(All dollar figures are in US dollars unless otherwise
indicated)
TORONTO, April 26, 2017 /PRNewswire/ - New Gold Inc. ("New
Gold") (TSX:NGD) (NYSE MKT:NGD) today announces its 2017 first
quarter results and provides an update on the construction of the
company's Rainy River project.
2017 FIRST QUARTER HIGHLIGHTS
- Gold production of 89,327 ounces and copper production of 23.8
million pounds
- Operating expense of $605 per
gold ounce and $1.21 per copper
pound
- All-in sustaining costs(1) of $597 per ounce, including total cash
costs(2) of $296 per
ounce
-
- Lowest all-in sustaining costs since the introduction of the
metric in 2012
- Lowering 2017 full-year all-in sustaining costs guidance to
$760 to $800 per ounce from
$825 to $865 per ounce
- Cash generated from operations of $77
million, a 25% increase compared to the first quarter
of 2016
- Cash generated from operations before changes in non-cash
operating working capital(3)
of $69 million, a 12% increase
compared to the first quarter of 2016
- Net earnings of $38 million, or
$0.07 per share
- Adjusted net earnings(4) of $9 million, or $0.02 per share
- Rainy River project schedule
and capital cost estimate remain in line with New Gold's updated
plan announced on January 30,
2017
-
- Rainy River project capital
expenditures totalled $126 million
during the quarter
- Enhanced financial flexibility with sale of El Morro stream and
equity financing
- March 31, 2017 cash and cash
equivalents of $350 million
"As we indicated to our stakeholders at the beginning of this
year, our priorities are: enhancing our financial flexibility,
delivering operationally and executing on our updated Rainy River plan," stated Hannes Portmann, President and Chief Executive
Officer. "I am very pleased to report that we have made significant
progress in all three areas."
"During the first quarter, we increased our liquidity position
by $230 million through our equity
financing and the sale of our El Morro stream. At the same time,
after a strong start to the year, we have lowered our cost guidance
and increased our cash generation potential for the balance of the
year. Finally, development activities at Rainy River were advanced with both the
timeline and budget remaining consistent with our updated plan
announced in late January," added Mr. Portmann.
2017 FIRST QUARTER OPERATIONAL RESULTS
New Gold's first quarter gold production of 89,327 ounces
remained in line with 2016 as higher production from the company's
Mesquite and Peak Mines partially offset planned lower production
from New Afton and Cerro San Pedro.
Cerro San Pedro's production
decreased as the mine has now transitioned into residual leaching.
Quarterly copper production decreased by 6% to 23.8 million pounds
when compared to the first quarter of 2016. As expected, silver
production of 0.3 million ounces was also below 2016 as
Cerro San Pedro transitioned to
residual leaching.
First quarter operating expense per gold ounce of $605 remained in line with 2016. The company
delivered first quarter all-in sustaining costs of $597 per ounce, including total cash costs of
$296 per ounce. All-in sustaining
costs decreased by over $160 per
ounce relative to the first quarter of 2016, resulting in a record
low for the metric. The significant decrease in all-in sustaining
costs relative to the prior-year quarter was attributable to a
$58 per ounce decrease in total cash
costs to $296 per ounce and a
$103 per ounce, or $9 million, decrease in the company's
consolidated sustaining costs, which include New Gold's cumulative
sustaining capital, exploration, general and administrative, and
amortization of reclamation expenditures.
With the company's strong operational start to 2017, New Gold
reiterates its guidance for full-year gold production of 380,000 to
430,000 ounces. The company is particularly pleased to announce a
reduction to full-year all-in sustaining costs. As indicated in
late January, New Gold was actively evaluating cost savings
opportunities to further enhance 2017 cash flow. Through a
combination of the company's business improvement initiatives and
capital deferrals, New Gold identified cost savings of
approximately $15 million, or
approximately $40 per ounce. In
addition, the company has also fixed the price for 43.7 million
pounds of the company's second half 2017 copper production at
$2.73 per pound, which compares
favourably to the company's guidance assumption of $2.50 per pound. The copper price benefit will
provide an additional $10 million, or
approximately $25 per ounce, towards
2017 cash flow. Combining the benefit of these initiatives
positions New Gold to reduce its 2017 full-year all-in sustaining
costs to $760 to $800 per ounce,
representing a $65 per ounce
reduction from the company's original guidance range of
$825 to $865 per ounce.
|
|
|
Three months ended
March 31
|
|
2017
|
2016
|
Operating
information
|
|
|
Gold
(ounces):
|
|
|
|
Produced
|
89,327
|
90,811
|
|
Sold
|
87,304
|
86,031
|
Copper (millions
of pounds):
|
|
|
|
Produced
|
23.8
|
25.4
|
|
Sold
|
23.0
|
25.3
|
Silver (millions
of ounces):
|
|
|
|
Produced
|
0.3
|
0.4
|
|
Sold
|
0.3
|
0.4
|
Revenue:
|
|
|
|
Gold
($/ounce)
|
1,252
|
1,165
|
|
Copper
($/pound)
|
2.35
|
1.94
|
|
Silver
($/ounce)
|
16.89
|
14.47
|
Average realized
price(5):
|
|
|
|
Gold
($/ounce)
|
1,286
|
1,206
|
|
Copper
($/pound)
|
2.58
|
2.14
|
|
Silver
($/ounce)
|
17.51
|
14.72
|
Operating
expense:
|
|
|
|
Gold
($/ounce)
|
605
|
606
|
|
Copper
($/pound)
|
1.21
|
1.07
|
|
Silver
($/ounce)
|
8.23
|
7.39
|
Total cash costs
($/ounce)
|
296
|
354
|
All-in sustaining
costs ($/ounce)
|
597
|
758
|
New Afton
|
|
|
Three months ended
March 31
|
|
2017
|
2016
|
Operating
information
|
|
|
Gold
(ounces):
|
|
|
|
Produced
|
20,937
|
25,068
|
|
Sold
|
20,716
|
25,131
|
Copper (millions
of pounds):
|
|
|
|
Produced
|
20.5
|
22.4
|
|
Sold
|
19.9
|
22.0
|
Operating
expense:
|
|
|
|
Gold
($/ounce)
|
458
|
374
|
|
Copper
($/pound)
|
0.92
|
0.67
|
All-in sustaining
costs ($/ounce)
|
(505)
|
(268)
|
All-in sustaining
costs on a co-product basis:
|
|
|
|
Gold
($/ounce)
|
679
|
631
|
|
Copper
($/pound)
|
1.36
|
1.12
|
The decrease in gold production at New Afton relative to the
first quarter of 2016 was due to an expected decrease in gold grade
and gold recovery, partially offset by a 4% increase in mill
throughput. Copper production was also lower than the prior-year
quarter due to an expected decrease in copper grade.
First quarter operating expenses increased when compared to the
prior-year quarter due to higher costs associated with processing
more ore tonnes. All-in sustaining costs decreased as the benefit
of increased by-product revenues and lower sustaining costs was
only partially offset by the appreciation of the Canadian dollar
relative to the U.S. dollar and the increase in operating expenses.
By-product revenues benefitted from an increase in the realized
copper price which more than offset lower copper sales volumes. New
Afton's quarterly sustaining costs decreased by $2 million to $7
million when compared to the first quarter of 2016.
New Gold is pleased to reiterate New Afton's guidance for
full-year gold production of 70,000 to 80,000 ounces and copper
production of 85 to 95 million pounds. As a result of the cost
savings initiatives solidified in the first quarter, and the
benefit of the copper hedges relative to the company's guidance
assumption, New Afton's full-year all-in sustaining cost guidance
has been reduced to ($520) to ($480)
per ounce, representing a $240 per
ounce reduction from the company's original guidance range of
($280) to ($240) per ounce.
Mesquite
|
|
|
Three months ended
March 31
|
|
2017
|
2016
|
Operating
information
|
|
|
Gold
(ounces):
|
|
|
|
Produced
|
30,403
|
27,371
|
|
Sold
|
29,153
|
24,929
|
Operating
expense:
|
|
|
|
Gold
($/ounce)
|
695
|
616
|
All-in sustaining
costs ($/ounce)
|
765
|
1,101
|
The increase in gold production at Mesquite relative to the
first quarter of 2016 was due to higher recoveries as total ore
tonnes mined and placed included less transitional material than
was mined in 2016.
First quarter operating expenses increased when compared to the
prior-year quarter as no mining costs were capitalized in the first
quarter of 2017. First quarter all-in sustaining costs decreased
due to a $10 million, or $405 per ounce, decrease in sustaining costs
primarily due to no capitalized waste stripping, which was only
partially offset by the increase in operating costs.
New Gold is pleased to reiterate Mesquite's guidance for
full-year gold production of 140,000 to 150,000 ounces and all-in
sustaining costs of $805 to $845 per
ounce.
Peak Mines
|
|
|
Three months ended
March 31
|
|
2017
|
2016
|
Operating
information
|
|
|
Gold
(ounces):
|
|
|
|
Produced
|
28,347
|
19,596
|
|
Sold
|
27,391
|
17,149
|
Copper (millions
of pounds):
|
|
|
|
Produced
|
3.4
|
3.0
|
|
Sold
|
3.1
|
3.3
|
Operating
expense:
|
|
|
|
Gold
($/ounce)
|
596
|
870
|
|
Copper
($/pound)
|
1.22
|
1.53
|
All-in sustaining
costs ($/ounce)
|
674
|
1,024
|
Peak Mines had a strong start to the year with first quarter
gold production increasing by 45% relative to the first quarter of
2016. The significant increase in gold production was attributable
to mining and processing of higher gold grade material. Quarterly
copper production increased by 13% when compared to the first
quarter of 2016 due to higher copper grade.
First quarter operating expenses decreased when compared to the
prior-year quarter primarily due to higher gold sales volumes.
All-in sustaining costs decreased during the quarter primarily as
the benefit of higher gold sales volumes and increased by-product
revenues were only partially offset by the appreciation of the
Australian dollar relative to the U.S. dollar and a slight increase
in sustaining costs.
New Gold is pleased to reiterate Peak Mines' guidance for
full-year gold production of 85,000 to 95,000 ounces and copper
production of approximately 15 million pounds. As a result of the
cost savings initiatives solidified in the first quarter, Peak
Mines' full-year all-in sustaining costs guidance has been reduced
to $975 to $1,015 per ounce,
representing an $85 per ounce
reduction from the company's original guidance range of
$1,060 to $1,100 per ounce.
Cerro San Pedro
|
|
|
Three months ended
March 31
|
|
2017
|
2016
|
Operating
information
|
|
|
Gold
(ounces):
|
|
|
|
Produced
|
9,640
|
18,776
|
|
Sold
|
10,044
|
18,822
|
Silver (millions
of ounces):
|
|
|
|
Produced
|
0.2
|
0.3
|
|
Sold
|
0.2
|
0.3
|
Operating
expense:
|
|
|
|
Gold
($/ounce)
|
1,150
|
993
|
|
Silver
($/ounce)
|
15.84
|
12.38
|
All-in sustaining
costs ($/ounce)
|
1,255
|
952
|
Cerro San Pedro finished active
mining late in the second quarter of 2016 and has now transitioned
to residual leaching. As a result, and consistent with
expectations, the mine's first quarter gold and silver production
decreased compared to the prior year. First quarter operating
expenses and all-in sustaining costs increased when compared to the
prior-year quarter due to lower gold sales volumes. As the company
is drawing down leach pad inventory during the residual leach
period, $403 per ounce of the
reported all-in sustaining costs is related to cash expenditures
that were incurred in prior periods.
New Gold is pleased to reiterate Cerro
San Pedro's guidance for full-year gold production of 35,000
to 45,000 ounces and all-in sustaining costs of $1,090 to $1,130 per ounce.
2017 FIRST QUARTER FINANCIAL RESULTS
|
|
|
Three months ended
March 31
|
(in millions of
U.S. dollars, except per share amounts)
|
2017
|
2016
|
Revenues
|
$169.5
|
$154.5
|
Operating
margin(6)
|
86.6
|
72.6
|
Net
earnings
|
37.5
|
25.6
|
Net earnings per
basic share
|
0.07
|
0.05
|
Adjusted net earnings
(loss)
|
9.4
|
(1.5)
|
Adjusted net earnings
per share
|
0.02
|
nil
|
Cash generated from
operations
|
76.8
|
61.5
|
Cash generated from
operations before changes in non-cash operating working
capital
|
69.4
|
62.1
|
First quarter revenues increased by $15
million, or 10%, relative to the prior-year quarter,
primarily due to higher metal prices. Relative to the first quarter
of 2016, the average realized price increased by $80 per ounce of gold, or 7%, $0.44 per pound of copper, or 21%, and
$2.79 per ounce of silver, or 19%.
First quarter production and metal sales volumes were in line with
the prior-year quarter.
New Gold's first quarter operating margin increased by
$14 million relative to the
prior-year quarter as a result of the $15
million increase in revenues and the company's operating
expenses remaining consistent, despite the appreciation of the
Canadian and Australian dollars relative to the U.S. dollar.
The company reported net earnings of $38
million, or $0.07 per share,
in the first quarter of 2017 relative to net earnings of
$26 million, or $0.05 per share, in the prior-year quarter. First
quarter net earnings included a $33
million pre-tax gain on the disposal of the El Morro stream,
a $6 million non-cash foreign
exchange gain and a $14 million
pre-tax loss on the revaluation of company's gold price option
contracts.
New Gold had adjusted net earnings of $9
million, or $0.02 per share,
in the first quarter of 2017 relative to an adjusted net loss of
$2 million, in the prior-year
quarter. Quarterly adjusted net earnings were positively impacted
by the combination of the $15 million
increase in revenues, a $4 million
decrease in depreciation and depletion and a $3 million decrease in finance costs as more
interest has been capitalized to Rainy
River. These items were partially offset by an $8 million increase in adjusted income tax
expense, a $1 million increase in
operating expenses, and a $1 million
increase in exploration, business development, and corporate
general and administrative expenses.
The company's first quarter cash generated from operations
before changes in non-cash operating working capital of
$69 million was $7 million, or 12%, higher than the prior-year
quarter as the impact of the higher operating margin was only
partially offset by higher income taxes paid. Cash generated from
operations in the first quarter of 2017 was $77 million relative to $62 million in the prior-year quarter. The
significant working capital benefit during the first quarter of
2017 was due to the company collecting an outstanding concentrate
receivable of $21 million at New
Afton in January 2017.
FINANCIAL UPDATE
New Gold's cash and cash equivalents at March 31, 2017 were $350
million. The company also has a $400
million revolving credit facility, of which $100 million has been drawn and $123 million has been used to issue letters of
credit for closure obligations at the company's producing mines and
development projects, leaving $177
million undrawn. The company's pro forma liquidity totals
$527 million (cash and undrawn credit
facility) plus its expected free cash flow generation from its
operating mines through the balance of 2017.
In 2016, New Gold entered into gold price option contracts
covering 120,000 ounces of its first half 2017 production, with put
options at a strike price of $1,300
per ounce and call options at a strike price of $1,400 per ounce. The company also fixed the
price for 31.7 million pounds of the company's first half 2017
copper production at $2.52 per pound
and fixed 43.7 million pounds of the company's second half 2017
copper production at $2.73 per pound.
These initiatives increase the company's cash flow certainty during
the remaining Rainy River
development period.
At March 31, 2017, the face value
of the company's long-term debt was $900
million (book value – $890
million). The components of the long-term debt include:
$300 million of 7.00% face value
senior unsecured notes due in April of 2020; $500 million of 6.25% face value senior unsecured
notes due in November of 2022; and $100
million drawn from the revolving credit facility. The
company currently has approximately 575 million shares
outstanding.
PROJECTS UPDATE
Rainy River
Development activities at New Gold's Rainy River project, located in northwestern
Ontario, continue to advance and
the project is scheduled to transition from construction to
operation in the third quarter of 2017. Both the project schedule
and capital cost estimate remain in line with New Gold's updated
plan announced on January 30,
2017.
RAINY RIVER – 2017 FIRST
QUARTER HIGHLIGHTS
- Project spending during the first quarter totalled $126 million, with estimated remaining capital to
achieve November commercial production of $389 million
- Mining rate during the quarter averaged over 110,000 tonnes per
day
- Overall earthworks approximately 70% complete
- All key structural components of the process facilities
complete
- Installation of mechanical, piping, electrical and
instrumentation in processing facilities approximately 85%
complete
- Primary crusher and conveyor system approximately 95%
complete
- Commissioning of the crusher commenced in March 2017 with first crush scheduled for early
May 2017
UPCOMING KEY MILESTONES
Second Quarter 2017
- Complete commissioning of crusher and complete first crush
- Commence commissioning of ball and SAG mill
- Energization of all site power lines
Third Quarter 2017
- Dry and wet commissioning of the full process circuit
- Complete tailings management area starter cell
- First ore to mill and mine start-up
Mining activities at Rainy
River progressed well during the first quarter. The
company's mining rate during the quarter averaged over 110,000
tonnes per day, which was in line with New Gold's updated plan
announced on January 30, 2017. The
September start-up is based on an expectation that the mining rate
will continue to increase to an average of approximately 120,000
tonnes per day, which includes both planned productivity gains and
takes into consideration the impact of changing weather conditions
through the spring and summer months. There are multiple catalysts
for the planned productivity gains. As pit water management impacts
productivity, particularly during the spring thaw, the
commissioning of the water management pond will facilitate
increased pit dewatering which, in turn, will provide greater
access and improved mining conditions. As well, an additional
construction rock source has been identified outside of the pit and
closer to the tailings area, which is currently being brought
online. Once fully operational, this will shorten the cycle time of
rock material mined from the pit as it will primarily be delivered
to the waste dump instead of the longer haul to the tailings area.
These changes, as well as operational improvements in the mining
and maintenance areas, underpin the planned increase in mining rate
to 120,000 tonnes per day.
Overall earthworks are approximately 70% complete and tracking
in line with New Gold's updated plan. Through March 31, 2017, over 800,000m3 of
construction material has been placed at the tailings management
starter cell. The starter cell is scheduled to be completed in
August 2017. Construction of the
water management pond is tracking in line with the company's
updated plan and approval is expected in the coming days to pump up
to 1.4 million cubic metres into the pond. Completion and
energization of all site overhead power lines and completion of the
tailings pipeline corridor is planned for the second quarter.
Subsequent to the end of the quarter, approval was received to
commence construction of the mine rock pond.
All of the key structural components of the process facilities
have been completed and the setting of mechanical equipment and
installation of piping, electrical and instrumentation services is
well advanced. The primary crusher and conveyor system are
approximately 95% complete. Commissioning of the crusher commenced
in March 2017 with the first crush
expected in early May 2017.
Thereafter, the commissioning of the ball and SAG mills should
start during the second quarter and be completed in August 2017. Finally, the refining portion of the
circuit should be completed and ready to begin commissioning early
in the third quarter. Dry and wet commissioning of the full process
circuit is scheduled to be completed in August 2017, which should leave approximately one
month before targeted first production for any required adjustments
to the circuit.
The company continues to work towards obtaining an amendment to
Schedule 2 of the Metal Mining Effluent Regulations, required to
close two small creeks and deposit tailings. In recent discussions
with senior officials from Environment and Climate Change Canada,
New Gold was advised that public notification of the proposed
amendment is expected to be published in the second quarter of
2017, with the final publication and adoption of the Schedule 2
amendment expected to occur in January
2018.
As previously disclosed, New Gold is presently constructing a
starter tailings cell, located within the broader tailings
management area, that does not require a Schedule 2 amendment. This
will allow New Gold to commence operations prior to completion of
the Schedule 2 amendment. Based on its location and scale, the
starter cell would provide capacity for approximately six months of
tailings.
In addition, New Gold is finalizing its evaluation of an
approach to constructing the creek closures which incorporates
sheet pile at the centre of the portion of the dam which will cover
the creeks. The purpose of this approach is both to reduce the
construction time after receipt of the Schedule 2 amendment, and,
most importantly, to be able to complete the work regardless of the
weather conditions. The approach is expected to require provincial
and federal regulatory approvals.
During the quarter, infill drilling was completed to confirm the
estimated grades of mineralization in the resource block model and
upgrade confidence in the portion of the reserve expected to be
mined during the first year of commercial production.
Project spending at Rainy River
during the first quarter totalled $126
million. Based on a C$1.30/US$
exchange rate, the remaining capital cost from April 1, 2017 to the targeted November commercial
production is estimated to be approximately $389 million. Capital spending levels are
expected to ramp up in the second and third quarters as the project
enters the final phase of construction and transitions to
operation.
New Gold continues to look forward to the expected growth in the
company's production and cash flow once Rainy River transitions into operation later
this year. Rainy River has
multiple important asset qualities including its great
jurisdiction, significant annual production potential, long
estimated reserve life and continued exploration potential.
Blackwater
Activities at the company's Blackwater project, located in
south-central British Columbia,
continued to focus on attaining the approval of the Environmental
Assessment ("EA"). The coordinated Federal and Provincial EA
technical review is in progress. Technical review comments have now
been received from the Federal government, Provincial agencies and
local Indigenous communities, and New Gold has responded to the
review comments. The company continues to anticipate approval of
the Blackwater EA in 2017.
Capital expenditures at Blackwater during the first quarter were
$2 million.
El Morro
In February, the company sold its gold stream on the El Morro
project to an affiliate of Goldcorp Inc. for $65 million cash.
WEBCAST AND CONFERENCE CALL
A webcast and conference call to discuss these results will be
held on Thursday, April 27, 2017 at
9:00 a.m. Eastern time. Participants
may listen to the webcast by registering on our website at
www.newgold.com. You may also listen to the conference call by
calling toll free 1-888-231-8191, or 1-647-427-7450 outside of the
U.S. and Canada. A recorded
playback of the conference call will be available until
May 27, 2017 by calling toll free
1-855-859-2056, or 1-416-849-0833 outside of the U.S. and
Canada, passcode 94771662. An
archived webcast will also be available until July 27, 2017 at www.newgold.com.
ABOUT NEW GOLD INC.
New Gold is an intermediate gold mining company. The company has
a portfolio of four producing assets and two significant
development projects. The New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in
Australia and the Cerro San Pedro
Mine in Mexico (which transitioned
to residual leaching in 2016), provide the company with its current
production base. In addition, New Gold owns 100% of the Rainy River
and Blackwater projects located in Canada. New Gold's objective is to be the
leading intermediate gold producer, focused on the environment and
social responsibility. For further information on the company,
please visit www.newgold.com.
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
the statements made under "2017 first quarter highlights" and
"Rainy River update", as well as
other statements elsewhere in this news release, including, among
others, statements with respect to: guidance for production,
operating expense and all-in sustaining costs, and the factors
contributing to those expected results, as well as expected capital
and other expenditures; planned development activities for 2017 at
the Rainy River project, including the completion and commissioning
of the processing facilities; planned preparations for operations
at the Rainy River project, including the mining rate, removal of
overburden and waste, and storage of water; the expected
production, costs, economics, grade and other operating parameters
of the Rainy River project; the capacity of the starter dam;
targeted timing for permits, including the amendment to Schedule 2
of the Metal Mining Effluent Regulations; targeted timing for
commissioning, start-up, production and commercial production; and
targeting timing for development and other activities related to
the Rainy River project.
All forward-looking statements in this news release are based on
the opinions and estimates of management as of the date such
statements are made and are 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"), Annual Information Form and Technical Reports filed
at www.sedar.com 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; (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; (4) the exchange
rate between the Canadian dollar, Australian dollar, Mexican peso
and U.S. dollar being approximately consistent with current levels;
(5) prices for diesel, natural gas, fuel oil, electricity and other
key supplies being approximately consistent with current levels;
(6) equipment, labour and materials costs increasing on a basis
consistent with New Gold's current expectations; (7) arrangements
with First Nations and other Aboriginal groups in respect of the
Rainy River project being consistent with New Gold's current
expectations; (8) all required permits, licenses and
authorizations, including the amendment to Schedule 2 of the Metal
Mining Effluent Regulations, being obtained from the relevant
governments and other relevant stakeholders within the expected
timelines and the absence of material negative comments during the
applicable regulatory processes; (9) the results of the feasibility
study for the Rainy River project being realized; and (10) in
the case of production, cost and expenditure outlooks at the
operating mines and the Rainy River project for 2017, commodity
prices and exchange rates being consistent with those estimated for
the purposes for 2017.
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: significant capital requirements and the availability
and management of capital resources; additional funding
requirements; price volatility in the spot and forward markets for
metals and other commodities; fluctuations in the international
currency markets and in the rates of exchange of the currencies of
Canada, the United States, Australia and Mexico; discrepancies between actual and
estimated production, between actual and estimated mineral reserves
and mineral resources and between actual and estimated
metallurgical recoveries; fluctuation in treatment and refining
charges; changes in national and local government legislation in
Canada, the United States, Australia and Mexico or any other country in which New Gold
currently or may in the future carry on business; taxation;
controls, regulations and political or economic developments in the
countries in which New Gold does or may carry on business; 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: in
Canada, obtaining the necessary
permits for the Rainy River project; the lack of certainty with
respect to foreign 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 uncertainties inherent
to current and future legal challenges New Gold is or may become a
party to; diminishing quantities or grades of mineral reserves and
mineral resources; competition; inherent uncertainties with cost
estimates and estimated schedule for the construction and
commencement of production at Rainy
River as contemplated; loss of key employees; rising costs
of labour, supplies, fuel and equipment; actual results of current
exploration or reclamation activities; uncertainties inherent to
mining economic studies including the feasibility studies for the
Rainy River project; changes in project parameters as plans
continue to be refined; accidents; labour disputes; defective title
to mineral claims or property or contests over claims to mineral
properties; unexpected delays and costs inherent to consulting and
accommodating rights of Indigenous groups; risks, uncertainties and
unanticipated delays associated with obtaining and maintaining
necessary licenses, permits and authorizations and complying with
permitting requirements, including those associated with the
amendment to Schedule 2 of the Metal Mining Effluent Regulations
for the Rainy River project. 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 risks associated
with the start of production of a mine, such as Rainy River, (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, MD&A and other disclosure documents filed on and
available at www.sedar.com 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.
CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF
MINERAL RESERVES AND MINERAL RESOURCES
Information concerning the properties and operations of New Gold
has been prepared in accordance with Canadian standards under
applicable Canadian securities laws, and may not be comparable to
similar information for United
States companies. The terms "Mineral Resource", "Measured
Mineral Resource", "Indicated Mineral Resource" and "Inferred
Mineral Resource" used in this news release are Canadian mining
terms as defined in the Canadian Institute of Mining, Metallurgy
and Petroleum ("CIM") Definition Standards for Mineral Resources
and Mineral Reserves adopted by CIM Council on May 10, 2014 and incorporated by reference in
National Instrument 43-101. While the terms "Mineral
Resource", "Measured Mineral Resource", "Indicated Mineral
Resource" and "Inferred Mineral Resource" are recognized and
required by Canadian securities regulations, they are not defined
terms under standards of the United States Securities and Exchange
Commission. As such, certain information contained in this
news release concerning descriptions of mineralization and mineral
resources under Canadian standards is not comparable to similar
information made public by United
States companies subject to the reporting and disclosure
requirements of the United States Securities and Exchange
Commission.
An "Inferred Mineral Resource" has a great amount of uncertainty
as to its existence and as to its economic and legal
feasibility. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or
pre-feasibility studies. It cannot be assumed that all or any
part of an "Inferred Mineral Resource" will ever be upgraded to a
higher confidence category. Readers are cautioned not
to assume that all or any part of an "Inferred Mineral Resource"
exists or is economically or legally mineable.
Under United States standards,
mineralization may not be classified as a "Reserve" unless the
determination has been made that the mineralization could be
economically and legally produced or extracted at the time the
reserve estimation is made. Readers are cautioned not to
assume that all or any part of the measured or indicated mineral
resources will ever be converted into mineral reserves. In
addition, the definitions of "Proven Mineral Reserves" and
"Probable Mineral Reserves" under CIM standards differ in certain
respects from the standards of the United States Securities and
Exchange Commission.
TECHNICAL INFORMATION
The scientific and technical information contained herein has
been reviewed and approved by Mark A.
Petersen, Vice President, Exploration of New Gold, except
for the scientific and technical information regarding capital
costs at Rainy River set out under
the heading "Projects Update - Rainy
River - Capital Expenditures", which has been reviewed and
approved by Arshya Qureshi,
Co-Founder and Project Manager at LQ Consulting and
Management Inc. Mr. Qureshi is a Professional Engineer registered
with the Professional Engineers of Ontario. Mr. Petersen is a SME Registered
Member, AIPG Certified Professional Geologist. Mr. Petersen and Mr.
Qureshi are "Qualified Persons" for the purposes of NI 43-101.
For additional technical information on New Gold's material
properties, including a detailed breakdown of Mineral Reserves and
Mineral Resources by category, as well as key assumptions,
parameters and risks, refer to New Gold's Annual Information Form
for the year ended December 31, 2016
filed on www.sedar.com.
NON-GAAP MEASURES
(1) All-In Sustaining Costs
"All-in sustaining costs" per ounce is a non-GAAP financial
measure. Consistent with guidance announced in 2013 by the World
Gold Council, an association of various gold mining companies from
around the world of which New Gold is a member, New Gold defines
"all-in sustaining costs" per 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 and environmental
reclamation costs, all divided by the ounces of gold sold to arrive
at a per ounce figure. New Gold believes this non-GAAP financial
measure provides further transparency into costs associated with
producing gold and assists analysts, investors and other
stakeholders of the company in assessing the company's operating
performance, its ability to generate free cash flow from current
operations and its overall value. This data is furnished to provide
additional information and is a non-GAAP financial measure. All-in
sustaining costs presented do not have a 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 and is not necessarily indicative of cash flow from
operations under IFRS or operating costs presented under IFRS.
Further details regarding historical all-in sustaining costs and a
reconciliation to the nearest IFRS measures are provided in the
MD&A accompanying New Gold's financial statements filed from
time to time on www.sedar.com.
"Sustaining costs" is a non-GAAP financial measure. New Gold
defines sustaining costs as the difference between all-in
sustaining costs and total cash costs, being the sum of net capital
expenditures that are sustaining in nature, corporate general and
administrative costs, capitalized and expensed exploration that is
sustaining in nature, and environmental reclamation costs.
Management uses sustaining costs to understand the aggregate net
result of the drivers of all-in sustaining costs other than total
cash costs. The line items between cash costs and all in
sustaining costs in the tables below break down the components of
sustaining costs. Sustaining costs 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.
(2) Total Cash Costs
"Total cash costs" per ounce is a non-GAAP financial measure
which is 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.
New Gold reports total cash costs on a sales basis. The company
believes that certain investors use this information to evaluate
the company's performance and ability to generate liquidity through
operating cash flow to fund future capital expenditures and working
capital needs. This measure, along with sales, is considered
to be a key indicator of the company's ability to generate
operating earnings and cash flow from its mining operations. Total
cash costs include mine site operating costs such as mining,
processing and administration costs, royalties, production taxes,
and realized gains and losses on fuel contracts, but are exclusive
of amortization, reclamation, capital and exploration costs and net
of by-product sales. Total cash costs are then divided by ounces of
gold sold to arrive at a per ounce figure. Co-product cash costs
remove the impact of other metal sales that are produced as a
by-product of gold production and apportion the cash costs to each
metal produced on a percentage of revenue basis, and subsequently
divides the amount by the total ounces of gold or silver or pounds
of copper sold, as the case may be, to arrive at per ounce or per
pound figures. Unless otherwise indicated, all total cash cost
information in this news release is net of by-product sales. This
data is furnished to provide additional information and is a
non-GAAP financial measure. Total cash costs and co-product cash
costs presented do not have a 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 and is not necessarily indicative of cash flow from operations
under IFRS or operating costs presented under GAAP. Further details
regarding historical total cash costs and a reconciliation to the
nearest IFRS measures are provided in the MD&A accompanying New
Gold's financial statements filed from time to time on
www.sedar.com.
OPEX, CASH COST AND AISC RECONCILIATION
|
|
|
Three months ended
March 31, 2017
|
(in millions of
U.S. dollars, except where noted)
|
Gold
|
Copper
|
Silver
|
Total
|
OPEX, Cash Cost
and AISC Reconciliation
|
|
|
|
|
Operating
expenses(1)
|
52.8
|
27.9
|
2.2
|
82.9
|
Units of metal sold
(ounces/millions of pounds/millions of ounces)
|
87,304
|
23.0
|
0.3
|
|
Operating expenses
per unit of metal sold ($/ounce or pound)
|
605
|
1.21
|
8.23
|
|
Operating
expenses(1)
|
52.8
|
27.9
|
2.2
|
82.9
|
Treatment and
refining charges on concentrate sales
|
2.9
|
5.2
|
0.2
|
8.3
|
Adjustments(2)
|
0.1
|
0.1
|
-
|
0.2
|
Total cash
costs
|
55.8
|
33.2
|
2.4
|
91.4
|
By-product silver and
copper sales
|
|
|
|
(65.6)
|
Total cash costs net
of by-product revenue
|
|
|
|
25.8
|
Units of metal sold
(ounces/millions of pounds/millions of ounces)
|
87,304
|
23.0
|
0.3
|
87,304
|
Total cash costs on a
co-product basis(3) ($/ounce or pound)
|
639
|
1.45
|
8.87
|
|
Total cash costs per
gold ounce sold ($/ounce)
|
|
|
|
296
|
Total co-product cash
costs
|
55.8
|
33.2
|
2.4
|
|
Total cash costs net
of by-product revenue
|
|
|
|
25.8
|
Sustaining capital
expenditures
|
8.9
|
4.7
|
0.4
|
14.0
|
Sustaining
exploration - expensed
|
1.2
|
0.7
|
0.1
|
2.0
|
Corporate G&A
including share-based compensation(4)
|
5.4
|
2.9
|
0.2
|
8.5
|
Reclamation
expenses
|
1.2
|
0.6
|
-
|
1.8
|
Total co-product
all-in sustaining costs
|
72.5
|
42.1
|
3.1
|
|
Total all-in
sustaining costs net of by-product revenue
|
|
|
|
52.1
|
All-in sustaining
costs on a co-product basis(3) ($/ounce or
pound)
|
831
|
1.83
|
11.48
|
|
All-in sustaining
costs per gold ounce sold ($/ounce)
|
|
|
|
597
|
|
|
(1)
|
Operating expenses
are apportioned to each metal produced on a percentage of revenue
basis.
|
(2)
|
Adjustments include
non-cash items related to inventory write-down reversals and social
closure costs incurred at Cerro San Pedro that are included in
operating expenses.
|
(3)
|
Amounts presented on
a co-product basis remove the impact of other metal sales that are
produced as a by-product of our gold production and apportions the
cash costs to each metal produced on a percentage of revenue
basis.
|
(4)
|
Includes the sum of
corporate administration costs and share-based payment expense per
the income statement, net of any non-cash depreciation within those
figures.
|
OPEX, CASH COST AND AISC RECONCILIATION
|
|
|
Three months ended
March 31, 2016
|
(in millions of
U.S. dollars, except where noted)
|
Gold
|
Copper
|
Silver
|
Total
|
OPEX, Cash Cost
and AISC Reconciliation
|
|
|
|
|
Operating
expenses(1)
|
52.1
|
27.1
|
2.7
|
81.9
|
Units of metal sold
(ounces/millions of pounds/millions of ounces)
|
86,031
|
25.3
|
0.4
|
|
Operating expenses
per unit of metal sold ($/ounce or pound)
|
606
|
1.07
|
7.39
|
|
Operating
expenses(1)
|
52.1
|
27.1
|
2.7
|
81.9
|
Treatment and
refining charges on concentrate sales
|
3.5
|
5.0
|
0.1
|
8.6
|
Adjustments(2)
|
(0.5)
|
(0.3)
|
-
|
(0.8)
|
Total cash
costs
|
55.1
|
31.8
|
2.8
|
89.7
|
By-product silver and
copper sales
|
|
|
|
(59.4)
|
Total cash costs net
of by-product revenue
|
|
|
|
30.3
|
Units of metal sold
(ounces/millions of pounds/millions of ounces)
|
86,031
|
25.3
|
0.4
|
86,031
|
Total cash costs on a
co-product basis(3) ($/ounce or pound)
|
641
|
1.26
|
7.58
|
|
Total cash costs per
gold ounce sold ($/ounce)
|
|
|
|
354
|
Total co-product cash
costs
|
55.1
|
31.8
|
2.8
|
|
Total cash costs net
of by-product revenue
|
|
|
|
30.3
|
Sustaining capital
expenditures
|
14.3
|
7.4
|
0.7
|
22.4
|
Sustaining
exploration - expensed
|
1.3
|
0.8
|
0.1
|
2.2
|
Corporate G&A
including share-based compensation(4)
|
5.5
|
2.9
|
0.3
|
8.7
|
Reclamation
expenses
|
0.9
|
0.4
|
-
|
1.3
|
Total co-product
all-in sustaining costs
|
77.1
|
43.3
|
3.9
|
|
Total all-in
sustaining costs net of by-product revenue
|
|
|
|
64.9
|
All-in sustaining
costs on a co-product basis(3) ($/ounce or
pound)
|
898
|
1.72
|
10.72
|
|
All-in sustaining
costs per gold ounce sold ($/ounce)
|
|
|
|
758
|
|
|
(1)
|
Operating expenses
are apportioned to each metal produced on a percentage of revenue
basis.
|
(2)
|
Adjustments include
the amortization of Mesquite's Purchase Price Allocation associated
with royalties and social closure costs incurred at Cerro San Pedro
that are included in operating expenses.
|
(3)
|
Amounts presented on
a co-product basis remove the impact of other metal sales that are
produced as a by-product of our gold production and apportions the
cash costs to each metal produced on a percentage of revenue
basis.
|
(4)
|
Includes the sum of
corporate administration costs and share-based payment expense per
the income statement, net of any non-cash depreciation within those
figures.
|
(3) Cash Generated from Operations before Changes in Working
Capital
"Cash generated from operations before changes in working
capital" is a non-GAAP financial measures with no standard meaning
under IFRS, excludes changes in non-cash operating working capital.
Management uses this measure to evaluate the company's ability to
generate cash from its operations before working capital changes.
Further details regarding cash generated from operations before
changes in working capital and a reconciliation to the nearest IFRS
measure is provided in the MD&A accompanying New Gold's
financial statements filed from time to time on www.sedar.com.
NET CASH GENERATED FROM OPERATIONS BEFORE CHANGES IN WORKING
CAPITAL RECONCILIATION
|
|
|
Three months ended
March 31
|
(in millions of
U.S. dollars)
|
2017
|
2016
|
Cash generated from
operations
|
$76.8
|
$61.5
|
Add back (deduct):
Change in non-cash operating working capital
|
(7.4)
|
0.6
|
Net cash generated
from operations before changes in non-cash working
capital
|
69.4
|
62.1
|
(4) Adjusted Net Earnings/(Loss)
"Adjusted net (loss)/earnings" and "adjusted net (loss)/earnings
per share" are non-GAAP financial measures. Net (loss)/earnings
have been adjusted and tax affected for the group of costs in
"Other gains and losses" on the condensed consolidated income
statement. The adjusted entries are also impacted for tax to the
extent that the underlying entries are impacted for tax in the
unadjusted net (loss)/earnings from continuing operations. The
company uses this measure for its own internal purposes.
Management's internal budgets and forecasts and public guidance do
not reflect fair value changes on senior notes and non-hedged
derivatives, foreign currency translation and fair value through
profit or loss and financial asset gains/losses.
Consequently, the presentation of adjusted net earnings and
adjusted net earnings per share enables investors and analysts to
better understand the underlying operating performance of our core
mining business through the eyes of management. Management
periodically evaluates the components of adjusted net earnings and
adjusted net earnings per share based on an internal assessment of
performance measures that are useful for evaluating the operating
performance of our business and a review of the non-GAAP measures
used by mining industry analysts and other mining companies.
Adjusted net (loss)/earnings and adjusted net (loss)/earnings per
share are intended to provide additional information only and do
not have any standardized meaning under IFRS and may not be
comparable to similar measures presented by other companies. They
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. The
measures are not necessarily indicative of operating profit or cash
flows from operations as determined under IFRS.
ADJUSTED NET EARNINGS RECONCILIATION
|
|
|
Three months ended
March 31
|
(in millions of
U.S. dollars, except per share amounts)
|
2017
|
2016
|
Net earnings before
taxes
|
$39.8
|
$17.7
|
|
Other (gains)
losses
|
(23.8)
|
(21.6)
|
|
Inventory
write-down
|
(0.5)
|
0.7
|
Adjusted net earnings
before tax
|
15.5
|
(3.2)
|
|
Income tax recovery
(expense)
|
(2.3)
|
7.9
|
|
Income tax
adjustments
|
(3.8)
|
(6.2)
|
Adjusted income tax
expense
|
(6.1)
|
1.7
|
Adjusted net earnings
(loss)
|
9.4
|
(1.5)
|
Adjusted earnings per
share (basic and diluted)
|
0.02
|
$nil
|
Adjusted effective
tax rate
|
39%
|
53%
|
(5) Average Realized Price
"Average realized price per ounce or pound sold" is a non-GAAP
financial measure with no standard meaning under IFRS. Management
uses this measure to better understand the price realized in each
reporting period for gold, silver, and copper sales. Average
realized price is intended to provide additional information only
and does not have any standardized definition under IFRS; it should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may
calculate this measure differently and this measure is unlikely to
be comparable to similar measures presented by other companies.
Further details regarding average realized price and a
reconciliation to the nearest IFRS measure is provided in the
MD&A accompanying New Gold's financial statements filed from
time to time on www.sedar.com.
(6) Operating Margin
"Operating margin" is a non-GAAP financial measure with no
standard meaning under IFRS, which management uses to evaluate the
company's aggregated and mine-by-mine contribution to net earnings
before non-cash depreciation and depletion charges.
OPERATING MARGIN RECONCILIATION
|
|
|
Three months ended
March 31
|
(in millions of
U.S. dollars)
|
2017
|
2016
|
Revenues
|
$169.5
|
$154.5
|
Less: Operating
expenses
|
(82.9)
|
(81.9)
|
Operating
margin
|
86.6
|
72.6
|
CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
|
|
|
Three months ended
March 31
|
(in millions of
U.S. dollars, except per share amounts)
|
2017
|
2016
|
Revenues
|
$169.5
|
$154.5
|
Operating
expenses
|
82.9
|
81.9
|
Depreciation and
depletion
|
57.5
|
61.0
|
Revenue less cost of
goods sold
|
29.1
|
11.6
|
Corporate
administration
|
7.5
|
5.7
|
Share-based payment
expenses
|
1.2
|
3.0
|
Exploration and
business development
|
3.2
|
2.5
|
Earnings from
operations
|
17.2
|
0.4
|
Finance
income
|
0.2
|
0.3
|
Finance
costs
|
(1.4)
|
(4.6)
|
Other
gains
|
23.8
|
21.6
|
Earnings before
taxes
|
39.8
|
17.7
|
Income tax (expense)
recovery
|
(2.3)
|
7.9
|
Net
earnings
|
37.5
|
25.6
|
Earnings per
share
|
|
|
Basic
|
0.07
|
0.05
|
Diluted
|
0.07
|
0.05
|
Weighted average
number of shares outstanding (in millions)
|
|
|
Basic
|
528.1
|
509.6
|
Diluted
|
528.9
|
510.7
|
(1)
|
Prior-year period
comparatives have been revised. Please refer to Note 2 of the
unaudited condensed consolidated interim financial statements for
further information.
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(UNAUDITED)
|
|
|
|
As at March
31
|
As at December
31
|
(in millions of
U.S. dollars)
|
2017
|
2016
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$349.5
|
$185.9
|
Trade and other
receivables
|
20.8
|
37.1
|
Inventories
|
159.6
|
150.4
|
Current income tax
receivable
|
10.6
|
12.5
|
Derivative
assets
|
4.5
|
18.0
|
Prepaid expenses and
other
|
6.7
|
6.1
|
Total current
assets
|
551.7
|
410.0
|
|
|
|
Non-current
inventories
|
101.9
|
103.3
|
Mining
interests
|
3,254.7
|
3,191.3
|
Deferred tax
assets
|
227.2
|
224.9
|
Other
|
3.1
|
3.5
|
Total
assets
|
4,138.6
|
3,933.0
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade and other
payables
|
165.0
|
169.2
|
Current income tax
payable
|
9.9
|
6.2
|
Total current
liabilities
|
174.9
|
175.4
|
|
|
|
Reclamation and
closure cost obligations
|
91.3
|
81.0
|
Provisions
|
13.0
|
12.0
|
Gold stream
obligation
|
232.3
|
246.5
|
Long-term
debt
|
890.0
|
889.5
|
Deferred tax
liabilities
|
446.4
|
455.2
|
Other
|
0.3
|
0.2
|
Total
liabilities
|
1,848.2
|
1,859.8
|
Equity
|
|
|
Common
shares
|
3,026.0
|
2,859.0
|
Contributed
surplus
|
101.8
|
100.5
|
Other
reserves
|
(21.6)
|
(33.0)
|
Deficit
|
(815.8)
|
(853.3)
|
Total
equity
|
2,290.4
|
2,073.2
|
Total liabilities
and equity
|
4,138.6
|
3,933.0
|
(1)
|
Prior-year period
comparatives have been revised. Please refer to Note 2 of the
unaudited condensed consolidated interim financial statements for
further information.
|
CONSOLIDATED STATEMENTS OF CASH FLOW
(UNAUDITED)
|
|
|
Three months ended
March 31
|
(in millions of
U.S. dollars)
|
2017
|
2016
|
OPERATING
ACTIVITIES
|
|
|
Net earnings
(loss)
|
$37.5
|
$25.6
|
Adjustments
for:
|
|
|
Foreign exchange
losses (gains)
|
(6.2)
|
(33.9)
|
Reclamation and
closure costs paid
|
(0.4)
|
(0.9)
|
Reversal of inventory
and write-down
|
(0.5)
|
-
|
Gain on disposal of
El Morro
|
(33.0)
|
-
|
Depreciation and
depletion
|
57.9
|
61.1
|
Other non-cash
adjustments
|
12.3
|
(1.2)
|
Income tax
recovery
|
2.3
|
(7.9)
|
Finance
income
|
(0.2)
|
(0.3)
|
Finance
costs
|
1.4
|
4.6
|
Unrealized loss on
gold stream liability
|
3.1
|
15.1
|
|
74.2
|
62.2
|
Change in non-cash
operating working capital
|
7.4
|
(0.6)
|
Income taxes (paid)
refunded
|
(4.8)
|
(0.1)
|
Cash generated from
operations
|
76.8
|
61.5
|
INVESTING
ACTIVITIES
|
|
|
Mining
interests
|
(143.7)
|
(107.4)
|
Proceeds from the
sale of El Morro stream and other assets
|
65.3
|
0.5
|
Interest
received
|
0.2
|
0.3
|
Gold price option
contract and other investment costs
|
-
|
(2.1)
|
Cash used by
investing activities
|
(78.2)
|
(108.7)
|
FINANCING
ACTIVITY
|
|
|
Proceeds received
from exercise of options
|
0.1
|
0.8
|
Net proceeds received
from issuances of common shares
|
165.7
|
-
|
Financing initiation
costs
|
-
|
(0.3)
|
Interest
paid
|
(1.5)
|
(0.8)
|
Cash generated from
financing activities
|
164.3
|
(0.3)
|
Effect of exchange
rate changes on cash and cash equivalents
|
0.7
|
10.3
|
|
|
|
Change in cash and
cash equivalents
|
163.6
|
(37.2)
|
Cash and cash
equivalents, beginning of period
|
185.9
|
335.5
|
Cash and cash
equivalents, end of year
|
349.5
|
298.3
|
Cash and cash
equivalents are comprised of:
|
|
|
Cash
|
255.8
|
214.4
|
Short-term money
market instruments
|
93.7
|
83.9
|
|
349.5
|
298.3
|
(1)
|
Prior-year period
comparatives have been revised. Please refer to Note 2 of the
unaudited condensed consolidated interim financial statements for
further information.
|
SOURCE New Gold Inc.