February 18, 2021- New Gold Inc. (“New Gold” or the
“Company”) (TSX and NYSE American: NGD) provides its annual
operational outlook for the New Afton Mine, which had been delayed
due to the mud-rush incident that occurred on February 2, 2021. The
Company is also providing its annual consolidated operational
outlook. The operational outlook for the Rainy River Mine was
previously issued on February 10, 2021. All amounts are in U.S.
dollars unless otherwise indicated.
On February 2, 2021, a tragic mud-rush incident occurred at the
New Afton Mine with a contract driller fatally injured. The
mud-rush was localized underneath the Lift 1 cave in the isolated
recovery zone area, which does not interact with other areas of the
mine, including the B3 and C-Zone areas. Underground operations, as
well as B3 and C-Zone development, have resumed. Underground mining
activities will continue to be safely and sequentially ramped-up as
we maintain our focus on the health, safety and wellbeing of our
people. Surface operations were not impacted, and the mill facility
is currently processing ore from the mine as well as from the
surface stockpiles.
“As we continue to ramp-up underground operations at the New
Afton Mine, our primary focus will remain on the health, safety and
wellbeing of our people. Production will ramp-up throughout the
year with first ore extraction from B3 expected in the second
quarter. We expect production will be higher in the second half of
the year as B3 comes online and contributes an increasing
proportion of mill feed,” stated Renaud Adams, President and CEO.
“Over the past number of months, the New Afton Mine has been
introducing new technologies and expanding its autonomous mining
fleet and will continue to leverage technology to further optimize
mine and mill performance over the coming years.”
New Afton 2021 Guidance Estimates
The operational outlook for the New Afton Mine assumes that our
operations will continue without any significant COVID-19-related
interruptions. New Gold continues to maintain preventative measures
at all our sites to protect our workforce and communities, and to
mitigate the effects of COVID-19 on our operations. Any reduction
or suspension of our operations due to COVID-19, could impact our
ability to achieve the New Afton 2021 outlook. Please see the
Cautionary Notes Regarding Forward-Looking Statements at the end of
this news release.
In 2021, the Company will continue to report production on a
gold equivalent (“gold eq.”) basis as well as on a per-metal basis.
Cash costs and All-in Sustaining Costs (“AISC”) will be reported on
a per gold eq. ounce basis. Guidance has been prepared assuming
$1,800 per gold ounce, $3.50 per pound of copper and $25 per silver
ounce and a foreign exchange rate of 1.28 Canadian dollars to the
US dollar.
New Afton Mine 2021
Operational and Cost Guidance
Operational Estimates
2021 Guidance
Gold Produced (ounces)
52,000 – 62,000
Copper Produced (Mlbs)
56 - 66
Gold Eq. Produced (ounces)1
165,000 – 195,000
Cash Costs per gold eq. ounce1,2
$930 - $1,010
All-in Sustaining Costs per gold eq.
ounce1,2
$1,225 - $1,325
Capital Investment & Exploration
Expense Estimates
2021 Guidance
Sustaining Capital & Sustaining Leases
($M)2
$40 - $60
Growth Capital ($M)2
$80 - $110
Exploration Expense ($M)
~$12
- Gold eq. ounces includes approximately 250,000 to 270,000
ounces of silver
- These are non-GAAP financial performance measures with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures provided by other issuers. For more information
on these non-GAAP financial performance measures, refer to the
“Non-GAAP Financial Performance Measures” section of this press
release.
New Afton Sustainability and ESG
Our key focus areas for New Afton include tailings management,
energy reduction plans and Indigenous relations. In 2020, we began
construction of our Thickened and Amended Tailings facility
("TAT"), which will support more efficient water management and
improve long-term environmental impacts. As part of the Company's
climate action plan, New Afton continues to explore options to
reduce energy use on site. In 2020, New Afton was able to achieve a
reduction in fossil fuel consumption and recently purchased an
electric boom truck, two electric haul trucks and one electric
scoop. The introduction of these vehicles is an important step in
our C-Zone development and greenhouse gas reduction targets. Our
relationships with surrounding Indigenous partners remain strong as
we actively collaborate to improve the benefits to the surrounding
areas based on mine expansion.
New Afton Operational Outlook
The mine plan for the year was adjusted following the tragic
mud-rush event that occurred on February 2, 2021. Underground
mining activities are safely and sequentially ramping-up as we
continue to maintain our focus on the health, safety and wellbeing
of our people. The adjusted plan contemplates lower tonnes mined
from the recovery level, as mining operations will be limited to
remote mucking activities. It is expected that mining on Lift 1,
which includes the West cave, East cave and pillar recovery (“Lift
1”), will ramp-up during the first quarter and return to
pre-incident mining rates in the second quarter, which is expected
to be maintained over the balance of the year. It is expected that
the B3 permit will be received in the latter part of the first
quarter and ore extraction from the B3 zone will begin during the
second quarter and ramp up over the year as more draw points are
accessible. As a result of lower tonnes mined during the year, a
portion of current surface stockpiles will be processed to
supplement mill feed. C-Zone development will continue to be
advanced as planned and the project remains on schedule.
- Gold eq. production is expected to be slightly lower than the
prior year, primarily due to lower tonnes processed and lower
grades as stockpiles supplement mill feed during the year, as a
result of lower tonnes mined during the year.
- Cash costs1 per gold eq. ounce are expected to increase over
the prior year as a result of lower production. Operating expense
is expected to be between $820 and $900 per gold eq. ounce.
- During the year, depreciation and depletion is expected to
average between $300 and $380 per gold eq. ounce for the New Afton
Mine.
- Sustaining capital1 is expected to remain in-line with the
prior year, primarily related to B3 mine development and includes
approximately $10 million related to delays in capital projects
experienced in 2020 and the reclassification of $10 million of
deferred growth capital to sustaining capital.
- AISC1 are expected to increase as compared to the prior year,
primarily due to higher cash costs expected for the year and lower
production.
- Growth capital1 is expected to be higher than the prior year,
in-line with plan, as C-Zone development activities increase and
includes approximately $10 million due to delays in capital
projects experienced in 2020.
- The initial phase of a 10,000-metre exploration drilling
program was launched in late 2020 to test the 12-kilometre
potential for near surface epithermal and porphyry style
mineralization on the Cherry Creek trend, located within three
kilometres of the New Afton Mill. The drilling program will
continue to be advanced during the year and could be expanded based
on results.
2021 New Afton Key Performance
Indicators
Key Performance Indicators
2021 Estimates1
Tonnes mined per day
12,250 - 13,000
Tonnes milled per day
14,250 – 14, 550
Gold grade milled (g/t)
0.40 – 0.45
Gold recovery (%)
78 – 80
Copper grade milled (%)
0.65 – 0.70
Copper recovery (%)
75 - 80
B3 Development
~1,350
C-Zone Development
~4,000
- These estimates are based on assumptions
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. See Cautionary Note
Regarding Forward-Looking Statements for more details.
The adjusted mine plan considers an average daily rate of
approximately 12,250 to 13,000 tonnes per day and includes mining
from Lift 1, recovery level and the B3 zone.
- The adjusted mine plan contemplates lower tonnes from the
recovery level, which will be limited to remote mucking rather than
manual mucking as considered in the original plan. It is expected
that mining on the recovery level will average approximately 1,700
tonnes per day for the remainder of the year, approximately half of
the original plan of 3,500 tonnes per day, and approximately 10-15%
of the total tonnes mined for the year. The recovery level is
expected to be fully exhausted in 2022.
- It is expected that mining in Lift 1 will ramp up during the
first half of the year and return to pre-incident mining rates in
the second quarter that will be maintained over the balance of the
year. The tonnes mined from Lift 1 represents approximately 60-65%
of the total tonnes mined for the year.
- It is expected that B3 ore extraction will start during the
second quarter and ramp up during the year to reach a more
sustainable rate by the fourth quarter. The tonnes mined from B3
represents approximately 20-25% of the total tonnes mined for the
year.
- The milling rate is expected to be maintained throughout the
year at approximately 14,400 tonnes per day, incorporating the
current surface stockpiles to supplement the lower tonnes
mined.
- During 2021, sustaining capital projects will continue to focus
on advancing the development of the B3 zone. A total of
approximately 1,350 metres of development are planned for the year.
Lateral development completed in 2020 is sufficient to support the
initiation of cave construction that positions B3 for production
beginning in the second quarter of the year. Sustaining capital is
expected to be generally consistent throughout the year.
- Growth capital for the year is primarily related to the
advancement of the C-Zone project, primarily focused on mine
development, with a total of approximately 4,000 metres planned for
the year, and construction of the TAT facility, with the
commissioning of the thickener expected in the fourth quarter.
Stabilization work related to the Historic Afton Tailings Facility,
as well as the current tailing facilities, will continue during the
year. Growth capital is expected to be generally consistent
throughout the year.
2021 Consolidated Operational Outlook
The Company is providing its operational outlook for 2021 with
company-wide gold eq. production expected to be consistent with the
prior year that includes an approximate 22% increase in production
from the Rainy River Mine, and lower production from the New Afton
Mine. Consolidated cash costs are expected to be in-line with the
prior year, with lower cash costs from the Rainy River Mine and
higher cash costs from the New Afton Mine. All-in Sustaining Costs
(“AISC”)1 are expected to decline primarily due to lower cash costs
and sustaining capital requirements at Rainy River. Growth capital
is expected to increase over the prior year, primarily related to
the New Afton C-Zone project development.
New Gold Consolidated Operational Estimates
In 2021, the Company will continue to report production on a
gold eq. basis as well as on a per-metal basis. Cash costs and AISC
will be reported on a per gold eq. ounce basis. Guidance has been
prepared assuming $1,800 per gold ounce, $3.50 per pound of copper
and $25 per silver ounce and a foreign exchange rate of 1.28
Canadian dollars to the US dollar.
2021 Operational and Cost
Guidance
Operational Estimates
Rainy River
New Afton
Consolidated Guidance
Gold Produced (ounces)
270,000 – 290,000
52,000 – 62,000
322,000 – 352,000
Copper Produced (Mlbs)
-
56 - 66
56 - 66
Gold Eq. Produced (ounces)1
275,000 – 295,000
165,000 – 195,000
440,000 – 490,000
Cash Costs per gold eq. ounce1,2
$715 - $795
$930 - $1,010
$810 - $890
Corporate G&A per gold eq. ounce1
-
-
$45 - $55
All-in Sustaining Costs per gold eq.
ounce1,2
$1,125 - $1,225
$1,225 - $1,325
$1,230 - $1,330
Capital Investment & Exploration
Expense Estimates
Rainy River
New Afton
Consolidated Guidance
Sustaining Capital & Sustaining Leases
($M)2
$95 - $125
$40 - $60
$135 - $185
Growth Capital ($M)2
$10 - $15
$80 - $110
$90 - $125
Exploration Expense ($M)
~$5
~$12
~$17
- Gold eq. ounces includes approximately 538,000 to 568,000
ounces of silver at Rainy River and approximately 250,000 to
270,000 ounces of silver at New Afton.
- These are non-GAAP financial performance measures with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures provided by other issuers. For more information
on these non-GAAP financial performance measures, refer to the
“Non-GAAP Financial Performance Measures” section of this press
release. below.
About New Gold Inc.
New Gold is a Canadian-focused intermediate gold mining company
with a portfolio of two core producing assets in Canada, the Rainy
River and New Afton Mines. The Company also holds an 8% gold stream
on the Artemis Gold Blackwater Project located in British Columbia
and a 6% equity stake in Artemis. The Company also operates the
Cerro San Pedro Mine in Mexico (in reclamation). New Gold's vision
is to build a leading diversified intermediate gold company based
in Canada that is committed to environment and social
responsibility. For further information on the Company, visit
www.newgold.com.
Endnote
1. All-in sustaining costs per gold eq. ounce, cash costs per
gold ounce and per gold eq. ounce, sustaining capital &
sustaining lease 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. These measures 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. Refer to the “Non-GAAP Financial Performance Measures”
section of this press release below for additional details on these
non-GAAP financial performance measures.
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 is “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: the Company’s
plans for ramping up operations at New Afton; the timing of
production and extent of production from the B3 zone and other area
in 2021; the use of stockpiles in 2021; the Company’s production,
cash costs, all-in sustaining costs, growth and sustaining capital
at New Afton in 2021 and expected key performance indicators.
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”), its most recent annual information form and technical
reports on the Rainy River Mine and New Afton Mine 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 other than
as set out herein; (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) prices of gold, silver, copper and certain
other commodities being approximately consistent with current
levels; (5) the exchange rate between the Canadian dollar and U.S.
dollar, being approximately consistent with current levels; (6)
prices for diesel, natural gas, fuel oil, electricity and other key
supplies being approximately consistent with current levels; (7)
equipment, labour and materials costs increasing on a basis
consistent with New Gold’s current expectations; (8) arrangements
with First Nations and other Aboriginal groups in respect of the
New Afton Mine being consistent with New Gold’s current
expectations, particularly in the context of the outbreak of
COVID-19; (9) 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; (10) there being no new significant disruptions to the
Company’s workforce at the New Afton Mine due to cases of COVID-19
(or new and more highly contagious variants thereof), or any
required self-isolation requirements (due, among other things, to
cross-border travel to the United States or any other country);
(11) the responses of the relevant governments to the COVID-19
outbreak being sufficient to contain the impact of the COVID-19
outbreak; (12) there being no material disruption to the Company’s
supply chains and workforce that would interfere with the Company’s
anticipated course of action at the New Afton Mine and the
systematic ramp-up of operations; and (13) the long-term economic
effects of the COVID-19 outbreak not having a material adverse
impact on the Company’s operations or liquidity position.
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; disruptions to the Company’s workforce at
either the Rainy River Mine or the New Afton Mine, or both due to
cases of COVID-19 (or new and more highly contagious variants
thereof), or any required self-isolation (due, among other things,
to cross-border travel to the United States or any other country);
the responses of the relevant governments to the COVID-19 outbreak
not being sufficient to contain its impact; disruptions to the
Company’s supply chain and workforce due to the COVID-19 outbreak;
an economic recession or downturn as a result of the COVID-19
outbreak that materially adversely affects the Company’s operations
or liquidity position; there being further shutdowns at the Rainy
River or New Afton Mines; the Company not being able to complete
its construction projects at the Rainy River Mine or the New Afton
Mines on the timing described herein or at all; the Company not
being able to complete the exploration drilling program to be
launched at the Rainy River Mine and Cherry Creek on the timing
described herein or at all; Artemis Gold Inc. not being able to
make the remaining C$50 million cash payment due on August 24,
2021. In addition, there are risks and hazards associated with the
business of mineral exploration, development and mining, including
environmental events and hazards, industrial accidents, unusual or
unexpected formations, pressures, cave-ins, flooding and gold
bullion losses (and the risk of inadequate insurance or inability
to obtain insurance to cover these risks) as well as “Risk Factors”
included in New Gold’s 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
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.
Non-GAAP Financial Performance Measures
All-in sustaining costs (AISC) per gold eq. ounce, cash costs
per gold ounce and per gold eq. ounce, sustaining capital,
sustaining lease 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.
These measures 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 the performance of its
executives.
Cash Costs and Total Cash Costs
“Cash costs”, “cash costs per gold eq. ounce” and “total cash
costs” are non-GAAP financial measures which are calculated in
accordance with a standard developed by The Gold Institute, a
worldwide association of suppliers of gold and gold products that
ceased operations in 2002. Adoption of the standard is voluntary,
and the cost measures presented may not be comparable to other
similarly titled measures of other companies. 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, but are
exclusive of amortization, reclamation, capital and exploration
costs. Total cash costs per gold ounce are net of by-product sales
and are divided by gold ounces sold to arrive at a per ounce
figure. Total cash costs per gold eq. ounce are divided by gold eq.
ounces sold to arrive at a per ounce figure. Unless otherwise
indicated, all total cash cost information in this news release is
on a gold eq. ounce basis. Gold eq. ounces of copper and silver
produced in a quarter are computed by calculating the ratio of the
average spot market copper and silver prices to the average spot
market gold price in a quarter and multiplying this ratio by the
pounds of copper and silver ounces produced during that quarter.
Gold eq. ounces produced in a period longer than one quarter are
calculated by adding the number of gold eq. ounces in each quarter
of that period. In 2020 the Company will report gold eq. ounces
using a consistent ratio. This data is furnished to provide
additional information and is a non-GAAP financial measure. Total
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.
All-In Sustaining Costs per Gold eq. Ounce
“All-in sustaining costs per gold eq. 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, 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, lease payments that are sustaining in nature,
and environmental reclamation costs, all divided by the ounces of
gold eq. sold to arrive at a per ounce figure.
In addition to gold, the Company produces copper and silver.
Gold eq. ounces of copper and silver produced or sold in a quarter
are computed by calculating the ratio of the average spot market
copper and silver prices to the average spot market gold price in a
quarter and multiplying this ratio by the pounds of copper and
silver ounces produced or sold during that quarter. Gold eq. ounces
produced or sold in a period longer than one quarter are calculated
by adding the number of gold eq. ounces in each quarter of that
period. In 2020 the Company will report gold eq. ounces using a
consistent ratio. Notwithstanding the impact of copper and silver
sales, as a Company focused on gold production, New Gold aims to
assess the economic results of its operations in relation to gold,
which is the primary driver of New Gold’s business.
New Gold believes this 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 Capital and Sustaining Lease
“Sustaining capital” and “sustaining lease” are non-GAAP
financial measures. New Gold defines sustaining capital as net
capital expenditures that are intended to maintain operation of its
gold producing assets. A sustaining lease is similarly a capital
lease payment that is sustaining in nature. To determine sustaining
capital expenditures, New Gold uses cash flow related to mining
interests from its statement of cash flows and deducts any
expenditures that are non-sustaining or growth capital. Management
uses sustaining capital and other sustaining costs, to understand
the aggregate net result of the drivers of all-in sustaining costs
other than total cash costs. Sustaining capital and sustaining
lease are intended to provide additional information only, do 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.
Growth Capital
“Growth capital” is a non-GAAP financial measure. New Gold terms
non-sustaining capital costs to be “growth capital”, which are
capital expenditures to develop new operations or capital
expenditures related to major projects at existing operations where
these projects will materially increase production. To determine
growth capital expenditures, New Gold uses cash flow related to
mining interests from its statement of cash flows and deducts any
expenditures that are sustaining capital. Growth capital 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.
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 nine
months ended September 30, 2020 filed at www.sedar.com and on EDGAR
at www.sec.gov.
Cautionary Note Regarding Mineral Reserve and Mineral
Resource Estimates
Disclosure regarding Mineral Reserve and Mineral Resource
estimates included in this News Release was prepared in accordance
with Canadian National Instrument 43-101 Standards of Disclosure
for Mineral Projects (“NI 43-101”). NI 43-101 is a rule
developed by the Canadian Securities Administrators that
establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects.
NI 43-101 differs significantly from the disclosure requirements of
the United States Securities and Exchange Commission (“SEC”)
generally applicable to U.S. companies. For example, the terms
“mineral reserve”, “proven mineral reserve”, “probable mineral
reserve”, “mineral resource”, “measured mineral resource”,
“indicated mineral resource” and “inferred mineral resource” are
defined in NI 43-101. These definitions differ from the definitions
in the disclosure requirements promulgated by the SEC. Accordingly,
information contained in this News Release will not be comparable
to similar information made public by U.S. companies reporting
pursuant to SEC disclosure requirements.
Technical Information
The scientific and technical information relating to the Mineral
Reserves contained herein has been reviewed and approved by Andrew
Croal, Director, Technical Services for the Company. The scientific
and technical information relating to the Mineral Resources
contained herein has been reviewed and approved by Michele Della
Libera, Director, Exploration for the Company. All other scientific
and technical information in this News Release has been reviewed
and approved by Mr. Eric Vinet, Vice President, General Manager,
Rainy River for the Company. Mr. Croal is a Professional Engineer
and a member of the Professional Engineers of Ontario. Mr. Della
Libera is a Professional Geologist and a member of the Association
of Professional Geoscientists of Ontario and the Engineers and
Geoscientists British Columbia. Mr. Vinet is a Professional
Engineer and member of the Ordre des ingénieurs du Québec. Mr.
Croal, Mr. Della Libera and Mr. Vinet are "Qualified Persons" for
the purposes of NI 43-101. To the Company’s knowledge, each of the
aforementioned persons holds less than 1% of the outstanding
securities of the Company.
The estimates of Mineral Reserves and Mineral Resources
discussed in this News Release may be materially affected by
environmental, permitting, legal, title, taxation, sociopolitical,
marketing and other risks and relevant issues. New Gold’s current
NI 43-101 Technical Reports, which are available at www.sedar.com,
contain further information regarding Mineral Reserve and Mineral
Resource estimates, classification, reporting parameters, key
assumptions and risks for each of New Gold's material mineral
properties.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210218006071/en/
Anne Day Vice President, Investor Relations Direct: +1
(416) 324-6003 Email: anne.day@newgold.com
New Gold (AMEX:NGD)
Historical Stock Chart
From Aug 2024 to Sep 2024
New Gold (AMEX:NGD)
Historical Stock Chart
From Sep 2023 to Sep 2024