UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of October 2023.
Commission File Number 001-31722
 
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New Gold Inc.
 
Suite 3320 – 181 Bay Street
Toronto, Ontario M5J 2T3
Canada
(Address of principal executive office)
 
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F  Form 40-F
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
 
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
 
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
 
 
 






DOCUMENTS FILED AS PART OF THIS FORM 6-K
 
 




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
   NEW GOLD INC.
    
  By:

/s/ Sean Keating
 
Date: July 26, 2023  
Sean Keating
Vice President, General Counsel and Corporate Secretary



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Contents
5. Investments
10. Non-current derivative financial liabilities
19. Commitments


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CONDENSED CONSOLIDATED INCOME STATEMENTS

Three months ended September 30Nine months ended September 30
(Unaudited - in millions of U.S. dollars, except per share amounts)Note2023202220232022
Revenues

201.3 151.2 587.3 441.6 
Operating expenses3107.5 99.2 329.6 274.2 
Depreciation and depletion

58.8 55.2 168.2 143.1 
Revenue less cost of goods sold

35.0 (3.2)89.5 24.3 
Corporate administration

5.8 5.1 17.9 16.0 
Share-based payment expenses140.6 (1.3)2.5 0.2 
Exploration and business development

2.2 4.0 7.7 13.8 
Income (loss) from operations

26.4 (11.0)61.4 (5.7)
Finance income31.9 1.3 5.6 2.1 
Finance costs3(3.1)(5.2)(10.8)(23.1)
Other losses
3(20.3)(1.0)(84.6)(33.0)
Income (loss) before taxes

4.9 (15.9)(28.4)(59.7)
Income tax (expense) recovery15(7.6)11.7 (8.7)9.8 
Net loss

(2.7)(4.2)(37.1)(49.9)
Net loss per share



Basic14(0.00)(0.01)(0.05)(0.07)
Diluted14(0.00)(0.01)(0.05)(0.07)
Weighted average number of shares outstanding (in millions)


Basic14684.5 682.3 683.0 681.5 
Diluted14684.5 682.3 683.0 681.5 
See accompanying notes to the condensed consolidated financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended September 30Nine months ended September 30
(Unaudited - in millions of U.S. dollars)Note2023202220232022
Net loss

(2.7)(4.2)(37.1)(49.9)
Other comprehensive income (loss)



(Loss) gain on revaluation of non-current derivative
financial liabilities
10(1.2)44.5 (41.3)130.7 
Deferred income tax related to non-current derivative financial liabilities10 (16.3) (16.3)
Total other comprehensive (loss) income

(1.2)28.2 (41.3)114.4 
Total comprehensive (loss) income

(3.9)24.0 (78.4)64.5 
See accompanying notes to the condensed consolidated financial statements.
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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at
September 30
As at
December 31
(Unaudited - in millions of U.S. dollars)Note20232022
ASSETS



Current assets



Cash and cash equivalents

179.4 200.8 
Trade and other receivables413.0 14.1 
Inventories7135.4 115.7 
Current income tax receivable

0.1 — 
Investments 56.5 35.6 
Prepaid expenses and other

14.6 11.3 
Total current assets

349.0 377.5 
Mining interests81,901.0 1,863.9 
Other assets2.3 2.1 
Total assets

2,252.3 2,243.5 
LIABILITIES AND EQUITY



Current liabilities



Trade and other payables6214.0 170.9 
Current income tax payable

0.1 0.3 
Total current liabilities

214.1 171.2 
Reclamation and closure cost obligations13105.6 119.5 
Non-current derivative financial liabilities10575.0 525.5 
Long-term debt9395.7 394.9 
Deferred tax liabilities73.4 66.8 
Lease obligations112.9 1.3 
Other liabilities

2.0 4.8 
Total liabilities

1,368.7 1,284.0 
Equity



Common shares143,160.0 3,157.1 
Contributed surplus

107.4 107.8 
Other reserves

(65.9)(24.6)
Deficit

(2,317.9)(2,280.8)
Total equity

883.6 959.5 
Total liabilities and equity

2,252.3 2,243.5 
See accompanying notes to the condensed consolidated financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Nine months ended September 30
(Unaudited - in millions of U.S. dollars)Note20232022
COMMON SHARES


Balance, beginning of period3,157.1 3,155.4
Issuance of common shares under First Nations agreements0.2 0.6 
Exercise of options and vested performance share units2.7 1.1 
Balance, end of period3,160.0 3,157.1 
CONTRIBUTED SURPLUS


Balance, beginning of period107.8 107.5 
Exercise of options and vested performance share units14(2.7)(1.1)
Equity settled share-based payments2.3 2.1
Balance, end of period107.4 108.5 
OTHER RESERVES


Balance, beginning of period(24.6)(93.0)
(Loss) gain on revaluation of non-current derivative financial liabilities, net of tax10(41.3)114.4 
Balance, end of period(65.9)21.4 
DEFICIT


Balance, beginning of period(2,280.8)(2,214.0)
Net loss(37.1)(49.9)
Balance, end of period(2,317.9)(2,263.9)
Total equity883.6 1,023.1 
See accompanying notes to the condensed consolidated financial statements.
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

Three months ended September 30Nine months ended September 30
(Unaudited - in millions of U.S. dollars)Note2023202220232022
OPERATING ACTIVITIES



Net loss

(2.7)(4.2)(37.1)(49.9)
Adjustments for:



Foreign exchange (gain) loss (2.8)(5.6)0.2 (6.6)
Depreciation and depletion

59.4 55.3 168.6 143.6 
Other non-cash adjustments1625.4 6.6 86.8 43.7 
Income tax expense (recovery)157.6 (11.7)8.7 (9.8)
Finance income3(1.8)(1.3)(5.6)(2.1)
Finance costs33.0 5.2 10.8 23.1 
Reclamation and closure costs paid13(0.3)(1.0)(1.6)(3.9)


87.9 43.3 230.8 138.1 
Change in non-cash operating working capital1612.4 10.1 (11.5)21.5 
Income taxes (paid) refunded

(0.2)0.3 (2.3)(0.7)
Cash generated from operations

100.1 53.7 217.0 158.9 
INVESTING ACTIVITIES



Mining interests

(70.6)(69.9)(205.3)(221.6)
Blackwater stream transaction costs paid —  (2.6)
Tax refunds collected from Mesquite sale 12.8  12.8 
Proceeds from sale of equity investments5 — 25.4 — 
Proceeds from sale of other assets 0.5  0.9 
Investment and other financial instrument acquisitions — (0.9)(4.1)
Interest received

1.9 1.3 5.6 2.1 
Cash used by investing activities

(68.7)(55.3)(175.2)(212.5)
FINANCING ACTIVITIES



Repayment of long-term debt and premium paid —  (101.6)
Proceeds received from issuance of shares0.1 — 1.6 0.9 
Lease payments

(1.4)(2.6)(7.7)(7.7)
Cash settlement of non-current derivative financial liabilities10(6.6)(5.4)(21.3)(30.7)
Interest paid

(17.5)(17.2)(34.8)(36.6)
Cash used by financing activities

(25.4)(25.2)(62.2)(175.7)
Effect of exchange rate changes on cash and cash equivalents

(1.0)(3.4)(1.0)(5.2)
Change in cash and cash equivalents

5.0 (30.2)(21.4)(234.5)
Cash and cash equivalents, beginning of period

174.4 277.2 200.8 481.5 
Cash and cash equivalents, end of period

179.4 247.0 179.4 247.0 
Cash and cash equivalents are comprised of:



Cash

144.5 179.1 144.5 179.1 
Short-term money market instruments

34.9 67.9 34.9 67.9 
 

179.4 247.0 179.4 247.0 
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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the three and nine months ended September 30, 2023
(Amounts expressed in millions of U.S. dollars, except per share amounts and unless otherwise noted)
1. Description of business and nature of operations
New Gold Inc. (“New Gold” or the “Company”) is an intermediate gold mining company engaged in the development and operation of mineral properties. The assets of the Company, directly or through its subsidiaries, are comprised of the Rainy River Mine in Canada (“Rainy River”), the New Afton Mine in Canada (“New Afton”), and the Cerro San Pedro Mine in Mexico (in reclamation) (“Cerro San Pedro” or "CSP"). The Company also holds Canadian-focused investments.
The Company is a corporation governed by the Business Corporations Act (British Columbia). The Company’s shares are listed on the Toronto Stock Exchange and the NYSE American under the symbol NGD. The Company’s registered office is located at 925 West Georgia Street, Suite 1600, Vancouver, British Columbia, V6C 3L2, Canada. The Company's head office is located at 181 Bay Street, Suite 3320, Toronto, Ontario M5J 2T3.
2. Basis of preparation and material accounting policy information
(a) Statement of compliance
These unaudited condensed consolidated financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board on a basis consistent with the accounting policies disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2022. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2022 which includes information necessary or useful to understanding the Company's business and financial statement presentation.
In particular, the Company's accounting policies are presented as Note 2 in the audited consolidated financial statements for the year ended December 31, 2022 and have been consistently applied in the preparation of these unaudited condensed consolidated financial statements.
Effective January 1, 2023, amendments to IAS 1, Presentation of Financial Statements helps companies provide useful accounting policy disclosures. The key amendments to IAS 1 require companies to disclose material accounting policies rather than significant policies and clarifies that accounting policies relating to immaterial transactions need not to be disclosed and not all accounting policies that relate to material transactions are material to a company's financial statements. As result of the adoption of the IAS 1 amendments, there were no adjustments to the presentation or amounts recognized in the financial statements.
These unaudited condensed consolidated financial statements were approved by the Board of Directors of the Company on October 25, 2023.

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3. Expenses
(a) Operating expenses by nature

Three months ended September 30Nine months ended September 30
(in millions of U.S. dollars)2023202220232022
OPERATING EXPENSES BY NATURE


Raw materials and consumables43.9 44.8 134.4 136.5 
Salaries and employee benefits35.3 33.8 108.2 108.3 
Contractors27.8 19.5 76.9 59.2 
Repairs and maintenance16.5 11.4 49.0 36.3 
General and administrative6.4 8.0 17.5 27.1 
Leases1.0 1.1 2.9 3.2 
Royalties2.2 2.0 6.4 6.2 
Drilling and analytical0.8 2.7 4.5 5.0 
Ore purchase costs1.2 0.9 6.8 4.2 
Other1.1 3.0 7.3 7.5 
Total production expenses136.2 127.2 413.9 393.5 
Less: Production expenses capitalized(31.8)(35.7)(79.6)(123.9)
Less: Change in inventories3.1 7.7 (4.7)4.6 
Total operating expenses107.5 99.2 329.6 274.2 

(b) Finance costs and income

Three months ended September 30Nine months ended September 30
(in millions of U.S. dollars)2023202220232022
FINANCE INCOME


Interest income1.9 1.3 5.6 2.1 
FINANCE COSTS


Interest on senior unsecured notes
7.7 7.5 22.5 24.9 
Accretion1.1 1.2 3.5 3.4 
Loss on repayment of long-term debt(1)
 —  4.3 
Other finance costs1.8 1.5 4.8 4.1 
Total finance costs10.6 10.2 30.8 36.7 
Less: amounts included in cost of qualifying assets(7.5)(5.0)(20.0)(13.6)
Total finance costs3.1 5.2 10.8 23.1 
1.In 2022, the Company redeemed the $100.0 million 2025 unsecured notes and recognized a loss on redemption.

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(c) Other (losses) and gains

Three months ended September 30Nine months ended September 30
(in millions of U.S. dollars)2023202220232022
OTHER (LOSSES) AND GAINS


Gain on foreign exchange3.2 6.5 0.3 7.7 
Gain (loss) on disposal of assets 0.4 (0.3)(2.0)
Loss on revaluation of investments(2.1)(14.8)(4.9)(30.7)
Unrealized (loss) gain on revaluation of non-current derivative financial liabilities (Note 10)(16.9)14.5 (77.3)3.3 
Loss on foreign exchange derivative(3.3)(7.4)(0.8)(8.3)
Loss on fuel hedge swap contracts(0.2)— (0.5)— 
Revaluation of CSP's reclamation and closure cost obligation
(0.5)0.3 (0.6)(1.4)
Other
(0.5)(0.5)(0.5)(1.6)
Total other losses(20.3)(1.0)(84.6)(33.0)
4. Trade and other receivables
As at
September 30
As at
December 31
(in millions of U.S. dollars)20232022
TRADE AND OTHER RECEIVABLES


Trade receivables7.3 4.4 
Sales tax receivable3.9 11.0 
Unsettled provisionally priced concentrate derivatives and swap contracts (Note 12)(0.2)(1.8)
Other2.0 0.5 
Total trade and other receivables13.0 14.1 

5. Investments
As at
September 30
As at
December 31
(in millions of U.S. dollars)20232022
MARKETABLE EQUITY SECURITIES


Artemis Gold Inc.(1)
 24.0 
Talisker Resources Ltd.2.5 5.1 
Other marketable securities3.2 6.4 
Total marketable equity securities5.7 35.5 
Other investments (2)
0.8 0.1 
Total investments6.5 35.6 
1.In January 2023, the Company sold its investment in Artemis Gold Inc. for net proceeds of $23.4 million (C$31.5 million).
2.Other investments includes restricted shares not yet available for sale.


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6. Trade and other payables
As at
September 30
As at
December 31
(in millions of U.S. dollars)20232022
TRADE AND OTHER PAYABLES


Trade payables48.4 61.8 
Interest payable6.6 14.1 
Accruals78.8 65.2 
Current portion of reclamation and closure cost obligations (Note 13)4.7 1.7 
Current portion of gold stream obligation (Note 10)31.7 28.1 
Current portion of derivative liabilities (Note 12)1.1 — 
Current portion of New Afton free cash flow interest obligation (Note 10)42.7 — 
Total trade and other payables214.0 170.9 

7. Inventories
As at
September 30
As at
December 31
(in millions of U.S. dollars)20232022
INVENTORIES


Stockpile ore
39.8 21.2 
Work-in-process11.1 12.0 
Finished goods(1)
15.6 17.5 
Supplies68.9 65.0 
Total current inventories135.4 115.7 
1.The amount of inventories recognized in operating expenses for the three and nine months ended September 30, 2023 was $103.9 million and $319.0 million (2022 - $96.1 million and $264.9 million).

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8. Mining interests
Mining Properties

DepletableNon- depletablePlant & equipmentConstruction in progressTotal
(in millions of U.S. dollars)





COST





As at December 31, 20211,745.9 261.0 1,362.3 118.1 3,487.3 
Additions81.7 109.3 44.1 48.4 283.5 
Disposals(0.2)— (7.0)— (7.2)
Transfers(1)
78.9 (132.4)130.9 (77.4)— 
As at December 31, 20221,906.3 237.9 1,530.3 89.1 3,763.6 
Additions17.3 111.2 5.8 87.4 221.7 
Disposals  (6.7) (6.7)
Transfers30.9 15.4 11.2 (57.5) 
As at September 30, 20231,954.5 364.5 1,540.6 119.0 3,978.6 
ACCUMULATED DEPRECIATION




As at December 31, 20211,005.7 — 693.7 — 1,699.4 
Depreciation for the year103.3 — 101.3 — 204.6 
Disposals(0.1)— (4.2)— (4.3)
As at December 31, 20221,108.9  790.8  1,899.7 
Depreciation for the period102.5  81.3  183.8 
Disposals  (5.9) (5.9)
As at September 30, 20231,211.4  866.2  2,077.6 
CARRYING AMOUNT




As at December 31, 2022797.4 237.9 739.5 89.1 1,863.9 
As at September 30, 2023743.1 364.5 674.4 119.0 1,901.0 
1.In 2022, Non-depletable transfers of $132.4 million were made up of $84.8 million from the New Afton thickened and amended tailings facility and $47.6 million from the Rainy River Intrepid zone.


Carrying amount by property as at September 30, 2023

(in millions of U.S. dollars)DepletableNon- depletablePlant & equipmentConstruction in progressTotal
MINING INTEREST BY SITE





New Afton
378.3 327.4 247.4 44.4 997.5 
Rainy River364.8 36.0 423.5 74.6 898.9 
Other(1)
 1.1 3.5  4.6 
Carrying amount743.1 364.5 674.4 119.0 1,901.0 
1.Other includes corporate balances.
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Carrying amount by property as at December 31, 2022:

(in millions of U.S. dollars)DepletableNon- depletablePlant & equipmentConstruction in progressTotal
MINING INTEREST BY SITE





New Afton
402.8 230.9 271.5 17.2 922.4 
Rainy River394.6 5.9 466.9 71.9 939.3 
Other(1)
— 1.1 1.1 — 2.2 
Carrying amount797.4 237.9 739.5 89.1 1,863.9 
1.Other includes corporate balances.

9. Long-term debt
Long-term debt consists of the following:

As at
September 30
As at
December 31
(in millions of U.S. dollars)20232022
LONG-TERM DEBT


Senior unsecured notes - due July 15, 2027 (a)395.7 394.9 
Credit Facility (b) — 
Total long-term debt395.7 394.9 
(a) Senior Unsecured Notes - due July 15, 2027
As at September 30, 2023, the Company has $400.0 million of senior unsecured notes outstanding that mature and become due and payable on July 15, 2027 (the "2027 Unsecured Notes"). The 2027 Unsecured Notes are denominated in U.S. dollars and bear interest at the rate of 7.50% per annum. Interest is payable in arrears in equal semi-annual installments on January 15 and July 15 of each year.
The 2027 Unsecured Notes are subject to a minimum interest coverage incurrence covenant of earnings before interest, taxes, depreciation, amortization, impairment, and other non-cash adjustments to interest of 2:1. The test is applied on a pro-forma basis prior to the Company incurring additional debt, entering into business combinations or acquiring significant assets, and certain corporate actions. There are no maintenance covenants.
The 2027 Unsecured Notes are redeemable by the Company in whole or in part during the 12-month period beginning on July 15 of the years indicated at the redemption prices below, expressed as a percentage of the principal amount of the 2027 Unsecured Notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date:
Date
Redemption prices (%)
2023103.75
2024101.88
2025 and thereafter100.00



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(b) Credit Facility

In April 2023, the Company entered into a fourth amended and restated credit agreement in respect of its revolving credit facility (the "Credit Facility") with a syndicate of financial institutions which extended the maturity date from December 2025 to December 2026, maintaining the existing borrowing limit of $400.0 million.
The Credit Facility contains various covenants customary for a loan facility of this nature, including limits on indebtedness, asset sales, and liens. The Credit Facility contains three covenant tests, all of which are measured on a rolling four-quarter basis at the end of every quarter:
The minimum interest coverage ratio, being earnings before interest, taxes, depreciation, amortization, exploration, impairment, and other non-cash adjustments (“Adjusted EBITDA”) to interest;
The maximum net debt to Adjusted EBITDA ratio (“Leverage Ratio”); and
The maximum gross secured debt to Adjusted EBITDA (“Secured Leverage Ratio”).

Significant financial covenants are as follows:
Twelve months ended September 30Twelve months ended December 31
Financial Covenant20232022
FINANCIAL COVENANTS



Minimum interest coverage ratio (Adjusted EBITDA to interest)>3.0:1.07.6 : 14.5 : 1
Maximum leverage ratio (net debt to Adjusted EBITDA)<4.5:1.01.5 : 12.1 : 1
Maximum secured leverage ratio (secured debt to Adjusted EBITDA)<2.0:1.00.1 : 10.2 : 1
The interest margin on drawings under the Credit Facility ranges from 1.25% to 3.75% over term-adjusted SOFR, the Prime Rate or the Base Rate based on the Company’s Leverage Ratio, and the currency and type of credit selected by the Company. Based on the Company’s Leverage Ratio, the rate is 2.50% over term-adjusted SOFR as at September 30, 2023 (December 31, 2022 – 2.75%). The standby fees on undrawn amounts under the Credit Facility range from 0.51% to 0.84%, depending on the Company’s Leverage Ratio. Based on the Company’s Leverage Ratio, the rate is 0.56% as at September 30, 2023 (December 31, 2022 – 0.62%).
For the nine months ended September 30, 2023, $nil has been drawn under the Credit Facility. The Credit Facility has been used to issue letters of credit amounting to $26.4 million (December 31, 2022 - $27.5 million). Letters of credit relate to reclamation bonds and other financial assurances required with various government agencies.




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10. Non-current derivative financial liabilities
The following is a summary of the change in non-current derivative financial liabilities:

(in millions of U.S. dollars)Rainy RiverNew Afton
Total
CHANGE IN NON-CURRENT DERIVATIVE FINANCIAL LIABILITIES

Balance, December 31, 2021194.0 467.4 661.4 
Settlements during the period(24.0)(12.4)(36.4)
Fair value adjustments related to changes in the Company’s own credit risk(1)
(20.3)(48.1)(68.4)
Other fair value adjustments(2)
25.0 (28.0)(3.0)
Balance, December 31, 2022174.7 378.9 553.6 
Less: current portion
(28.1)— (28.1)
Non-current portion of derivative financial liabilities146.6 378.9 525.5 
Balance, December 31, 2022174.7 378.9 553.6 
Settlements during the period(3)
(22.9) (22.9)
Fair value adjustments related to changes in the Company’s own credit risk(1)
11.5 29.8 41.3 
Other fair value adjustments(2)
6.7 70.5 77.3 
Balance, September 30, 2023
170.1 479.2 649.3 
Less: current portion(4)
(31.7)(42.7)(74.3)
Non-current portion of derivative financial liabilities138.4 436.5 575.0 
1.Fair value adjustments related to changes in the Company’s own credit risk are included in other comprehensive income.
2.Other fair value adjustments are included in the consolidated income statements.
3.Settlements during the period are on an accrual basis.
4.The current portion of the derivative financial liabilities is included in trade and other payables on the statement of financial position.


Rainy River Gold Stream Obligation
In 2015, the Company entered into a $175 million streaming transaction with RGLD Gold AG, a wholly owned subsidiary of Royal Gold Inc. (“Royal Gold”). Under the terms of the agreement, the Company will deliver to Royal Gold 6.5% of gold production from Rainy River up to a total of 230,000 ounces of gold and then 3.25% of the mine’s gold production thereafter. The Company will also deliver to Royal Gold 60% of the mine’s silver production to a maximum of 3.1 million ounces and then 30% of silver production thereafter.
In addition to the upfront $175.0 million deposit, Royal Gold will pay 25% of the average spot gold or silver price at the time each ounce of gold or silver is delivered under the stream. The difference between the spot price of metal and the cash received from Royal Gold will reduce the $175.0 million deposit over the life of the mine. Upon expiry of the 40 year term of the agreement (which may be extended in certain circumstances), any balance of the $175.0 million upfront deposit remaining unpaid will be refunded to Royal Gold.
The Company has designated the gold stream obligation as a financial liability at fair value through profit or loss (“FVTPL”) under the scope of IFRS 9. Accordingly, the Company values the liability at the present value of its expected future cash flows at each reporting period with changes in fair value reflected in the consolidated income statements and consolidated statements of comprehensive income.
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Fair value adjustments represent the net effect on the gold stream obligation of changes in the variables included in the Company’s valuation model between the date of receipt of deposit and the reporting date.
New Afton Free Cash Flow Interest Obligation
In 2020, New Gold entered into a strategic partnership with Ontario Teachers’ Pension Plan (“Ontario Teachers’”). Under the terms of the strategic partnership, Ontario Teachers' acquired a 46% free cash flow interest in the New Afton mine for upfront cash proceeds of $300 million. Ontario Teachers' has an option to convert the free cash flow interest into a 46% joint venture interest in New Afton in the fourth year, or have their free cash flow interest remain as a free cash flow interest at a reduced rate of 42.5%. The agreement includes a minimum cash guarantee at the end of four years and a buyback option for New Gold.
The Company has designated the free cash flow interest obligation as an FVTPL under the scope of IFRS 9. Fair value of the free cash flow interest obligation on initial recognition was determined by the amount of the cash advance received. Subsequent fair value is calculated on each reporting date with gains and losses recorded in net earnings. Fair value adjustments as a result of the Company’s own credit risk are recorded in the consolidated statement of comprehensive income, as required by IFRS 9 for financial liabilities designated as at FVTPL.
Components of the adjustment to fair value for the non-current derivative financial liabilities at each reporting date include:
Financial instrument
Components of the adjustment to fair value
Rainy River gold stream obligation
Accretion expense due to passage of time
Change in the risk-free interest rate
Change in the Company specific credit spread
Change in any expected ounces to be delivered
Change in future metal prices
New Afton free cash flow interest obligation
Accretion expense due to passage of time
Change in the risk-free interest rate
Change in the Company specific credit spread
Change in any expected ounces to be delivered
Change in future metal prices
Change in production profile, operating and capital costs at New Afton, including     considerations to the minimum cash guarantee over the first four years of the instrument














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11. Leases
(a) Right-of-use assets
The Company leases assets such as buildings, mobile equipment, and machinery. These assets are included in Mining Interests on the statement of financial position and are classified as plant & equipment as per Note 8 of the Company’s condensed consolidated financial statements.
As at
September 30
As at
December 31
(in millions of U.S. dollars)20232022
RIGHT-OF-USE- ASSETS

Opening balance21.4 32.0 
Additions4.3 — 
Depreciation(5.3)(6.8)
Disposals
 (3.8)
Total right-of-use-assets20.4 21.4 
(b) Lease liabilities
Please see below for a maturity analysis of the Company’s lease payments:
As at
September 30
As at
December 31
(in millions of U.S. dollars)20232022
MATURITY ANALYSIS FOR LEASES

Less than 1 year4.1 7.5 
Between 1 and 3 years1.7 2.4 
Between 3 and 5 years1.3 0.1 
More than 5 years0.6 — 
Total undiscounted lease payments(1)
7.7 10.0 
Carrying value of lease liabilities6.4 9.9 
Less: current portion of lease liabilities(2)
(3.5)(8.6)
Non-current portion of lease liabilities2.9 1.3 
1.Total undiscounted lease payments excludes leases that are classified as short term and leases for low value assets, which are not recognized as lease liabilities.
2.The current portion of the lease liabilities is included in trade and other payables on the statement of financial position.
For the three and nine months ended September 30, 2023, the Company recognized $0.2 million and $0.3 million in interest expense on lease liabilities (2022 - $0.2 million and $0.6 million).
For the three and nine months ended September 30, 2023, the Company expensed $1.5 million and $2.0 million related to leases that are classified as short term (2022 - $0.6 million and $1.7 million).



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12. Derivative instruments

As at
September 30
As at
December 31
(in millions of U.S. dollars)20232022
DERIVATIVE ASSETS (LIABILITIES)


Foreign exchange forward contracts(1)
(0.9)0.4 
Fuel hedge swap contracts(2)
(0.2)0.3 
Unsettled provisionally priced concentrate derivatives, and swap contracts(3)
(0.2)(1.8)
Total derivative liabilities(1.3)(1.1)
1.Foreign exchange forward contracts are included within trade and other payables in the statement of financial position.
2.Fuel hedge swap contracts are included within trade and other payables in the statement of financial position.
3.Unsettled provisionally priced concentrate derivatives are included within trade and other receivables in the statement of financial position.

(a)    Provisionally priced contracts
The Company had provisionally priced sales for which price finalization is outstanding at September 30, 2023. Realized and unrealized gains (losses) on the provisional pricing of concentrate sales are classified as revenue, with the unsettled provisionally priced concentrate derivatives included in trade and other receivables. The Company enters into gold and copper swap contracts to reduce exposure to gold and copper prices. Realized and unrealized gains (losses) are recorded in revenue, with the unsettled gold and copper swaps included in trade and other receivables.
The following tables summarize the realized and unrealized gains and losses on provisionally priced sales:

Three months ended September 30, 2023Nine months ended September 30, 2023
(in millions of U.S. dollars)GoldCopperTotalGoldCopperTotal
GAIN (LOSS) ON THE PROVISIONAL
PRICING OF CONCENTRATE SALES
Realized(0.1)(0.2)(0.3)1.3 2.0 3.3 
Unrealized(1.2)(0.1)(1.3)(1.3)(0.7)(2.0)
Total (loss) gain(1.3)(0.3)(1.6) 1.3 1.3 

Three months ended September 30, 2022Nine months ended September 30, 2022
(in millions of U.S. dollars)GoldCopperTotalGoldCopperTotal
GAIN (LOSS) ON THE PROVISIONAL
PRICING OF CONCENTRATE SALES
Realized0.3 1.3 1.6 0.5 5.2 5.7 
Unrealized(0.4)(7.0)(7.4)(0.3)(4.1)(4.4)
Total (loss) gain(0.1)(5.7)(5.8)0.2 1.1 1.3 
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The following tables summarize the realized and unrealized gains and losses on gold and copper swap contracts:

Three months ended September 30, 2023Nine months ended September 30, 2023
(in millions of U.S. dollars)GoldCopperTotalGoldCopperTotal
GAIN (LOSS) ON SWAP CONTRACTS
Realized0.6 0.6 1.2 (0.9)(0.9)(1.8)
Unrealized0.6 (0.2)0.4 1.0 0.8 1.8 
Total gain (loss)1.2 0.4 1.6 0.1 (0.1) 

Three months ended September 30, 2022Nine months ended September 30, 2022
(in millions of U.S. dollars)GoldCopperTotalGoldCopperTotal
GAIN (LOSS) ON SWAP CONTRACTS
Realized(1.0)0.7 (0.4)(1.6)(5.2)(6.8)
Unrealized1.1 7.1 8.3 0.6 3.4 4.0 
Total gain (loss)0.1 7.8 7.9 (1.0)(1.8)(2.8)
The following table summarizes the net exposure to the impact of movements in market commodity prices for provisionally priced sales:

As at
September 30
As at
December 31

20232022
VOLUMES SUBJECT TO FINAL PRICING NET OF OUTSTANDING SWAPS


Gold ounces (000s)0.9 0.5 
Copper pounds (millions)0.5 1.4 
(b) Foreign exchange forward contracts
The Company entered into foreign exchange forward contracts in order to hedge operating costs at the New Afton and Rainy River mines. These contracts are treated as derivative financial instruments and marked-to-market at each reporting period on the consolidated statement of financial position with changes in fair value recognized in other gains and losses. Realized gains and losses are recorded within operating expenses.

The Company entered into foreign exchange forward contracts hedging an average of C$40.0 million per month in the first quarter of 2023, C$44.0 million per month in the second and third quarters of 2023, and C$43.0 million per month in the fourth quarter of 2023. As at September 30, 2023, the fair value of the unrealized foreign exchange forward contract liabilities were $0.9 million (December 31, 2022 - $0.4 million forward contract assets).

(c) Diesel fuel hedge swap contracts
The Company entered into diesel fuel hedge swap contracts for the Rainy River Mine in order to reduce exposure to volatile fuel prices. These contracts are treated as derivative financial instruments and marked to market at each reporting period on the consolidated statement of financial position with changes in fair value recognized in other gains and losses. Realized gains and losses are recorded within operating expenses.

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The Company hedged an average of 0.7 million gallons per month for the 2023 year, and an additional 0.2 million gallons per month for the first quarter of 2024. As at September 30, 2023, the fair value of the unrealized fuel hedge swap contract liabilities were $0.2 million (December 31, 2022 - $0.3 million swap contract assets).
13. Reclamation and closure cost obligations
Changes to the reclamation and closure cost obligations are as follows:

(in millions of U.S. dollars)Rainy
River
New AftonCerro San
Pedro
Total
CHANGES TO RECLAMATION AND
CLOSURE COST OBLIGATIONS
Balance – December 31, 2021109.4 49.3 1.5 160.2 
Reclamation expenditures(1.7)— (2.3)(4.0)
Unwinding of discount2.3 0.9 — 3.2 
Revisions to expected cash flows(16.6)(15.6)2.1 (30.1)
Foreign exchange movement(5.8)(2.3)— (8.1)
Balance – December 31, 202287.6 32.3 1.3 121.2 
Less: current portion of closure costs (Note 6)(0.4)— (1.3)(1.7)
Non-current portion of closure costs87.2 32.3 — 119.5 
Balance – December 31, 202287.6 32.3 1.3 121.2 
Reclamation expenditures(0.4) (1.2)(1.6)
Unwinding of discount1.9 0.7  2.6 
Revisions to expected cash flows(8.5)(4.5)0.6 (12.4)
Foreign exchange movement0.2 0.1 0.2 0.5 
Balance –September 30, 2023
80.8 28.6 0.9 110.3 
Less: current portion of closure costs (Note 6)(3.8) (0.9)(4.7)
Non-current portion of closure costs77.0 28.6  105.6 











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14. Share capital
At September 30, 2023, the Company had an unlimited number of authorized common shares, of which 684.5 million common shares were issued and outstanding.
(a) No par value common shares issued

Number of sharesValue of shares
(in millions of U.S. dollars, except where noted)(000s)$
NO PAR VALUE COMMON SHARES ISSUED


Balance at December 31, 2021681,146 3,155.4 
Issuance of common shares under First Nations agreements375 0.5 
Exercise of options and vested performance share units756 1.2 
Balance at December 31, 2022682,277 3,157.1 
Issuance of common shares under First Nations agreements181 0.2 
Exercise of options and vested performance share units2,049 2.7 
Balance at September 30, 2023
684,507 3,160.0 


(b) Share-based payment expenses
The following table summarizes share-based payment expenses:

Three months ended September 30Nine months ended September 30
(in millions of U.S. dollars)2023202220232022
SHARE-BASED PAYMENT EXPENSES(1)


Stock option expense  0.4 0.2 1.0 
Performance share unit expense0.2 (0.1)0.9 0.2 
Restricted share unit expense
0.9 (0.7)2.2 0.4 
Deferred share unit expense(0.2)(1.4)0.5 (1.6)
Shares issued under First Nations agreements 0.2  0.5 
Total share-based payment expenses0.9 (1.6)3.8 0.5 
1.     For the three and nine months ended September 30, 2023, $0.3 million and $1.3 million of share-based expenses were recognized in operating expenses (2022 – $(0.3) million and $0.3 million).







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Stock options
The following table presents changes in the Company’s stock option plan:

Number of optionsWeighted average
exercise price

(000s)C$/share
CHANGES TO THE COMPANY'S STOCK OPTION PLAN


Balance at December 31, 20215,756 1.58 
Granted1,291 2.18 
Exercised(755)1.17 
Forfeited(1,213)1.98 
Expired(228)3.89 
Balance at December 31, 20224,851 1.59 
Exercised(1,544)1.21 
Forfeited(98)1.97 
Expired(356)2.11 
Balance at September 30, 2023
2,853 1.72 
Loss per share
The following table sets out the calculation of loss per share:

Three months ended September 30Nine months ended September 30
(in millions of U.S. dollars, except where noted)2023202220232022
CALCULATION OF LOSS PER SHARE


Net loss(2.7)(4.2)(37.1)(49.9)
Basic weighted average number of shares outstanding
(in millions)
684.5 682.3 683.0 681.5 
Dilution of securities:

Stock options —  — 
Diluted weighted average number of shares outstanding
(in millions)
684.5 682.3 683.0 681.5 
Net loss per share:

Basic(0.00)(0.01)(0.05)(0.07)
Diluted(0.00)(0.01)(0.05)(0.07)
The following table lists the equity securities excluded from the calculation of diluted loss per share. All stock options are excluded from the calculation when the Company is in a net loss position.

Three months ended September 30Nine months ended September 30
(in millions of units)2023202220232022
EQUITY SECURITIES EXCLUDED FROM THE CALCULATION OF DILUTED EARNINGS PER SHARE


Stock options2.9 6.1 2.9 6.1 
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15. Income and mining taxes
The following table outlines the composition of income tax expense between current tax and deferred tax:

Three months ended September 30Nine months ended September 30
(in millions of U.S. dollars)2023202220232022
CURRENT INCOME AND MINING TAX EXPENSE


Canada0.8 1.5 2.11.6 
Foreign 0.1  2.7 
 0.8 1.6 2.1 4.3 
DEFERRED INCOME AND MINING TAX EXPENSE

Canada6.8 (12.0)6.6 (12.8)
Adjustments in respect of prior year (1.3) (1.3)
 6.8 (13.3)6.6 (14.1)
Total income tax expense 7.6 (11.7)8.7 (9.8)
16. Supplemental cash flow information
Supplemental cash flow information (included within operating activities) is as follows:

Three months ended September 30Nine months ended September 30
(in millions of U.S. dollars)2023202220232022
CHANGE IN NON-CASH OPERATING WORKING CAPITAL


Trade and other receivables2.8 3.3 (0.5)6.6 
Inventories2.5 6.4 (9.9)(7.0)
Prepaid expenses and other(6.1)1.6 (5.1)4.7 
Trade and other payables13.2 (1.2)4.0 17.2 
Total change in non-cash operating working capital12.4 10.1 (11.5)21.5 

Three months ended September 30Nine months ended September 30
(in millions of U.S. dollars)2023202220232022
OTHER NON-CASH ADJUSTMENTS


Loss on revaluation of foreign exchange forward contracts and fuel hedge swap contracts4.0 7.2 1.8 8.2 
Unrealized loss on concentrate contracts0.9 1.0 0.2 0.4 
Equity settled share-based payment expense0.1 0.5 0.6 1.7 
Loss (gain) on disposal of assets0.6 (0.4)0.9 2.0 
Unrealized loss (gain) on revaluation of non-current derivative financial instruments16.8 (14.5)77.3 (3.3)
Loss (gain) on revaluation of CSP’s reclamation and closure cost obligation0.4 (0.3)0.6 1.4 
Inventory provision (reversal of write-down)0.4 (1.7)0.5 2.6 
Loss on revaluation of investments2.2 14.8 4.9 30.7 
Total other non-cash adjustments25.4 6.6 86.8 43.7 



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17. Segmented information
(a) Segment revenues and results
The Company manages its reportable segments by operating mines. Income (loss) from operations of reportable operating segments are reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segments and to assess their performance. The results from operations for these reportable operating segments are summarized in the following tables:
Three months ended September 30, 2023
(in millions of U.S. dollars)Rainy RiverNew AftonCorporateTotal
OPERATING SEGMENT RESULTS
Gold revenues120.0 31.7  151.7 
Copper revenues 46.4  46.4 
Silver revenues2.5 0.7  3.2 
Total revenues(1)
122.5 78.8  201.3 
Operating expenses65.9 41.6  107.5 
Depreciation and depletion40.1 18.7  58.8 
Revenue less cost of goods sold16.5 18.5  35.0 
Corporate administration  5.8 5.8 
Share-based payment expenses  0.6 0.6 
Exploration and business development0.1 1.9 0.2 2.2 
Income (loss) from operations16.4 16.6 (6.6)26.4 
1.Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the three months ended September 30, 2023.
Three months ended September 30, 2022
(in millions of U.S. dollars)Rainy RiverNew AftonCorporateTotal
OPERATING SEGMENT RESULTS
Gold revenues95.8 21.4 — 117.2 
Copper revenues— 31.2 — 31.2 
Silver revenues2.3 0.5 — 2.8 
Total revenues(1)
98.1 53.1 — 151.2 
Operating expenses54.4 44.8 — 99.2 
Depreciation and depletion39.0 16.2 — 55.2 
Revenue less cost of goods sold4.7 (7.9)— (3.2)
Corporate administration— — 5.1 5.1 
Share-based payment expenses— — (1.3)(1.3)
Exploration and business development0.2 3.7 0.1 4.0 
Income (loss) from operations4.5 (11.6)(3.9)(11.0)
1.Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the three months ended September 30, 2022.
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Nine months ended September 30, 2023
(in millions of U.S. dollars)Rainy RiverNew AftonCorporateTotal
OPERATING SEGMENT RESULTS
Gold revenues372.3 86.6  458.9 
Copper revenues 118.6  118.6 
Silver revenues8.0 1.8  9.8 
Total revenues(1)
380.3 207.0  587.3 
Operating expenses208.1 121.5  329.6 
Depreciation and depletion118.8 49.4  168.2 
Revenue less cost of goods sold53.4 36.1  89.5 
Corporate administration  17.9 17.9 
Share-based payment expenses  2.5 2.5 
Exploration and business development0.2 6.9 0.6 7.7 
Income (loss) from operations53.2 29.2 (21.0)61.4 
1.Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the nine months ended September 30, 2023.

Nine months ended September 30, 2022
(in millions of U.S. dollars)Rainy RiverNew AftonCorporateTotal
OPERATING SEGMENT RESULTS
Gold revenues296.0 49.8 — 345.8 
Copper revenues— 88.0 — 88.0 
Silver revenues6.2 1.6 — 7.8 
Total revenues(1)
302.2 139.4 — 441.6 
Operating expenses161.0 113.2 — 274.2 
Depreciation and depletion109.9 33.2 — 143.1 
Revenue less cost of goods sold31.3 (7.0)— 24.3 
Corporate administration— — 16.0 16.0 
Share-based payment expenses— — 0.2 0.2 
Exploration and business development2.2 11.1 0.5 13.8 
Income (loss) from operations29.1 (18.1)(16.7)(5.7)
1.Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the nine months ended September 30, 2022.













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(b) Segmented assets and liabilities
The following table presents the segmented assets and liabilities:

Total assetsTotal liabilities
Capital expenditures(1)

As at
September 30
As at
December 31
As at
September 30
As at
December 31
Three months ended September 30Nine months ended September 30
(in millions of U.S. dollars)20232022202320222023202220232022
SEGMENTED ASSETS AND LIABILITIES






Rainy River1,027.9 1,067.4 313.1 340.1 32.0 31.9 96.1 114.4 
New Afton1,059.8 979.9 629.0 518.4 38.5 38.0 109.0 107.1 
Other(2)
164.5 196.2 426.6 425.5 0.1 — 0.2 0.1 
Total segmented assets, liabilities and capital expenditures2,252.3 2,243.5 1,368.7 1,284.0 70.6 69.9 205.3 221.6 
1.Capital expenditures per condensed consolidated statements of cash flows.
2.Other includes corporate balances and Cerro San Pedro.
18. Fair value measurement
Fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In assessing the fair value of a particular contract, the market participant would consider the credit risk of the counterparty to the contract. Consequently, when it is appropriate to do so, the Company adjusts the valuation models to incorporate a measure of credit risk. Fair value represents management's estimates of the current market value at a given point in time.
The Company has certain financial assets and liabilities that are measured at fair value. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts), or inputs that are derived principally from, or corroborated by, observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. There were no transfers among Levels 1, 2, and 3 during the the nine months ended September 30, 2023 or the year ended December 31, 2022. The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as of the date of the event or change in circumstances that caused the transfer.




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Valuation methodology for Level 1 financial assets and liabilities:

Investments
The fair value of the investments are measured based on the closing share price on the reporting date.

Valuation methodologies for Level 2 and 3 financial assets and liabilities:
Provisionally priced contracts and gold and copper swap contracts
The fair value of the provisionally priced contracts and the gold and copper swap contracts is calculated using the mark-to-market forward prices of the London Metals Exchange gold and copper based on the applicable settlement dates of the outstanding provisionally priced contracts and copper swap contracts.
Foreign exchange forward contracts
The fair value of foreign exchange forward contracts is calculated using the mark-to-market method based on the difference between the forward Canadian dollar to U.S dollar foreign exchange rate and the foreign exchange rates of the contracts.
Fuel hedge swap contracts
The fair value of the fuel hedge swap contracts is calculated using the mark-to-market forward prices of diesel, based on the applicable settlement dates of the outstanding swap contracts.

Gold stream obligation
The fair value of the gold stream obligation is calculated using the risk-free interest rate derived from the U.S. Treasury rate, forward and consensus metal prices, company specific credit spread based on the yield on the Company’s 2027 Unsecured Notes, and expected gold and silver ounces to be delivered from Rainy River’s life of mine projections.
Free cash flow interest obligation
The fair value of the free cash flow interest obligation is calculated using the risk-free interest rate derived from the U.S. Treasury rate, forward and consensus metal prices, company specific credit spread based on the yield on the Company’s 2027 Unsecured Notes, and expected production, operating and capital costs from New Afton’s life of mine projections, including considerations to the minimum cash guarantee over the first four years of the instrument.














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The following table summarizes the Company’s financial assets and liabilities by category, and information about financial assets and liabilities measured at fair value on a recurring basis in the statement of financial position categorized by level of significance of the inputs used in making the measurements:

As at September 30, 2023As at December 31, 2022
(in millions of U.S. dollars)CategoryLevel

Level

FINANCIAL ASSETS




Cash and cash equivalentsFinancial assets at amortized cost

179.4 200.8 
Trade and other receivables(1)
Financial assets at amortized cost

13.3 15.9 
Provisionally priced contractsFinancial instruments at FVTPL2(2.0)22.3 
Gold and copper swap contractsFinancial instruments at FVTPL21.7 2(4.1)
Foreign exchange forward contractsFinancial instruments at FVTPL2 20.4 
Fuel hedge swap contractsFinancial instruments at FVTPL2 20.3 
InvestmentsFinancial instruments at FVTPL16.5 135.6 
FINANCIAL LIABILITIES





Trade and other payables(2)
Financial liabilities at amortized cost

133.6 

141.1 
Long-term debtFinancial liabilities at amortized cost

395.7 

394.9 
Foreign exchange forward contractsFinancial instruments at FVTPL20.9 2— 
Fuel hedge swap contractsFinancial instruments at FVTPL20.2 2— 
Gold stream obligationFinancial instruments at FVTPL3170.1 3174.7 
Free cash flow interest obligationFinancial instruments at FVTPL3479.2 378.9 
1.Trade and other receivables exclude provisionally priced contracts, and gold and copper swap contracts.
2.Trade and other payables exclude the short-term portions of reclamation and closure cost obligations, the gold stream obligation, and current derivative liabilities.
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The carrying values and fair values of the Company’s financial instruments are as follows:
As at September 30, 2023As at December 31, 2022
(in millions of U.S. dollars)Carrying valueFair valueCarrying valueFair value
FINANCIAL ASSETS




Cash and cash equivalents179.4 179.4 200.8 200.8 
Trade and other receivables(1)
13.3 13.3 15.9 15.9 
Provisionally priced contracts(2.0)(2.0)2.3 2.3 
Gold and copper swap contracts1.7 1.7 (4.1)(4.1)
Foreign exchange forward contracts  0.4 0.4 
Fuel hedge swap contracts  0.3 0.3 
Investments6.5 6.5 35.6 35.6 
FINANCIAL LIABILITIES




Trade and other payables(2)
133.6 133.6 141.1 141.1 
Long-term debt395.7 377.5 394.9 355.0 
Gold stream obligation170.1 170.1 174.7 174.7 
Free cash flow interest obligation479.2 479.2 378.9 378.9 
Foreign exchange forward contracts0.9 0.9 — — 
Fuel hedge swap contracts0.2 0.2 — — 
1.Trade and other receivables exclude provisionally priced contracts, and gold and copper swap contracts.
2.Trade and other payables exclude the short-term portions of reclamation and closure cost obligations, the gold stream obligation, and current derivative liabilities.

19. Commitments
The Company has entered into a number of contractual commitments for capital items relating to operations and development. At September 30, 2023, these commitments totaled $141.0 million, which are expected to become due over the next 12 months. This compares to commitments of $64.0 million as at December 31, 2022. Certain contractual commitments may contain cancellation clauses; however, the Company discloses its commitments based on management’s intent to fulfill the contracts.
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Contents













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MANAGEMENT’S DISCUSSION AND ANALYSIS
All dollar figures are in United States dollars and tabular dollar amounts are in millions, unless otherwise noted.
For the three and nine months ended September 30, 2023.
The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of New Gold Inc. and its subsidiaries (“New Gold” or the “Company”). This MD&A should be read in conjunction with New Gold’s unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2023 and 2022, and related notes, which are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. This MD&A contains forward-looking statements that are subject to risks and uncertainties, as discussed in the "Cautionary Note Regarding Forward-Looking Statements" section at the end of this MD&A. Readers are cautioned not to place undue reliance on forward-looking statements. All dollar figures are in U.S. dollars and tabular dollar amounts are in millions, unless otherwise noted. Figures in some tables may not add due to rounding. This MD&A has been prepared as at October 25, 2023. Additional information relating to the Company, including the Company’s Annual Information Form, is available on SEDAR+ at www.sedarplus.ca.
OUR BUSINESS
New Gold Inc. is an intermediate gold mining company engaged in the development and operation of mineral properties. The assets of the Company, directly or through its subsidiaries, are comprised of the Rainy River Mine in Canada (“Rainy River”), the New Afton Mine in Canada (“New Afton”), and the Cerro San Pedro Mine in Mexico (in reclamation) (“Cerro San Pedro” or "CSP"). The Company also holds 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
Note references throughout this MD&A are to endnotes which can be found starting on page 41.
USE OF NON-GAAP FINANCIAL PERFORMANCE METRICS
In this MD&A, we use the following non-GAAP financial performance measures: “Total cash costs", "all-in sustaining costs" or "AISC", "adjusted net earnings/(loss)", "adjusted tax expense", "sustaining capital and sustaining leases”, “growth capital”, “average realized gold/copper price per ounce/pound”, "open pit net mining cost per operating tonne mined", "underground net mining costs per operating tonne mined", "processing costs per tonne processed", "G&A costs per tonne processed", "cash generated from operations before changes in non-cash operating working capital" and "free cash flow". For a detailed description of each non-GAAP financial performance measure used in this MD&A and a detailed reconciliation to the most directly comparable measures under IFRS, please refer to the “Non-GAAP Financial Performance Measures” section of this MD&A starting on page 27. The non-GAAP financial performance measures in this MD&A are intended to provide additional information to investors and do not have any standardized meaning under IFRS. These measures may therefore not be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
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OPERATING AND FINANCIAL HIGHLIGHTS
OPERATING HIGHLIGHTS

Three months ended September 30Nine months ended September 30

2023202220232022
OPERATING INFORMATION



Gold equivalent (“eq.”) (ounces)(1):



Produced(3)
111,204 91,021 318,435 249,230 
Sold(3)
107,562 92,634 311,677 247,678 
Gold (ounces):
Produced(3)
82,986 70,147 241,991 190,679 
Sold(3)
79,821 68,816 241,247 190,641 
Copper (millions of pounds):
Produced(3)
13.2 8.5 35.5 24.1 
Sold(3)
13.0 9.9 32.5 23.5 
Revenue(10)
Gold ($/ounce)1,900 1,703 1,902 1,814 
Copper ($/pound)3.57 3.17 3.65 3.75 
Average realized price(2)
Gold ($/ounce)1,924 1,727 1,926 1,831 
Copper ($/pound)3.78 3.42 3.89 3.99 
Operating expenses per gold eq. ounce sold ($/ounce) (10)
1,000 1,069 1,058 1,106