Regarding our increases in existing positions, we would like to highlight our substantial increase in New Gold's (TSX:NGD, Financial) stock. It is interesting to analyze this case: we bought it almost 4 years ago at a price of about USD 4 per share. Due to problems in one of its gold mines, its stock plunged by 90% to USD 0.46/share. On numerous occasions we have referred to New Gold as one of our investment errors due to such sharp drop. However, we did not sell it at the time because we felt that the drop in the price was much greater than that of its intrinsic value. The arrival of a new CEO with the right ideas and determination led us to increase our position significantly, very close to the lows. From these lows, the share price has multiplied by 4 in only 6 months, and today we can already say that we are profitable with our average price of USD 1.8 per share. New Gold's stock trades above USD 2.1, and we believe that it still has an upside potential of more than 60% at the current prices of gold and copper, its main products.
From azValor Asset Management's third-quarter 2020 letter.
