New Found Gold Receives Buy Rating from Roth MKM with $5.00 Price Target

New Found Gold received a Buy rating and $5.00 price target from Roth MKM analyst Mike Niehuser. Niehuser has a 20.1% average return and 59.76% success rate on recommended stocks. The company has a Moderate Buy analyst consensus rating and a $5.00 average price target. New Found Gold has a one-year high of $3.19 and a one-year low of $0.93, with an average volume of 1.15M shares. Corporate insider sentiment is positive, with an increase in insider buying over the past quarter.

New Found Gold Corp. (NFG) has received a Buy rating and a $5.00 price target from Roth MKM analyst Mike Niehuser. Niehuser has an impressive track record with a 20.1% average return and a 59.76% success rate on recommended stocks. This positive analyst sentiment comes at a time when the company is making significant strides with its Queensway Gold Project.

The Queensway Gold Project, located in Newfoundland, has been gaining attention for its capital-efficient, gold-price-sensitive development. A preliminary economic assessment (PEA) shows a 56.3% IRR and a $743 million after-tax NPV at $2,500/oz gold [1]. The project's phased approach and structural leverage to rising gold prices make it an attractive investment opportunity for gold enthusiasts.

The phased development model of Queensway is designed to balance ambition with fiscal discipline. Phase 1 requires $155 million in capital to establish a small open-pit mine producing 69,300 ounces annually at $1,282/oz all-in sustaining costs (AISC). This phase prioritizes grade-sequencing, with initial material grading at 9.64 g/t gold—nearly five times the life-of-mine average—ensuring rapid payback and early cash flow. Subsequent phases add growth capital and introduce underground mining, extending the mine's lifespan and unlocking deeper resources.

The project's economics are highly sensitive to gold price movements. At $2,500/oz, the project delivers a 56.3% IRR, but this metric could surpass 80% if gold breaches $3,000/oz. The high-grade, low-cost structure of the project amplifies this leverage, making it a compelling investment in a volatile gold market.

New Found Gold's regional exploration efforts are also promising. The company's 175,450-hectare land package includes the high-grade Dropkick zone, which is already showing promise. Additionally, 80% of the 2025 drilling program is focused on resource definition, ensuring that the project's initial 6.9 Moz resource could be upgraded through infill drilling.

Despite the compelling economics and exploration potential, execution risks remain. Environmental permitting and infrastructure costs could add 10–15% to capital expenditures. However, New Found's $63 million bought-deal financing and Eric Sprott's 19% stake provide a financial safety net. The project's location in Newfoundland, a mining-friendly jurisdiction, also reduces regulatory and operational friction.

For investors, Queensway represents a rare combination of high IRR, gold-price leverage, and capital efficiency. The project's phased model allows New Found to capture early cash flow while deferring higher-risk, higher-capital phases until gold prices justify the investment.

Given the current macro environment—sovereign debt monetization, inflationary pressures, and a flight to tangible assets—gold prices are likely to trend higher over the next 12–18 months. This bullish outlook aligns with Niehuser's recommendation to consider a core position in New Found Gold with a stop-loss at $2.00/share.

In conclusion, New Found Gold's Queensway Gold Project is a strategic framework for turning gold price volatility into shareholder value. With a strong analyst consensus and promising project economics, NFG is well-positioned to capitalize on the growing demand for gold.

References:
[1] https://www.ainvest.com/news/gold-queensway-gold-project-high-irr-gold-price-leveraged-path-shareholder-2507/