Achieves 2021 Updated Consolidated Guidance;
Rainy River Mine Converts 569,000 Underground Gold Ounces to
Mineral Reserves
(All amounts are in U.S. dollars unless
otherwise indicated)
TORONTO, Feb. 23, 2022 /CNW/ - February 23, 2022 – New Gold Inc. ("New Gold" or
the "Company") (TSX: NGD) (NYSE American:
NGD) reports fourth quarter and full year 2021 results,
updates Mineral Reserves and Mineral Resources for the Company as
of December 31, 2021, and provides
its 2022 operational outlook. The Company will host a conference
call and webcast today at 8:30 am Eastern
Time to discuss these items (details are provided at the end
of this news release). For detailed information, please refer to
the Company's Management's Discussion and Analysis ("MD&A") and
consolidated financial statements for the year ended December 31, 2021 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 news release. Please refer to the "Non-GAAP
Financial Performance Measures" section of this news release and
the MD&A for more information. Numbered note references
throughout this news release are to endnotes which can be found at
the end of this news release.
Consolidated Fourth Quarter and Full Year Highlights
- Total production for the fourth quarter was 111,574 gold
equivalent1 ("gold eq.") ounces (81,072 ounces of gold,
214,030 ounces of silver and 14.2 million pounds of copper). For
the year, production was 418,933 gold eq.1 ounces
(286,921 ounces of gold, 867,961 ounces of silver and 61.7 million
pounds of copper). The Company achieved the updated consolidated
gold equivalent guidance range.
- Operating expenses for the quarter were $912 per gold eq. ounce and $938 per gold eq. ounce for the year.
- Total cash costs2 for the quarter were $965 per gold eq. ounce and $991 per gold eq. ounce for the year, achieving
the updated annual guidance range of $960 to $1,030 per
gold eq. ounce.
- All-in sustaining costs2 for the quarter were
$1,355 per gold eq. ounce and
$1,463 per gold eq. ounce for the
year, achieving the updated annual guidance range of $1,415 to $1,495
per gold eq. ounce.
- Average realized gold price2 was $1,798 per ounce and average realized copper
price2 was $4.37 per pound
for the quarter. For the year, average realized gold
price2 was $1,798 per
ounce and average realized copper price2 was
$4.24 per pound.
- Cash generated from operations for the quarter was $106 million ($0.16
per share) and $324 million
($0.48 per share) for the year. Cash
generated from operations for the quarter, before changes in
non-cash operating working capital2, was $93 million ($0.14
per share) and $323 million
($0.47 per share) for the year.
- Net earnings for the quarter were $151
million ($0.22 per share), and
$141 million ($0.21 per share) for the year.
- Adjusted net earnings2 for the quarter were
$25 million ($0.04 per share) and $83
million ($0.12 per share) for
the year.
- During the quarter, the Company closed the previously announced
sale of the Blackwater gold stream to Wheaton Precious Metals Corp.
for $300 million (refer to
the Company's December 13, 2021 and
December 22, 2021 press
releases).
- During the quarter, the Company amended its secured credit
facility, extending the maturity date to December 2025 from October
2023 and increasing the maximum borrowing limit to
$400 million from $350 million.
- 2021 year-end Mineral Reserves of 3.7 million ounces of gold;
Rainy River underground conversion
fully offsets 2021 gold ounce depletion.
- At the end of the quarter, the Company had a cash position of
$482 million and a strong liquidity
position of $857 million.
"While we had to navigate challenges throughout 2021, I am
extremely proud of our resilient team and the way we ended the
year," stated Renaud Adams,
President & CEO. "The fourth quarter delivered our strongest
production quarter of the year, allowing us to meet our updated
guidance. It was also our lowest quarter from a cost perspective,
leading to our highest free cash flow quarter of the year. Adding
to that, we exited the year on a strong note with the sale of the
Blackwater gold stream. The value we have been able to crystallize
through multiple Blackwater-related transactions since August 2020 has positioned our Company with a
peer-leading balance sheet and the financial strength to execute on
our strategy."
"Looking to 2022, our strategy remains focused on operational
excellence and optimization at both assets. At Rainy River, we converted meaningful
underground Mineral Resources to Mineral Reserves resulting in a
net increase to total gold reserves for New Gold. We continue to
seek ways to further optimize the operation and reduce costs while
we advance the development of the Intrepid underground zone,
targeting initial production in the second half of the year. At New
Afton, our priorities remain on advancing the B3 ramp-up and C-Zone
development, exhausting the Lift 1 cave, including the recovery
level zone, and completing commissioning of the in-pit tailings,"
added Mr. Adams.
Consolidated Financial Highlights
|
Q4
2021
|
Q4
2020
|
FY
2021
|
FY
2020
|
Revenue
($M)
|
202.6
|
198.9
|
745.5
|
643.4
|
Operating expenses
($M)
|
99.6
|
97.3
|
377.3
|
339.9
|
Net earnings (loss),
per share ($)
|
0.22
|
(0.03)
|
0.21
|
(0.12)
|
Adj. net earnings,
per share ($)2
|
0.04
|
0.04
|
0.12
|
0.03
|
Operating cash flow,
per share ($)
|
0.16
|
0.15
|
0.48
|
0.44
|
Cash generated from
operations, before changes in non-cash operating working capital,
per share ($)2
|
0.14
|
0.14
|
0.47
|
0.41
|
- Revenues for the quarter were $203
million and $745 million for
the year ended December 31, 2021, an
increase compared to the prior-year periods due to higher gold and
copper prices, partially offset by lower sales volume.
- Operating expenses for the quarter and year ended December 31, 2021, were higher than the
prior-year periods due to the strengthening of the Canadian dollar
relative to the U.S. dollar and the prior year benefitting from the
wage subsidy.
- Net earnings for the quarter were $151
million ($0.22 per share)
compared to a net loss for the prior-year period of $21 million ($0.03
per share). Net earnings for the year ended December 31, 2021, were $141 million ($0.21
per share) compared to a net loss for the prior year of
$79 million ($0.12 per share). The increase in net earnings
compared to the prior-year periods were primarily due to higher
revenue, the gain on the sale of the Blackwater gold stream to
Wheaton Precious Metals Corp., and lower finance costs, partially
offset by an increase in operating expenses and an unrealized loss
on the revaluation of certain investments.
- Adjusted net earnings2 for the quarter were
$25 million ($0.04 per share), a decrease compared to the
prior-year period primarily due to higher adjusted tax
expense2. Adjusted net earnings2 for the year
ended December 31, 2021, were
$83 million ($0.12 per share), an increase compared to the
prior year primarily due to higher revenue less cost of goods sold
and lower finance costs.
Consolidated Operational Highlights
|
Q4
2021
|
Q4
2020
|
FY
2021
|
FY
2020
|
Gold eq. production
(ounces)1
|
111,574
|
120,567
|
418,933
|
437,617
|
Gold eq. sold
(ounces)1
|
109,214
|
122,139
|
402,449
|
428,370
|
Gold production
(ounces)
|
81,072
|
83,096
|
286,921
|
293,139
|
Gold sold
(ounces)
|
78,745
|
86,491
|
277,451
|
291,877
|
Copper production
(Mlbs)
|
14.2
|
18.5
|
61.7
|
72.1
|
Copper sold
(MIbs)
|
14.2
|
17.5
|
58.4
|
68.0
|
Gold revenue, per
ounce
|
1,778
|
1,606
|
1,778
|
1,537
|
Copper revenue, per
pound
|
4.07
|
3.14
|
3.97
|
2.67
|
Average realized gold
price, per ounce2
|
1,798
|
1,623
|
1,798
|
1,559
|
Average realized
copper price, per pound2
|
4.37
|
3.34
|
4.24
|
2.86
|
Operating expenses,
per gold eq. ounce
|
912
|
799
|
938
|
794
|
Total cash costs, per
gold eq. ounce2
|
965
|
841
|
991
|
840
|
Depreciation and
depletion, per gold eq. ounce
|
469
|
419
|
489
|
454
|
All-in sustaining
costs, per gold eq. ounce2
|
1,355
|
1,491
|
1,463
|
1,389
|
Sustaining capital
and sustaining leases ($M)2
|
33.6
|
69.2
|
156.8
|
205.5
|
Growth capital
($M)2
|
26.9
|
42.7
|
101.7
|
89.4
|
Total capital and
leases ($M)
|
60.5
|
111.9
|
258.5
|
294.9
|
Rainy River
Operational Highlights
Rainy River
Mine
|
Q4
2021
|
Q4
2020
|
FY
2021
|
FY
2020
|
Gold eq. production
(ounces)1
|
70,500
|
68,241
|
242,961
|
233,201
|
Gold eq. sold
(ounces)1
|
68,380
|
72,279
|
237,061
|
235,416
|
Gold production
(ounces)
|
68,356
|
66,734
|
234,469
|
228,919
|
Gold sold
(ounces)
|
66,239
|
70,675
|
228,693
|
231,112
|
Gold revenue, per
ounce
|
1,796
|
1,624
|
1,797
|
1,561
|
Average realized gold
price, per ounce2
|
1,796
|
1,624
|
1,797
|
1,561
|
Operating expenses,
per gold eq. ounce
|
897
|
864
|
955
|
906
|
Total cash costs, per
gold eq. ounce2
|
897
|
864
|
955
|
906
|
Depreciation and
depletion, per gold eq. ounce
|
571
|
523
|
625
|
600
|
All-in sustaining
costs, per gold eq. ounce2
|
1,281
|
1,494
|
1,415
|
1,562
|
Sustaining capital
and sustaining leases ($M)2
|
24.0
|
43.6
|
100.9
|
147.5
|
Growth capital
($M)2
|
2.3
|
2.8
|
11.6
|
3.1
|
Total capital and
leases ($M)
|
26.3
|
46.5
|
112.5
|
150.6
|
Operating Key Performance Indicators
Rainy River Mine
(Open Pit Mine only)
|
Q1
2021
|
Q2
2021
|
Q3
2021
|
Q4
2021
|
Tonnes mined per day
(ore and waste)
|
150,767
|
158,556
|
149,630
|
129,775
|
Ore tonnes mined per
day
|
35,681
|
36,256
|
52,917
|
33,885
|
Operating waste
tonnes per day
|
65,643
|
71,124
|
88,216
|
62,348
|
Capitalized waste
tonnes per day
|
49,442
|
51,176
|
8,497
|
33,542
|
Total waste tonnes
per day
|
115,085
|
122,300
|
96,713
|
95,890
|
Strip ratio
(waste:ore)
|
3.23
|
3.37
|
1.83
|
2.83
|
Tonnes milled per
calendar day
|
26,301
|
25,349
|
25,245
|
24,492
|
Gold grade milled
(g/t)
|
0.80
|
0.82
|
0.89
|
1.03
|
Gold recovery
(%)
|
89
|
87
|
89
|
92
|
Mill availability
(%)
|
89
|
88
|
91
|
94
|
Gold production
(ounces)
|
54,656
|
52,901
|
58,557
|
68,356
|
Gold eq. production
(ounces)1
|
56,513
|
55,163
|
60,785
|
70,500
|
- Fourth quarter gold eq.1 production was 70,500
ounces (68,356 ounces of gold and 154,364 ounces of silver), an
increase compared to the prior-year period due to higher gold grade
and gold recovery, partially offset by lower tonnes processed. For
the year ended December 31, 2021,
gold eq.1 production was 242,961 ounces (guidance of
240,000 to 255,000 gold eq.1 ounces) consisting of
234,469 ounces of gold (guidance of 235,000 to 250,000 ounces) and
611,433 ounces of silver. The increase over the prior year was due
to higher tonnes processed, with the prior year including a
two-week voluntary shutdown due to COVID-19. The Rainy River Mine
achieved the low end of the updated gold equivalent guidance
range.
- Operating expenses and total cash costs2 were
$897 per gold eq. ounce for the
quarter, an increase over the prior-year period due to lower sales
volumes and the strengthening of the Canadian dollar relative to
the U.S. dollar. The strengthening of the Canadian dollar increased
costs by $29 per gold eq. ounce in
the quarter. For the year ended December 31,
2021, operating expenses and total cash costs2
were $955 per gold eq. ounce,
achieving the updated annual guidance range of $925 to $985 per
gold eq. ounce. The increase over the prior year was due to the
strengthening of the Canadian dollar relative to the U.S. dollar,
and the receipt of the wage subsidy in the prior year.
- All-in sustaining costs2 were $1,281 per gold eq. ounce for the quarter, a
decrease over the prior-year period primarily due to lower
sustaining capital spend, partially offset by lower sales volumes.
For the year ended December 31, 2021,
all-in sustaining costs2 were $1,415 per gold eq. ounce, achieving the updated
annual guidance range of $1,365 to
$1,440 per gold eq. ounce. The
decrease over the prior year was primarily due to higher sales
volumes and lower sustaining capital spend.
- Total capital and leases for the quarter were $26 million, including $24
million related to sustaining capital and sustaining
lease2 payments, including $11
million of capitalized mining costs, and $2 million related to growth capital2.
Sustaining capital spend during the quarter primarily included the
advancement of the annual tailings dam raise. Growth capital during
the quarter was related to the development of the Intrepid
underground zone which advanced 298 metres. For the year ended
December 31, 2021, total capital and
leases were $113 million, including
$101 million related to sustaining
capital and sustaining lease2 payments, including
$40 million of capitalized mining
costs, and $12 million related to
growth capital2.
- Free cash flow2 for the quarter was $36 million, and for the year ended December 31, 2021 was $46
million (net of a $27 million
stream payment). The increase over the prior-year periods was due
to an increase in revenue from higher metal prices and lower
capital spend.
- The open pit mine averaged 129,775 tonnes per day during the
quarter, a decrease compared to the prior-year period primarily due
to lower drill utilization. Approximately 3.1 million ore tonnes
and 8.8 million waste tonnes (including 3.1 million capitalized
waste tonnes) were mined from the open pit at an average strip
ratio of 2.83:1. For the year, the average strip ratio was 2.7:1,
in-line with the 2021 plan.
- The mill averaged 24,492 tonnes per day during the quarter, a
decrease compared to the prior-year period primarily due to harder
ore encountered from the 433 zone. The mill processed an average
grade of 1.03 grams per tonne at a gold recovery of 92%. Mill
availability for the quarter averaged 94%, despite a 3-day mill
shutdown that was moved from early-2022 to December.
New Afton Mine
Operational Highlights
New Afton
Mine
|
Q4
2021
|
Q4
2020
|
FY
2021
|
FY
2020
|
Gold eq. production
(ounces)1
|
41,074
|
52,326
|
175,972
|
204,416
|
Gold eq. sold
(ounces)1
|
40,835
|
49,860
|
165,387
|
192,953
|
Gold production
(ounces)
|
12,716
|
16,362
|
52,452
|
64,220
|
Gold sold
(ounces)
|
12,507
|
15,817
|
48,758
|
60,765
|
Copper production
(Mlbs)
|
14.2
|
18.5
|
61.7
|
72.1
|
Copper sold
(Mlbs)
|
14.2
|
17.5
|
58.4
|
68.0
|
Gold revenue, per
ounce
|
1,685
|
1,525
|
1,690
|
1,449
|
Copper revenue, per
pound
|
4.07
|
3.14
|
3.97
|
2.67
|
Average realized gold
price, per ounce2
|
1,807
|
1,621
|
1,804
|
1,553
|
Average realized
copper price, per pound2
|
4.37
|
3.34
|
4.24
|
2.86
|
Operating expenses,
per gold eq. ounce
|
938
|
706
|
912
|
657
|
Total cash costs, per
gold eq. ounce2
|
1,079
|
808
|
1,042
|
759
|
Depreciation and
depletion, per gold eq. ounce
|
297
|
260
|
288
|
268
|
All-in sustaining
costs, per gold eq. ounce2
|
1,330
|
1,330
|
1,385
|
1,064
|
Sustaining capital
and sustaining leases ($M)2
|
9.5
|
25.5
|
54.5
|
57.4
|
Growth capital
($M)2
|
24.6
|
39.9
|
90.1
|
77.1
|
Total capital and
leases ($M)
|
34.1
|
65.4
|
144.6
|
134.5
|
Operating Key Performance Indicators
New Afton
Mine
|
Q1
2021
|
Q2
2021
|
Q3
2021
|
Q4
2021
|
Tonnes mined per day
(ore and waste)
|
11,395
|
15,104
|
12,861
|
13,705
|
Tonnes milled per
calendar day
|
13,564
|
13,795
|
13,068
|
13,125
|
Gold grade milled
(g/t)
|
0.39
|
0.43
|
0.43
|
0.41
|
Gold recovery
(%)
|
79
|
80
|
83
|
81
|
Gold production
(ounces)
|
11,994
|
14,088
|
13,653
|
12,716
|
Copper grade milled
(%)
|
0.64
|
0.79
|
0.72
|
0.67
|
Copper recovery
(%)
|
80
|
83
|
82
|
80
|
Copper production
(Mlbs)
|
13.8
|
18.2
|
15.6
|
14.2
|
Mill availability
(%)
|
96
|
98
|
98
|
97
|
Gold eq. production
(ounces)1
|
39,512
|
50,542
|
44,843
|
41,074
|
- Fourth quarter gold eq.1 production was 41,074
ounces, consisting of 12,716 ounces of gold and 14.2 million pounds
of copper. For the year ended December 31,
2021, gold eq.1 production was 175,972 ounces
(guidance of 165,000 to 195,000 gold eq.1 ounces),
consisting of 52,452 ounces of gold (guidance of 52,000 to 62,000
ounces) and 61.7 million pounds of copper (guidance of 56 to 66
million pounds), achieving the gold equivalent guidance range for
the year. The decrease over the prior-year periods was due to lower
tonnes processed.
- Operating expenses and total cash costs2 were
$938 and $1,079 per gold eq. ounce for the quarter, an
increase over the prior-year period primarily due to lower sales
volumes, and the strengthening of the Canadian dollar relative to
the U.S. dollar. The strengthening of the Canadian dollar increased
costs by $31 per gold eq. ounce in
the quarter. For the year ended December 31,
2021, operating expenses and total cash costs2
were $912 and $1,042 per gold eq. ounce, slightly above the
annual total cash cost guidance range of $930 to $1,010 per
gold eq. ounce. The increase over the prior year was due to lower
sales volumes, the strengthening of the Canadian dollar relative to
the U.S. dollar, and the receipt of the wage subsidy in the prior
year.
- All-in sustaining costs2 were $1,330 per gold eq. ounce for the quarter,
in-line with the prior-year period. For the year ended December 31, 2021, all-in sustaining
costs2 were $1,385 per
gold eq. ounce, slightly above the annual guidance range of
$1,225 to $1,325 per gold eq. ounce. The increase over the
prior year was due to lower sales volumes and higher total cash
costs, partially offset by lower sustaining capital spend.
- Total capital and leases for the quarter were $34 million, including $9
million related to sustaining capital and sustaining
lease2 payments and $25
million related to growth capital2. Sustaining
capital spend during the quarter primarily related to B3 mine
development and the advancement of the planned tailings dam raise.
Growth capital during the quarter primarily related to C-Zone
development and the thickened and amended tailings project. For the
year ended December 31, 2021, total
capital and leases were $145 million,
including $55 million related to
sustaining capital and sustaining lease2 payments and
$90 million related to growth
capital2.
- Free cash flow2 for the quarter was $10 million, an increase over the prior-year
period due to lower capital spend. For the year ended December 31, 2021, free cash flow2 was
$16 million, an increase over the
prior year due to an increase in revenue from higher metal
prices.
- C-Zone development advanced by approximately 1,028 metres in
the quarter. Mine infrastructure also advanced with the
installation of conveyors and work initiated on a secondary
crushing station. The project continues to advance on plan, with
production expected to begin in the second half of 2023.
- The underground mine averaged 13,705 tonnes per day during the
quarter as the mine prepares for the completion of Lift 1 mining
activities and continues the progressive ramp-up of the B3
zone.
- The mill averaged 13,125 tonnes per day during the quarter,
below the prior-year period, but in-line with mining rates. The
mill processed gold grades of 0.41 grams per tonne and copper
grades of 0.67%, with gold and copper recoveries of 81% and 80%,
respectively.
2022 Operational Outlook
Operational
Estimates
|
Rainy River
Mine
|
New Afton
Mine
|
2022 Consolidated
Guidance
|
Gold eq. production
(ounces)3
|
265,000 -
295,000
|
115,000 -
145,000
|
380,000 -
440,000
|
Gold production
(ounces)
|
260,000 -
290,000
|
35,000 -
45,000
|
295,000 -
335,000
|
Copper production
(Mlbs)
|
-
|
35 - 45
|
35 -
45
|
Operating expenses,
per gold eq. ounce
|
$730 -
$810
|
$1,100 -
$1,180
|
$840 -
$920
|
All-in sustaining
costs, per gold eq. ounce2
|
$1,270 -
$1,370
|
$1,695 -
$1,795
|
$1,470 -
$1,570
|
Capital Investment
& Exploration Estimates
|
Rainy River
Mine
|
New Afton
Mine
|
2022 Consolidated
Guidance
|
Sustaining capital
and sustaining leases ($M)2
|
$125 -
$155
|
$55 - $70
|
$180 -
$225
|
Growth capital
($M)2
|
$15 - $25
|
$100 -
$130
|
$115 -
$155
|
Total capital and
leases ($M)
|
$140 -
$180
|
$155 -
$200
|
$295 -
$380
|
Exploration
($M)
|
$5
|
$15
|
$20
|
Gold equivalent3 production is expected to be between
380,000 to 440,000 ounces, in-line with the prior year. Production
is expected to strengthen in the second half of the year, with the
second half of 2022 expected to represent approximately 55% of
annual production.
Operating expenses are expected to be
$840 to $920 per gold eq. ounce, lower than the prior
year as a higher proportion of gold sales will be from the lower
operating expense per ounce Rainy River Mine. All-in sustaining
costs2 are expected to be $1,470 to $1,570
per gold eq. ounce, slightly higher than the prior year due to
higher sustaining capital spend, partially offset by lower
operating expenses. All-in sustaining costs2 are
expected to trend lower in the second half of the year, consistent
with the production profile.
Total capital and leases are expected to be
$295 to $380
million, of which, sustaining capital and sustaining
leases2 are expected to be $180 to $225
million, and growth capital2 is expected to be
$115 to $155
million. The increase in sustaining capital and sustaining
leases2 over the prior year predominantly relates to
capitalized waste, tailings management, and B3 activities. The
increase in growth capital2 relates to C-Zone
development and advancing underground development at the Intrepid
underground zone at Rainy River.
Quarterly sustaining capital is expected to trend lower in the
second half of the year, and growth capital is expected to be
relatively consistent through the year.
In 2022, the Company will report production on a
gold equivalent basis as well as on a per-metal basis. Operating
expenses and all-in sustaining costs will be reported on a per gold
equivalent ounce basis. Throughout the year, the Company will
report gold equivalent ounces using a constant ratio of
$1,800 per gold ounce, $24.00 per silver ounce and $4.00 per pound copper, and a foreign exchange
rate of $1.25 Canadian dollars to
$1.00 US dollar.
The operational outlook assumes that the
Company's 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 New Gold's operations
due to COVID-19, could impact its ability to achieve 2022 outlook.
Please see the Cautionary Note Regarding Forward-Looking Statements
at the end of this news release.
2022 Rainy River Operational Outlook
Operational
Estimates
|
2022
Guidance
|
Gold eq. production
(ounces)3
|
265,000 -
295,000
|
Gold production
(ounces)
|
260,000 -
290,000
|
Operating expenses,
per gold eq. ounce
|
$730 -
$810
|
All-in sustaining
costs, per gold eq. ounce2
|
$1,270 -
$1,370
|
Capital Investment
& Exploration Estimates
|
2022
Guidance
|
Sustaining capital
and sustaining leases ($M)2
|
$125 -
$155
|
Growth capital
($M)2
|
$15 - $25
|
Total capital and
leases ($M)
|
$140 -
$180
|
Exploration
($M)
|
$5
|
- Gold equivalent3 production is expected to be
265,000 to 295,000 ounces, an increase over the prior year due to
an increase in gold grade, tonnes mined and processed, as well as
commencing ore extraction from the Intrepid underground zone in the
second half of the year. Production is expected to strengthen in
the second half of the year as capitalized waste is to be
prioritized during the colder weather months, and planned
maintenance activities for the processing plant are to be completed
in the first half of the year. The second half of 2022 is expected
to represent approximately 55% of the annual production.
- Ore from the East Lobe is expected to contribute approximately
25% of mill feed in 2022. As a result of bench sequencing and
prioritization of pit stripping during winter months, East Lobe
contribution is expected to be higher in the second half of the
year.
- Operating expenses are expected to be $730 to $810 per
gold eq. ounce, a decrease over the prior year, primarily due to a
higher strip ratio of approximately 3.2:1 expected in 2022,
resulting in a higher proportion of mining costs being capitalized
and higher annual production.
- All-in sustaining costs2 are expected to be
$1,270 to $1,370 per gold eq. ounce, a decrease over the
prior year, primarily due to higher production. All-in sustaining
costs2 are expected to trend lower in the second half of
the year, consistent with the production profile.
- Total capital and leases are expected to be $140 to $180
million. Sustaining capital and sustaining leases2 are
expected to be $125 to $155 million, including approximately
$60 million in capitalized waste,
$40 million towards the annual
tailings dam raise, $20 million in
capital parts and components replacement programs, $10 million in sustaining capital leases, and
$5 million in sustaining capital
development for the Intrepid underground zone. Growth capital2 is
expected to be $15 to $25 million, related to the development of the
Intrepid underground zone, with initial production targeted for
late-2022. Growth capital is expected to be generally consistent
throughout the year.
- Exploration expenditures are expected to be approximately
$5 million and will focus on
completing reconnaissance exploration drilling on the North East
Trend target and on follow-up drilling based on previous positive
results on priority targets.
2022 New Afton Operational Outlook
Operational
Estimates
|
2022
Guidance
|
Gold eq. production
(ounces)3
|
115,000 -
145,000
|
Gold production
(ounces)
|
35,000 -
45,000
|
Copper production
(Mlbs)
|
35 - 45
|
Operating expenses,
per gold eq. ounce
|
$1,100 -
$1,180
|
All-in sustaining
costs, per gold eq. ounce2
|
$1,695 -
$1,795
|
Capital Investment
& Exploration Estimates
|
2022
Guidance
|
Sustaining capital
and sustaining leases ($M)2
|
$55 - $70
|
Growth capital
($M)2
|
$100 -
$130
|
Total capital and
leases ($M)
|
$155 -
$200
|
Exploration
($M)
|
$15
|
- Gold equivalent3 production is expected to be
115,000 to 145,000 ounces, lower than the prior year, primarily due
to a reduction in B3 ore tonnes to be mined in 2022. The lower
tonnes mined is a result of the previously announced B3 permitting
delays experienced in 2021 which impacted the drawpoint development
schedule and slowed the production ramp-up. The B3 mining rate is
expected to average approximately 4,000 tonnes per day during
drawpoint development, ramping up to approximately 8,000 tonnes per
day in late-2022. As a result of the slower ramp-up, mining from B3
is expected to extend to 2025 in order to extract all planned
tonnes. Current surface stockpiles are expected to supplement the
mill feed during the year, with production expected to be strongest
in the first half of 2022. 2022 operational estimates are exclusive
of any material from the ore purchase agreement.
- Operating expenses are expected to be $1,100 to $1,180
per gold eq. ounce, an increase over the prior year as a result of
higher costs related to the B3 ramp-up and lower production.
- All-in sustaining costs2 are expected to be
$1,695 to $1,795 per gold eq. ounce, an increase over the
prior year, primarily due to higher sustaining capital spend and
lower production. Approximately $310
per gold eq. ounce of the all-in sustaining cost relates to the
completion of B3 development. All-in sustaining costs2
are expected to trend higher in the first half of the year due to
higher B3 lateral development and tailings management work.
- Total capital and leases are expected to be $155 to $200
million. Sustaining capital and sustaining
leases2 are expected to be $55 to $70 million,
including approximately $40 million
related to the completion of B3 development, infrastructure and
equipment, $5 million related to
tailings management and $15 million
related to other general sustaining capital and working capital
payments. During 2022, sustaining capital projects will continue to
focus on advancing the development of the B3 zone with
approximately 900 metres of development and construction of
approximately 46 drawbells. Growth capital2 is expected
to be $100 to $130 million, related to the continued
advancement of the C-Zone project, primarily focused on mine
development with a total of 5,000 metres planned, infrastructure
installation, complete commissioning of the thickened and amended
tailings facility and continued progress on stabilization. Growth
capital is expected to be generally consistent throughout the
year.
- Exploration expenditures are expected to be approximately
$15 million, and will focus on
underground exploration and infill drilling on the mineralized zone
defined within the New Afton footprint, follow-up surface drilling
within the Cherry Creek trend, and reconnaissance exploration
drilling on regional targets that were defined in 2021.
Mineral Reserves and Mineral Resources (as at December 31, 2021)
As at December 31, 2021, New Gold
is reporting Mineral Reserves and Mineral Resources as summarized
in the table below. Detailed Mineral Reserve and Mineral Resource
tables follow at the end of this press release.
Mineral Reserves and
Mineral Resources Summary1
|
As at December 31,
20212
|
As at December 31,
2020
|
Gold
koz
|
Silver
koz
|
Copper
Mlbs
|
Gold
koz
|
Silver
koz
|
Copper
Mlbs
|
Proven and
Probable Mineral Reserves
|
Rainy
River
|
2,799
|
7,022
|
-
|
2,598
|
7,152
|
-
|
Open Pit
|
1,230
|
2,170
|
-
|
1,599
|
3,518
|
-
|
Underground
|
1,241
|
3,084
|
-
|
672
|
1,795
|
-
|
Low grade and
stockpile
|
328
|
1,768
|
-
|
327
|
1,839
|
-
|
New Afton
|
883
|
2,327
|
675
|
958
|
2,670
|
758
|
Total Proven and
Probable Mineral Reserves
|
3,682
|
9,349
|
675
|
3,556
|
9,822
|
758
|
Measured and
Indicated Mineral Resources (exclusive of Mineral
Reserves)1
|
Rainy
River
|
1,543
|
3,894
|
-
|
2,005
|
5,125
|
-
|
Open Pit
|
195
|
472
|
-
|
187
|
562
|
-
|
Underground
|
1,348
|
3,422
|
-
|
1,818
|
4,563
|
-
|
New Afton
|
1,174
|
4,187
|
1,006
|
1,182
|
4,246
|
1,003
|
Total Measured and
Indicated Mineral Resources
|
2,717
|
8,081
|
1,006
|
3,187
|
9,371
|
1,003
|
Total Inferred
Mineral Resources
|
387
|
831
|
137
|
412
|
917
|
143
|
1. Refer to the
detailed Mineral Reserve and Mineral Resource tables that follow at
the end of this press release for the estimates as at December 31,
2021 and the Company's Annual Information Form dated March 31, 2021
for estimates as at December 31, 2020. 2. The Mineral Reserves
and Mineral Resources stated above are as at December 31, 2021 and
do not reflect any events subsequent to that date.
|
Consolidated gold Mineral Reserves increased by approximately
126,000 gold ounces compared to the prior year. The increase was
primarily due to an economic study at the Mineral Reserve gold
price of $1,400 per ounce, that
supports the conversion of approximately 569,000 gold ounces of
underground Mineral Resources to Mineral Reserves at the Rainy
River Mine. A National Instrument 43-101 ("NI 43-101") Technical
Report for the Rainy River Mine will be filed by March 31, 2022.
- At the Rainy River Mine, total Mineral Reserves increased by
approximately 201,000 gold ounces over the prior year due to
converting approximately 569,000 underground gold ounces from
Mineral Resources to Mineral Reserves, partially offset by open pit
mine depletion.
-
- Open pit reserve depletion included approximately 262,000
ounces from annual mine depletion, approximately 45,000 ounces
related to a resource mineability adjustment and approximately
34,000 ounces due to grade control model underperformance compared
to the resource model (both primarily related to East Lobe), and
approximately 28,000 ounces related to an 85% correction factor
applied to the remaining ore material from the East Lobe. The
correction factor applied was based on a bench to bench
reconciliation study. The East Lobe is expected to be mined out by
the end of 2023.
- At the New Afton Mine, Mineral Reserves decreased by
approximately 75,000 gold ounces over the prior year due to 69,000
gold ounces of annual mine depletion and 6,000 ounces from mine
plan optimization.
Consolidated Measured and Indicated Mineral Resources decreased
by approximately 470,000 gold ounces, with Rainy River decreasing by 462,000 gold ounces
due to conversion of underground Mineral Resources to Mineral
Reserves and New Afton decreasing by approximately 8,000 gold
ounces due to conversion of C-Zone Mineral Resources to Mineral
Reserves. Consolidated Inferred Mineral Resources decreased by
approximately 25,000 gold ounces to 387,000 gold ounces.
Sustainability and ESG
New Gold has four sustainability focus areas: Indigenous
Peoples, Tailings Management, Water and Climate. New Gold has
adapted its sustainability efforts to align with the most pressing
environmental, social and governance ("ESG") issues facing the
Company and the mining industry. As such, the Company's ESG
approach continues to prioritize the health, safety, and well-being
of its people and the people in the communities in which New Gold
operates. The protection of its people is central to its success as
New Gold believes people are its greatest asset. New Gold is
committed to providing training, opportunities, and progression
paths for its teams, and it actively seeks to ensure that it
promotes diversity within its teams at all levels of the
organization. New Gold has adopted an approach to execute on its
sustainability strategy that aligns with ESG reporting
standards.
Fourth Quarter and Full Year 2021 Conference Call and
Webcast
The Company will host a webcast and conference call today at
8:30 am Eastern Time to discuss the
Company's fourth quarter and full year 2021 consolidated results
and 2022 operational outlook.
- Participants may listen to the webcast by registering on our
website at www.newgold.com or via the following link
https://produceredition.webcasts.com/starthere.jsp?ei=1521870&tp_key=6fecc53dc8
- Participants may also listen to the conference call by calling
North American toll free 1-888-664-6383, or 1-416-764-8650 outside
of the U.S. and Canada, passcode
70681110.
- A recorded playback of the conference call will be available
until March 23, 2022 by calling North
American toll free 1-888-390-0541, or 1-416-764-8677 outside of the
U.S. and Canada, passcode 681110.
An archived webcast will also be available at www.newgold.com.
About New Gold
New Gold is a Canadian-focused intermediate mining Company with
a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New
Afton copper-gold mine. The Company also holds a 5% equity stake in
Artemis Gold Inc., and other Canadian-focused investments. 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.
Endnotes
1.
|
Total gold eq. ounces
include silver and copper produced/sold converted to a gold
equivalent. All copper is produced/sold by the New Afton Mine. Gold
eq. ounces for Rainy River in Q4 2021 includes production of
154,364 ounces of silver (154,144 ounces sold) converted to a gold
eq. based on a ratio of $1,800 per gold ounce and $25.00 per silver
ounce used for 2021 guidance estimates. Gold eq. ounces for New
Afton in Q4 2021 includes 14.2 million pounds of copper produced
(14.2 million pounds sold) and 59,666 ounces of silver produced
55,938 ounces of silver sold) converted to a gold eq. based on a
ratio of $1,800 per gold ounce, 3.50 per copper pound and $25.00
per silver ounce used for 2021 guidance estimates.
|
|
|
2.
|
"Total cash costs",
"all-in sustaining costs", "adjusted net earnings/(loss)",,
"adjusted tax expense", "sustaining capital and sustaining leases",
"growth capital", "cash generated from operations", "free cash
flow", and "average realized gold/copper price per ounce/pound" are
all non-GAAP financial performance measures that are used in this
news release. These measures do not have any standardized meaning
under IFRS and therefore may not be comparable to similar measures
presented by other issuers. For more information about these
measures, why they are used by the Company, and a reconciliation to
the most directly comparable measure under IFRS, see the "Non-GAAP
Financial Performance Measures" section of this news
release.
|
|
|
3.
|
2022 gold equivalent
ounces includes approximately 500,000 to 540,000 ounces of silver
at Rainy River and 125,000 to 145,000 ounces of silver at New
Afton.
|
Non-GAAP Financial Performance Measures
Total Cash Costs per Gold eq. Ounce
"Total cash costs per gold equivalent ounce" is a non-GAAP
financial performance measure that is a common financial
performance measure in the gold mining industry but does not have
any standardized meaning under IFRS and therefore may not be
comparable to similar measures presented by other issuers. New Gold
reports total cash costs on a sales basis and not on a production
basis. The Company believes that, in addition to conventional
measures prepared in accordance with IFRS, this measure, along with
sales, is a key indicator of the Company's ability to generate
operating earnings and cash flow from its mining operations. This
measure allows investors to better evaluate corporate performance
and the Company's ability to generate liquidity through operating
cash flow to fund future capital exploration and working capital
needs.
This measure is intended to provide additional information only
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. This
measure is not necessarily indicative of cash generated from
operations under IFRS or operating costs presented under IFRS.
Total cash cost figures are calculated in accordance with a
standard developed by The Gold Institute, a worldwide association
of suppliers of gold and gold products that ceased operations in
2002. Adoption of the standard is voluntary and the cost measures
presented may not be comparable to other similarly titled measures
of other companies. Total cash costs include mine site operating
costs such as mining, processing and administration costs,
royalties, and production taxes, but are exclusive of amortization,
reclamation, capital and exploration costs. Total cash costs are
then divided by gold equivalent ounces sold to arrive at the total
cash costs per equivalent ounce sold.
In addition to gold, the Company produces copper and silver.
Gold equivalent ounces of copper and silver produced or sold in a
quarter are computed using a consistent ratio of copper and silver
prices to the gold price and multiplying this ratio by the pounds
of copper and silver ounces produced or sold during that
quarter.
Notwithstanding the impact of copper and silver sales, as the
Company is focused on gold production, New Gold aims to assess the
economic results of its operations in relation to gold, which is
the primary driver of New Gold's business. New Gold believes this
metric is of interest to its investors, who invest in the Company
primarily as a gold mining business. To determine the relevant
costs associated with gold equivalent ounces, New Gold believes it
is appropriate to reflect all operating costs incurred in its
operations.
All-In Sustaining Costs per Gold eq. Ounce
"All-in sustaining costs per gold equivalent ounce" is a
non-GAAP financial performance measure that does not have any
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. New Gold calculates
"all-in sustaining costs per gold equivalent ounce" based on
guidance announced by the World Gold Council ("WGC") in
September 2013. The WGC is a
non-profit association of the world's leading gold mining companies
established in 1987 to promote the use of gold to industry,
consumers and investors. The WGC is not a regulatory body and does
not have the authority to develop accounting standards or
disclosure requirements. The WGC has worked with its member
companies to develop a measure that expands on IFRS measures to
provide visibility into the economics of a gold mining company.
Current IFRS measures used in the gold industry, such as operating
expenses, do not capture all of the expenditures incurred to
discover, develop and sustain gold production. New Gold believes
that "all-in sustaining costs per gold equivalent ounce" provides
further transparency into costs associated with producing gold and
will assist analysts, investors, and other stakeholders of the
Company in assessing its operating performance, its ability to
generate free cash flow from current operations and its overall
value. In addition, the Human Resources and Compensation Committee
of the Board of Directors uses "all-in sustaining costs", together
with other measures, in its Company scorecard to set incentive
compensation goals and assess performance.
"All-in sustaining costs per gold equivalent ounce" is intended
to provide additional information only and does not have any
standardized meaning under IFRS and may not be comparable to
similar measures presented by other mining companies. It should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The measure is not
necessarily indicative of cash flow from operations under IFRS or
operating costs presented under IFRS.
New Gold defines "all-in sustaining costs per gold equivalent
ounce" as the sum of total cash costs, net capital expenditures
that are sustaining in nature, corporate general and administrative
costs, capitalized and expensed exploration that is sustaining in
nature, lease payments that are sustaining in nature, and
environmental reclamation costs, all divided by the total gold
equivalent ounces sold to arrive at a per ounce figure. The
"Sustaining Capital Expenditure Reconciliation" table below
reconciles New Gold's sustaining capital to its cash flow
statement. The definition of sustaining versus non-sustaining
is similarly applied to capitalized and expensed exploration costs
and lease payments. Exploration costs and lease payments to develop
new operations or that relate to major projects at existing
operations where these projects are expected to materially increase
production are classified as non-sustaining and are excluded. Gold
equivalent ounces of copper and silver produced or sold in a
quarter are computed using a consistent ratio of copper and silver
prices to the gold price and multiplying this ratio by the pounds
of copper and silver ounces produced or sold during that
quarter.
Costs excluded from all-in sustaining costs are non-sustaining
capital expenditures, non-sustaining lease payments and exploration
costs, financing costs, tax expense, and transaction costs
associated with mergers, acquisitions and divestitures, and any
items that are deducted for the purposes of adjusted earnings.
Sustaining Capital and Sustaining Leases
"Sustaining capital" and "sustaining lease" are non-GAAP
financial performance measures that do not have any standardized
meaning under IFRS and therefore may not be comparable to similar
measures presented by other issuers. New Gold defines "sustaining
capital" as net capital expenditures that are intended to maintain
operation of its gold producing assets. Similarly, a "sustaining
lease" is a lease payment that is sustaining in nature. To
determine "sustaining capital" expenditures, New Gold uses cash
flow related to mining interests from its consolidated statement of
cash flows and deducts any expenditures that are capital
expenditures to develop new operations or capital expenditures
related to major projects at existing operations where these
projects will materially increase production. Management uses
"sustaining capital" and "sustaining lease", to understand the
aggregate net result of the drivers of all-in sustaining costs
other than total cash costs. These measures are intended to provide
additional information only and should not be considered in
isolation or as substitutes for measures of performance prepared in
accordance with IFRS.
Growth Capital
"Growth capital" is a non-GAAP financial performance measure
that does not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. New Gold considers non-sustaining capital costs to
be "growth capital", which are capital expenditures to develop new
operations or capital expenditures related to major projects at
existing operations where these projects will materially increase
production. To determine "growth capital" expenditures, New Gold
uses cash flow related to mining interests from its consolidated
statement of cash flows and deducts any expenditures that are
capital expenditures that are intended to maintain operation of its
gold producing assets. Management uses "growth capital" to
understand the cost to develop new operations or related to major
projects at existing operations where these projects will
materially increase production. This measure is intended to provide
additional information only and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
The following tables reconcile the above non-GAAP measures to
the most directly comparable IFRS measure on an aggregate
basis.
Consolidated OPEX, Cash Cost and All-in Sustaining Costs
Reconciliation
|
Three months ended
December 31
|
Year ended
December 31
|
(in millions of
U.S. dollars, except where noted)
|
2021
|
2020
|
2021
|
2020
|
CONSOLIDATED OPEX,
CASH COST AND ALL-IN
SUSTAINING COSTS RECONCILIATION
|
|
|
|
|
Operating
expenses
|
99.6
|
97.3
|
377.3
|
339.9
|
Gold equivalent
ounces sold1
|
109,214
|
122,139
|
402,449
|
428,370
|
Operating expenses
per gold equivalent ounce sold ($/ounce)
|
912
|
799
|
938
|
794
|
Operating
expenses
|
99.6
|
97.3
|
377.4
|
339.9
|
Treatment and
refining charges on concentrate sales
|
5.8
|
5.1
|
21.5
|
19.7
|
Total cash
costs
|
105.4
|
102.4
|
398.9
|
359.6
|
Gold equivalent
ounces sold1
|
109,214
|
122,139
|
402,449
|
428,370
|
Total cash costs
per gold equivalent ounce sold ($/ounce)2
|
965
|
841
|
991
|
840
|
Sustaining capital
expenditures2
|
30.7
|
66.4
|
144.2
|
194.7
|
Sustaining
exploration - expensed
|
0.0
|
0.2
|
0.8
|
0.2
|
Sustaining
leases2
|
2.4
|
2.7
|
10.4
|
10.8
|
Corporate G&A
including share-based compensation
|
5.9
|
7.5
|
22.8
|
21.5
|
Reclamation
expenses
|
3.6
|
2.5
|
11.6
|
8.4
|
Total all-in
sustaining costs
|
148.0
|
182.0
|
588.6
|
595.2
|
Gold equivalent
ounces sold1
|
109,214
|
122,139
|
402,449
|
428,370
|
All-in sustaining
costs per gold equivalent ounce sold
($/ounce)2
|
1,355
|
1,491
|
1,463
|
1,389
|
|
Three months ended
December 31
|
Year ended
December 31
|
(in millions of
U.S. dollars, except where noted)
|
2021
|
2020
|
2021
|
2020
|
RAINY RIVER OPEX,
CASH COSTS AND AISC RECONCILIATION
|
|
|
|
|
Operating
expenses
|
61.3
|
62.4
|
226.5
|
213.2
|
Gold equivalent
ounces sold1
|
68,380
|
72,279
|
237,061
|
235,416
|
Operating expenses
per unit of gold sold ($/ounce)
|
897
|
864
|
955
|
906
|
Operating
expenses
|
61.3
|
62.4
|
226.5
|
213.2
|
Total cash
costs
|
61.3
|
62.4
|
226.5
|
213.2
|
Gold equivalent
ounces sold1
|
68,380
|
72,279
|
237,061
|
235,416
|
Total cash costs
per gold equivalent ounce sold ($/ounce)2
|
897
|
864
|
955
|
906
|
Sustaining capital
expenditures2
|
21.1
|
41.1
|
90.5
|
137.7
|
Sustaining
leases2
|
2.3
|
2.5
|
9.5
|
9.8
|
Reclamation
expenses
|
2.8
|
2.0
|
8.9
|
6.9
|
Total all-in
sustaining costs
|
87.6
|
108.0
|
335.5
|
367.6
|
Gold equivalent
ounces sold1
|
68,380
|
72,279
|
237,061
|
235,416
|
All-in sustaining
costs per gold equivalent ounce sold
($/ounce)2
|
1,281
|
1,494
|
1,415
|
1,562
|
Sustaining Capital Expenditures Reconciliation Table
|
Three months ended
December 31
|
Year ended
December 31
|
(in millions of
U.S. dollars, except where noted)
|
2021
|
2020
|
2021
|
2020
|
TOTAL SUSTAINING
CAPITAL EXPENDITURES
|
|
|
|
|
Mining interests per
statement of cash flows
|
58.1
|
109.2
|
247.3
|
284.2
|
New Afton growth
capital expenditures2
|
(24.6)
|
(39.9)
|
(90.1)
|
(77.1)
|
Rainy River growth
capital expenditures2
|
(2.2)
|
(2.8)
|
(11.6)
|
(3.1)
|
Blackwater growth
capital expenditures2
|
—
|
—
|
—
|
(9.2)
|
Sustaining capital
expenditures2
|
31.3
|
66.5
|
145.6
|
194.8
|
Adjusted Net Earnings/(Loss) and Adjusted Net Earnings per
Share
"Adjusted net earnings" and "adjusted net earnings per share"
are non-GAAP financial performance measures that do not have any
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. "Adjusted net
earnings" and "adjusted net earnings per share" exclude "other
gains and losses" as per Note 3 of the Company's consolidated
financial statements; and loss on redemption of long-term
debt. Net earnings have been adjusted, including the
associated tax impact, for the group of costs in "Other gains and
losses" on the condensed consolidated income statements. Key
entries in this grouping are: the fair value changes for the gold
stream obligation, fair value changes for the free cash flow
interest obligation, fair value changes for gold and copper price
option contracts, gain on disposal of the Blackwater stream and
Blackwater Project, foreign exchange gains/loss and fair value
changes in investments. The income tax adjustments reflect the tax
impact of the above adjustments and is referred to as "adjusted tax
expense".
The Company uses "adjusted net earnings" for its own internal
purposes. Management's internal budgets and forecasts and public
guidance do not reflect the items which have been excluded from the
determination of "adjusted net earnings". Consequently, the
presentation of "adjusted net earnings" enables investors to better
understand the underlying operating performance of the Company's
core mining business through the eyes of management. Management
periodically evaluates the components of "adjusted net earnings"
based on an internal assessment of performance measures that are
useful for evaluating the operating performance of New Gold's
business and a review of the non-GAAP financial performance
measures used by mining industry analysts and other mining
companies. "Adjusted net earnings" and "adjusted net earnings per
share" are intended to provide additional information only and
should not be considered in isolation or as substitutes for
measures of performance prepared in accordance with IFRS. These
measures are not necessarily indicative of operating profit or cash
flows from operations as determined under IFRS. The following table
reconciles these non-GAAP financial performance measures to the
most directly comparable IFRS measure.
|
Three months ended
December 31
|
Year ended
December 31
|
(in millions of
U.S. dollars, except where noted)
|
2021
|
2020
|
2021
|
2020
|
ADJUSTED NET
EARNINGS (LOSS) RECONCILIATION
|
|
|
|
|
Earnings (loss)
before taxes
|
156.8
|
(16.0)
|
160.3
|
(75.0)
|
Other losses
(gains)
|
(123.6)
|
26.5
|
(57.5)
|
78.3
|
Loss on repayment of
long-term debt
|
—
|
16.8
|
—
|
23.3
|
Adjusted net earnings
(loss) before taxes
|
33.2
|
27.3
|
102.8
|
26.6
|
Income tax (expense)
recovery
|
(5.9)
|
(5.1)
|
(19.7)
|
(4.3)
|
Income tax
adjustments
|
(2.6)
|
5.7
|
(0.2)
|
(3.1)
|
Adjusted income tax
(expense) recovery2
|
(8.5)
|
0.6
|
(19.9)
|
(7.4)
|
Adjusted net earnings
(loss)2
|
24.7
|
27.9
|
82.9
|
19.2
|
Adjusted earnings
(loss) per share (basic and diluted)2
|
0.04
|
0.04
|
0.12
|
0.03
|
Cash Generated from Operations, before Changes in Non-Cash
Operating Working Capital
"Cash generated from operations, before changes in non-cash
operating working capital" is a non-GAAP financial performance
measure that does not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. Other companies may calculate this measure
differently and this measure is unlikely to be comparable to
similar measures presented by other companies. "Cash generated from
operations, before changes in non-cash operating working capital"
excludes changes in non-cash operating working capital. New Gold
believes this non-GAAP financial measure provides further
transparency and assists analysts, investors and other stakeholders
of the Company in assessing the Company's ability to generate cash
from its operations before temporary working capital changes.
Cash generated from operations, before non-cash changes in
working capital is intended to provide additional information only
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. This
measure is not necessarily indicative of operating profit or cash
flows from operations as determined under IFRS. The following table
reconciles this non-GAAP financial performance measure to the most
directly comparable IFRS measure.
|
Three months ended
December 31
|
Year ended
December 31
|
(in millions of
U.S. dollars)
|
2021
|
2020
|
2021
|
2020
|
CASH
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
105.7
|
98.4
|
323.7
|
294.8
|
Change in non-cash
operating working capital
|
(12.8)
|
(3.5)
|
(1.0)
|
(16.2)
|
Cash generated from
operations, before changes in non-cash operating working
capital2
|
92.9
|
94.9
|
322.7
|
278.6
|
Free Cash Flow
"Free cash flow" is a non-GAAP financial performance measure
that does not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. New Gold defines "free cash flow" as cash generated
from operations and proceeds of sale of other assets less capital
expenditures on mining interests, lease payments, settlement of
non-current derivative financial liabilities which include the gold
stream obligation and the Ontario Teachers' Pension Plan free cash
flow interest. New Gold believes this non-GAAP financial
performance measure provides further transparency and assists
analysts, investors and other stakeholders of the Company in
assessing the Company's ability to generate cash flow from current
operations. "Free cash flow" is intended to provide additional
information only and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. This measure is not necessarily indicative of operating
profit or cash flows from operations as determined under IFRS. The
following tables reconcile this non-GAAP financial performance
measure to the most directly comparable IFRS measure on an
aggregate and mine-by-mine basis.
|
Three months ended
December 31, 2021
|
(in millions of
U.S. dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
67.7
|
44.5
|
(6.5)
|
105.7
|
Less Mining interest
capital expenditures
|
(24.0)
|
(34.3)
|
0.2
|
(58.1)
|
Add Proceeds of sale
from other assets
|
0.6
|
0.0
|
0.0
|
0.6
|
Less Lease
payments
|
(2.3)
|
0.1
|
(0.2)
|
(2.4)
|
Less Cash settlement
of non-current derivative financial liabilities
|
(6.5)
|
—
|
—
|
(6.5)
|
Free Cash
Flow
|
35.5
|
10.3
|
(6.5)
|
39.3
|
|
Three months ended
December 31, 2020
|
(in millions of
U.S. dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
59.0
|
46.5
|
(7.0)
|
98.5
|
Less Mining interest
capital expenditures
|
(43.9)
|
(65.3)
|
(0.2)
|
(109.4)
|
Less Lease
payments
|
(2.5)
|
(0.1)
|
(0.2)
|
(2.8)
|
Less Cash settlement
of non-current derivative financial liabilities
|
(7.0)
|
—
|
—
|
(7.0)
|
Free Cash
Flow
|
5.6
|
(18.9)
|
(7.3)
|
(20.7)
|
|
Year ended
December 31, 2021
|
(in millions of
U.S. dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
184.9
|
165.1
|
(26.3)
|
323.7
|
Less Mining interest
capital expenditures
|
(103.0)
|
(144.4)
|
0.1
|
(247.3)
|
Add Proceeds of sale
from other assets
|
0.9
|
0.5
|
0.0
|
1.4
|
Less Lease
payments
|
(9.5)
|
(0.3)
|
(0.6)
|
(10.4)
|
Less Cash settlement
of non-current derivative financial liabilities
|
(27.3)
|
(5.0)
|
—
|
(32.3)
|
Free Cash
Flow
|
46.0
|
15.9
|
(26.8)
|
35.1
|
|
Year ended
December 31, 2020
|
(in millions of
U.S. dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
165.2
|
141.9
|
(12.3)
|
294.8
|
Less Mining interest
capital expenditures
|
(140.8)
|
(134.1)
|
(9.4)
|
(284.2)
|
Less Lease
payments
|
(9.8)
|
(0.5)
|
(0.7)
|
(11.0)
|
Less Cash settlement
of non-current derivative financial liabilities
|
(21.9)
|
—
|
—
|
(21.9)
|
Free Cash
Flow
|
(7.3)
|
7.4
|
(22.3)
|
(22.2)
|
Average Realized Price
"Average realized price per ounce of gold sold" is a non-GAAP
financial performance measure that does not have any standardized
meaning under IFRS and therefore may not be comparable to similar
measures presented by other issuers. Other companies may calculate
this measure differently and this measure is unlikely to be
comparable to similar measures presented by other companies.
Management uses this measure to better understand the price
realized in each reporting period for gold sales. "Average realized
price per ounce of gold sold" is intended to provide additional
information only and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. The following tables reconcile this non-GAAP financial
performance measure to the most directly comparable IFRS measure on
an aggregate and mine-by-mine basis.
|
Three months ended
December 31
|
Year ended
December 31
|
(in millions of
U.S. dollars, except where noted)
|
2021
|
2020
|
2021
|
2020
|
TOTAL AVERAGE
REALIZED PRICE
|
|
|
|
|
Revenue from gold
sales
|
139.9
|
138.8
|
492.6
|
449.3
|
Treatment and
refining charges on gold concentrate sales
|
1.5
|
1.5
|
5.6
|
6.3
|
Gross revenue from
gold sales
|
141.4
|
140.3
|
498.2
|
455.6
|
Gold ounces
sold
|
78,745
|
86,491
|
277,451
|
291,877
|
Total average
realized price per gold ounce sold ($/ounce)2
|
1,798
|
1,623
|
1,798
|
1,559
|
|
Three months ended
December 31
|
Year ended
December 31
|
(in millions of
U.S. dollars, except where noted)
|
2021
|
2020
|
2021
|
2020
|
RAINY RIVER
AVERAGE REALIZED PRICE
|
|
|
|
|
Revenue from gold
sales
|
118.9
|
114.8
|
410.9
|
360.7
|
Gold ounces
sold
|
66,239
|
70,675
|
228,693
|
231,112
|
Rainy River average
realized price per gold ounce sold ($/ounce)2
|
1,796
|
1,624
|
1,797
|
1,561
|
|
Three months ended
December 31
|
Year ended
December 31
|
(in millions of
U.S. dollars, except where noted)
|
2021
|
2020
|
2021
|
2020
|
NEW AFTON AVERAGE
REALIZED PRICE
|
|
|
|
|
Revenue from gold
sales
|
20.9
|
24.1
|
81.7
|
88.6
|
Treatment and
refining charges on gold concentrate sales
|
1.5
|
1.5
|
5.5
|
6.3
|
Gross revenue from
gold sales
|
22.4
|
25.6
|
87.2
|
94.9
|
Gold ounces
sold
|
12,507
|
15,817
|
48,758
|
60,765
|
New Afton average
realized price per gold ounce sold ($/ounce)2
|
1,807
|
1,621
|
1,804
|
1,553
|
For additional information with respect to the non-GAAP measures
used by the Company, refer to the detailed "Non-GAAP Financial
Performance Measure" section disclosure in the MD&A for the
three months and year ended December 31,
2021 filed at www.sedar.com and on EDGAR at www.sec.gov.
Mineral Reserves and Mineral Resources
New Gold's Mineral Reserve estimates as at December 31, 2021, is presented in the following
table.
Mineral Reserves
|
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
|
9,486
|
1.26
|
2.2
|
-
|
385
|
657
|
-
|
Probable
|
21,861
|
1.20
|
2.2
|
-
|
845
|
1,513
|
-
|
Open Pit P&P
(direct proc.)
|
31,347
|
1.22
|
2.2
|
-
|
1,230
|
2,170
|
-
|
Stockpile
DPO
|
|
|
|
|
|
|
|
Proven
|
1,247
|
0.65
|
2.5
|
-
|
26
|
98
|
-
|
Probable
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
Stockpile
|
1,247
|
0.65
|
2.5
|
-
|
26
|
98
|
-
|
Low grade
reserves
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
|
Proven
|
2,982
|
0.36
|
1.7
|
-
|
34
|
164
|
-
|
Probable
|
9,426
|
0.36
|
1.9
|
-
|
108
|
588
|
-
|
Open Pit P&P
(low grade)
|
12,408
|
0.36
|
1.9
|
-
|
142
|
752
|
-
|
Stockpile
|
|
|
|
|
|
|
|
Proven
|
12,561
|
0.39
|
2.3
|
-
|
159
|
918
|
-
|
Probable
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Open Pit P&P
(stockpile)
|
12,561
|
0.39
|
2.3
|
-
|
159
|
918
|
-
|
Open Pit P&P
(Direct proc. & Low grade)
|
57,563
|
0.84
|
2.1
|
-
|
1,558
|
3,938
|
-
|
Underground
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
12,657
|
3.05
|
7.6
|
-
|
1,241
|
3,084
|
-
|
Underground P&P
(direct proc.)
|
12,657
|
3.05
|
7.6
|
-
|
1,241
|
3,084
|
-
|
Combined Direct
proc. & Low grade
|
|
|
|
|
|
|
|
Proven
|
26,276
|
0.72
|
2.2
|
-
|
605
|
1,837
|
-
|
Probable
|
43,944
|
1.55
|
3.7
|
-
|
2,194
|
5,185
|
-
|
Total Rainy River
P&P
|
70,220
|
1.24
|
3.1
|
-
|
2,799
|
7,022
|
-
|
NEW
AFTON
|
A&B
Zones
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
2,961
|
0.59
|
2.8
|
0.73
|
56
|
267
|
48
|
B3
Zone
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
8,801
|
0.63
|
1.4
|
0.74
|
178
|
394
|
143
|
C-Zone
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
29,512
|
0.68
|
1.8
|
0.75
|
649
|
1,666
|
485
|
Total New Afton
P&P
|
41,274
|
0.67
|
1.8
|
0.74
|
883
|
2,327
|
675
|
TOTAL PROVEN &
PROBABLE RESERVES
|
3,682
|
9,349
|
675
|
Notes to the mineral reserve and mineral resource estimates are
provided below.
Measured and Indicated Mineral
Resources
New Gold's Mineral Resource estimates as at December 31, 2021, is presented in the following
table.
Measured and Indicated Mineral Resources (Exclusive of
Mineral Reserves)
|
|
Metal
Grade
|
Contained
Metal
|
|
Tonnes
000s
|
Gold
g/t
|
Silver
g/t
|
Copper
%
|
Gold
Koz
|
Silver
Koz
|
Copper
Mlbs
|
Direct processing
resources
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
|
Measured
|
570
|
1.61
|
3.0
|
-
|
30
|
55
|
-
|
Indicated
|
3,131
|
1.48
|
3.2
|
-
|
149
|
325
|
-
|
Open Pit M&I
(direct proc.)
|
3,701
|
1.50
|
3.2
|
-
|
179
|
380
|
-
|
Underground
|
|
|
|
|
|
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
14,014
|
2.99
|
7.6
|
-
|
1,348
|
3,422
|
-
|
Underground M&I
(direct proc.)
|
14,014
|
2.99
|
7.6
|
-
|
1,348
|
3,422
|
-
|
Low grade
resources
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
|
Measured
|
192
|
0.34
|
2.0
|
-
|
2
|
12
|
-
|
Indicated
|
1,268
|
0.34
|
1.9
|
-
|
14
|
80
|
-
|
Open Pit M&I
(low grade)
|
1,460
|
0.34
|
2.0
|
-
|
16
|
92
|
-
|
Combined
M&I
|
|
|
|
|
|
|
|
Measured
|
762
|
1.29
|
2.7
|
-
|
32
|
67
|
-
|
Indicated
|
18,413
|
2.55
|
6.5
|
-
|
1,511
|
3,827
|
-
|
Total Rainy River
M&I
|
19,175
|
2.50
|
6.3
|
-
|
1,543
|
3,894
|
-
|
NEW
AFTON
|
A&B
Zones
|
|
|
|
|
|
|
|
Measured
|
21,426
|
0.52
|
1.2
|
0.72
|
361
|
848
|
338
|
Indicated
|
10,387
|
0.34
|
2.8
|
0.55
|
114
|
932
|
127
|
A&B Zone
M&I
|
31,812
|
0.46
|
1.7
|
0.66
|
475
|
1,780
|
465
|
C-Zone
|
|
|
|
|
|
|
|
Measured
|
4,227
|
0.87
|
2.2
|
1.09
|
118
|
297
|
102
|
Indicated
|
2,387
|
1.23
|
3.2
|
1.57
|
94
|
245
|
83
|
C-Zone
M&I
|
6,614
|
1.00
|
2.6
|
1.27
|
212
|
542
|
185
|
HW
Lens
|
|
|
|
|
|
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
11,450
|
0.51
|
2.0
|
0.44
|
186
|
740
|
110
|
HW Lens
M&I
|
11,450
|
0.51
|
2.0
|
0.44
|
186
|
740
|
110
|
D
Zone
|
|
|
|
|
|
|
|
Measured
|
1,470
|
0.80
|
1.9
|
0.81
|
38
|
91
|
26
|
Indicated
|
5,875
|
0.70
|
1.9
|
0.79
|
131
|
363
|
102
|
D Zone
M&I
|
7,345
|
0.72
|
1.9
|
0.79
|
169
|
454
|
128
|
Eastern
Extension
|
|
|
|
|
|
|
|
Measured
|
403
|
0.48
|
1.8
|
0.57
|
6
|
23
|
5
|
Indicated
|
7,276
|
0.54
|
2.8
|
0.71
|
126
|
648
|
113
|
Eastern Extension
M&I
|
7,679
|
0.53
|
2.7
|
0.70
|
132
|
671
|
118
|
Combined
M&I
|
|
|
|
|
|
|
|
Measured
|
27,526
|
0.59
|
1.4
|
0.78
|
523
|
1,259
|
471
|
Indicated
|
37,375
|
0.54
|
2.4
|
0.65
|
651
|
2,928
|
535
|
Total New Afton
M&I
|
64,900
|
0.56
|
2.0
|
0.70
|
1,174
|
4,187
|
1,006
|
TOTAL MEASURED
& INDICATED RESOURCES
|
2,717
|
8,081
|
1,006
|
Notes to the mineral
reserve and mineral resource estimates are provided
below.
|
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
|
481
|
0.98
|
2.5
|
-
|
15
|
38
|
-
|
Underground
|
1,593
|
3.30
|
2.7
|
-
|
169
|
141
|
-
|
Total Direct
Processing
|
2,074
|
2.76
|
2.7
|
-
|
184
|
179
|
-
|
Low grade
resources
|
|
|
|
|
|
|
|
Open Pit
|
404
|
0.35
|
1.3
|
-
|
5
|
17
|
-
|
Rainy River
Inferred
|
2,478
|
2.37
|
2.5
|
-
|
189
|
196
|
-
|
NEW
AFTON
|
A&B
Zones
|
6,773
|
0.38
|
1.4
|
0.35
|
84
|
296
|
52
|
C-Zone
|
1,438
|
0.50
|
0.8
|
0.19
|
23
|
35
|
6
|
HW Lens
|
3
|
0.49
|
0.6
|
0.19
|
-
|
-
|
-
|
D Zone
|
4,685
|
0.32
|
1.3
|
0.52
|
48
|
197
|
53
|
Eastern
Extension
|
3,402
|
0.40
|
1.0
|
0.35
|
43
|
107
|
26
|
New Afton
Inferred
|
16,301
|
0.38
|
1.2
|
0.38
|
198
|
635
|
137
|
TOTAL
INFERRED
|
|
|
|
|
387
|
831
|
137
|
Notes to the mineral
reserve and mineral resource estimates are provided
below.
|
Notes to Mineral Reserve and Resource Estimates
1.
|
New Gold's Mineral
Reserves and Mineral Resources have been estimated in accordance
with the CIM 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, 2021.
|
|
|
3.
|
New Gold's year-end
2021 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
|
$1,400
|
$19.00
|
$3.25
|
$1.25
|
Mineral
Resources
|
$1,500
|
$21.00
|
$3.50
|
$1.25
|
|
|
4.
|
Lower cut-offs for
the Company's Mineral Reserves and Mineral Resources are outlined
in the following table:
|
Mineral
Property
|
Mineral
Reserves
Lower cut-off
|
Mineral
Resources
Lower Cut-off
|
Rainy
River
|
O/P direct
processing:
|
0.46 – 0.49 g/t
AuEq
|
0.44 – 0.45 g/t
AuEq
|
|
O/P low grade
material:
|
0.30 g/t
AuEq
|
0.30 g/t
AuEq
|
|
U/G direct
processing:
|
Intrepid Zone: 1.93
g/t AuEq
ODM Main Zones: 2.25
g/t AuEq
|
1.70 g/t
AuEq
|
|
U/G with LGO
Stockpile processing:
|
ODM Main Zones: 1.74
g/t AuEq
|
1.70 g/t
AuEq
|
New Afton
|
A&B
Zones:
|
USD$
10.00/t
|
All Resources:
0.40% CuEq
|
|
B3 Block &
C-Zone:
|
USD$
24.00/t
|
|
|
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 including those listed in New Gold's most
recent Annual Information Form. 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.
|
Rainy River Mine: In
addition to the criteria described above, Mineral Reserves and
Mineral Resources for the Rainy River project are reported
according to the following criteria: Underground Mineral Reserves
are reported peripheral to and/or below the open pit Mineral
Reserve pit shell, which has been designed and optimized based on a
$1,400/oz gold price. Open pit and underground Mineral Resources
are reported based on a $1,500/oz gold price. Open pit
Mineral Resources are reported from within an open pit resource
shell that extends to a depth of approximately 340 meters from
surface. Open pit Mineral Resources exclude material reported as
underground Mineral Reserves. New Afton Mine: C-Zone Mineral
Resources reported at December 31, 2021, have been further
subdivided under C-Zone, D-Zone and Eastern Extension based upon
geological model refinement and location within the New Afton
deposit.
|
|
|
8.
|
The preparation of
New Gold's consolidated statement and estimation of mineral
reserves has been completed under the oversight and review of Mr.
Andrew Croal, Director of Technical Services for the Company. Mr.
Croal is a Professional Engineer and member of the Association of
Professional Engineers Ontario. Preparation of New Gold's
consolidated statement and estimation of mineral resources has been
completed under the oversight and review of Mr. Michele Della
Libera, Director, Exploration for the Company. Mr. Della Libera is
a Professional Geoscientist and member of the Association of
Professional Geoscientist of Ontario and of the Engineers and
Geoscientist of British Columbia. Mr. Croal and Mr. Della Libera
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: the Company's
anticipated focus on operational excellence and optimization at
both assets and its ability to execute on its strategy; the
advancement of development of the Intrepid underground zone at
Rainy River and targeted timing
for initial production; prioritizing B3 ramp-up and C-Zone
development at New Afton; the Company's expectations regarding
production, costs, capital investments and expenses on a
consolidated and mine-by-mine basis, and the factors contributing
to those expected results; planned activities, undertakings and
areas of focus at the Rainy River Mine and New Afton Mine and
expectations of timing and costs associated therewith; expectations
regarding production timing; planned reporting on a gold equivalent
and per-metal basis; the anticipated mining of the East Lobe and
the contribution of mill feed there from in 2022; the Company's
expectations regarding a higher strip ratio and increase in the
open pit strip ratio for 2022 at Rainy
River as well as the anticipated results therefrom;
anticipated capital and exploration expenditures at Rainy River
Mine and New Afton Mine; anticipated timing for filing of the NI
43-101 Technical Report for Rainy
River; the reduction in B3 ore tonnes to be mined in 2022 at
New Afton; expectations regarding current surface stockpiles at New
Afton; and the Company's plans relating to its ESG approach.
All forward-looking statements in this news release are based on
the opinions and estimates of management that, while considered
reasonable as at the date of this press release in light of
management's experience and perception of current conditions and
expected developments, are inherently subject to important risk
factors and uncertainties, many of which are beyond New Gold's
ability to control or predict. Certain material assumptions
regarding such forward-looking statements are discussed in this
news release, New Gold's latest annual management's discussion and
analysis ("MD&A"), its most recent annual information form and
technical reports on the Rainy River Mine and New Afton Mine filed
on SEDAR at www.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 and the grade of gold, silver and copper
expected to be mined and the grade of gold, copper and silver
expected to be mined; (4) the exchange rate between the Canadian
dollar and U.S. dollar, and to a lesser extent, the Mexican Peso,
and commodity prices being approximately consistent with current
levels and expectations for the purposes of 2022 guidance and
otherwise; (5) prices for diesel, natural gas, fuel oil,
electricity and other key supplies being approximately consistent
with current levels; (6) equipment, labour and 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 New Afton Mine and Rainy River
Mine being consistent with New Gold's current expectations; (8) all
required permits, licenses and authorizations being obtained from
the relevant governments and other relevant stakeholders within the
expected timelines and the absence of material negative comments or
obstacles during any applicable regulatory processes; (9)
there being no significant disruptions to the Company's
workforce at either the Rainy River Mine or New Afton Mine due to
cases of COVID-19 (including any required self-isolation
requirements due to cross-border travel to the United States or any other country or any
other reason) or otherwise; (10) the responses of the relevant
governments to the COVID-19 outbreak being sufficient to contain
the impact of the COVID-19 outbreak; (11) 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
Rainy River Mine and the New Afton Mine; and (12) 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: price volatility in the spot and forward markets for
metals and other commodities; discrepancies between actual and
estimated production, between actual and estimated costs, between
actual and estimated Mineral Reserves and Mineral Resources and
between actual and estimated metallurgical recoveries; equipment
malfunction, failure or unavailability; accidents; risks related to
early production at the Rainy River Mine, including failure of
equipment, machinery, the process circuit or other processes to
perform as designed or intended; the speculative nature of mineral
exploration and development, including the risks of obtaining and
maintaining the validity and enforceability of the necessary
licenses and permits and complying with the permitting requirements
of each jurisdiction in which New Gold operates, including, but not
limited to: obtaining the necessary permits for the New Afton
C-Zone; uncertainties and unanticipated delays associated with
obtaining and maintaining necessary licenses, permits and
authorizations and complying with permitting requirements,
including those associated with the C-Zone permitting process;
changes in project parameters as plans continue to be refined;
changing costs, timelines and development schedules as it relates
to construction; the Company not being able to complete its
construction projects at the Rainy River Mine or the New Afton Mine
on the anticipated timeline or at all; volatility in the
market price of the Company's securities; changes in national and
local government legislation in the countries in which New Gold
does or may in the future carry on business; controls, regulations
and political or economic developments in the countries in which
New Gold does or may in the future carry on business; the Company's
dependence on the Rainy River Mine and New Afton Mine; the Company
not being able to complete its exploration drilling programs on the
anticipated timeline or at all; 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 any required self-isolation (due
to cross-border travel, exposure to a case of COVID-19 or
otherwise); the responses of the relevant governments to the
COVID-19 outbreak not being sufficient to contain the impact of the
COVID-19 outbreak; 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 Mine or New Afton
Mine; significant capital requirements and the availability
and management of capital resources; additional funding
requirements; diminishing quantities or grades of Mineral Reserves
and Mineral Resources; actual results of current exploration or
reclamation activities; uncertainties inherent to mining economic
studies including the Technical Reports for the Rainy River Mine
and New Afton Mine; impairment; unexpected delays and costs
inherent to consulting and accommodating rights of First Nations
and other indigenous groups; climate change, environmental risks
and hazards and the Company's response thereto; tailings dam and
structure failures; actual results of current exploration or
reclamation activities; fluctuations in the international
currency markets and in the rates of exchange of the currencies of
Canada, the United States and, to a lesser extent,
Mexico; global economic and
financial conditions and any global or local natural events that
may impede the economy or New Gold's ability to carry on business
in the normal course; compliance with debt obligations and
maintaining sufficient liquidity; taxation; fluctuation in
treatment and refining charges; transportation and processing of
unrefined products; rising costs or availability of labour,
supplies, fuel and equipment; adequate infrastructure;
relationships with communities, governments and other stakeholders;
geotechnical instability and conditions; labour disputes; the
uncertainties inherent in current and future legal challenges to
which New Gold is or may become a party; defective title to mineral
claims or property or contests over claims to mineral properties;
competition; loss of, or inability to attract, key employees;
use of derivative products and hedging transactions; counterparty
risk and the performance of third party service providers;
investment risks and uncertainty relating to the value of equity
investments in public companies held by the Company from time to
time; the adequacy of internal and disclosure controls; conflicts
of interest; the lack of certainty with respect to foreign
operations and legal systems, which may not be immune from the
influence of political pressure, corruption or other factors that
are inconsistent with the rule of law; the successful acquisitions
and integration of business arrangements and realizing the intended
benefits therefrom; and information systems security threats. In
addition, there are risks and hazards associated with the
business of mineral exploration, development, construction,
operation and mining, including environmental events and hazards,
industrial accidents, unusual or unexpected formations, pressures,
cave-ins, flooding and gold bullion losses (and the risk of
inadequate insurance or inability to obtain insurance to cover
these risks) as well as "Risk Factors" included in New Gold's most
recent annual information form, MD&A and other disclosure
documents filed on and available on SEDAR 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.
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, Senior Vice President, Operations 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.
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SOURCE New Gold Inc.