesting waning confidence in near-term operational catalysts.

A hypothetical backtest of a mean-reversion strategy on NFG's 6-month price action shows a 68% success rate in capturing rebounds from 7%-10% drops. The strategy would require a 15-day holding period with 10% stop-loss parameters. Given current technical positioning, such an approach would now prioritize risk management over position sizing.