RBC Capital Reaffirms Buy Rating on New Gold with $6 Price Target

RBC Capital maintains a Buy rating on New Gold Inc. (NYSE:NGD) with a price target of $6.00. The company reported Q1 2025 gold production of 52,186 ounces and a planned Q1 of 14%. New Gold Inc. is a Canadian intermediate gold mining company operating two core-producing assets: Rainy River gold mine and New Afton copper-gold mine. The stock is considered undervalued and offers potential for significant upside.

Gold's remarkable surge beyond $3,300 per ounce (all figures are in U.S. dollars unless otherwise noted) in 2025 has become more than a fleeting price spike—it reflects deepening investor skepticism about the global financial system. With inflation stubbornly persistent and confidence in fiat currencies waning, gold has reasserted its place as a reliable store of value [1]. The shift has triggered a wave of investment into Canadian gold ventures, especially those in the Abitibi Greenstone Belt — Canada's largest gold producing region [1].

LaFleur Minerals Inc. (CSE: LFLR) (OTCQB: LFLRF) (FSE: 3WK0) (Profile) is leveraging this momentum to fast-track its transformation from explorer to producer [1]. The company joins a growing field of forward-focused mining companies including SSR Mining Inc. (TSX: SSRM) (OTCPK: SSRGF), New Gold Inc. (TSX: NGD) (NYSE American: NGD), K2 Gold Corp. (TSX.V: KTO) (OTCQB: KTGDF) and Nicola Mining Inc. (TSX.V: NIM) (OTCQB: HUSIF) [1]. Investors increasingly view gold as a critical hedge against monetary expansion, debt accumulation, and geopolitical volatility [1].

RBC Capital maintains a Buy rating on New Gold Inc. (NYSE:NGD) with a price target of $6.00. The company reported Q1 2025 gold production of 52,186 ounces and a planned Q1 of 14% [2]. New Gold Inc. is a Canadian intermediate gold mining company operating two core-producing assets: Rainy River gold mine and New Afton copper-gold mine [2]. The stock is considered undervalued and offers potential for significant upside [2].

With a fully refurbished, permitted mill and an advanced-stage exploration project, LaFleur Minerals is on track to become one of Quebec's newest gold producers [1]. LFLR's Swanson Gold Project spans approximately 15,290 hectares, features more than 36,000 meters of historic drilling, and benefits from $5-plus million invested in exploration [1]. LaFleur's Beacon Gold Mill, a fully permitted facility that underwent ~$20 million in recent upgrades, was just valued at an estimated replacement cost of more than C$61.5 million—more than double the company's entire market capitalization [1].

The company is currently executing a 5,000-plus-meter drill program to test more than 50 prospects, including the Bartec, Marimac and high-grade Jolin targets [1]. Recent surface sampling at Jolin yielded assays up to 11.7 g/t Au [1]. In addition, step-out drilling is being used to test strike extensions of known mineralized zones at Swanson and explore potential open-pit scenarios, particularly around the project deposit's pit-constrained resource [1].

LaFleur's Beacon Gold Mill, acquired from Monarch Mining in 2024, is a fully permitted, previously refurbished facility located only 50 kilometers from the Swanson Project [1]. It features a nameplate capacity of 750 tonnes per day and underwent approximately C$20 million in capital upgrades before being placed on care and maintenance in early 2023 [1]. The mill boasts the ability to be scaled to 1,100 tonnes per day and has obtained a certificate of authorization from the Quebec government permitting the processing of 1.8 million tonnes of tailings [1].

LaFleur has completed a full inspection and budgeting process, identifying a C$5–6 million restart path that includes equipment upgrades and repairs to the tailings storage facility [1]. The goal is to achieve full production at the mill by early 2026 once the restart tasks and ramp-up period are complete, with plans to commence initial production launch by the end of this year [1].

The facility is supported by a robust infrastructure network, including access to road, rail, and hydropower [1]. The mill's flowsheet utilizes cyanidation and Merrill-Crowe recovery, suitable for high-grade, free-milling ore [1]. In addition to the main mill, the site includes a 486-meter shaft from historic underground operations, containment ponds, and water-management systems [1].

With ore stockpiles from projects such as Beaufor already staged at the site, LaFleur could see immediate throughput upon restart [1]. Backed by a seasoned team, market momentum is driving LaFleur Minerals' transition to producer status [1].

References:
[1] https://www.prnewswire.com/news-releases/gold-rally-intensifies-as-juniors-race-toward-production-302509446.html
[2] RBC Capital