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 conceptssuch 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:

? Calculationsumerical analysis (10 marks)

? Written response (10 marks) analysing your findings and concluding on your decision on whether or not you would invest in the company.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at December 31 As at December 31 in millions of U.S. dollars Note 2020 2019 ASSETS Current assets Cash and cash equivalents 186.3 83.4 Trade and other receivables 77.1 23.7 Inventories 93.3 110.0 Current income tax receivable 4.0 4.5 Investments 45.4 05 Prepaid expenses and other 12.7 71 Total current assets 418.8 229 2 Mining interests 9 1,828. 1,928.0 Other assets 3.0 1.3 Total assets 2,250.1 2,158.5 LIABILITIES AND EQUITY Current Nabilities Trade and other payables 158.0 171.6 Current income tax payable 0.7 0.3 Total current liabilities 158.7 171.9 Reclamation and closure cost obligations 113.5 94.7 Non-current derivative financial liabilities 617.4 142.9 Long-term debt 714.5 Deferred tax liabilities 53.5 48.3 Lease obligations 19.5 239 Other liabilities 10 Total liabilities 1,460.8 ,197.2 Equity Common shares 16 3,154.0 3,144.5 Contributed surplus 106.7 105.7 Other reserves (116.8) (13.6) Deficit (2,354.6) 2,275.3) Total equity 789.3 961.3 Total liabilities and equity 2,250.1 2,158.5 See accompanying notes to the condensed consolidated financial statements.CONSOLIDATED INCOME STATEMENTS 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 15.6 17.6 Corporate restructuring 1.1 Share-based payment expenses 16 7.6 1.7 Exploration and business development 5.8 56 Income (loss) from operations 81.4 (7.9) Finance income 1.1 2.2 Finance costs (79.2) (62.6) Other losses (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)