Strong Fourth Quarter Results Lead to Achieving Top End of
Consolidated 2023 Production Guidance, Growth Initiatives Nearing
Completion
(All amounts are in U.S. dollars unless otherwise
indicated)
TORONTO, Jan. 9, 2024
/PRNewswire/ - New Gold Inc. ("New Gold" or the "Company")
(TSX: NGD) (NYSE American: NGD) reports fourth quarter and
full year operational results for the Company as of December 31, 2023. The Company is also providing
notice that it will release its fourth quarter and full year 2023
financial results after market close on Tuesday, February 13, 2024. The Company will host
its fourth quarter and full year 2023 earnings conference call and
webcast on Wednesday, February 14,
2024 at 8:30 am Eastern
Time.
Continued Strong Quarterly
Operational Performance Leads to New Gold Achieving the Top End of
2023 Consolidated Production Guidance
"Our strong fourth quarter production results mark our sixth
consecutive quarter of delivering to our plan, with a 7% increase
in gold equivalent production over the prior-year period," stated
Patrick Godin, President & CEO.
"As a result, New Gold achieved the top end of its 2023 gold
equivalent production guidance set at the start of 2023."
- Fourth quarter consolidated gold eq.1 production of
105,082 ounces (79,187 ounces of gold, 12.0 million pounds of
copper and 157,788 ounces of silver), a 7% increase over the
prior-year period.
- Another excellent quarter from New Afton as a result of higher
tonnes processed, higher gold and copper grades and higher recovery
rates. B3 extraction rates continue to exceed plan. For the year,
gold production exceeded 2023 guidance, with copper production
achieving the top end.
- Rainy River continues to
deliver stable production quarter-over-quarter. Both the open pit
and underground mines delivered in the quarter, aided by another
strong performance from the processing plant. Gold production
achieved the top end of 2023 guidance.
- As a result of the strong fourth quarter operating results,
2023 consolidated gold eq.1 production was 423,517
ounces (321,178 ounces of gold, 47.4 million pounds of copper and
593,146 ounces of silver), achieving the top end of 2023
consolidated production guidance.
Entering Final Year of Growth
Project Execution, Near-Term Significant Free Cash Flow Thesis
Remains Intact
"Both operations exit 2023 performing well and having made
excellent progress on growth initiatives. I expect 2024 to be
transformational for our Company and position us well to increase
production at decreasing costs and significantly less capital
spend, allowing us to maximize our free cash flow generation in the
years to come," added Mr. Godin.
- At Rainy River, Phase 4 of the
open pit is underway, with overburden removal complete and waste
stripping well advanced. Phase 4 waste stripping activities are
expected to significantly decrease after 2024. Rainy River's underground Main Zone remains
on-track for first production in the fourth quarter of 2024 and is
expected to ramp-up production throughout 2025.
- At New Afton, C-Zone production commenced at the end of
September 2023 with the first draw
bell blast. Commercial production remains on-track for H2/2024,
ramping up to full production by the end of 2025.
- The Company's near-term free cash flow thesis remains intact.
Capital spending is expected to taper off significantly upon
completion of growth projects and a significant reduction in open
pit waste stripping at Rainy River
after 2024. Together with increasing production profiles at both
operations and decreasing costs, free cash flow is expected to
increase significantly in the coming years.
- The Company will provide additional details with the release of
its inaugural three-year operational outlook in
early-February.
Operational Highlights
Consolidated
|
Q4
2023
|
FY
2023
|
2023
Guidance
|
Gold eq. production
(ounces)1
|
105,082
|
423,517
|
365,000 -
425,000
|
Gold eq. sold
(ounces)1
|
103,504
|
415,181
|
-
|
Gold production
(ounces)
|
79,187
|
321,178
|
280,000 -
320,000
|
Gold sold
(ounces)
|
77,870
|
319,116
|
-
|
Copper production
(Mlbs)
|
12.0
|
47.4
|
38 -
48
|
Copper sold
(Mlbs)
|
11.9
|
44.4
|
-
|
Rainy River
Mine
|
Q4
2023
|
FY
2023
|
2023
Guidance
|
Gold eq. production
(ounces)1
|
64,290
|
259,679
|
235,000 -
265,000
|
Gold eq. sold
(ounces)1
|
62,650
|
260,897
|
-
|
Gold production
(ounces)
|
62,692
|
253,745
|
230,000 -
260,000
|
Gold sold
(ounces)
|
61,086
|
254,932
|
-
|
New Afton
Mine
|
Q4
2023
|
FY
2023
|
2023
Guidance
|
Gold eq. production
(ounces)1
|
40,792
|
163,838
|
130,000 -
160,000
|
Gold eq. sold
(ounces)1
|
40,853
|
154,284
|
-
|
Gold production
(ounces)
|
16,495
|
67,433
|
50,000 -
60,000
|
Gold sold
(ounces)
|
16,784
|
64,185
|
-
|
Copper production
(Mlbs)
|
12.0
|
47.4
|
38 -
48
|
Copper sold
(Mlbs)
|
11.9
|
44.4
|
-
|
Operating Key Performance
Indicators
Rainy River
Mine
|
Q4
2023
|
Q4
2022
|
FY
2023
|
FY
2022
|
Open Pit
Only
|
|
|
|
|
Tonnes mined per day
(ore and waste)
|
109,895
|
110,536
|
119,948
|
112,826
|
Ore tonnes mined per
day
|
29,377
|
34,667
|
34,007
|
22,965
|
Operating waste tonnes
per day
|
47,838
|
56,547
|
53,537
|
39,017
|
Capitalized waste
tonnes per day
|
32,681
|
19,323
|
32,404
|
50,843
|
Total waste tonnes per
day
|
80,519
|
75,870
|
85,942
|
89,860
|
Strip ratio
(waste:ore)
|
2.74
|
2.19
|
2.53
|
3.91
|
Open Pit and
Underground
|
|
|
|
|
Tonnes milled per
calendar day
|
25,046
|
22,225
|
24,012
|
23,568
|
Gold grade milled
(g/t)
|
0.94
|
1.16
|
0.99
|
0.91
|
Gold recovery
(%)
|
90
|
92
|
91
|
91
|
Gold eq. production
(ounces)1
|
64,290
|
71,221
|
259,679
|
235,194
|
Gold production
(ounces)
|
62,692
|
69,753
|
253,745
|
229,822
|
New Afton
Mine
|
Q4
2023
|
Q4
2022
|
FY
2023
|
FY
2022
|
New Afton Mine
Only
|
|
|
|
|
Tonnes mined per day
(ore and waste)
|
9,933
|
7,978
|
9,771
|
7,003
|
Tonnes milled per
calendar day
|
8,181
|
6,9382
|
8,289
|
9,1052
|
Gold grade milled
(g/t)
|
0.73
|
0.622
|
0.72
|
0.472
|
Gold recovery
(%)
|
90
|
862
|
90
|
842
|
Copper grade milled
(%)
|
0.79
|
0.57
|
0.77
|
0.51
|
Copper recovery
(%)
|
91
|
87
|
91
|
83
|
Gold eq. production
(ounces)1
|
40,239
|
25,018
|
159,042
|
108,097
|
Gold production
(ounces)
|
15,942
|
9,356
|
62,637
|
37,788
|
Copper production
(Mlbs)
|
12.0
|
6.9
|
47.4
|
31.1
|
Ore Purchase
Agreements
|
|
|
|
|
Gold production
(ounces)
|
553
|
1,585
|
4,796
|
3,763
|
New Afton Mine
Total
|
|
|
|
|
Gold eq. production
(ounces)1
|
40,792
|
26,603
|
163,838
|
111,860
|
Gold production
(ounces)
|
16,495
|
10,941
|
67,433
|
41,551
|
Copper production
(Mlbs)
|
12.0
|
6.9
|
47.4
|
31.1
|
Fourth Quarter and Full Year 2023
Conference Call and Webcast
The Company will release its fourth quarter and full year 2023
financial results after market close on Tuesday, February 13, 2024. A conference call and
webcast will be hosted on Wednesday,
February 14, 2024 at 8:30 am Eastern
Time.
- Participants may listen to the webcast by registering on our
website at www.newgold.com or via the following link
https://app.webinar.net/QKynzVelmWD
- Participants may also listen to the conference call by calling
North American toll free 1-888-664-6383, or 1-416-764-8650 outside
of the U.S. and Canada, passcode
03373344.
- To join the conference call without operator assistance, you
may register and enter your phone number at
https://emportal.ink/3RAcXl4 to receive an instant automated call
back.
- A recorded playback of the conference call will be available
until March 14, 2024 by calling North
American toll free 1-888-390-0541, or 1-416-764-8677 outside of the
U.S. and Canada, passcode 373344.
An archived webcast will also be available at www.newgold.com.
About New Gold
New Gold is a Canadian-focused intermediate mining company with
a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New
Afton copper-gold mine. The Company also holds other
Canadian-focused investments. New Gold's vision is to build a
leading diversified intermediate gold company based in Canada that is committed to the environment
and social responsibility. For further information on the Company,
visit www.newgold.com.
Endnotes
|
1.
|
Total gold eq. ounces
include silver and copper produced/sold converted to a gold
equivalent. All copper is produced/sold by the New Afton Mine. Gold
eq. ounces for Rainy River in Q4 2023 includes production of
127,138 ounces of silver (124,421 ounces of silver sold) converted
to a gold eq. based on a ratio of $1,750 per gold ounce and $22.00
per silver ounce used for 2023 guidance estimates. Gold eq. ounces
for New Afton in Q4 2023 includes 12.0 million pounds of copper
produced (11.9 million pounds sold) and 30,651 ounces of silver
produced (28,838 ounces of silver sold) converted to a gold eq.
based on a ratio of $1,750 per gold ounce, $3.50 per copper pound
and $22.00 per silver ounce used for 2023 guidance
estimates.
|
|
|
2.
|
Key performance
indicator data is inclusive of gold ounces from ore purchase
agreements for New Afton. The New Afton Mine purchases small
amounts of ore from local operations, subject to certain grade and
other criteria. These ounces represented approximately 3% of total
gold ounces produced at New Afton during the quarter, using New
Afton's excess mill capacity. All other ounces are mined and
produced at New Afton.
|
Cautionary Note Regarding
Forward-Looking Statements
Certain information contained in this news release, including
any information relating to New Gold's future financial or
operating performance are "forward-looking". All statements in this
news release, other than statements of historical fact, which
address events, results, outcomes or developments that New Gold
expects to occur are "forward-looking statements". Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the use of forward-looking
terminology such as "plans", "expects", "is expected", "budget",
"scheduled", "targeted", "estimates", "forecasts", "intends",
"anticipates", "projects", "potential", "believes" or variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "would", "should", "might" or "will be
taken", "occur" or "be achieved" or the negative connotation of
such terms. Forward-looking statements in this news release
include, among others, statements with respect to: expectations
that Phase 4 waste stripping activities at Rainy River will significantly decreasing
after 2024; expectations about successfully achieving first
production from Rainy River's
underground Main Zone in the fourth quarter of 2024 and ramping up
production throughout 2025; expectations regarding successfully
achieving commercial production from the C-Zone in the second half
of 2024 and ramping up to full production by the end of 2025;
successfully completing growth projects and the significant
tapering off of capital spending projected as a result;
expectations that free cash flow will increase significantly in the
coming years and successfully accomplishing the factors
contributing thereto; the Company's intention to provide a
three-year operational outlook in early February; and expectations
that 2024 will be transformational for the Company and successfully
accomplishing the factors contributing thereto.
All forward-looking statements in this news release are based on
the opinions and estimates of management that, while considered
reasonable as at the date of this news release in light of
management's experience and perception of current conditions and
expected developments, are inherently subject to important risk
factors and uncertainties, many of which are beyond New Gold's
ability to control or predict. Certain material assumptions
regarding such forward-looking statements are discussed in this
news release, New Gold's latest annual management's discussion and
analysis ("MD&A"), its most recent annual information form and
technical reports on the Rainy River Mine and New Afton Mine filed
on SEDAR+ at www.sedarplus.ca and on EDGAR at
www.sec.gov. In addition to, and subject to, such assumptions
discussed in more detail elsewhere, the forward-looking statements
in this news release are also subject to the following assumptions:
(1) there being no significant disruptions affecting New Gold's
operations, including material disruptions to the Company's supply
chain, workforce or otherwise; (2) political and legal developments
in jurisdictions where New Gold operates, or may in the future
operate, being consistent with New Gold's current expectations; (3)
the accuracy of New Gold's current Mineral Reserve and Mineral
Resource estimates and the grade of gold, copper and silver
expected to be mined; (4) the exchange rate between the Canadian
dollar and U.S. dollar, and to a lesser extent the Mexican peso,
and commodity prices being approximately consistent with current
levels and expectations for the purposes of 2023 guidance and
otherwise; (5) prices for diesel, natural gas, fuel oil,
electricity and other key supplies being approximately consistent
with current levels; (6) equipment, labour and material costs
increasing on a basis consistent with New Gold's current
expectations; (7) arrangements with First Nations and other
Indigenous groups in respect of the Rainy River Mine and
New Afton Mine being consistent with New Gold's current
expectations; (8) all required permits, licenses and authorizations
being obtained from the relevant governments and other relevant
stakeholders within the expected timelines and the absence of
material negative comments or obstacles during any applicable
regulatory processes; and (9) the results of the life of mine plans
for the Rainy River Mine and the New Afton Mine described herein
being realized.
Forward-looking statements are necessarily based on estimates
and assumptions that are inherently subject to known and unknown
risks, uncertainties and other factors that may cause actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Such factors include, without
limitation: price volatility in the spot and forward markets for
metals and other commodities; discrepancies between actual and
estimated production, between actual and estimated costs, between
actual and estimated Mineral Reserves and Mineral Resources and
between actual and estimated metallurgical recoveries; equipment
malfunction, failure or unavailability; accidents; risks related to
early production at the Rainy River Mine, including failure of
equipment, machinery, the process circuit or other processes to
perform as designed or intended; the speculative nature of mineral
exploration and development, including the risks of obtaining and
maintaining the validity and enforceability of the necessary
licenses and permits and complying with the permitting requirements
of each jurisdiction in which New Gold operates, including, but not
limited to: uncertainties and unanticipated delays associated with
obtaining and maintaining necessary licenses, permits and
authorizations and complying with permitting requirements; changes
in project parameters as plans continue to be refined; changing
costs, timelines and development schedules as it relates to
construction; the Company not being able to complete its
construction projects at the Rainy River Mine or the New Afton Mine
on the anticipated timeline or at all; volatility in the market
price of the Company's securities; changes in national and local
government legislation in the countries in which New Gold does or
may in the future carry on business; compliance with public company
disclosure obligations; controls, regulations and political or
economic developments in the countries in which New Gold does or
may in the future carry on business; the Company's dependence on
the Rainy River Mine and New Afton Mine; the Company not being able
to complete its exploration drilling programs on the anticipated
timeline or at all; inadequate water management and stewardship;
disruptions to the Company's workforce at either the Rainy River
Mine or the New Afton Mine, or both, due to cases of COVID-19 or
otherwise; the responses of the relevant governments to any
disease, epidemic or pandemic outbreak, including the COVID-19
outbreak, not being sufficient to contain the impact of
such outbreak; disruptions to the Company's supply chain and
workforce due to any disease, epidemic or pandemic outbreak,
including the COVID-19 outbreak; an economic recession or downturn
as a result of any disease, epidemic or pandemic outbreak,
including the COVID-19 outbreak, that materially adversely
affects the Company's operations or liquidity position; there being
further shutdowns at the Rainy River Mine or New Afton Mine;
significant capital requirements and the availability and
management of capital resources; additional funding requirements;
diminishing quantities or grades of Mineral Reserves and Mineral
Resources; actual results of current exploration or reclamation
activities; uncertainties inherent to mining economic studies
including the Technical Reports for the Rainy River Mine and New
Afton Mine; impairment; unexpected delays and costs inherent to
consulting and accommodating rights of First Nations and other
Indigenous groups; climate change, environmental risks and hazards
and the Company's response thereto; tailings dam and structure
failures; ability to obtain and maintain sufficient insurance;
actual results of current exploration or reclamation activities;
fluctuations in the international currency markets and in the rates
of exchange of the currencies of Canada, the United
States and, to a lesser extent, Mexico; global economic and financial
conditions and any global or local natural events that may impede
the economy or New Gold's ability to carry on business in the
normal course; inflation; compliance with debt obligations and
maintaining sufficient liquidity; taxation; fluctuation in
treatment and refining charges; transportation and processing of
unrefined products; rising costs or availability of labour,
supplies, fuel and equipment; adequate infrastructure;
relationships with communities, governments and other stakeholders;
geotechnical instability and conditions; labour disputes; the
uncertainties inherent in current and future legal challenges to
which New Gold is or may become a party; defective title to mineral
claims or property or contests over claims to mineral properties;
competition; loss of, or inability to attract, key employees; use
of derivative products and hedging transactions; reliance on
third-party contractors; counterparty risk and the performance of
third party service providers; investment risks and uncertainty
relating to the value of equity investments in public companies
held by the Company from time to time; the adequacy of internal and
disclosure controls; conflicts of interest; the lack of certainty
with respect to foreign operations and legal systems, which may not
be immune from the influence of political pressure, corruption or
other factors that are inconsistent with the rule of law; the
successful acquisitions and integration of business arrangements
and realizing the intended benefits therefrom; and information
systems security threats. In addition, there are risks and hazards
associated with the business of mineral exploration, development
and mining, including environmental events and hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-ins,
flooding and gold bullion losses (and the risk of inadequate
insurance or inability to obtain insurance to cover these risks) as
well as "Risk Factors" included in New Gold's most recent annual
information form, MD&A and other disclosure documents filed on
and available on SEDAR+ at www.sedarplus.ca and on EDGAR
at www.sec.gov. Forward looking statements are not guarantees of
future performance, and actual results and future events could
materially differ from those anticipated in such statements. All
forward-looking statements contained in this news release are
qualified by these cautionary statements. New Gold expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
events or otherwise, except in accordance with applicable
securities laws.
Technical Information
The scientific and technical information contained in this news
release has been reviewed and approved by Yohann Bouchard, Executive Vice President and
Chief Operating Officer for the Company. Mr. Bouchard is a
Professional Engineer and a member of the Professional Engineers of
Ontario. Mr. Bouchard is a
"Qualified Person" for the purposes of National Instrument 43-101 –
Standards of Disclosure for Mineral Projects.
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SOURCE New Gold Inc.