New Gold stock tumbles on Rainy River project delay, further capex overrun

The TSX-listed stock of intermediate gold producer New Gold tumbled nearly 26% on Monday after the company announced a three-month start-up delay at its billion-dollar-plus Rainy River project, in Ontario, and a $195-million cost increase. Analysts noted that the Rainy River update increased uncertainty for the project, which had seen capital expenditure (capex) shifting several times over 2016 - up from the initial 2014 capex estimate of $885-million, and might require the company to seek further funding to complete the project.