New Gold Inc. (NYSE:NGD)

New Gold Inc. (NYSE:NGD) is shaping up to be one of the most compelling penny stocks in the gold and copper space. With a current share price of $4.93 and a trailing twelve month net income of $129.4 million, this intermediate gold miner is delivering strong fundamental performance, making it an attractive option for value focused and resource sector investors.

The company operates two key Canadian assets: the Rainy River mine in Ontario and the New Afton project in British Columbia. In Q1 2025, New Gold produced over 52,000 ounces of gold and 13.6 million pounds of copper, figures that exceeded early year guidance. Notably, the all in sustaining cost (AISC) of $1,727 per ounce is expected to decline throughout the year as output increases. New Afton alone generated a standout $52 million in free cash flow this quarter, thanks to better than expected copper credits and high grade ore from the B3 cave.

Operational efficiency is translating into stronger financials. New Gold Inc. (NYSE:NGD) recorded $107 million in operating cash flow and $25 million in free cash flow during Q1. The company also strengthened its balance sheet by refinancing its senior notes at lower interest rates and expanding its revolving credit facility, moves that boost its financial flexibility significantly.

Another key catalyst: New Gold Inc. (NYSE:NGD) is now consolidating 100% ownership of New Afton, eliminating previous free cash flow sharing. This positions the company to fully benefit from long term exploration upside and mine life extensions.

With solid production guidance, low debt, and plans to ramp up both mining and exploration activities, New Gold Inc. (NYSE:NGD) is entering a golden period, literally and financially. It’s a strong candidate for investors seeking high upside penny stocks in the resource sector.