On-Track to Achieve 2023 Production and Cost Guidance; Rainy
River Underground and New Afton C-Zone Continue to
Advance
(All amounts are in U.S. dollars unless otherwise
indicated)
TORONTO, July 26,
2023 /CNW/ - New Gold Inc. ("New Gold" or the
"Company") (TSX: NGD) (NYSE American: NGD) reports second
quarter results for the Company as of June
30, 2023. The Company will host a conference call and
webcast tomorrow, July 27, 2023 at
8:30 am Eastern Time to discuss the
second quarter consolidated results (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 financial statements for the quarter ended June 30, 2023 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 Second Quarter Highlights
- Gold equivalent1 ("gold eq.") production for the
quarter of 102,374 ounces (76,527 ounces of gold, 12.0 million
pounds of copper and 152,208 ounces of silver)
- Operating expenses of $1,090 per
gold eq. ounce
- All-in sustaining costs2 of $1,657 per gold eq. ounce, including total cash
costs2 of $1,129 per gold
eq. ounce
- Average realized gold price2 of $1,970 per ounce and average realized copper
price2 of $3.82 per
pound
- Cash generated from operations of $56
million, or $0.08 per
share
- Cash generated from operations, before changes in non-cash
operating working capital2 of $65
million, or $0.10 per
share
- Net loss of $3 million, or
$0.00 per share
- Adjusted net earnings2 of $12
million, or $0.02 per
share
- Cash and cash equivalents of $174
million as at June 30,
2023
- During the quarter, the Company published its 2022
Environmental, Social and Governance Report (refer to the
Company's June 19, 2023 news release
for further information)
"New Gold carried the momentum from a strong start to the
year and delivered another excellent quarter," stated Patrick Godin, President & CEO. "We
delivered a 45% increase in gold equivalent production with lower
all-in sustaining costs, significantly increasing our margins over
the prior-year period, accomplishing our goals safely. I am also
proud that during the second quarter, the New Afton Mine received
the J.T Ryan Safety Award for British
Columbia and Yukon and
British Columbia's Safest Large
Underground Mine Award. We will continue to build on these positive
results as we look to the second half of the year, and we remain
well positioned to meet our guidance ranges set out earlier in the
year."
"Looking beyond 2023, we continued to make progress advancing
our growth initiatives. During the quarter, underground development
at Rainy River continued, with
development of the ramp access to the underground Main Zone
advancing 98 metres. Following detailed internal optimization
studies, I am excited to share that access to the underground Main
Zone commenced from the Intrepid Zone, providing the mine with a
number of efficiencies over the previous plan. C-Zone development
at New Afton continued well in the quarter, advancing 1,415 metres.
Our development rate increased substantially over the first
quarter, and I remain confident in our ability to achieve first
production ore during the fourth quarter, with commercial
production planned for the second half of 2024," added Mr.
Godin.
Consolidated Financial Highlights
|
Q2
2023
|
Q2
2022
|
H1
2023
|
H1
2022
|
Revenue ($M)
|
184.4
|
115.7
|
386.0
|
290.4
|
Operating expenses
($M)
|
104.9
|
79.8
|
222.1
|
175.0
|
Net (loss) earnings
($M)
|
(2.6)
|
(37.9)
|
(34.4)
|
(45.7)
|
Net (loss) earnings,
per share ($)
|
(0.00)
|
(0.06)
|
(0.05)
|
(0.07)
|
Adj. net earnings
($M)2
|
11.6
|
(16.7)
|
30.0
|
(6.4)
|
Adj. net earnings, per
share ($)2
|
0.02
|
(0.02)
|
0.04
|
(0.01)
|
Cash generated from
operations ($M)
|
56.4
|
37.4
|
117.0
|
105.2
|
Cash generated from
operations, per share ($)
|
0.08
|
0.05
|
0.17
|
0.15
|
Cash generated from
operations, before changes in
non-cash operating working capital ($M)2
|
65.2
|
27.4
|
140.9
|
93.8
|
Cash generated from
operations, before changes in
non-cash operating working capital, per share
($)2
|
0.10
|
0.04
|
0.21
|
0.14
|
- Revenue increased over the prior-year periods due to higher
gold prices and higher gold and copper sales volumes, partially
offset by lower copper prices.
- Operating expenses increased over the prior-year periods
primarily due to higher production and sales at both sites.
- Net loss decreased over the prior-year periods primarily due to
higher revenues, lower finance costs, and a smaller loss on the
revaluation of investments, partially offset by higher operating
expenses, and depreciation and depletion.
- Adjusted net earnings2 increased over the prior-year
periods due to higher revenues and lower finance costs, partially
offset by higher operating expenses, and depreciation and
depletion.
- Cash generated from operations increased over the prior-year
periods due to higher revenue, partially offset by negative working
capital movements.
Consolidated Operational Highlights
|
Q2
2023
|
Q2
2022
|
H1
2023
|
H1
2022
|
Gold eq. production
(ounces)1
|
102,374
|
70,514
|
207,231
|
158,210
|
Gold eq. sold
(ounces)1
|
96,184
|
62,509
|
204,116
|
155,045
|
Gold production
(ounces)
|
76,527
|
52,431
|
159,004
|
120,532
|
Gold sold
(ounces)
|
74,219
|
51,263
|
161,426
|
121,825
|
Copper production
(Mlbs)
|
12.0
|
7.4
|
22.3
|
15.6
|
Copper sold
(MIbs)
|
10.1
|
4.4
|
19.5
|
13.6
|
Gold revenue, per ounce
($)
|
1,948
|
1,870
|
1,903
|
1,876
|
Copper revenue, per
pound ($)
|
3.61
|
3.97
|
3.70
|
4.17
|
Average realized gold
price, per ounce ($)2
|
1,970
|
1,879
|
1,927
|
1,889
|
Average realized copper
price, per pound ($)2
|
3.82
|
4.14
|
3.96
|
4.41
|
Operating expenses, per
gold eq. ounce ($)
|
1,090
|
1,277
|
1,088
|
1,129
|
Total cash costs, per
gold eq. ounce ($)2
|
1,129
|
1,296
|
1,132
|
1,161
|
Depreciation and
depletion, per gold eq. ounce ($)
|
566
|
628
|
538
|
569
|
All-in sustaining
costs, per gold eq. ounce ($)2
|
1,657
|
2,373
|
1,566
|
2,018
|
Sustaining capital
($M)2
|
35.6
|
57.2
|
61.9
|
109.8
|
Growth capital
($M)2
|
36.0
|
18.9
|
72.8
|
41.8
|
Total capital
($M)
|
71.6
|
76.1
|
134.7
|
151.6
|
Rainy River Mine
Operational Highlights
Rainy River
Mine
|
Q2
2023
|
Q2
2022
|
H1
2023
|
H1
2022
|
Gold eq. production
(ounces)1
|
61,419
|
43,759
|
129,015
|
103,654
|
Gold eq. sold
(ounces)1
|
61,045
|
46,781
|
134,457
|
108,464
|
Gold production
(ounces)
|
59,882
|
42,516
|
126,083
|
101,349
|
Gold sold
(ounces)
|
59,529
|
45,517
|
131,420
|
106,152
|
Gold revenue, per ounce
($)
|
1,965
|
1,879
|
1,920
|
1,886
|
Average realized gold
price, per ounce ($)2
|
1,965
|
1,879
|
1,920
|
1,886
|
Operating expenses, per
gold eq. ounce ($)
|
1,110
|
1,029
|
1,057
|
983
|
Total cash costs, per
gold eq. ounce ($)2
|
1,110
|
1,029
|
1,057
|
983
|
Depreciation and
depletion, per gold eq. ounce ($)
|
640
|
687
|
586
|
653
|
All-in sustaining
costs, per gold eq. ounce ($)2
|
1,725
|
1,972
|
1,538
|
1,756
|
Sustaining capital
($M)2
|
31.6
|
40.1
|
53.9
|
75.0
|
Growth capital
($M)2
|
4.5
|
2.6
|
10.3
|
7.5
|
Total capital
($M)
|
36.1
|
42.7
|
64.1
|
82.5
|
Operating Key Performance Indicators
Rainy River
Mine
|
Q2
2023
|
Q2
2022
|
H1
2023
|
H1
2022
|
Open Pit
Only
|
|
|
|
|
Tonnes mined per day
(ore and waste)
|
130,488
|
110,153
|
124,517
|
114,381
|
Ore tonnes mined per
day
|
34,146
|
12,295
|
35,257
|
16,136
|
Operating waste tonnes
per day
|
61,796
|
19,560
|
61,082
|
27,337
|
Capitalized waste
tonnes per day
|
34,545
|
78,298
|
28,178
|
70,909
|
Total waste tonnes per
day
|
96,342
|
97,858
|
89,260
|
98,246
|
Strip ratio
(waste:ore)
|
2.82
|
7.96
|
2.53
|
6.09
|
Open Pit and
Underground
|
|
|
|
|
Tonnes milled per
calendar day
|
23,252
|
23,302
|
22,828
|
23,807
|
Gold grade milled
(g/t)
|
0.97
|
0.69
|
1.04
|
0.80
|
Gold recovery
(%)
|
91
|
90
|
91
|
92
|
- Second quarter gold eq.1 production was 61,419
ounces (59,882 ounces of gold and 122,211 ounces of silver). For
the six months ended June 30, 2023,
gold eq.1 production was 129,015 ounces (126,083 ounces
of gold and 233,187 ounces of silver). The increase over the
prior-year periods is due to higher gold grades. Underground
production rates continue to ramp-up with grades reconciling well
relative to plan.
- During the second quarter, Rainy
River's open pit mining sequence was optimized to maintain a
consistent production profile throughout the year, leading to
ounces being mined ahead of schedule. Rainy River remains well positioned to meet
annual production and cost guidance metrics.
- Operating expense per gold eq. ounce increased over the
prior-year periods due to lower capitalized tonnes than the prior
periods and increased costs associated with mill maintenance
performed in the quarter, partially offset by higher sales
volume.
- All-in sustaining costs2 per gold eq. ounce
decreased over the prior-year periods due to lower sustaining
capital spend and higher sales volume.
- Total capital decreased over the prior-year periods due to
lower sustaining capital, partially offset by higher growth
capital. Sustaining capital2 primarily related to
capitalized waste, as well as capital maintenance, and the
commencement of the annual tailings dam raise. Growth
capital2 related to the development of the Intrepid
underground and underground Main Zones, which advanced 524 metres
during the quarter.
- Free cash flow2 for the quarter and six months ended
June 30, 2023, was $2 and $17 million
(net of $7 and $15 million stream payments, respectively), which
is consistent with the prior-year periods as the impact of higher
revenue was offset by higher working capital movement in the
prior-year periods.
- Development of the underground Main Zone commenced during the
quarter as planned. Following internal evaluations through the
first half of the year, the underground Main Zone will initially be
reached via the underground Intrepid Zone. Deferral of the in-pit
portal for the Main Zone will allow for a number of efficiencies
and further optimization of the existing open pit for its remaining
mine life. During the quarter development of the underground Main
Zone advanced 98 metres.
New Afton Mine
Operational Highlights
New Afton
Mine
|
Q2
2023
|
Q2
2022
|
H1
2023
|
H1
2022
|
Gold eq. production
(ounces)1
|
40,955
|
26,755
|
78,216
|
54,556
|
Gold eq. sold
(ounces)1
|
35,139
|
15,729
|
69,658
|
46,580
|
Gold production
(ounces)
|
16,645
|
9,916
|
32,921
|
19,183
|
Gold sold
(ounces)
|
14,690
|
5,746
|
30,006
|
15,673
|
Copper production
(Mlbs)
|
12.0
|
7.4
|
22.3
|
15.6
|
Copper sold
(Mlbs)
|
10.1
|
4.4
|
19.5
|
13.6
|
Gold revenue, per ounce
($)
|
1,878
|
1,800
|
1,829
|
1,810
|
Copper revenue, per
ounce ($)
|
3.61
|
3.97
|
3.70
|
4.17
|
Average realized gold
price, per ounce ($)2
|
1,988
|
1,879
|
1,957
|
1,914
|
Average realized copper
price, per pound ($)2
|
3.82
|
4.14
|
3.96
|
4.41
|
Operating expenses, per
gold eq. ounce ($)
|
1,055
|
2,012
|
1,147
|
1,469
|
Total cash costs, per
gold eq. ounce ($)2
|
1,163
|
2,090
|
1,276
|
1,575
|
Depreciation and
depletion, per gold eq. ounce ($)
|
431
|
441
|
440
|
364
|
All-in sustaining
costs, per gold eq. ounce ($)2
|
1,299
|
3,222
|
1,412
|
2,355
|
Sustaining capital
($M)2
|
4.1
|
17.1
|
8.1
|
34.8
|
Growth capital
($M)2
|
31.4
|
16.3
|
62.6
|
34.3
|
Total capital
($M)
|
35.5
|
33.4
|
70.6
|
69.1
|
Operating Key Performance Indicators
New Afton
Mine
|
Q2
2023
|
Q2
2022
|
H1
2023
|
H1
2022
|
New Afton Mine
Only
|
|
|
|
|
Tonnes mined per day
(ore and waste)
|
10,165
|
6,477
|
9,678
|
6,751
|
Tonnes milled per
calendar day
|
8,307
|
11,4723
|
8,161
|
10,8893
|
Gold grade milled
(g/t)
|
0.72
|
0.373
|
0.70
|
0.373
|
Gold recovery
(%)
|
89
|
803
|
89
|
813
|
Copper grade milled
(%)
|
0.78
|
0.42
|
0.74
|
0.45
|
Copper recovery
(%)
|
91
|
78
|
91
|
79
|
Gold eq. production
(ounces)1
|
40,014
|
25,659
|
74,724
|
52,919
|
Gold production
(ounces)
|
15,704
|
8,820
|
29,429
|
17,546
|
Copper production
(Mlbs)
|
12.0
|
7.4
|
22.3
|
15.6
|
Ore Purchase
Agreements
|
|
|
|
|
Gold production
(ounces)
|
941
|
1,096
|
3,492
|
1,637
|
- Second quarter gold eq.1 production was 40,955
ounces (16,645 ounces of gold and 12.0 million pounds of copper).
For the six months ended June 30,
2023, gold eq.1 production was 78,216 ounces
(32,921 ounces of gold and 22.3 million pounds of copper). The
increase over the prior-year periods is due to higher gold and
copper grades and recovery, partially offset by lower tonnes
processed. New Afton remains well positioned to meet annual
production and cost guidance metrics.
- Operating expense per gold eq. ounce decreased over the
prior-year periods primarily due to a higher sales volume.
- All-in sustaining costs2 per gold eq. ounce
decreased over the prior-year periods due to lower sustaining
capital spend and higher sales volume.
- Total capital increased over the prior-year periods, primarily
due to higher growth capital spend partially offset by lower
sustaining capital spend. Sustaining capital2 primarily
related to tailings management and stabilization activities. Growth
capital2 primarily related to C-Zone development.
- Free cash flow2 for the quarter and six months ended
June 30, 2023, was a net outflow of
$19 and $38
million, respectively, an increase over the prior-year
periods primarily due to an increase in cash generated from
operations partially offset by an increase in growth capital.
- During the quarter C-Zone advanced 1,415 metres, up from 1,172
metres in the first quarter. Completion of the ventilation raise in
the second quarter contributed to increased development rates.
Development on the extraction level to achieve first drawbell was
completed in the quarter, positioning the Company well for first
production ore in the fourth quarter, with commercial production
planned for the second half of 2024.
- During the quarter, the Company completed 5,586 metres of
diamond drilling in 18 drill holes from underground. Exploration
efforts prioritized potential mineralization on the Artificial
Intelligence North target area and K-Zone, as well as confirming
the true width and continuity of mineralization defined on the
D-Zone target area.
- A strike by the International Longshore and Warehouse Union
Canada closed DP World Fraser Surrey Port from July 1st to July 13th. To mitigate the impact of
the strike, New Afton has increased shipments of concentrate by
rail to eastern Canada and has not
been materially affected to date.
Second Quarter 2023 Conference Call and Webcast
The Company will host a webcast and conference call tomorrow,
July 27, 2023 at 8:30 am Eastern Time to discuss the Company's
second quarter consolidated results.
- Participants may listen to the webcast by registering on our
website at www.newgold.com or via the following link
https://app.webinar.net/9LrQ1zOndev
- 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
482413
- To join the conference call without operator assistance, you
may register and enter your phone number at
https://emportal.ink/3qbFfHx to receive an instant automated
call back
- A recorded playback of the conference call will be available
until August 27, 2023 by calling
North American toll free 1-888-390-0541, or 1-416-764-8677 outside
of the U.S. and Canada, passcode
482413. 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 other
Canadian-focused investments. New Gold's vision is to build a
leading diversified intermediate gold company based in Canada that is committed to the environment
and social responsibility. For further information on the Company,
visit www.newgold.com.
Endnotes
|
1.
|
Total 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 Q2 2023 includes production of
122,211 ounces of silver (120,579 ounces sold) converted to a gold
eq. based on a ratio of $1,750 per gold ounce and $22.00 per silver
ounce used for 2023 guidance estimates. Gold eq. ounces for New
Afton in Q2 2023 includes 12.0 million pounds of copper produced
(10.1 million pounds sold) and 29,997 ounces of silver produced
(22,805 ounces of silver sold) converted to a gold eq. based on a
ratio of $1,750 per gold ounce, $3.50 per copper pound and $22.00
per silver ounce used for 2023 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 before changes in
non-cash operating working capital", "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.
|
Key performance
indicator data is inclusive of ounces from ore purchase agreements
for New Afton. The New Afton Mine purchases small amounts of ore
from local operations, subject to certain grade and other criteria.
These ounces represented approximately 6% of total ounces produced
at New Afton during the quarter, and 11% for the six months ended
June 30, 2023, using New Afton's excess mill capacity. All other
ounces are mined and produced 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, 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
June 30
|
Six months ended
June 30
|
(in millions of U.S.
dollars, except where noted)
|
2023
|
2022
|
2023
|
2022
|
CONSOLIDATED OPEX,
CASH COST AND ALL-IN
SUSTAINING COSTS RECONCILIATION
|
|
|
|
|
Operating
expenses
|
104.9
|
79.8
|
222.1
|
175.0
|
Gold equivalent ounces
sold1
|
96,184
|
62,509
|
204,116
|
155,045
|
Operating expenses per
gold equivalent ounce sold
($/ounce)
|
1,090
|
1,277
|
1,088
|
1,129
|
Operating
expenses
|
104.9
|
79.8
|
222.1
|
175.0
|
Treatment and refining
charges on concentrate sales
|
3.8
|
1.2
|
9.0
|
5.0
|
Total cash
costs
|
108.6
|
81.0
|
231.1
|
180.0
|
Gold equivalent ounces
sold1
|
96,184
|
62,509
|
204,116
|
155,045
|
Total cash costs per
gold equivalent ounce sold
($/ounce)
|
1,129
|
1,296
|
1,132
|
1,161
|
Sustaining capital
expenditures
|
35.6
|
56.9
|
61.9
|
109.5
|
Sustaining exploration
- expensed
|
0.2
|
0.2
|
0.4
|
0.4
|
Sustaining
leases
|
3.8
|
2.6
|
6.3
|
5.2
|
Corporate G&A
including share-based compensation
|
8.1
|
5.2
|
13.9
|
12.1
|
Reclamation
expenses
|
2.9
|
2.4
|
6.2
|
5.7
|
Total all-in
sustaining costs
|
159.4
|
148.3
|
319.7
|
312.9
|
Gold equivalent ounces
sold1
|
96,184
|
62,509
|
204,116
|
155,045
|
All-in sustaining costs
per gold equivalent ounce sold
($/ounce)
|
1,657
|
2,373
|
1,566
|
2,018
|
|
Three months ended
June 30
|
Six months ended
June 30
|
(in millions of U.S.
dollars, except where noted)
|
2023
|
2022
|
2023
|
2022
|
RAINY RIVER OPEX,
CASH COSTS AND AISC
RECONCILIATION
|
|
|
|
|
Operating
expenses
|
67.8
|
48.2
|
142.2
|
106.6
|
Gold equivalent ounces
sold1
|
61,045
|
46,781
|
134,457
|
108,464
|
Operating expenses per
unit of gold sold ($/ounce)
|
1,110
|
1,029
|
1,057
|
983
|
Operating
expenses
|
67.8
|
48.2
|
142.2
|
106.6
|
Total cash
costs
|
67.8
|
48.2
|
142.2
|
106.6
|
Gold equivalent ounces
sold1
|
61,045
|
46,781
|
134,457
|
108,464
|
Total cash costs per
gold equivalent ounce sold ($/ounce)
|
1,110
|
1,029
|
1,057
|
983
|
Sustaining capital
expenditures
|
31.6
|
39.9
|
53.9
|
74.8
|
Sustaining
leases
|
3.6
|
2.3
|
5.9
|
4.6
|
Reclamation
expenses
|
2.3
|
1.9
|
4.9
|
4.5
|
Total all-in sustaining
costs
|
105.3
|
92.4
|
206.8
|
190.4
|
Gold equivalent ounces
sold1
|
61,045
|
46,781
|
134,457
|
108,464
|
All-in sustaining costs
per gold equivalent ounce sold
($/ounce)
|
1,725
|
1,972
|
1,538
|
1,756
|
|
Three months ended
June 30
|
Six months ended
June 30
|
(in millions of U.S.
dollars, except where noted)
|
2023
|
2022
|
2023
|
2022
|
NEW AFTON OPEX, CASH
COSTS AND AISC
RECONCILIATION
|
|
|
|
|
Operating
expenses
|
37.1
|
31.6
|
79.9
|
68.4
|
Gold equivalent ounces
sold1
|
35,139
|
15,729
|
69,658
|
46,580
|
Operating expenses per
unit of gold sold ($/ounce)
|
1,055
|
2,012
|
1,147
|
1,469
|
Operating
expenses
|
37.1
|
31.6
|
79.9
|
68.4
|
Treatment and refining
charges on concentrate sales
|
3.8
|
1.2
|
9.0
|
5.0
|
Total cash
costs
|
40.9
|
32.8
|
88.9
|
73.4
|
Gold equivalent ounces
sold1
|
35,139
|
15,729
|
69,658
|
46,580
|
Total cash costs per
gold equivalent ounce sold ($/ounce)
|
1,163
|
2,090
|
1,276
|
1,575
|
Sustaining capital
expenditures
|
4.1
|
17.1
|
8.1
|
34.8
|
Sustaining
leases
|
—
|
0.1
|
0.1
|
0.3
|
Reclamation
expenses
|
0.6
|
0.6
|
1.3
|
1.3
|
Total all-in sustaining
costs
|
45.6
|
50.6
|
98.3
|
109.7
|
Gold equivalent
ounces sold1
|
35,139
|
15,729
|
69,658
|
46,580
|
All-in sustaining costs
per gold equivalent ounce sold
($/ounce)
|
1,299
|
3,222
|
1,412
|
2,355
|
Sustaining Capital Expenditures Reconciliation Table
|
Three months ended
June 30
|
Six months ended
June 30
|
(in millions of U.S.
dollars)
|
2023
|
2022
|
2023
|
2022
|
TOTAL SUSTAINING
CAPITAL EXPENDITURES
|
|
|
|
|
Mining interests per
consolidated statement of cash flows
|
71.6
|
76.1
|
134.7
|
151.7
|
New Afton growth
capital expenditures
|
(31.4)
|
(16.3)
|
(62.6)
|
(34.3)
|
Rainy River growth
capital expenditures
|
(4.5)
|
(2.6)
|
(10.2)
|
(7.5)
|
Sustaining capital
expenditures
|
35.6
|
57.2
|
61.9
|
109.9
|
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:
fair value changes for the gold stream obligation, fair value
changes for the free cash flow interest obligation, 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
June 30
|
Six months ended
June 30
|
(in millions of U.S.
dollars, except where noted)
|
2023
|
2022
|
2023
|
2022
|
ADJUSTED NET
EARNINGS (LOSS) RECONCILIATION
|
|
|
|
|
(Loss) earnings before
taxes
|
(1.8)
|
(36.5)
|
(33.3)
|
(43.8)
|
Other (gains)
losses
|
14.3
|
13.7
|
64.3
|
32.0
|
Loss on repayment of
long-term debt
|
—
|
4.3
|
—
|
4.3
|
Adjusted net earnings
before taxes
|
12.5
|
(18.5)
|
31.0
|
(7.5)
|
Income tax
expense
|
(0.8)
|
(1.4)
|
(1.1)
|
(1.9)
|
Income tax
adjustments
|
(0.1)
|
3.2
|
0.1
|
3.0
|
Adjusted income tax
expense
|
(0.9)
|
1.8
|
(1.0)
|
1.1
|
Adjusted net
earnings
|
11.6
|
(16.7)
|
30.0
|
(6.4)
|
Adjusted earnings per
share (basic and diluted)
|
0.02
|
(0.02)
|
0.04
|
(0.01)
|
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
June 30
|
Six months ended
June 30
|
(in millions of U.S.
dollars)
|
2023
|
2022
|
2023
|
2022
|
CASH
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
56.4
|
37.4
|
117.0
|
105.2
|
Change in non-cash
operating working capital
|
8.8
|
(10.0)
|
23.9
|
(11.4)
|
Cash generated from
operations, before changes in non-
cash operating working capital
|
65.2
|
27.4
|
140.9
|
93.8
|
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, and 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
June 30, 2023
|
(in millions of U.S.
dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
48.6
|
16.5
|
(8.8)
|
56.3
|
Less Mining interest
capital expenditures
|
(36.1)
|
(35.5)
|
—
|
(71.6)
|
Add Proceeds of sale
from other assets
|
0.1
|
—
|
—
|
0.1
|
Less Lease
payments
|
(3.6)
|
(0.1)
|
(0.1)
|
(3.9)
|
Less Cash settlement of
non-current derivative financial liabilities
|
(7.0)
|
—
|
—
|
(7.0)
|
Free Cash
Flow
|
2.0
|
(19.1)
|
(8.9)
|
(26.1)
|
|
Three months ended
June 30, 2022
|
(in millions of U.S.
dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
51.8
|
(9.6)
|
(4.8)
|
37.4
|
Less Mining interest
capital expenditures
|
(42.7)
|
(33.4)
|
—
|
(76.1)
|
Add Proceeds of sale
from other assets
|
0.1
|
—
|
0.2
|
0.3
|
Less Lease
payments
|
(2.3)
|
(0.1)
|
(0.2)
|
(2.6)
|
Less Cash settlement of
non-current derivative financial liabilities
|
(6.7)
|
—
|
—
|
(6.7)
|
Free Cash
Flow
|
0.2
|
(43.1)
|
(4.8)
|
(47.7)
|
|
Six months ended
June 30, 2023
|
(in millions of U.S.
dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
101.3
|
32.5
|
(16.8)
|
117.0
|
Less Mining interest
capital expenditures
|
(64.1)
|
(70.6)
|
—
|
(134.7)
|
Add Proceeds of sale
from other assets
|
0.1
|
—
|
—
|
0.1
|
Less Lease
payments
|
(5.9)
|
(0.1)
|
(0.3)
|
(6.3)
|
Less Cash settlement of
non-current derivative financial liabilities
|
(14.8)
|
—
|
—
|
(14.8)
|
Free Cash
Flow
|
16.6
|
(38.2)
|
(17.1)
|
(38.7)
|
|
Six months ended
June 30, 2022
|
(in millions of U.S.
dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
114.7
|
5.6
|
(15.1)
|
105.2
|
Less Mining interest
capital expenditures
|
(82.5)
|
(69.1)
|
(0.1)
|
(151.7)
|
Add Proceeds of sale
from other assets
|
0.2
|
—
|
0.2
|
0.4
|
Less Lease
payments
|
(4.6)
|
(0.3)
|
(0.2)
|
(5.1)
|
Less Cash settlement of
non-current derivative financial liabilities
|
(13.0)
|
(12.4)
|
—
|
(25.3)
|
Free Cash
Flow
|
14.7
|
(76.2)
|
(15.2)
|
(76.5)
|
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 for gold sales in each reporting period. "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
June 30
|
Six months ended
June 30
|
(in millions of U.S.
dollars, except where noted)
|
2023
|
2022
|
2023
|
2022
|
TOTAL AVERAGE
REALIZED PRICE
|
|
|
|
|
Revenue from gold
sales
|
144.6
|
95.8
|
307.2
|
228.6
|
Treatment and refining
charges on gold concentrate sales
|
1.6
|
0.5
|
3.9
|
1.6
|
Gross revenue from gold
sales
|
146.2
|
96.3
|
311.0
|
230.2
|
Gold ounces
sold
|
74,219
|
51,263
|
161,425
|
121,825
|
Total average realized
price per gold ounce sold ($/ounce)
|
1,970
|
1,879
|
1,927
|
1,889
|
|
Three months ended
June 30
|
Six months ended
June 30
|
(in millions of U.S.
dollars, except where noted)
|
2023
|
2022
|
2023
|
2022
|
RAINY RIVER AVERAGE
REALIZED PRICE
|
|
|
|
|
Revenue from gold
sales
|
117.0
|
85.5
|
252.3
|
200.2
|
Gold ounces
sold
|
59,529
|
45,517
|
131,420
|
106,152
|
Rainy River average
realized price per gold ounce sold
($/ounce)
|
1,965
|
1,879
|
1,920
|
1,886
|
|
Three months ended
June 30
|
Six months ended
June 30
|
(in millions of U.S.
dollars, except where noted)
|
2023
|
2022
|
2023
|
2022
|
NEW AFTON AVERAGE
REALIZED PRICE
|
|
|
|
|
Revenue from gold
sales
|
27.6
|
10.3
|
54.9
|
28.4
|
Treatment and refining
charges on gold concentrate sales
|
1.6
|
0.5
|
3.9
|
1.6
|
Gross revenue from gold
sales
|
29.2
|
10.8
|
58.7
|
30.0
|
Gold ounces
sold
|
14,690
|
5,746
|
30,006
|
15,673
|
New Afton average
realized price per gold ounce sold
($/ounce)
|
1,988
|
1,879
|
1,957
|
1,914
|
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 starting on page 25 in the
MD&A for the three and six months ended June 30, 2023, which is incorporated by reference
herein and which is filed on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
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: expectations about being well positioned to meet all annual
production and cost guidance metrics; the continued advancement of
underground development at Rainy
River; anticipated benefits and other efficiencies resulting
from the revised approach to access the underground Main Zone at
Rainy River; expectations about
achieving first production ore during the fourth quarter and
commercial production in the second half of 2024 from the C-Zone;
the Company's continued progress advancing its growth initiatives;
and continued ramp-up of underground production rates at
Rainy River.
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 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
2023 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
Indigenous groups in respect of the New Afton Mine and Rainy River
Mine being consistent with New Gold's current expectations; (8) all
required permits, licenses and authorizations being obtained from
the relevant governments and other relevant stakeholders within the
expected timelines and the absence of material negative comments or
obstacles during any applicable regulatory processes; (9) the
results of the life of mine plans for the Rainy River Mine and the
New Afton Mine being realized; and (10) there being no material
disruption to the Company's supply chains and workforce at either
the New Afton Mine or Rainy River Mine due to cases of COVID-19 or
otherwise that would interfere with the Company's anticipated
course of action at its operations.
Forward-looking statements are necessarily based on estimates
and assumptions that are inherently subject to known and unknown
risks, uncertainties and other factors that may cause actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Such factors include, without
limitation: price volatility in the spot and forward markets for
metals and other commodities; discrepancies between actual and
estimated production, between actual and estimated costs, between
actual and estimated Mineral Reserves and Mineral Resources and
between actual and estimated metallurgical recoveries; equipment
malfunction, failure or unavailability; accidents; risks related to
early production at the Rainy River Mine, including failure of
equipment, machinery, the process circuit or other processes to
perform as designed or intended; the speculative nature of mineral
exploration and development, including the risks of obtaining and
maintaining the validity and enforceability of the necessary
licenses and permits and complying with the permitting requirements
of each jurisdiction in which New Gold operates, including, but not
limited to: uncertainties and unanticipated delays associated with
obtaining and maintaining necessary licenses, permits and
authorizations and complying with permitting requirements; changes
in project parameters as plans continue to be refined; changing
costs, timelines and development schedules as it relates to
construction; the Company not being able to complete its
construction projects at the Rainy River Mine or the New Afton Mine
on the anticipated timeline or at all; volatility in the market
price of the Company's securities; changes in national and local
government legislation in the countries in which New Gold does or
may in the future carry on business; compliance with public company
disclosure obligations; controls, regulations and political or
economic developments in the countries in which New Gold does or
may in the future carry on business; the Company's dependence on
the Rainy River Mine and New Afton Mine; the Company not being able
to complete its exploration drilling programs on the anticipated
timeline or at all; inadequate water management and stewardship;
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
otherwise; the responses of the relevant governments to any
disease, epidemic or pandemic outbreak, including the COVID-19
outbreak, not being sufficient to contain the impact of such
outbreak; disruptions to the Company's supply chain and workforce
due to any disease, epidemic or pandemic outbreak, including the
COVID-19 outbreak; an economic recession or downturn as a result of
any disease, epidemic or pandemic outbreak, including 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; ability to obtain and maintain
sufficient insurance; actual results of current exploration or
reclamation activities; fluctuations in the international currency
markets and in the rates of exchange of the currencies of
Canada, the United States and, to a lesser extent,
Mexico; global economic and
financial conditions and any global or local natural events that
may impede the economy or New Gold's ability to carry on business
in the normal course; inflation; compliance with debt obligations
and maintaining sufficient liquidity; 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; reliance on
third-party contractors; counterparty risk and the performance of
third party service providers; investment risks and uncertainty
relating to the value of equity investments in public companies
held by the Company from time to time; the adequacy of internal and
disclosure controls; conflicts of interest; the lack of certainty
with respect to foreign operations and legal systems, which may not
be immune from the influence of political pressure, corruption or
other factors that are inconsistent with the rule of law; the
successful acquisitions and integration of business arrangements
and realizing the intended benefits therefrom; and information
systems security threats. In addition, there are risks and hazards
associated with the business of mineral exploration, development
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 contained in this news release has been reviewed and
approved by Yohann Bouchard,
Executive Vice President and Chief Operating Officer for the
Company. Mr Bouchard is a Professional Engineer and a member of the
Professional Engineers of Ontario.
Mr. Bouchard is a "Qualified Person" for the purposes of National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
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SOURCE New Gold Inc.