New Found Gold hits commercial output at Hammerdown

AI desk brief

New Found Gold has achieved commercial production at Hammerdown after sustaining 60 days of throughput, recovery and grade benchmarks: about 748 tpd, 87.7% recovery and 2.92 g/t feed grade at Pine Cove. The company said Hammerdown produced 9,140 oz year-to-date through August, including 1,989 oz in August, and the mine is still targeted to benefit from a Q4 crusher/sorter build and a later Pine Cove expansion to 1,400 tpd.

Management framed the milestone as a step toward becoming a mid-tier Canadian gold producer, while National Bank called it a positive readthrough for Queensway and highlighted upcoming catalysts in an updated resource estimate and PEA. The stock rose more than 5% on the day; the PEA assumes AISC of US$2,429/oz and a post-tax NPV5 of $199.2 million at a long-term gold price of US$3,475/oz.