Provides Inaugural Three-Year Operational Outlook and Updated
Mineral Reserves and Resources
(All amounts are in U.S. dollars unless otherwise
indicated)
TORONTO, Feb. 8, 2024
/PRNewswire/ - New Gold Inc. ("New Gold" or the "Company")
(TSX: NGD) (NYSE American: NGD) is pleased to provide its
inaugural three-year operational outlook and updated Mineral
Reserve and Mineral Resources statement for the Company as of
December 31, 2023. The Company will
host a webcast today at 12:30 pm Eastern
Time to discuss these items (details are provided at the end
of this news release). The Company uses certain non-GAAP financial
performance measures throughout this release. Please refer to the
"Non-GAAP Financial Performance Measures" section of this news
release for more information. Numbered note references throughout
this news release are to endnotes which can be found at the end of
this news release.
Increasing Production and Decreasing Costs Highlight Strong
Free Cash Flow Generation Over the Next Three Years
"With our inaugural presentation of three-year guidance, the
Company has clearly defined the path forward to significant free
cash flow generation," stated Patrick
Godin, President and CEO. "This is underpinned by the work
completed in recent years to prepare our operations for meaningful
production and cash flow increases, as costs and capital spend
decrease."
- Consolidated gold production is expected to increase by
approximately 35% from 2023 to 410,000 to 460,000 ounces in 2026
driven by increasing production profiles at both Rainy River and New Afton as growth projects
are completed in the near-term.
- Copper production is expected to increase by approximately 60%
from 2023 to 71 to 81 million pounds in 2026 driven by the steady
ramp-up of C-Zone.
- All-in sustaining costs (on a by-product basis)1 are
expected to decrease by over 50% compared to the 2023 midpoint of
guidance to between $650 and
$750 per ounce in 2026, driven by
higher production at both operations, significant reduction in
total capital, and lower operating costs as the C-Zone crusher and
conveyor comes online, and Rainy
River completes Phase 4 waste removal and commences mining
from the underground Main Zone.
- The higher production, lower costs, and lower capital spend
over the next three years are expected to drive significant free
cash flow2 for the Company.
2024 to See Realization of Growth Projects, With the Second
Half to Highlight Free Cash Flow Generation Potential
"The Company is set to successfully complete a number of key
catalysts in 2024, including reaching commercial production at New
Afton's C-Zone, and first ore from Rainy
River's underground Main Zone. Capital deployed in 2024,
weighted to the first half of the year, will allow the Company to
enter a sustained free cash flow generation period. In fact, at
current commodity prices New Gold is expected to generate
approximately $75 million in free
cash flow in the second half of the year," added Mr. Godin.
- 2024 consolidated gold production is expected to be 310,000 to
350,000 ounces compared to 321,178 in 2023. Production is expected
to strengthen in the second half of the year, with the second half
of 2024 expected to represent approximately 60% of annual
production as waste stripping at Rainy
River is sequenced in the first half of the year.
- 2024 copper production is expected to be between 50 to 60
million pounds, approximately 16% higher than 2023 driven by
increased contribution from C-Zone at New Afton.
- 2024 total cash costs (on a by-product basis)1 are
expected to decrease by approximately 7% compared to the 2023
midpoint of guidance to between $725
and $825 per ounce driven by
increased production from both operations.
- 2024 all-in sustaining costs (on a by-product
basis)1 are expected to decrease by approximately 10%
compared to the 2023 midpoint of guidance to between $1,240 and $1,340
per ounce driven by lower total cash costs, higher production from
both operations and lower sustaining capital primarily related to
waste stripping activities at Rainy
River.
- 2024 total capital is expected to be in-line with the 2023
guidance range, as growth projects at both operations are brought
online during the year.
Strategic Outlook Beyond 2026 Highlights Operational
Sustainability and Longevity, with Minimal Capital
Investment
"Looking beyond our three-year guidance, the Company has a
strategic objective of targeting a sustainable production platform
of approximately 600,000 gold equivalent ounces per year with a
line of sight until at least 2030. Following the successful
execution of operational stabilization initiatives and growth
projects over the past two years, we are increasingly looking to
unlock the long-term value of our operations. Based on Mineral
Reserves alone, Rainy River and
New Afton have mine lives to 2031 and 2030, respectively, and
modest conversion of Mineral Resources to Mineral Reserves would
not only extend mine lives but also improve the production profiles
from 2027 to 2031 with minimal capital investment. The strategic
outlook demonstrates our confidence in the sustainability of our
operations" added Mr. Godin.
- Rainy River successfully added
201,000 ounces of open pit and underground gold Mineral Reserves,
replacing 2023 depletion by 74%. Extension of open pit mining, with
the inclusion of Phase 5, is expected to maintain mill throughput
near full capacity until at least 2030.
- Following a detailed optimization of the Rainy River
underground mining method, design and schedule, lateral development
metres were reduced despite an increase in underground Mineral
Reserves. As a result, the underground ramp-up period is
de-risked and the steady-state underground production rate is
expected to increase to 5,500 tpd beginning in 2027.
- Several high-quality open pit and underground exploration
targets were identified in 2023, including the extension of
existing zones and potential new zones. From 2017 to 2022, minimal
exploration drilling was carried out at Rainy River, as the mine focused on ramping up
production and stabilizing the operation. As such, several
promising targets remain untested. In 2024, exploration at
Rainy River will focus on drilling
several of these targets from both surface and underground.
- On October 10, 2023, the Company
presented a strategic pipeline for increasing the production
profile and extending mine life at New Afton, including the
evaluation of three promising opportunities for conversion of
Mineral Resources to Mineral Reserves: C-Zone Extension, East
Extension, and D-Zone. As a result of infill drilling, a portion of
Inferred Mineral Resources were converted to Measured and Indicated
Resources at year-end.
- Additionally, the Company reported encouraging drill results
from two potential new mining zones: K-Zone and AI-Southeast.
Development of an exploration drift is now underway which is
anticipated to provide better access to drill these zones, speeding
up exploration efforts. The first drill bay is expected to be
operational by the second quarter of 2024, with full completion of
the drift scheduled in the third quarter.
- Following commissioning of the thickened and amended tailings
plant and in-pit tailings storage project in late 2022, New Afton
has sufficient tailings capacity to double the remaining mine life
with minimal capital.
Three-Year Consolidated Operational Outlook
In 2024, the Company will report production on a gold and copper
basis. Operating expense will be reported on a co-product basis.
Consolidated total cash costs1,4 and all-in sustaining
costs1,4 will be reported on a by product basis, net of
by-product silver and copper sales. Given New Afton's significant
copper contribution, the mine will also report cash costs and
all-in sustaining costs on a co-product basis, which removes the
impact of copper sales revenue and apportions cash costs and all-in
sustaining costs to gold and copper activities, and subsequently
divides the amount by the total gold ounces or pounds of copper
sold, as the case may be, to arrive at per ounce or per pound
figures. The Company has assumed $22.00 per silver ounce and $3.75 per copper pound, and a foreign exchange
rate of $1.32 Canadian dollars to
$1.00 US dollar in its three-year
outlook.
Operational
Estimates
|
2024
Guidance
|
2025
Guidance
|
2026
Guidance
|
Gold production
(ounces)2
|
310,000 –
350,000
|
360,000 –
410,000
|
410,000 –
460,000
|
Copper production (M
lbs)
|
50 - 60
|
51 – 61
|
71– 81
|
Operating expenses
($/oz gold, co-product)
|
$965 -
$1,065
|
$850 - $950
|
$750 - $850
|
Operating expenses
($/lb copper, co-product)
|
$1.90 –
$2.40
|
$1.85 –
$2.35
|
$1.50 –
$2.00
|
Cash costs per gold
ounce sold (by-product)1
|
$725 - $825
|
$650 - $750
|
$400 - $500
|
All-in sustaining costs
per gold ounce sold
(by-product)1
|
$1,240 -
$1,340
|
$975 -
$1,075
|
$650 - $750
|
Capital Investment
& Exploration Estimates
|
2024
Guidance
|
2025
Guidance
|
2026
Guidance
|
Total capital
($M)
|
$290 - $330
|
$190 - $220
|
$85 - $105
|
Sustaining capital
($M)1
|
$115 - $130
|
$75 - $90
|
$55 - $70
|
Growth capital
($M)1
|
$175 - $200
|
$115 - $130
|
$30 - $35
|
2024 Consolidated Outlook
Gold production2 is expected to be 310,000 to 350,000
ounces, approximately 3% higher than 2023 driven by increased
underground production at Rainy
River and the ongoing ramp-up of C-Zone at New Afton.
Production is expected to strengthen in the second half of the
year, with the second half of 2024 expected to represent
approximately 60% of annual production as waste stripping at
Rainy River is sequenced in the
first half of the year. Copper production is expected to be between
50 to 60 million pounds, approximately 16% higher than 2023 driven
by increased contribution from C-Zone at New Afton.
2024 total cash costs (on a by-product basis)1 are
expected to decrease by approximately 7% compared to the 2023
midpoint of guidance to between $725
and $825 per ounce driven by
increased production from both operations. 2024 all-in sustaining
costs (on a by-product basis)1 are expected to decrease
by approximately 11% compared to the 2023 midpoint of guidance to
between $1,240 and $1,340 per ounce driven by lower total cash costs
and higher production from both operations. Total cash costs (on a
by-product basis)1 and all-in sustaining costs (on a
by-product basis)1 are expected to decrease
quarter-over-quarter throughout 2024 due to increasing production
and a lower strip ratio at Rainy
River in the second half of 2024.
Total capital is expected to be $290 to $330
million, of which, sustaining capital1 is
expected to be $115 to $130 million, and growth capital1 is
expected to be $175 to $200 million.
Sustaining capital1 is expected to be generally
in-line with the prior year, as 2023 sustaining capital spend was
tracking to the low end of the guidance range through the first
nine months, as previously stated. The sustaining
capital1 spend primarily relates to capital stripping
activities at Rainy River and
tailings dam raises and maintenance. Sustaining capital1
is expected to trend lower through the second half of the year, as
stripping activities at Rainy
River are prioritized in the first half of the year. The
second half of 2024 expected to represent approximately 40% of the
sustaining capital spend. Growth capital1 at New Afton
relates to C-Zone development and commissioning of the crusher and
conveyor and at Rainy River
relates to advancing underground development at the Intrepid and
underground Main Zones. Growth capital1 is expected to
be higher in the second half of the year as major projects near
completion. The second half of 2024 is expected to represent
approximately 55% of the growth capital spend.
Exploration expenditures are expected to be $17 to $22 million,
an increase over the prior year, and are expected to focus on
expanding the current Mineral Resources and Mineral Reserves and
defining new mining zones within the existing footprint of the
Company's operations. A portion of the exploration expenditures is
also attributed to a regional program that targets the discovery of
the next generation of porphyry copper-gold deposits in
South-Central British Columbia.
Rainy River Operational Outlook
Operational
Estimates
|
2024
Guidance
|
2025
Guidance
|
2026
Guidance
|
Gold production
(ounces)2
|
250,000 –
280,000
|
295,000 –
335,000
|
315,000 –
355,000
|
Cash costs per gold
ounce sold (by-product)1
|
$980 -
$1,080
|
$875 - $975
|
$850 - $950
|
All-in sustaining costs
per gold ounce sold
(by-product)1
|
$1,425 -
$1,525
|
$1,150 -
$1,250
|
$1,000 -
$1,100
|
Capital Investment
& Exploration Estimates
|
2024
Guidance
|
2025
Guidance
|
2026
Guidance
|
Total capital
($M)
|
$145 - $165
|
$105 - $120
|
$75 - $90
|
Sustaining capital
($M)1
|
$100 - $110
|
$70 - $80
|
$45 - $55
|
Growth capital
($M)1
|
$45 - $55
|
$35 - $40
|
$30 - $35
|
2024 Rainy River Outlook
Gold production2 is expected to be 250,000 to 280,000
ounces, an increase of 4% over the prior year due to a modest
increase in gold grade as the underground mining rate is expected
to increase. Production is expected to significantly strengthen in
the second half of the year as waste stripping activities are
sequenced in the first half. The second half of 2024 is expected to
represent approximately 60% of the annual production, with the
fourth quarter expected to represent approximately 35%. Initial
production from the underground Main Zone remains on-track for the
fourth quarter of 2024.
2024 total cash costs (on a by-product basis)1 are
expected to be in-line with 2023. All-in sustaining costs (on a
by-product basis)1 are expected to decrease by
approximately 4% compared to the 2023 midpoint of guidance to
$1,425 and $1,525 per ounce due higher production. Total
cash costs (on a by-product basis)1 and all-in
sustaining costs (on a by-product basis)1 are expected
to decrease significantly on a quarterly basis throughout 2024 due
to the processing of lower grades in the first half of the year
while stripping activities are sequenced.
Total capital is expected to be $145 to $165
million. Sustaining capital1 is expected to be
$100 to $110
million, including approximately $50
million in capitalized waste ($25
million of which was deferred from 2023), $25 million towards the annual tailings dam
raise, $10 million in capital parts
and components replacement programs and $20
million related to equipment and other general sustaining
capital. Growth capital1 is expected to be $45 to $55 million,
related to the continued development of the Intrepid and
underground Main Zones. Sustaining capital1 is expected
to be heavily first half weighted and will trend lower in the
second half of the year, with the second half of 2024 expected to
represent approximately 40% of the sustaining capital spend. Growth
capital1 is expected to be second half weighted, as
underground mine development is increasing in the second half of
the year. The second half of 2024 is expected to represent
approximately 70% of the growth capital spend.
Waste stripping activities are expected to significantly
decrease after the first half of 2024, priming Rainy River to enter a sustained free cash
flow generating period.
2024 Rainy River Exploration Outlook
2024 exploration expenditures at Rainy
River are expected to be approximately $5 million. The program is expected to focus on
converting Mineral Resources to Mineral Reserves, expanding current
ore zones and exploring for new mining zones within the Rainy River
footprint.
Following the successful conversion of Phase 5 and its addition
to the open pit Mineral Reserves in 2023, the Company intends to
continue testing other near-surface opportunities for open pit
extraction, including high-quality targets that were previously
de-prioritized during the construction and production ramp-up
period. These targets include the Western Zone, North Target, 280
Zone, and ODM East. Further extension of open pit mining could
sustain operating the processing plant at full capacity beyond
2030.
The Company also intends to grow the underground Mineral
Resources and Mineral Reserves by targeting the down-plunge
extension of current ore zones which remain open at depth,
including ODM Main and 17 East. Exploration is expected to be
accelerated once underground development is operational and
drilling from underground can commence. Concurrently, the Company
intends to utilize the new, underground connection drift to
continue to explore for potential new zones, such as the Gap zone
located between the Intrepid and underground Main Zones.
Looking beyond the existing operational footprint, the Company
intends to follow up on the compilation of geochemical and
geophysical data that was completed in 2023 to generate exploration
targets over the extensive Rainy
River property. In 2024, soil and till geochemistry work
will be carried out to generate targets, a proven method that led
to the discovery of the Rainy River deposit.
New Afton Operational Outlook
Operational
Estimates
|
2024
Guidance
|
2025
Guidance
|
2026
Guidance
|
Gold production
(ounces)2,3
|
60,000 –
70,000
|
65,000 –
75,000
|
95,000 –
105,000
|
Copper production
(Mlbs)
|
50 – 60
|
51 – 61
|
71 – 81
|
Cash costs per gold
ounce sold (by-product)1
|
($300) –
($200)
|
($400) –
($300)
|
($1,050) –
($950)
|
Cash costs per gold
ounce sold (co-product) 1
|
$800 - $900
|
$725 - $825
|
$500 - $600
|
Cash costs per copper
pound sold (co-product) 1
|
$2.15 -
$2.65
|
$2.00 -
$2.50
|
$1.35 -
$1.85
|
All-in sustaining costs
per gold ounce sold
(by-product) 1
|
$25 - $125
|
($275) –
($175)
|
($900) –
($800)
|
All-in sustaining costs
per gold ounce sold
(co-product) 1
|
$895 - $995
|
$775 - $875
|
$550 - $650
|
All-in sustaining costs
per copper pound sold
(co-product) 1
|
$2.40 -
$2.90
|
$2.10 -
$2.60
|
$1.65 -
$2.15
|
Capital Investment
& Exploration Estimates
|
2024
Guidance
|
2025
Guidance
|
2026
Guidance
|
Total capital
($M)
|
$145 - $165
|
$85 - $100
|
$10 - $15
|
Sustaining capital ($M)
1
|
$15 - $20
|
$5 - $10
|
$10 - $15
|
Growth capital ($M)
1
|
$130 - $145
|
$80 - $90
|
$0
|
2024 New Afton Outlook
Gold production2,3 is expected to be 60,000 to 70,000
ounces, approximately 3% higher than 2023 (excluding gold produced
from ore purchase agreements). Copper production is expected to be
50 to 60 million pounds, approximately 16% higher than 2023. The
increase in gold and copper production are a result of ongoing
steady-state production above design at B3, and the ramp-up of
mining at C-Zone through the year. B3 is expected to average
approximately 8,300 tpd in 2024. C-Zone commercial production
remains on-track for the second half of 2024, and with a modest
ramp-up through 2024 mill throughput is expected to average 12,000
tpd by year-end. Gold and copper production is expected to be
relatively constant on a quarterly basis as a reduction in grade
through the year is offset by increasing throughput as C-Zone ramps
up.
Total cash costs (on a by-product basis)1 are
expected to decrease compared to the 2023 midpoint of guidance to
between ($300) and ($200) per ounce due to higher production. All-in
sustaining costs (on a by-product basis)1 are expected
to decrease compared to the 2023 midpoint of guidance to between
$25 and $125 per ounce due to lower total cash costs and
higher production. Total cash costs1 and all-in
sustaining costs1 are expected to decrease on a
quarterly basis throughout 2024 as throughput increases as C-Zone
ramps up.
Total capital is expected to be $145 to $165
million. Sustaining capital1 is expected to be
$15 to $20
million, including approximately $5
million related to tailings management and $5 million related to equipment and the remainder
related to other general sustaining capital. Growth
capital1 is expected to be $130 to $145
million related to the continued advancement of the C-Zone
project, primarily focused on mine development, commissioning of
the crusher and conveyor and other infrastructure installation, and
continued progress on stabilization. Growth capital1 is
expected to be generally consistent throughout the year.
The ramp-up of mining at C-Zone through the year and the
completion of key development and infrastructure activities
position New Afton to begin sustained free cash glow generation in
the second half of 2024.
2024 New Afton Exploration Outlook
2024 exploration expenditures at New Afton are expected to be
$12 to $17
million. New Afton continues to execute on its exploration
strategy to extend the mine life beyond 2030. The Company is
currently evaluating three promising opportunities for potential
Mineral Reserves conversion: C-Zone Extension, East Extension and
D-Zone. The opportunities at C-Zone and East Extension are well
positioned to benefit from the C-Zone materials handling,
ventilation and dewatering infrastructure, thus reducing additional
capital investment.
Exploration efforts in 2024 are expected to also focus on
potential new mine zones located above the C-Zone extraction level,
which would provide opportunities to minimize capital investment
and maximize free cash flow generation. The Company has commenced
development of a 370-metre exploration drift to accelerate
underground exploration drilling and provide ideal drill platforms
for Mineral Resources and Mineral Reserves growth over the coming
years. The first drill bay of the exploration drift is expected to
be operational in the second quarter of 2024, with full completion
scheduled in the third quarter, and is expected to prioritize the
AI-Southeast and K-Zone targets.
The Company continues to advance a number of strategic
opportunities for mine life extension, both within the New Afton
land package and regionally within South-Central British Columbia,
leveraging on New Afton's processing plant, infrastructure and
tailings storage facility, which have sufficient capacity to
process significantly more ore beyond the current New Afton mine
life.
2024 Sensitivities
A summary of key assumption sensitivities to all-in sustaining
costs1 can be found below:
Sensitivities
|
Copper
Price
|
CDN/USD
|
Silver
|
Base
Assumption
|
$3.75
|
$1.32
|
$22.00
|
Sensitivity
|
+/- $0.25
|
+/- $0.05
|
+/- $1.00
|
All-In Sustaining
Cost Per Ounce Impact
|
Rainy River
|
-
|
+/- $50
|
+/- $5
|
New Afton
|
+/- $200
|
+/- $90
|
+/- $5
|
Consolidated
|
+/-
$40
|
+/-
$60
|
+/-
$5
|
|
|
|
|
|
|
Mineral Reserves and Mineral Resources (as at December 31, 2023)
As at December 31, 2023, New Gold
is reporting Mineral Reserves and Mineral Resources as summarized
in the table below. Detailed Mineral Reserve and Mineral Resource
tables follow at the end of this press release.
Mineral Reserves and
Mineral Resources Summarya
|
As at December 31,
2023b
|
As at December 31,
2022
|
Gold
koz
|
Silver
koz
|
Copper
Mlbs
|
Gold
koz
|
Silver
koz
|
Copper
Mlbs
|
Proven and Probable
Mineral Reserves
|
Rainy River
|
2,421
|
6,343
|
-
|
2,493
|
6,176
|
-
|
Open Pit
|
867
|
1,947
|
-
|
1,081
|
2,212
|
-
|
Underground
|
1,322
|
3,161
|
-
|
1,228
|
2,966
|
-
|
Low grade and
stockpile
|
233
|
1,235
|
-
|
185
|
999
|
-
|
New Afton
|
735
|
1,856
|
551
|
804
|
1,999
|
607
|
Total Proven and
Probable Mineral Reservesc
|
3,156
|
8,199
|
551
|
3,297
|
8,176
|
607
|
Measured and
Indicated Mineral Resources (exclusive of Mineral
Reserves)1
|
Rainy River
|
837
|
2,218
|
-
|
1,501
|
3,627
|
-
|
Open Pit
|
128
|
159
|
-
|
127
|
161
|
-
|
Underground
|
709
|
2,060
|
-
|
1,374
|
3,466
|
-
|
New Afton
|
1,350
|
5,093
|
1,147
|
1,222
|
4,495
|
1,035
|
Total Measured and
Indicated Mineral Resourcesc
|
2,187
|
7,312
|
1,147
|
2,722
|
8,122
|
1,035
|
Total Inferred
Mineral Resourcesc
|
230
|
563
|
101
|
375
|
782
|
135
|
a. Refer to the detailed Mineral Reserve and Mineral
Resource tables that follow at the end of this press release for
the estimates as at December 31, 2023 and
the Company's Annual Information
Form dated March 31, 2022 for estimates as at December 31,
2022.
b. The Mineral Reserves and Mineral Resources stated
above are as at December 31, 2023 and do not reflect any events
subsequent to that date.
c.
Numbers may not add due to
rounding
|
As of December 31, 2023, New Gold
reported total Mineral Reserves of 3,156,000 ounces of gold, 8.2
million ounces of silver, and 551 million pounds of copper.
Measured and Indicated Mineral Resources, exclusive of Mineral
Reserves, totals 2,187,000 ounces of gold, 7.3 million ounces of
silver and 1,147 million pounds of copper and Inferred Mineral
Resources of 230,000 ounces of gold, 563,000 ounces of silver and
101 million pounds of copper.
Rainy River successfully added
new open pit and underground Mineral Reserves in 2023, reporting a
total of 2,421,000 ounces of gold, 74% replacement of mining
depletion. In the open pit mine, Phase 5 is included in Mineral
Reserves following an infill drilling campaign in 2023. Phase 5 is
expected to add approximately one year to the open pit mine life.
Underground Mineral Reserves increased from 1,228,000 ounces of
gold at the end of 2022 to 1,322,000 ounces of gold at the end of
2023, more than offsetting depletion from underground mining.
New Afton reported Mineral Reserves of 735,000 ounces of gold
and 551 million pounds of copper in the B3 and C-Zone block caves,
forming the basis for a reserves mine life to 2030. Mineral
Reserves reduced by 69,000 ounces of gold and 56 million pounds of
copper in 2023 due to mining depletion. The Company is targeting to
replace a portion of mining depletion over the next few years,
starting at the end of 2024, through extension of existing zones
and inclusion of new mining zones.
Operational Outlook Technical Session Webcast Details
The Company will host a Technical Session via webcast today at
12:30 pm Eastern Time to discuss the
operational outlook.
- Participants may listen to the webcast by registering on our
website at www.newgold.com or via the following link
https://app.webinar.net/r8RX4Pl4PYA
- 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
41369885
- A recorded playback of the conference call will be available
until March 9, 2024 by calling North
American toll free 1-888-390-0541, or 1-416-764-8677 outside of the
U.S. and Canada, passcode 369885.
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
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 cash costs",
"all-in sustaining costs" (or "AISC"), "sustaining capital and
sustaining leases", "growth capital", and "free cash flow" are all
non-GAAP financial performance measures that are used in this news
release. These measures do not have any standardized meaning under
IFRS and therefore may not be comparable to similar measures
presented by other issuers. For more information about these
measures and, why they are used by the Company, see the "Non-GAAP
Financial Performance Measures" section of this news
release.
|
2.
|
Production is shown on
a total contained basis while sales are shown on a net payable
basis, including final product inventory and smelter payable
adjustments, where applicable.
|
3.
|
New Afton
operational estimates are exclusive of any material from the ore
purchase agreement.
|
4.
|
New Gold produces
copper and silver as by-products of its gold production. The
calculation of consolidated total cash costs and all-in sustaining
costs per gold ounce is net of by-product silver and copper sales
revenue. As a Company focused on gold production, New Gold aims to
assess the economic results of its operations in relation to gold,
which is the primary driver of New Gold's business. New Gold
believes this metric is of interest to its investors, who invest in
the Company primarily as a gold mining Company. To determine the
relevant costs associated with gold only, New Gold believes it is
appropriate to reflect all operating costs, as well as any revenue
related to metals other than gold that are extracted in its
operations.
|
Non-GAAP Financial Performance Measures
Total Cash Costs per Gold ounce
"Total cash costs per gold ounce" is a non-GAAP financial
performance measure that is a common financial performance measure
in the gold mining industry but does not have any standardized
meaning under IFRS and therefore may not be comparable to similar
measures presented by other issuers. New Gold reports total cash
costs on a sales basis and not on a production basis. The Company
believes that, in addition to conventional measures prepared in
accordance with IFRS, this measure, along with sales, is a key
indicator of the Company's ability to generate operating earnings
and cash flow from its mining operations. This measure allows
investors to better evaluate corporate performance and the
Company's ability to generate liquidity through operating cash flow
to fund future capital exploration and working capital
needs.
This measure is intended to provide additional information only
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. This
measure is not necessarily indicative of cash generated from
operations under IFRS or operating costs presented under IFRS.
Total cash cost figures are calculated in accordance with a
standard developed by The Gold Institute, a worldwide association
of suppliers of gold and gold products that ceased operations in
2002. Adoption of the standard is voluntary and the cost measures
presented may not be comparable to other similarly titled measures
of other companies. Total cash costs include mine site operating
costs such as mining, processing and administration costs,
royalties, and production taxes, but are exclusive of amortization,
reclamation, capital and exploration costs.
In 2024, New Gold will start reporting total cash costs on a
by-product basis. The Company produces copper and silver as
by-products of its gold production. Upon adoption of the
change in 2024, the calculation of total cash costs per gold ounce
sold for Rainy River will be net
of by-product silver sales revenue, and the calculation of total
cash costs per gold ounce sold for New Afton will be net of
by-product silver and copper sales revenue. New Gold notes
that in connection with New Afton, the copper by-product revenue is
sufficiently large to result in a negative total cash cost on a
single mine basis. Additionally, for New Afton, the Company
will also report total cash costs on a co-product basis beginning
in 2024, which removes the impact of other metal sales that are
produced as a by-product of gold production and apportions the cash
costs to each metal produced on a percentage of revenue basis, and
subsequently divides the amount by the total gold ounces, or pounds
of copper sold, as the case may be, to arrive at per ounce or per
pound figures. In 2024, New Gold will no longer report gold
equivalent metrics. New Gold will cease providing gold equivalent
cash cost after 2023.
Notwithstanding the impact of copper and silver sales, as the
Company is focused on gold production, New Gold aims to assess the
economic results of its operations in relation to gold, which is
the primary driver of New Gold's business. New Gold believes this
metric is of interest to its investors, who invest in the Company
primarily as a gold mining business. To determine the relevant
costs associated with gold ounces, New Gold believes it is
appropriate to reflect all operating costs incurred in its
operations.
All-In Sustaining Costs per Gold ounce
"All-in sustaining costs per gold ounce" is a non-GAAP financial
performance measure that does not have any standardized meaning
under IFRS and therefore may not be comparable to similar measures
presented by other issuers. New Gold calculates "all-in sustaining
costs per gold ounce" based on guidance announced by the World Gold
Council ("WGC") in September 2013.
The WGC is a non-profit association of the world's leading gold
mining companies established in 1987 to promote the use of gold to
industry, consumers and investors. The WGC is not a regulatory body
and does not have the authority to develop accounting standards or
disclosure requirements. The WGC has worked with its member
companies to develop a measure that expands on IFRS measures to
provide visibility into the economics of a gold mining company.
Current IFRS measures used in the gold industry, such as operating
expenses, do not capture all of the expenditures incurred to
discover, develop and sustain gold production. New Gold believes
that "all-in sustaining costs per gold ounce" provides further
transparency into costs associated with producing gold and will
assist analysts, investors, and other stakeholders of the Company
in assessing its operating performance, its ability to generate
free cash flow from current operations and its overall value. In
addition, the Human Resources and Compensation Committee of the
Board of Directors uses "all-in sustaining costs", together with
other measures, in its Company scorecard to set incentive
compensation goals and assess performance.
"All-in sustaining costs per gold ounce" is intended to provide
additional information only and does not have any standardized
meaning under IFRS and may not be comparable to similar measures
presented by other mining companies. It should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. The measure is not necessarily indicative
of cash flow from operations under IFRS or operating costs
presented under IFRS.
New Gold defines "all-in sustaining costs per gold ounce" as the
sum of total cash costs, capital expenditures that are sustaining
in nature, corporate general and administrative costs, capitalized
and expensed exploration that is sustaining in nature, lease
payments that are sustaining in nature, and environmental
reclamation costs, all divided by the total gold ounces sold to
arrive at a per ounce figure. The definition of sustaining
versus non-sustaining is similarly applied to capitalized and
expensed exploration costs and lease payments. Exploration costs
and lease payments to develop new operations or that relate to
major projects at existing operations where these projects are
expected to materially increase production are classified as
non-sustaining and are excluded.
In 2024 New Gold will start reporting all-in sustaining costs on
a by-product basis. The Company produces copper and silver as
by-products of its gold production. Upon adoption of the
change in 2024, the calculation of all-in sustaining costs per gold
ounce sold for Rainy River will be
net of by-product silver sales revenue, and the calculation of
all-in sustaining costs per gold ounce sold for New Afton will be
net of by-product silver and copper sales revenue. New Gold
notes that in connection with New Afton, the copper by-product
revenue is sufficiently large to result in a negative all-in
sustaining cost on a single mine basis. Additionally, for New
Afton, the Company will also report all-in sustaining costs on a
co-product basis, which removes the impact of other metal sales
that are produced as a by-product of gold production and apportions
the cash costs to each metal produced on a percentage of revenue
basis, and subsequently divides the amount by the total gold
ounces, or pounds of copper sold, as the case may be, to arrive at
per ounce or per pound figures. New Gold will cease providing gold
equivalent all-in sustaining cost after 2023.
Costs excluded from all-in sustaining costs are non-sustaining
capital expenditures, non-sustaining lease payments and exploration
costs, financing costs, tax expense, and transaction costs
associated with mergers, acquisitions and divestitures, and any
items that are deducted for the purposes of adjusted earnings.
Sustaining Capital and Sustaining Leases
"Sustaining capital" and "sustaining lease" are non-GAAP
financial performance measures that do not have any standardized
meaning under IFRS and therefore may not be comparable to similar
measures presented by other issuers. New Gold defines "sustaining
capital" as net capital expenditures that are intended to maintain
operation of its gold producing assets. Similarly, a "sustaining
lease" is a lease payment that is sustaining in nature. To
determine "sustaining capital" expenditures, New Gold uses cash
flow related to mining interests from its consolidated statement of
cash flows and deducts any expenditures that are capital
expenditures to develop new operations or capital expenditures
related to major projects at existing operations where these
projects will materially increase production. Management uses
"sustaining capital" and "sustaining lease" to understand the
aggregate net result of the drivers of all-in sustaining costs
other than total cash costs. These measures are intended to provide
additional information only and should not be considered in
isolation or as substitutes for measures of performance prepared in
accordance with IFRS.
Growth Capital
"Growth capital" is a non-GAAP financial performance measure
that does not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. New Gold considers non-sustaining capital costs to
be "growth capital", which are capital expenditures to develop new
operations or capital expenditures related to major projects at
existing operations where these projects will materially increase
production. To determine "growth capital" expenditures, New Gold
uses cash flow related to mining interests from its consolidated
statement of cash flows and deducts any expenditures that are
capital expenditures that are intended to maintain operation of its
gold producing assets. Management uses "growth capital" to
understand the cost to develop new operations or related to major
projects at existing operations where these projects will
materially increase production. This measure is intended to provide
additional information only and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
Free Cash Flow
"Free cash flow" is a non-GAAP financial performance measure
that does not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. New Gold defines "free cash flow" as cash generated
from operations and proceeds of sale of other assets less capital
expenditures on mining interests, lease payments, settlement of
non-current derivative financial liabilities which include the gold
stream obligation and the Ontario Teachers' Pension Plan free cash
flow interest. New Gold believes this non-GAAP financial
performance measure provides further transparency and assists
analysts, investors and other stakeholders of the Company in
assessing the Company's ability to generate cash flow from current
operations. "Free cash flow" is intended to provide additional
information only and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. This measure is not necessarily indicative of operating
profit or cash flows from operations as determined under IFRS.
For additional information with respect to the non-GAAP measures
used by the Company, including a reconciliation to the most
directly comparable measure under IFRS, refer to the detailed
"Non-GAAP Financial Performance Measure" section disclosure in the
MD&A for the three months and nine-months ended September 30, 2023 filed on SEDAR+ at
www.sedarplus.ca and on EDGAR at www.sec.gov.
MINERAL RESERVES AND MINERAL RESOURCES
New Gold's Mineral Reserve estimates as at December 31, 2023, are presented in the following
table.
Mineral Reserves
|
Tonnes
000s
|
Grade
|
Contained
Metal
|
Gold
g/t
|
Silver
g/t
|
Copper
%
|
Gold
koz
|
Silver
koz
|
Copper
Mlb
|
RAINY
RIVER
|
Open
Pit
|
|
|
|
|
|
|
|
Proven
|
5,100
|
1.11
|
2.06
|
-
|
182
|
337
|
-
|
Probable
|
22,937
|
0.93
|
2.18
|
-
|
685
|
1,610
|
-
|
Proven &
Probable
|
28,037
|
0.96
|
2.16
|
-
|
867
|
1,947
|
-
|
Underground
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
14,322
|
2.87
|
6.86
|
-
|
1,322
|
3,161
|
-
|
Proven &
Probable
|
14,322
|
2.87
|
6.86
|
-
|
1,322
|
3,161
|
-
|
Stockpile
|
|
|
|
|
|
|
|
Proven
|
17,478
|
0.41
|
2.20
|
-
|
233
|
1,235
|
-
|
Probable
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Proven &
Probable
|
17,478
|
0.41
|
2.20
|
-
|
233
|
1,235
|
-
|
Total Rainy
River
|
|
|
|
|
|
|
|
Proven
|
22,578
|
0.57
|
2.17
|
-
|
414
|
1,573
|
-
|
Probable
|
37,259
|
1.67
|
3.98
|
-
|
2,006
|
4,771
|
-
|
Proven &
Probable
|
59,837
|
1.26
|
3.30
|
-
|
2,421
|
6,343
|
-
|
NEW
AFTON
|
B3
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
4,452
|
0.59
|
1.34
|
0.70
|
85
|
192
|
69
|
Proven &
Probable
|
4,452
|
0.59
|
1.34
|
0.70
|
85
|
192
|
69
|
C-Zone
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
29,635
|
0.68
|
1.75
|
0.74
|
650
|
1,664
|
482
|
Proven &
Probable
|
29,635
|
0.68
|
1.75
|
0.74
|
650
|
1,664
|
482
|
Total New
Afton
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
34,087
|
0.67
|
1.69
|
0.73
|
735
|
1,856
|
551
|
Proven &
Probable
|
34,087
|
0.67
|
1.69
|
0.73
|
735
|
1,856
|
551
|
TOTAL NEW
GOLD
|
Proven &
Probable
|
|
|
|
|
3,156
|
8,199
|
551
|
Notes to the Mineral Reserve and Mineral Resource
estimates are provided below.
MINERAL RESOURCES
New Gold's Mineral Resource estimates as at December 31, 2023, are presented in the following
tables:
Mineral Resources (Exclusive of Mineral Reserves)
|
Tonnes
000s
|
Grade
|
Contained
Metal
|
Gold
g/t
|
Silver
g/t
|
Copper
%
|
Gold
koz
|
Silver
koz
|
Copper
Mlb
|
RAINY
RIVER
|
Open
Pit
|
|
|
|
|
|
|
|
Measured
|
457
|
1.50
|
1.83
|
-
|
22
|
27
|
-
|
Indicated
|
2,276
|
1.45
|
1.80
|
-
|
106
|
132
|
-
|
Measured &
Indicated
|
2,734
|
1.46
|
1.81
|
-
|
128
|
159
|
-
|
Inferred
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Underground
|
|
|
|
|
|
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
9,043
|
2.44
|
7.08
|
-
|
709
|
2,060
|
-
|
Measured &
Indicated
|
9,043
|
2.44
|
7.08
|
-
|
709
|
2,060
|
-
|
Inferred
|
1,388
|
2.76
|
2.58
|
-
|
123
|
115
|
-
|
Total Rainy
River
|
|
|
|
|
|
|
|
Measured
|
457
|
1.50
|
1.83
|
-
|
22
|
27
|
-
|
Indicated
|
11,319
|
2.24
|
6.02
|
-
|
815
|
2,192
|
-
|
Measured &
Indicated
|
11,776
|
2.21
|
5.86
|
-
|
837
|
2,218
|
-
|
Inferred
|
1,388
|
2.76
|
2.58
|
-
|
123
|
115
|
-
|
NEW
AFTON
|
Total New
Afton
|
|
|
|
|
|
|
|
Measured
|
37,399
|
0.64
|
2.29
|
0.80
|
768
|
2,759
|
663
|
Indicated
|
36,578
|
0.49
|
1.99
|
0.60
|
582
|
2,335
|
484
|
Measured &
Indicated
|
73,976
|
0.57
|
2.14
|
0.70
|
1,350
|
5,093
|
1,147
|
Inferred
|
10,219
|
0.33
|
1.36
|
0.45
|
107
|
448
|
101
|
TOTAL NEW
GOLD
|
Measured &
Indicated
|
|
|
|
|
2,187
|
7,312
|
1,147
|
Inferred
|
|
|
|
|
230
|
563
|
101
|
Notes to the Mineral Reserve and Mineral Resource estimates
are provided below.
Notes to Mineral Reserve and Resource Estimates
1.
|
New Gold's Mineral
Reserves and Mineral Resources have been estimated in accordance
with the CIM Definition Standards for Mineral Resources and
Mineral Reserves (May 2014).
|
2.
|
Mineral Reserves and
Mineral Resources have been estimated based on the following metal
price assumptions and foreign exchange rate criteria:
|
|
Gold
Price
$/ounce
|
Silver
Price
$/ounce
|
Copper
Price
$/pound
|
Exchange
Rate
CAD:USD
|
Mineral
Reserves
|
1,400
|
19.00
|
3.25
|
1.25
|
Mineral
Resources
|
1,500
|
21.00
|
3.50
|
1.25
|
3.
|
Cut-offs for Mineral
Reserves and Mineral Resources are outlined in the table
below:
|
Mineral
Property
|
Mineral
Reserves
|
Mineral
Resources
|
Rainy River
|
Open Pit
|
0.30 g/t
AuEq
|
0.3 g/t AuEq
|
|
Underground
|
1.74 g/t
AuEq
|
1.70 g/t
AuEq
|
New Afton
|
|
24.00 $/t
|
0.40% CuEq
|
4.
|
New Gold reports its
Measured and Indicated Mineral Resources exclusive of Mineral
Reserves. Resources are not Mineral Reserves and do not have
demonstrated economic viability. Numbers may not add due to
rounding.
|
5.
|
Additional details
regarding Mineral Reserve and Mineral Resource estimation,
classification, reporting parameters, key assumptions and
associated risks for each of New Gold's material properties are
provided in the respective NI 43-101 Standard of Disclosure
for Mineral Projects ("NI 43-101") Technical Reports. The most
recent technical report on the Rainy River Mine that is filed on
SEDAR+ at www.sedarplus.ca is titled "NI 43-101 Technical
Report for the Rainy River Mine, Ontario, Canada" with an effective
date of March 28, 2022. The most recent technical report on the New
Afton Mine that is filed on SEDAR+ at www.sedarplus.ca is
titled "Technical Report on the New Afton Mine, British Columbia,
Canada" dated February 28, 2020. The Company's Technical
Reports are available on SEDAR+ (www.sedarplus.ca) and EDGAR
(www.sec.gov).
|
6.
|
The preparation of New
Gold's Mineral Reserves and Mineral Resources has been completed
under the review and oversight of the following New Gold employees,
all of whom are "Qualified Persons" as defined by NI
43-101.
|
Mineral
Reserves
|
Mineral
Resources
|
Rainy
River
|
Open
Pit
Mr. Jason Chiasson,
P.Eng
Chief Open Pit
Engineer, Rainy River
Underground
Mr. Alexander Alousis,
P.Eng
Chief Underground
Engineer, Rainy River
|
Mr. Vincent
Nadeau-Benoit, P.Geo
Senior Manager,
Resource Geology, New Gold
|
New
Afton
|
Mr. Joshua Parsons,
P.Eng
Principal Mine
Engineer, New Afton
|
Mr. Vincent
Nadeau-Benoit, P.Geo
Senior Manager,
Resource Geology, New Gold
Mr. Joshua Parsons,
P.Eng
Principal Mine
Engineer, New Afton
|
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this presentation, including
any information relating to New Gold's future financial or
operating performance are "forward-looking". All statements in this
presentation, 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 presentation
include, among others, statements with respect to: the Company's
guidance and expectations regarding production, costs, capital
investments and expenses on a mine-by-mine and consolidated basis,
associated timing and accomplishing the factors contributing to
those expected results; successfully completing Rainy River and New Afton growth projects and
the accomplishing the anticipated benefits thereof; successfully
increasing gold and copper production, decreasing costs and capital
spend as well as generating free cash flow as a result thereof;
successfully generating approximately $75
million in free cash flow in the second half of 2024;
planned activities and timing for 2024 and future years at the
Rainy River Mine and New Afton Mine, including planned development
and exploration activities and related expenses; successfully
achieving commercial production from the C-Zone in the second half
of 2024, with a modest ramp-up through 2024; successfully achieving
first production from the underground Main Zone in the second half
of 2024 with production ramp-up throughout 2025; successfully
reducing operating costs and lowering capital expenditures over the
next three year and the consistent free cash flow anticipated to be
generated as a result thereof commencing in the second half of
2024; expectations regarding strengthened production in the second
half of 2024 and the projected allocation of production percentages
between the first and second half of the year; the intended
drilling of several exploration targets at Rainy River in 2024; successfully commencing
drilling of the K-Zone and AI-Southeast by the second quarter of
2024; expectations regarding exploration expenditures and the
intended focus areas thereof; the potential to successfully
extend the New Afton mine life beyond 2030; successfully reducing
the strip ratio in the second half of 2024 and significantly after
2024 at Rainy River and achieving
the benefits associated therewith; projected opportunities
resulting from the open pit and underground mine strategy at
Rainy River and the Company's
ability to successfully accomplish such strategy; the potential for
the Company to successfully improve the production profiles from
2027 to 2031 with minimal capital investment; expectations
regarding significantly decreasing waste stripping activities after
the first half of 2024 at Rainy
River; opportunities to extend both the open pit and
underground mine at Rainy River;
successfully achieving a steady-state underground production rate
of 5,500 tpd beginning in 2027; achievement of the Company's
proposed strategic pipeline for mine life extension and the
anticipated factors and opportunities contributing thereto; the
accuracy of the Company's estimates and expectations regarding
Mineral Reserves and Mineral Resources and the grades thereof;
advancement of the underground plan at Rainy River and the higher grade mill feed
anticipated to result therefrom; successfully consistently
improving operating margins over the next three years; expected
increase in Phase 4 ore release in the second half of 2024;
expectations regarding mining Phase 5 in 2027 and successfully
adding approximately one year of open pit mill feed and keeping the
mill at full capacity until at least 2030; successfully completing
Rainy River underground priorities
and the timing associated therewith; successfully generating strong
free cash flow and strong results in the second half of 2024 at
Rainy River; expectations
regarding the B3 mining rate in 2024 and mill throughput rates by
the end of 2024 at New Afton; successful commissioning of the
underground crusher and conveyor in the second half of 2024;
anticipated availability of opportunities for resources to reserve
conversion as well as resource growth, and the Company's ability to
successfully undertake such opportunities over the coming years;
successful execution of New Afton's proposed underground and
regional exploration strategy and on the anticipated timeline;
expectations regarding the first drill bay of the exploration drift
being operational in the second quarter of 2024 at New Afton, with
full completion of the drift in Q3 2024; anticipated exploration
opportunities within Rainy River's
current land package and successfully accomplishing the 2024
exploration strategy; successfully accomplishing the targeted
sustainable production platform of 600,000 gold eq. ounces per year
until at least 2030; accomplishing the Company's 2024 strategic
goals; and expectations that 2024 will be the final year of
significant capital spending.
All forward-looking statements in this presentation are based on
the opinions and estimates of management that, while considered
reasonable as at the date of this presentation 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
presentation, 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
presentation 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 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
New Afton Mine and Rainy River 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 New Afton Mine and Rainy River 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;
tailings storage facilities and structure failures; failing to
complete stabilization projects according to plan; geotechnical
instability and conditions; disruptions to the Company's workforce
at either the Rainy River Mine or the New Afton Mine, or both;
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; 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; the responses of the relevant
governments to any disease, epidemic or pandemic 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; an economic recession or downturn as
a result of any disease, epidemic or pandemic outbreak that
materially adversely affects the Company's operations or liquidity
position; 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; labour disputes; effectiveness of supply chain
due diligence; 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, construction, operation 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 Annual Information
Form 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 of the
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 relating to the Mineral
Reserves and Mineral Resources contained herein has been reviewed
and approved by the following New Gold employees, all of whom are
"Qualified Persons" for the purposes of NI 43-101.
Mineral
Reserves
|
Mineral
Resources
|
Rainy
River
|
Open
Pit
Mr. Jason Chiasson,
P.Eng
Chief Open Pit
Engineer, Rainy River Mine
Underground
Mr. Alexander Alousis,
P.Eng
Chief Underground
Engineer, Rainy River Mine
|
Mr. Vincent
Nadeau-Benoit, P.Geo
Senior Manager,
Resource Geology, New Gold
|
New
Afton
|
Mr. Joshua Parsons,
P.Eng
Principal Mine
Engineer, New Afton Mine
|
Mr. Vincent
Nadeau-Benoit, P.Geo
Senior Manager,
Resource Geology, New Gold
Mr. Joshua Parsons,
P.Eng
Principal Mine
Engineer, New Afton Mine
|
All other scientific and technical information in this news
release has been reviewed and approved by Yohann Bouchard, Executive Vice President and
Chief Operating Officer of New Gold. 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 NI 43-101. To the Company's knowledge, each of
the aforementioned persons holds less than 1% of the outstanding
securities of the Company.
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SOURCE New Gold Inc.