Provides Updated Reserves and
Resources
TORONTO, Feb. 14, 2019 /CNW/ - New Gold Inc. ("New
Gold" or the "Company") (TSX and NYSE American:
NGD) reports fourth quarter and year-end results for the
Company and provides updated Mineral Reserves and Resources as of
December 31, 2018. (All amounts
are in U.S. dollars unless otherwise indicated)
A conference call and webcast will follow to discuss these
results at 8:30 a.m. Eastern time. A
technical discussion of the Company's 2019 guidance outlook will
follow the presentation of the fourth quarter and year-end
financial results (details are provided at the end of this press
release).
(For detailed information, please refer to the Company's
Fourth Quarter and Year-End Management's Discussion and Analysis
(MD&A) and Financial Statements that are available on the
Company's website at www.newgold.com and on SEDAR at www.sedar.com.
The Company uses certain non-GAAP financial performance measures
throughout this press release. Please refer to the "Non-GAAP
Financial Performance Measures" section of this press release and
in the MD&A.)
Fourth Quarter and Year-End Highlights (Continuing
Operations)
- The Company reported gold production of 97,428 ounces (84,421
ounces sold) for the quarter at an average realized gold price of
$1,230 per ounce. Annual gold
production was 315,483 ounces (298,002 ounces sold), at an average
realized gold price of $1,263 per
ounce.
- The Company produced 20.8 million pounds of copper (19.7
million pounds sold) for the quarter at an average realized copper
price of $2.96 per pound and 85.1
million pounds (81.1 million pounds sold) for the year at an
average realized copper price of $3.06 per pound.
- Revenues for the quarter were $157.4
million and $604.5 million for
the year.
- Operating expense per gold ounce was $568 for the quarter and $648 for the year. Operating expense per copper
pound was $1.37 for the quarter and
$1.57 for the year.
- All-in sustaining costs (AISC)1 per gold ounce were
$688 for the quarter and $961 for the year. AISC per gold ounce on a
co-product basis were $857 for the
quarter and $1,051 for the year.
- Net loss from continuing operations was $727.7 million ($1.26 per share) for the quarter, which includes
a $671.1 million ($1.16 per share) impairment loss related to the
Rainy River Mine ($452.9 million) and
the Blackwater project
($218.2 million). Net loss from
continuing operations for the year was $1,070.8 million ($1.85 per share), which includes a $953.2 million ($1.65 per share) after tax impairment loss
related to the Rainy River Mine ($735.0
million) and the Blackwater
project ($218.2 million).
- Adjusted net earnings from continuing operations for the
quarter, which excludes the impairment loss noted above, was
$22.7million ($0.04 per share) and adjusted net loss for the
year from continuing operations was $10.6
million ($0.02 per
share).
- For the fourth quarter, operating cash flow was $57.8 million ($0.10 per share) and $193.0 million ($0.33 per share) for the year. Operating cash
flow, before changes in working capital, was $74.8 million ($0.13 per share) and $264.6 million ($0.47 per share) for the year.
- The Company's current available liquidity of $392.9 million secures the implementation of the
Company's 2019 operational plan.
- In late 2018, the Company implemented a hedging strategy
whereby it entered into gold and copper price option contracts to
reduce exposure to fluctuations in gold and copper prices in
2019.
1. Refer to the "Non-GAAP Performance Measures section of this
press release.
"The fourth quarter was a turning point for the Company as
operations at Rainy River
continued to improve as part of our short-term operational strategy
to establish this asset for efficient and sustainable mining.
Combined with the solid performance from the New Afton Mine, the
Company reported a fourth quarter that delivered very encouraging
results and we will build on that momentum in 2019," stated
Renaud Adams, President and CEO.
"Our liquidity position will support the execution of our
operational plan in 2019, which includes the completion of all
remaining construction and mill upgrades at Rainy River that will position the asset for
profitable operations beginning in 2020. We begin 2019 with a
renewed vision for the future of the Company that is supported by a
renewed focus on driving profitable mining at all our operations
that will create sustainable value for shareholders."
Financial Highlights
Continuing
Operations1
|
Fourth Quarter
2018
|
Fourth Quarter
2017
|
Year-end
2018
|
Year-end
2017
|
Revenues from mining
operations
|
157.4
|
123.5
|
604.5
|
388.7
|
Net earnings (loss),
per share
|
(1.26)
|
(0.39)
|
(1.85)
|
(0.28)
|
Adj. net earnings
(loss)2, per share
|
0.04
|
(0.04)
|
(0.02)
|
(0.04)
|
Operating cash flow,
per share
|
0.10
|
0.10
|
0.33
|
0.35
|
Adj. operating cash
flow2,3, per share
|
0.13
|
0.07
|
0.46
|
0.27
|
Total
Operations3
|
Fourth Quarter
2018
|
Fourth Quarter
2017
|
Year-end
2018
|
Year-end
2017
|
Net earnings (loss),
per share
|
(1.26)
|
(0.34)
|
(2.12)
|
(0.19)
|
Operating cash flow,
per share
|
0.11
|
0.21
|
0.42
|
0.61
|
Adj. operating cash
flow2,3, per share
|
0.14
|
0.16
|
0.58
|
0.53
|
1. Continuing
operations are the Rainy River, New Afton and Cerro San Pedro
Mines. 2. Refer to the
"Non-GAAP Performance Measures section of this press release.
Operating cash flow before changes in working
capital. 3. Total
operations include continuing operations and the Mesquite and Peak
Mines that were sold in 2018 and presented as Discontinued
Operations.
|
- Revenue from continuing operations increased by $33.9 million, or 27%, for the quarter and
$215.8 million, or 56%, for the year
due to the increase in sales volumes from Rainy River.
- Impairment loss recorded during the quarter was $452.9 million relating to Rainy River and $218.2
million relating to Blackwater. For the year, the Company recorded
impairment losses of $836.6 million
at Rainy River and $218.2 million at Blackwater, totaling $1,054.8 million pre-tax ($953.2 million after-tax). There was no tax
recovery associated with the impairment losses at Rainy River and Blackwater recorded during the fourth quarter
of 2018 as the Company has not recognized any deferred tax assets
as at December 31, 2018. Refer to the
consolidated financial statements for further information.
- For the quarter and year, the net loss was impacted by the
impairment loss at Rainy River and
Blackwater, an inventory
write-down at Cerro San Pedro, an increase in depreciation and
depletion expenses and finance costs, which were partially offset
by a higher operating margin when compared to the prior
period.
- Adjusted net earnings from continuing operations for the
quarter increased compared to the prior-year quarter as the
increase in operating margin and tax recovery was only partially
offset by an increase in finance costs less finance income,
depreciation and depletion expenses and exploration, business
development, and corporate general and administrative
expenses.
- Adjusted net loss for the year decreased when compared to the
prior year primarily due to an increase in the operating margin, a
decrease in exploration, business development, and corporate
general and administrative expenses, and an increase in income tax
recovery when compared to the prior year. This was partially offset
by an increase in depreciation and depletion expenses and an
increase in finance costs less finance income, as the Company
ceased capitalization of interest to its qualifying development
property due to the commencement of commercial production at
Rainy River.
- The Company's December 31, 2018
cash balance of $103.7 million,
together with the $114.2 million
available for drawdown under its credit facility at December 31, 2018, provided the Company with
approximately $217.9 million of
liquidity. The liquidity increased to $392.9
million with $175 million of
additional Credit Facility availability upon the perfection of the
Rainy River security in February
2019.
Operational Highlights
Continuing
Operations1
|
Fourth Quarter
2018
|
Fourth Quarter
2017
|
Year-end
2018
|
Year-end
2017
|
Gold production
(ounces)
|
97,428
|
58,070
|
315,483
|
149,009
|
Copper production
(Mlbs)
|
20.8
|
24.6
|
85.1
|
90.6
|
Average realized gold
price, per ounce2
|
1,230
|
1,268
|
1,263
|
1,278
|
Average realized
copper price, per pound2
|
2.96
|
2.70
|
3.06
|
2.66
|
Operating expense,
per gold ounce
|
568
|
731
|
648
|
605
|
Operating expense,
per copper pound
|
1.37
|
1.56
|
1.57
|
1.26
|
Total cash costs, per
gold ounce2
|
186
|
393
|
270
|
(82)
|
AISC, per gold
ounce2
|
688
|
714
|
961
|
488
|
AISC, per gold
ounce2 (co-product)
|
857
|
945
|
1,051
|
914
|
Sustaining capital
($M)2
|
30.7
|
11.2
|
174.8
|
43.3
|
Growth capital
($M)2
|
8.7
|
83.4
|
39.1
|
510.9
|
Total
Operations
|
Fourth Quarter
2018
|
Fourth Quarter
2017
|
Year-end
2018
|
Year-end
2017
|
Gold production
(ounces)
|
110,559
|
145,992
|
455,448
|
422,411
|
AISC, per gold
ounce2
|
718
|
771
|
925
|
727
|
1. Continuing
operations include the Rainy River, New Afton and Cerro San Pedro
Mines.
2. Refer to the
"Non-GAAP Performance Measures section of this press release. Total
operations include continuing operations and the Mesquite and Peak
Mines that were sold in 2018
and presented as
Discontinued Operations.
|
Rainy River Highlights
Rainy River
Mine
|
Fourth Quarter
2018
|
Fourth Quarter
2017
|
Year-end
2018
|
Year-end
2017
|
Gold produced
(ounces)
|
77,202
|
28,509
|
227,284
|
28,509
|
Gold sold
(ounces)
|
66,123
|
26,359
|
214,804
|
26,359
|
Average realized gold
price, per ounce1
|
1,229
|
1,276
|
1,260
|
1,276
|
Operating expense,
per gold ounce
|
648
|
1,432
|
826
|
1,432
|
Total cash costs, per
gold ounce1
|
641
|
1,436
|
820
|
1,436
|
AISC, per gold
ounce1
|
1,054
|
1,549
|
1,501
|
1,549
|
Sustaining capital
($M)1
|
25.6
|
2.6
|
142.1
|
2.6
|
Growth capital
($M)1
|
6.1
|
80.7
|
28.5
|
496.7
|
1. Refer to the
"Non-GAAP Performance Measures section of this press
release.
|
Rainy
River Mine
|
Q1
18
|
Q2
18
|
Q3
18
|
Q4
18
|
2018
|
Tonnes mined per day
(ore and waste)
|
112,432
|
107,416
|
102,290
|
111,507
|
108,392
|
Ore tonnes mined per
day
|
36,296
|
36,043
|
30,439
|
32,054
|
33,687
|
Strip ratio
(waste:ore)
|
2.1
|
1.98
|
2.36
|
2.48
|
2.22
|
Tonnes milled per
calendar day
|
17,534
|
16,549
|
16,962
|
20,668
|
17,934
|
Tonnes milled run
rate1
|
22,771
|
22,364
|
22,318
|
25,835
|
23,291
|
Gold grade milled
(g/t)
|
1.08
|
1.24
|
1.21
|
1.42
|
1.25
|
Gold recovery
(%)
|
81%
|
87%
|
87%
|
89%
|
86%
|
Mill availability
(%)
|
77%
|
74%
|
76%
|
80%
|
77%
|
Gold production
(oz)
|
39,325
|
55,219
|
55,538
|
77,202
|
227,284
|
1. Run rate is
defined by (total tonnes milled / mill availability) / calendar
days.
|
- In the first full year of operations, Rainy River's safety performance continued to
improve throughout the year with the mine reporting a 0.93 Total
Reported Injury Frequency Rate (TRIFR) by the end of the year, as
compared to 2.94 in 2017.
- The Rainy River Mine reported continued improvement in
operational performance and delivered the best ever quarterly gold
production of 77,202 ounces (66,123 sold), and 227,284 ounces
(214,814 sold) for the year, achieving revised annual guidance of
between 210,000 and 250,000 gold ounces.
- Operating expense per gold ounce was $648 for the quarter and $826 for the year, higher than revised annual
guidance of between $730 and
$770 per ounce, primarily due to the
impact of start-up challenges and unplanned maintenance related to
the mill facility impacting both production and costs. Operating
expense per gold ounce for the quarter declined by 15% over the
prior quarter, primarily driven by the improved operational
performance achieved during the quarter.
- All-in sustaining costs (AISC) per gold ounce were $1,054 for the quarter and $1,501 for the year, which included costs related
to the mill upgrade, and $71.6
million ($333 per ounce) of
construction costs that have been categorized as sustaining
capital1. Excluding construction, AISC for the year were
$1,168 per ounce. AISC for the year
were lower than revised guidance of between $1,600 and $1700
per ounce, due to lower than planned sustaining capital
expenditures incurred during the year. AISC is expected to be
higher in 2019 as sustaining capital requirements increase in order
to complete remaining construction and mill upgrades.
- Growth capital1 for the quarter was $6.1 million, and $28.5
million for the year, primarily related to the underground
project and the payment of working capital related to project
development (pre-commercial production).
- The mill run-rate averaged 25,835 tonnes per day for the
quarter, the first full quarter in which the mill averaged a daily
run rate above the target 24,000 tonnes per day. Milling operations
were suspended for approximately 10 days during the quarter in
order to repair the Semi-Autogenous Grinding (SAG) mill starter and
to address the ball mill trunnion, which was replaced during the
first quarter of 2019.
- Mill gold recovery for the quarter was 89%. During the quarter,
considerable efforts were deployed to improve the carbon
regeneration and stripping circuits, allowing for an improved
overall recovery of more than 90% during the second half of
December. Mill recoveries are expected to continue to improve over
the next two quarters as ongoing mill upgrades and the optimization
of the grinding circuit are completed.
- A total of 10.3 million tonnes were mined during the quarter,
for an average of 111,507 tonnes per day, including 2.53 million
tonnes of medium and high-grade ore.
- Grade reconciliation for the quarter continued to be in line
with the resource and dig-shape models, providing additional
confidence in the deposit.
- Consistent with the renewed vision of repositioning the Rainy
River Mine for long-term success, the Company has adopted a
disciplined approach to capital allocation as well as mine life
optimization. Accordingly, management has deferred the 2019
underground mine development plan to 2020. During 2019, the Company
will launch a comprehensive review that includes alternative
underground mining scenarios with the overall objective of reducing
capital and improving the return on investment for the underground
portion of the life of mine.
New Afton Highlights
New Afton
Mine
|
Fourth Quarter
2018
|
Fourth Quarter
2017
|
Year-end
2018
|
Year-end
2017
|
Gold produced
(ounces)
|
18,778
|
22,384
|
77,329
|
86,163
|
Gold sold
(ounces)
|
17,176
|
20,132
|
72,489
|
81,067
|
Copper produced
(Mlbs)
|
20.8
|
24.6
|
85.1
|
90.6
|
Copper sold
(Mlbs)
|
19.7
|
22.0
|
81.1
|
84.5
|
Average realized gold
price, per ounce1
|
1,237
|
1,254
|
1,266
|
1,280
|
Average realized
copper price, per pound1
|
2.96
|
2.70
|
3.06
|
2.66
|
Operating expense,
per gold ounce
|
375
|
362
|
384
|
412
|
Operating expense,
per copper pound
|
0.90
|
0.78
|
0.93
|
0.85
|
Total cash costs, per
gold ounce1
|
(1,629)
|
(1,363)
|
(1,626)
|
(1,126)
|
Total cash costs, per
gold ounce (co-product)1
|
482
|
484
|
495
|
530
|
Total cash costs, per
copper pound (co-product)1
|
1.16
|
1.04
|
1.19
|
1.10
|
AISC, per gold
ounce1
|
(1,306)
|
(909)
|
(1,147)
|
(605)
|
AISC, per gold ounce
(co-product)1
|
567
|
617
|
623
|
692
|
AISC, per copper
pound (co-product)1
|
1.36
|
1.33
|
1.50
|
1.44
|
Sustaining capital
($M)1
|
5.0
|
8.3
|
32.6
|
39.3
|
Growth capital
($M)1
|
1.0
|
0.3
|
3.3
|
2.9
|
1. Refer to the
"Non-GAAP Performance Measures section of this press
release.
|
New Afton
Mine
|
Q1
18
|
Q2
18
|
Q3
18
|
Q4
18
|
2018
|
Underground mine
tpd
|
16,751
|
13,654
|
17,105
|
17,099
|
16,156
|
Gold grade milled
(g/t)
|
0.57
|
0.50
|
0.55
|
0.51
|
0.53
|
Gold recovery
(%)
|
84%
|
86%
|
85%
|
84%
|
85%
|
Gold production
(oz)
|
19,998
|
18,637
|
19,916
|
18,778
|
77,329
|
Copper grade milled
(%)
|
0.94
|
0.82
|
0.89
|
0.82
|
0.87
|
Copper recovery
(%)
|
83%
|
84%
|
83%
|
83%
|
83%
|
Copper production
(Mlbs)
|
22.2
|
20.4
|
21.7
|
20.8
|
85.1
|
- The New Afton Mine achieved a significant safety milestone in
late December reaching one million person-hours without lost-time
injury.
- The New Afton Mine produced 18,778 gold ounces for the quarter
and 77,329 ounces for the year, exceeding the high end of annual
guidance of between 55,000 and 65,000 gold ounces. Copper
production for the quarter was 20.8 million pounds and 85.1 million
pounds for the year, reaching the high end of annual guidance of
between 75 and 85 million pounds of copper.
- Operating expense per gold ounce was $375 for the quarter and $384 for the year, 16% lower than annual guidance
of between $455 and $495 per gold ounce. Operating expense per copper
pound for the quarter was $0.90 and
$0.93 for the year, 15% lower than
annual guidance of between $1.10 to
$1.30 per copper pound.
- All-in sustaining costs (AISC) per gold ounce for the quarter
were ($1,306) for the quarter and
($1,147) for the year, 12% lower than
annual guidance of between ($1,020)
and ($980) per gold ounce.
- Sustaining capital for the quarter was $5.0 million and $32.6
million for the year, primarily related to tailings dam
raises, equipment purchases and mill upgrades.
- Growth capital for the quarter was $1.0
million and $3.3 million for
the year, primarily related to the New Afton C-zone.
- An ore segregation strategy commenced during the quarter and
was further enhanced with the recent commissioning of an ore
scanner, which is expected to increase overall mill grade.
- The initial phase of a two-phase mill upgrade to address
supergene ore recovery was completed on time and on budget during
the quarter, which included the installation of pressure jigs and a
magnetic separator with commissioning currently underway. The
second phase of the planned upgrade will be launched during the
first quarter of 2019 with commissioning scheduled for the third
quarter.
- An internally funded development strategy (assuming a
$1,300 gold and $2.75 copper price and a foreign exchange rate of
1.30 Canadian dollars to 1 U.S. dollar) for the New Afton C-zone has been
launched. The development of the C-zone would provide mine life
extension to 2030 with robust economics.
Recent Corporate Highlights
- The sale of the Mesquite Mine was completed in the quarter for
gross proceeds of $158 million, with
net working capital adjustments of $4
million anticipated to be received in February.
- Mr. Rob Chausse was appointed as
Chief Financial Officer effective November
5, 2018. Mr. Chausse brings more than 25 years of
international finance experience exclusively in the mining sector
that enhances the collective experience of the leadership
team.
- On December 11, 2018, the Company
announced a restructuring of the senior leadership team to better
align the corporate structure with the smaller asset base of two
operating assets, the Rainy River and New Afton Mines, as well as
the Blackwater project.
Mineral Reserves and Resources (as of December 31, 2018)
As at December 31, 2018, New Gold
is reporting Mineral Reserves and Resources for the Company as
summarized in the table below. Detailed Mineral Reserve and
Resource tables follow at the end of this press release.
Mineral Reserves and Resources Summary1
|
As at December 31,
2018
|
Gold
koz
|
Silver
koz
|
Copper
Mlbs
|
Proven and
Probable Reserves
|
Rainy
River
|
4,186
|
12,116
|
-
|
New
Afton
|
1,077
|
3,280
|
903
|
Blackwater
|
8,170
|
60,800
|
-
|
Total Proven and
Probable
|
13,433
|
76,196
|
903
|
Measured and
Indicated resources
(exclusive of
reserves)(1)
|
4,600
|
19,699
|
891
|
Inferred
resources(1)
|
1,001
|
3,860
|
132
|
1. Refer to the detailed mineral
reserve and mineral resource tables follow at the end of this press
release.
|
- Consolidated gold reserves decreased by approximately 35,000
ounces as compared to year-end 2017 (mid-year 2018 for the Rainy
River Mine). This decrease includes approximately 218,000 ounces of
mining depletion at Rainy River
during Q3 and Q4 and approximately 79,000 ounces of mining
depletion at the New Afton Mine. Mining depletion was partially
offset by approximately 262,000 ounces of positive
resource-to-reserve conversions from updated mining designs and
operational plans.
- Measured and Indicated resources decreased marginally due to
the resource to reserve conversion at New Afton. Measured and
Indicated resources at Rainy River
and Blackwater remain materially
unchanged as compared to previously reported Measured and Indicated
resources.
- Inferred resources were relatively unchanged from the prior
year.
Conference Call and Webcast Information
- Participants may listen to the webcast by registering on our
website at www.newgold.com.
- Participants 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 March 14, 2019 by calling toll
free 1-855-859-2056, or 1-416-849-0833 outside of the U.S. and
Canada, passcode 3178625. An
archived webcast will also be available until May 14, 2019 at www.newgold.com.
About New Gold Inc.
New Gold is a Canadian-focused
intermediate gold mining company. The Company has a portfolio of
two core producing assets, the Rainy River and New Afton Mines in
Canada. The Company also operates
the Cerro San Pedro Mine in Mexico
(which transitioned to residual leaching in 2016). In addition, New
Gold owns 100% of the Blackwater
project located in Canada. New
Gold's objective is to be a leading intermediate gold producer,
focused on the environment and social responsibility. For further
information on the Company, please visit www.newgold.com.
Mineral Reserves and Resources (as of December 31, 2018)
Mineral Reserves Statement
|
|
Metal
grade
|
Contained
metal
|
|
Tonnes
000s
|
Gold
g/t
|
Silver
g/t
|
Copper
%
|
Gold
Koz
|
Silver
Koz
|
Copper
Mlbs
|
RAINY
RIVER
|
|
|
|
|
|
|
|
Direct processing
reserves
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
|
Proven
|
18,663
|
1.24
|
2.4
|
-
|
744
|
1,450
|
-
|
Probable
|
47,670
|
1.18
|
3.0
|
-
|
1,810
|
4,542
|
-
|
Open Pit P&P
(direct proc.)
|
66,333
|
1.20
|
2.8
|
-
|
2,554
|
5,993
|
-
|
Underground
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
8,954
|
3.55
|
9.5
|
-
|
1,021
|
2,728
|
-
|
Underground P&P
(direct proc.)
|
8,954
|
3.55
|
9.5
|
-
|
1,021
|
2,728
|
-
|
|
|
|
|
|
|
|
|
Low grade
reserves
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
|
Proven
|
8,430
|
0.36
|
2.0
|
-
|
97
|
541
|
-
|
Probable
|
32,714
|
0.35
|
2.3
|
-
|
366
|
2,428
|
-
|
Open Pit P&P
(low grade)
|
41,145
|
0.35
|
2.2
|
-
|
463
|
2,969
|
-
|
Surface
Stockpiles
|
|
|
|
|
|
|
|
Proven
|
7,307
|
0.63
|
1.8
|
-
|
147
|
426
|
-
|
Open Pit P&P
(stockpile)
|
7,307
|
0.63
|
1.8
|
-
|
147
|
426
|
-
|
|
|
|
|
|
|
|
|
Combined
P&P
|
|
|
|
|
|
|
|
Proven
|
34,400
|
0.89
|
2.4
|
-
|
989
|
2,291
|
-
|
Probable
|
89,339
|
1.11
|
3.4
|
-
|
3,197
|
9,825
|
-
|
Total Rainy River
P&P
|
123,739
|
1.05
|
3.0
|
-
|
4,186
|
12,116
|
-
|
NEW
AFTON
|
|
|
|
|
|
|
|
A&B
Zones
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
25,731
|
0.51
|
1.9
|
0.74
|
420
|
1,612
|
420
|
C-zone
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
26,911
|
0.76
|
1.9
|
0.82
|
657
|
1,668
|
484
|
Total New Afton
P&P
|
52,642
|
0.64
|
1.9
|
0.78
|
1,077
|
3,280
|
903
|
BLACKWATER
|
|
|
|
|
|
|
|
Direct processing
reserves
|
|
|
|
|
|
|
|
Proven
|
124,500
|
0.95
|
5.5
|
-
|
3,790
|
22,100
|
-
|
Probable
|
169,700
|
0.68
|
4.1
|
-
|
3,730
|
22,300
|
-
|
P&P (direct
proc.)
|
294,300
|
0.79
|
4.7
|
-
|
7,510
|
44,400
|
-
|
Low grade
reserves
|
|
|
|
|
|
|
|
Proven
|
20,100
|
0.50
|
3.6
|
-
|
330
|
2,300
|
-
|
Probable
|
30,100
|
0.34
|
14.6
|
-
|
330
|
14,100
|
-
|
P&P (low
grade)
|
50,200
|
0.40
|
10.2
|
-
|
650
|
16,400
|
-
|
|
|
|
|
|
|
|
|
Combined Direct
proc. & Low grade
|
|
|
|
|
|
|
|
Proven
|
144,600
|
0.88
|
5.3
|
-
|
4,110
|
24,400
|
-
|
Probable
|
199,800
|
0.63
|
5.7
|
-
|
4,050
|
36,400
|
-
|
Total Blackwater
P&P
|
344,400
|
0.74
|
5.5
|
-
|
8,170
|
60,800
|
-
|
TOTAL PROVEN &
PROBABLE RESERVES
|
|
|
|
13,433
|
76,136
|
903
|
Measured & Indicated (exclusive of Reserves)
|
|
Metal
grade
|
Contained
metal
|
|
Tonnes
000s
|
Gold
g/t
|
Silver
g/t
|
Copper
%
|
Gold
Koz
|
Silver
Koz
|
Copper
Mlbs
|
RAINY
RIVER
|
|
|
|
|
|
|
|
Direct processing
resources
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
|
Measured
|
2,990
|
1.13
|
5.6
|
-
|
109
|
534
|
-
|
Indicated
|
26,370
|
1.13
|
3.3
|
-
|
955
|
2,759
|
-
|
Open Pit M&I
(direct proc.)
|
29,360
|
1.13
|
3.5
|
-
|
1,064
|
3,292
|
-
|
Underground
|
|
|
|
|
|
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
7,908
|
3.06
|
8.6
|
-
|
778
|
2,188
|
-
|
Underground M&I
(direct proc.)
|
7,908
|
3.06
|
8.6
|
-
|
778
|
2,188
|
-
|
Low grade
resources
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
|
Measured
|
2,465
|
0.35
|
3.1
|
-
|
28
|
248
|
-
|
Indicated
|
23,135
|
0.36
|
2.1
|
-
|
269
|
1,592
|
-
|
Open Pit M&I
(low grade)
|
25,600
|
0.36
|
2.2
|
-
|
297
|
1,840
|
-
|
Combined
M&I
|
|
|
|
|
|
|
|
Measured
|
5,455
|
0.78
|
4.5
|
-
|
137
|
782
|
-
|
Indicated
|
57,412
|
1.08
|
3.5
|
-
|
2,002
|
6,539
|
-
|
Total Rainy River
M&I
|
62,867
|
1.06
|
3.6
|
-
|
2,139
|
7,321
|
-
|
NEW
AFTON
|
|
|
|
|
|
|
|
A&B
Zones
|
|
|
|
|
|
|
|
Measured
|
15,239
|
0.64
|
2.0
|
0.86
|
315
|
972
|
289
|
Indicated
|
8,530
|
0.51
|
2.8
|
0.77
|
140
|
776
|
145
|
A&B Zone
M&I
|
23,769
|
0.60
|
2.3
|
0.83
|
455
|
1,748
|
434
|
C-zone
|
|
|
|
|
|
|
|
Measured
|
5,711
|
0.79
|
2.0
|
0.96
|
144
|
366
|
120
|
Indicated
|
11,976
|
0.72
|
2.1
|
0.87
|
279
|
809
|
230
|
C-zone
M&I
|
17,687
|
0.74
|
2.1
|
0.90
|
423
|
1,174
|
350
|
HW
Lens
|
|
|
|
|
|
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
10,951
|
0.52
|
2.1
|
0.44
|
183
|
722
|
107
|
HW Lens
M&I
|
10,951
|
0.52
|
2.1
|
0.44
|
183
|
722
|
107
|
Combined
M&I
|
|
|
|
|
|
|
|
Measured
|
20,950
|
0.68
|
2.0
|
0.89
|
459
|
1,338
|
410
|
Indicated
|
31,457
|
0.60
|
2.3
|
0.69
|
602
|
2,307
|
481
|
Total New Afton
M&I
|
52,407
|
0.63
|
2.2
|
0.77
|
1,061
|
3,645
|
891
|
BLACKWATER
|
|
|
|
|
|
|
|
Direct processing
resources
|
|
|
|
|
|
|
|
Measured
|
288
|
1.39
|
6.6
|
-
|
13
|
61
|
-
|
Indicated
|
45,249
|
0.84
|
4.6
|
-
|
1,225
|
6,692
|
-
|
M&I (direct
proc.)
|
45,537
|
0.85
|
4.6
|
-
|
1,238
|
6,753
|
-
|
Low grade
resources
|
|
|
|
|
|
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
15,779
|
0.32
|
3.9
|
-
|
162
|
1,980
|
-
|
M&I (low
grade)
|
15,779
|
0.32
|
3.9
|
-
|
162
|
1,980
|
-
|
Total Blackwater
M&I
|
61,316
|
0.71
|
4.4
|
-
|
1,400
|
8,733
|
-
|
Total M&I
RESOURCES
|
|
|
|
|
4,600
|
19,699
|
891
|
Inferred Mineral Resources
|
|
Metal
grade
|
Contained
metal
|
|
Tonnes
000s
|
Gold
g/t
|
Silver
g/t
|
Copper
%
|
Gold
Koz
|
Silver
Koz
|
Copper
Mlbs
|
|
|
|
|
|
|
|
|
RAINY
RIVER
|
|
|
|
|
|
|
|
Direct
processing
|
|
|
|
|
|
|
|
Open Pit
|
5,883
|
1.17
|
3.1
|
-
|
222
|
578
|
-
|
Underground
|
1,270
|
3.68
|
3.8
|
-
|
150
|
156
|
-
|
Total Direct
Processing
|
7,153
|
1.62
|
3.2
|
-
|
372
|
733
|
-
|
Low grade
resources
|
|
|
|
|
|
|
|
Open Pit
|
6,049
|
0.37
|
1.4
|
-
|
72
|
274
|
-
|
Rainy River
Inferred
|
13,202
|
1.05
|
2.4
|
-
|
444
|
1,007
|
-
|
NEW
AFTON
|
|
|
|
|
|
|
|
A&B
Zones
|
6,530
|
0.35
|
1.4
|
0.38
|
74
|
295
|
54
|
C-zone
|
7,034
|
0.43
|
1.4
|
0.51
|
98
|
309
|
77
|
HW Lens
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
New Afton
Inferred
|
13,564
|
0.39
|
1.4
|
0.45
|
172
|
605
|
132
|
BLACKWATER
|
|
|
|
|
|
|
|
Direct
processing
|
13,905
|
0.76
|
4.0
|
-
|
341
|
1,788
|
-
|
Low grade
resources
|
4,207
|
0.33
|
3.4
|
-
|
44
|
460
|
-
|
Blackwater
Inferred
|
18,112
|
0.66
|
3.9
|
-
|
385
|
2,248
|
-
|
TOTAL
INFERRED
|
|
|
|
|
1,001
|
3,860
|
132
|
Notes to Mineral Reserve and Resource Estimates
1. New Gold's Mineral Reserves and Mineral Resources have been
estimated in accordance with the CIM Standards, which are
incorporated by reference in NI 43-101.
2. All Mineral Reserve and Mineral Resource estimates for New
Gold's properties and projects are effective December 31, 2018.
3. New Gold's year-end 2018 Mineral Reserves and Mineral
Resources have been estimated based on the following metal prices
and foreign exchange (FX) rate criteria:
|
Gold
$/ounce
|
Silver
$/ounce
|
Copper
$/pound
|
FX
CAD:USD
|
Mineral
Reserves
|
$1,275
|
$17.00
|
$3.00
|
1.30
|
Mineral
Resources
|
$1,350
|
$18.00
|
$3.25
|
1.30
|
4. Lower cut-offs for the Company's Mineral Reserves and
Mineral Resources are outlined in the following table:
Mineral
Property
|
Mineral
Reserves
Lower
cut-off
|
Mineral
Resources
Lower
Cut-off
|
Rainy
River
|
O/P direct
processing:
|
0.30 – 0.50 g/t
AuEq
|
0.30 – 0.50 g/t
AuEq
|
|
O/P low grade
material:
|
0.30 g/t
AuEq
|
0.30 g/t
AuEq
|
|
U/G direct
processing:
|
2.20 g/t
AuEq
|
2.00 g/t
AuEq
|
New Afton
|
Main Zone – B1 &
B2 Blocks:
|
C$ 17.00/t
|
All Resources:
0.40% CuEq
|
|
B3 Block &
C-zone:
|
C$ 24.00/t
|
Blackwater
|
O/P direct
processing:
|
0.26 – 0.38 g/t
AuEq
|
All Resources:
0.40 g/t AuEq
|
|
O/P low grade
material:
|
0.32 g/t
AuEq
|
5. New Gold reports its measured and indicated mineral resources
exclusive of mineral reserves. Measured and indicated mineral
resources that are not mineral reserves do not have demonstrated
economic viability. Inferred mineral resources have a greater
amount of uncertainty as to their existence and technical
feasibility, do not have demonstrated economic viability, and are
likewise exclusive of mineral reserves. Numbers may not add
due to rounding.
6. Mineral resources are classified as measured, indicated and
inferred based on relative levels of confidence in their estimation
and on technical and economic parameters consistent with the
methods considered to be most suitable to their potential
commercial extraction. The designators 'open pit' and 'underground'
may be used to indicate the envisioned mining method for different
portions of a resource. Similarly the designators 'direct
processing' and 'lower grade material' may be applied to
differentiate material envisioned to be mined and processed
directly from material to be mined and stored separately for future
processing. Mineral reserves and mineral resources may be
materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing and other risks and relevant
issues. 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 Technical
Reports, which are available at www.sedar.com.
7. The preparation of New Gold's consolidated statement and
estimation of mineral reserves has been completed under the
oversight and review of Mr. Nicholas
Kwong, Director of Technical Services for the Company. Mr.
Kwong is a Professional Engineer and member of the Professional
Engineers of Ontario. Preparation of the New Gold's
consolidated statement and estimation of mineral resources has been
completed under the oversight and review of Mr. Mark Petersen, a consultant to New Gold and
former Vice President, Exploration for the Company. Mr. Petersen is
an SME Registered Member, AIPG Certified Professional Geologist.
Messrs. Kwong and Petersen are "Qualified Persons" as defined by NI
43-101.
Cautionary Note Regarding Forward-Looking
Statements
Certain information contained
in this news release, including any information relating to New
Gold's future financial or operating performance are "forward
looking". All statements in this news release, other than
statements of historical fact, which address events, results,
outcomes or developments that New Gold expects to occur are
"forward-looking statements". Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by the use of forward-looking terminology such
as "plans", "expects", "is expected", "budget", "scheduled",
"targeted", "estimates", "forecasts", "intends", "anticipates",
"projects", "potential", "believes" or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "should", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation of such terms.
Forward-looking statements in this news release include, among
others, statements with respect to: mineral resources and
mineral reserve estimates; completion of construction capital and
mill upgrade at Rainy River,
expectations with respect to mill recoveries; the launch in 2019 of
a comprehensive review of alternative underground mining scenarios
as well as potential operational and cost efficiencies at Rainy
River; timing of the second phase of the planned mill upgrade
at New Afton; the expectations with respect to extending mine life
at New-Afton as a result of the development of the C-zone;
and the sources of funding and potential financial
performance of the New Afton C-zone.
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 and U.S. dollar, and to a lesser
extent, the Mexican Peso, 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 mine and
Blackwater project being
consistent with New Gold's current expectations; and (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
during the applicable regulatory processes; (9) the result of
feasibility studies and other studies being realized, and (10)
metals and other commodity prices and exchange rates being
consistent with those estimated for the purposes of 2019
guidance.
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 and, to a lesser extent,
Mexico; discrepancies between
actual and estimated production, between actual and estimated
mineral reserves and mineral resources and between actual and
estimated metallurgical recoveries; 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; fluctuation in treatment and refining
charges; changes in national and local government legislation in
Canada, the United States and, to a lesser extent,
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, 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; 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; 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. 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 a mine
with relatively limited history of commercial production, 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.
Technical Information
The scientific and technical
information relating to mineral reserves and mineral resources
estimate contained herein has been reviewed and approved by Mr.
Mark A. Petersen, a consultant to
New Gold and its former Vice President, Exploration. All other
scientific and technical information has been reviewed and approved
by Mr. Nicholas Kwong, Director,
Business Improvement of New Gold. Mr. Petersen is an SME Registered
Member and AIPG Certified Professional Geologist. Mr. Kwong is a
Professional Engineer and a member of the Association of
Professional Engineers and Geoscientists of British Columbia. Messrs. Petersen
and Kwong are "Qualified Persons" for the purposes of NI
43-101.
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.
Non-GAAP Financial Performance Measures
Cash costs per
gold ounce, all-in sustaining costs (AISC) per gold ounce,
sustaining capital and growth capital are non-GAAP financial
measures that 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. The Company believes that these measures, together with
measures determined in accordance with IFRS, provide investors with
an improved ability to evaluate the underlying performance of the
Company. In addition, certain non-GAAP measures are utilized, along
with other measures, in the Company scorecard to set incentive
compensation goals and assess performance of its executives.
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.
"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. New Gold
terms non-sustaining capital costs to be "growth capital".
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, 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.
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.
Adjusted Net Earnings/(Loss)
"Adjusted net
earnings/(loss)" and "adjusted net earnings/(loss) per share" are
non-GAAP financial measures. Net earnings/(loss) have been adjusted
and tax affected for the group of costs in "Other gains and
losses", impairment losses, inventory write-downs and certain
non-recurring items 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
earnings/(loss) 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.
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.
For additional information with respect to the non-GAAP measures
used by the Company, including reconciliation to the nearest IFRS
measures, refer to the detailed Non-GAAP performance measure
disclosure in the Management's Discussion and Analysis for the year
ended December 31, 2018 filed at
www.sedar.com and on EDGAR at www.sec.gov.
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SOURCE New Gold Inc.