New Gold is a Canadian-focused intermediate gold mining company engaged in the operation, development and exploration of mineral properties. Use their 2019 annual financial statements to determine (attached below) whether you would invest in this company or not.

Please use concepts such as profitability, ratio analysis (profitability/liquidity/solvency) and/or financial analysis (vertical/horizontal) to support your decision.

There should be two components to your response:
• Calculations/numerical analysis (10 marks)
• Written response (10 marks) analyzing your findings and concluding on your decision on whether or not you would invest in the company.

 
 

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CONSOLIDATED INCOME STATEMENTS A Open in A Year ended December 31 (in millions of U.S. dollars, except per share amounts) Note 2020 2019 Revenues 643.4 630.6 Operating expenses 339.9 371.9 Depreciation and depletion 193.1 240.6 Revenue less cost of goods sold 110.4 18.1 Corporate administration Corporate restructuring 15.6 17.6 1.1 Share-based payment expenses 16 7.6 1.7 Exploration and business development 5.8 5.6 Income (loss) from operations 81.4 (7.9) Finance income 4 1.1 2.2 Finance costs 4 (79.2) (62.6) Other losses 4 (78.3) (5.6) Loss before taxes (75.0) (73.9) Income tax (expense) recovery 17 (4.3) 0.4 Net loss (79.3) (73.5) .... CONSOLIDATED INCOME STATEMENTS A Open in A Year ended December 31 (in millions of U.S. dollars, except per share amounts) Note 2020 2019 Revenues 643.4 630.6 Operating expenses 339.9 371.9 Depreciation and depletion 193.1 240.6 Revenue less cost of goods sold 110.4 18.1 Corporate administration Corporate restructuring 15.6 17.6 1.1 Share-based payment expenses 16 7.6 1.7 Exploration and business development 5.8 5.6 Income (loss) from operations 81.4 (7.9) Finance income 4 1.1 2.2 Finance costs 4 (79.2) (62.6) Other losses 4 (78.3) (5.6) Loss before taxes (75.0) (73.9) Income tax (expense) recovery 17 (4.3) 0.4 Net loss (79.3) (73.5) ....