Provides Notice of Release of Fourth Quarter Financial Results and Updated Mine Plans.

TORONTO--(BUSINESS WIRE)-- New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) reports preliminary fourth quarter and annual results from the Rainy River and New Afton Mines, achieving annual production guidance. (All amounts are in US dollars unless otherwise indicated).

Consolidated Fourth Quarter and Annual Highlights

Total production (excluding production from the Cerro San Pedro Mine) for the fourth quarter was 101,423 gold equivalent (gold eq.) ounces (66,856 ounces of gold, 140,475 ounces of silver and 18.3 million pounds of copper). For the year, production was 486,141 gold eq. ounces (322,557 ounces of gold, 596,452 ounces of silver and 79.4 million pounds of copper), achieving annual guidance of 465,000 to 520,000 gold eq. ounces.
Total cash costs1,2 are expected to increase in the quarter and achieve the higher end of guidance of $740 to $820 per gold eq. ounce for the year.
Sustaining capital increased significantly in the quarter, primarily related to accelerated capital spend at the Rainy River Mine and is expected to achieve the mid-range of guidance of $220 to $245 for the year.
All-in-sustaining costs (“AISC”) are expected to be higher in the quarter due to increased sustaining capital spend at the Rainy River Mine and be slightly below annual guidance of $1,330 to $1,430 per gold eq. ounce for the year.
As of the end of the quarter, the Company had available liquidity of approximately $335 million, including $83 million in cash and cash equivalents.
On February 13, 2020, the Company will release: 1) fourth quarter and year-end financial results; 2) 2020 operational outlook; 3) updated Mineral Reserves and Resources; and 4) results of the updated Life of Mine plans for the Rainy River and New Afton Mines. An earnings conference call and webcast will begin at 12:00 pm Eastern Time to discuss the financial results that will be followed by a technical session to discuss the updated Life of Mine plans. (Details provided at the end of this news release).
“Total cash costs” and “AISC per gold equivalent ounce” are calculated using gold equivalent ounces sold.
Refer to the “Non-GAAP Financial Performance Measures section of this press release.
Consolidated Fourth Quarter and Annual Highlights

Q4 19 FY 2019 2019 Guidance
Gold eq. production (ounces)1,2 101,423 486,141 465,000-520,000
Gold production (ounces) 66,856 322,557 300,000-335,000
Copper production (Mlbs) 18.3 79.4 75-85
Average realized gold price, per ounce2 1,366 1,337 -
Average realized copper price, per pound2 2.69 2.71 -

Gold eq. ounces include silver and copper ounces produced converted to a gold eq. based on a ratio of the average spot market prices for the commodities for each period. All copper is produced by the New Afton Mine. The ratio for Q4 2019 was calculated based on average spot market prices of $1,480 per gold ounce, $17.31 per silver ounce and $2.67 per copper pound. The ratio for 2019 Guidance was calculated based on spot price assumptions of $1,300 per gold ounce, $16.00 per silver ounce and $2.75 per copper pound.
Refer to the “Non-GAAP Financial Performance Measures” section of this press release
“2019 was a pivotal year for New Gold as we began the journey to reposition the company for long-term success and sustainable shareholder value creation. We are encouraged by the progress we have made in 2019 as we delivered on all our key commitments, including stabilizing operations and completing substantially all deferred construction capital at the Rainy River Mine, advancing the development of the New Afton C-zone, improving our balance sheet and achieving annual production guidance,” stated Renaud Adams, CEO. “As we begin a new year, the management team remains committed to building on the successes achieved in 2019 while maintaining our focus on creating sustainable shareholder value. In the near term we will release updated life of mine plans for both Rainy River and New Afton, we will shift our efforts at Rainy River from stabilizing the operation to optimizing open pit mining productivity and unit cost performance, continue to advance C-zone development at New Afton, launch strategic drilling programs at both assets to extend mine life and continue to focus on improving our balance sheet.”

Rainy River Mine Highlights
Rainy River Mine
Q4 19 FY 2019 2019 Guidance
Gold eq. production (ounces)1 51,915 257,051 250,000-275,000
Gold eq. sold (ounces) 57,258 268,718 -
Gold production (ounces) 51,122 253,772 245,000-270,000
Gold sold (ounces) 56,390 265,359 -
Average realized gold price, per ounce 1,366 1,335 -

Gold eq. ounces for Rainy River include silver ounces produced converted to a gold eq. based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q4 2019 was calculated based on average spot market prices of $1,480 per gold ounce and $17.31 per silver ounce and includes 74,236 ounces of silver. The ratio for annual guidance was calculated at average spot prices of $1,300 per gold ounce, and $2.75 per pound copper.
Rainy River Operating KPI’s

Rainy River Mine
FY 2018 Q1 19 Q2 19 Q3 19 Q4 19 FY 2019 2019 Guidance
Tonnes mined per day (ore and waste) 108,392 111,679 114,544 111,078 136,124
118,404 -
Ore tonnes mined per day 33,687 15,739 21,368 18,220 19,485 18,712 ~31,000
Operating waste tonnes per day 47,128 62,955 82,488 75,206 74,020 73,702 -
Capitalized waste tonnes per day 25,576 32,986 10,688 17,652 42,619 25,990 -
Total waste tonnes per day 74,705 95,941 93,176 92,858 116,639 99,692 -
Strip ratio (waste:ore) 2.22 6.10 4.36 5.10 5.99 5.33 ~3.1:1
Tonnes milled per calendar day 17,934 19,725 21,117 24,500 22,521 21,980 22,000-24,000
Gold grade milled (g/t) 1.25 1.19 1.15 1.14 0.85 1.08 ~1.10
Gold recovery (%) 86 90 93 91 91 91 90-92
Mill availability (%) 77 89 88 88 89 88 85-88
Gold production (oz) 227,284 61,557 66,013 75,080 51,122 253,772 245,000-270,000
Gold eq. production (oz) 230,349 62,278 66,765 76,092 51,915 257,051 250,000-275,000

The mine reported gold eq. production of 51,915 ounces (51,122 ounces of gold and 67,808 ounces of silver) for the quarter and 257,051 gold eq. ounces (253,772 ounces of gold and 282,053 ounces of silver) for the year, achieving the lower end of annual guidance of 250,000 to 275,000 gold eq. ounces. Gold production during the quarter was impacted by lower throughput at the mill facility and the expected lower grade ore from Phase 2 as the ore from Phase 1 was mined out as planned.
Total cash costs are expected to increase for the quarter and achieve the mid-range of annual guidance of $870 to $950 per gold eq. ounce for the year.
As planned, sustaining capital and sustaining lease payments increased significantly in the quarter, primarily related to the completion of deferred capital construction projects, including the Stage 2 Tailings Management Area (TMA) dam construction, installation of wick drains for stabilization of the east waste dump, ongoing renovations of the camp facility and construction works for the rescoped maintenance and warehouse facilities. Sustaining capital is expected to achieve the higher end of reduced annual sustaining capital estimates of $175 to $190 million (from $210-$230 million).
As a result of increased sustaining capital spend in the quarter to complete substantially all deferred construction costs, AISC are expected to increase significantly for the quarter, but be slightly below annual guidance estimates of $1,690 and $1,790 per gold eq. ounce for the year due to lower than planned capital spend.
Growth capital for the year is expected to be higher than annual guidance of approximately $3 million, primarily related to the purchase of underground infrastructure.
During the quarter, approximately 1.8 million ore tonnes and 10.7 million waste tonnes (including 3.9 million capitalized waste tonnes) were mined from the open pit at an average strip ratio of 5.99:1 as Phase 2 waste stripping continued to be prioritized during the quarter. Earlier in the year, the decision was made to prioritize waste stripping in order to prepare ore faces in anticipation of the updated life of mine plan. Additionally, 0.8 million tonnes of out-pit material were mined during the quarter for use in planned dam raises. Total tonnes mined per day for the quarter averaged 136,124 tonnes per day, an increase of more than 20% over the prior three quarters.
Mill throughput for the quarter averaged 22,521 tonnes per day. As previously disclosed, due to an extended period of heavy rainfall in the area, the mill operated at lower capacity in October in order to manage water levels in the TMA. Once the Stage 2 TMA dam construction was completed in late October, which provided approximately 7 to 8 million cubic meters of additional TMA capacity, mill throughput increased to average 24,858 tonnes per day for November and December, exceeding the target range of 24,000 tonnes per day (original design was 21,000 tonnes per day).
Mill availability for the quarter averaged 89%, achieving target levels with all major mill upgrades substantially completed. As the mill has demonstrated consistent operations at target levels, there remains potential for further increases in mill throughput in the coming quarters as mill availability improves and the pebble crusher is commissioned.
Gold recovery averaged 91% for the quarter, in line with plan. During the quarter, the Company continued to advance a comprehensive mine optimization study that includes a review of alternative open pit and underground mining scenarios with the overall objective of improving the return on investment over the life of the mine. The results of the study are scheduled for release on February 13, 2020.
As operational performance has improved over the past five quarters, the focus is now shifting from stabilizing operations to optimizing operational and cost performance. To support this initiative, the Company has engaged an external consultant to support improved overall equipment efficiencies with the objective of optimizing open pit mining productivity and unit cost performance.
Exploration activities continued in the fourth quarter with the completion of the soil geochemical survey and the geological mapping in the northeastern portion of the broader Rainy River land package. Data interpretation is underway to identify drill-ready targets for follow-up reconnaissance drilling campaign planned for the first half of 2020.
New Afton Mine Operational Highlights


New Afton Mine Q4 19 FY 2019 2019 Guidance
Gold eq. production (ounces) 1 49,507 229,091 215,000 - 245,000
Gold eq. sold (ounces) 47,188 219,447 -
Gold production (ounces) 15,734 68,785 55,000 - 65,000
Gold sold (ounces) 15,301 65,694 -
Copper production (Mlbs) 18. 79.4 75 - 85

Copper sold (Mlbs) 17.3 76.4 -
Average realized gold price, per ounce 1,365 1,348 -
Average realized copper price, per pound 2.68 2.71 -

Gold eq. ounces for New Afton includes silver ounces and copper pounds produced converted to a gold eq. based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q4 2019 was calculated based on average spot market prices of $1,480 per gold ounce, $17.31 per silver ounce and $2.67 per copper pound and includes 65,368 ounces of silver. The ratio for annual guidance was calculated at average spot prices of $1,300 per gold ounce, and $2.75 per pound copper.
New Afton Operating KPI’s

New Afton Mine
FY 2018 Q1 19 Q2 19 Q3 19 Q4 19 FY 2019 2019 Guidance
Tonnes mined per day (ore and waste) 16,156 15,824 16,357 15,773 14,539 15,620 16,000 – 17,000
Tonnes milled per calendar day 14,668 14,759 14,992 15,572 15,861 15,300 14,000 – 15,000
Gold grade milled (g/t) 0.53 0.50 0.53 0.43 0.42 0.47 ~0.45
Gold recovery (%) 85 83 83 80 79 82 76 - 80%
Gold production (oz) 77,329 17,841 19,203 16,007 15,734 68,785 55,000 – 65,000
Copper grade milled (%) 0.87 0.80 0.86 0.76 0.70 0.78 ~0.86
Copper recovery (%) 83 83 83 84 81 83 80 – 85%
Copper production (Mlbs) 85.1 19.5 21.6 20.1 18.3 79.4 75 – 85
Gold eq. production (oz)
279,755 60,986 65,791 52,807 49,507 229,091 215,000 – 245,000

The mine produced 49,507 gold eq. ounces for the quarter (15,734 ounces of gold, and 18.3 million pounds of copper) and 229,091 ounces (68,785 ounces of gold, and 79.4 million pounds of copper) for the year, achieving production guidance of 215,000 to 245,000 gold eq. ounces. Production in the quarter was impacted by unscheduled belt repairs that resulted in mill feed being supplemented by the intermediate grade stockpile. Gold eq. production was impacted by the lower realized copper price.
Total cash costs are expected to increase for the quarter and be slightly above guidance of $600 to $640 per gold eq. ounce for the year, primarily due to the lower gold eq. ounces related to the lower copper price.
Sustaining capital and sustaining lease payments remained consistent in the quarter and is expected to be below annual guidance of $45 to $55 million for the year, primarily due to improved cost efficiencies realized on development meters, as well as the impact of working capital as payments for capital projects incurred later in the fourth quarter are expected in the first quarter of 2020. Sustaining capital was primarily related to B3 mine development and a tailings dam raise.
AISC are expected to increase for the quarter and achieve the low end of annual guidance of $810 to $890 per gold eq. ounce.
Growth capital increased for the quarter, primarily related to C-zone development but is expected to be below annual guidance of $40 to $45 million for the year due to realized cost efficiencies in development metres, as well as the impact on working capital as payments for capital projects incurred later in the fourth quarter are expected in the first quarter of 2020.
The supergene recovery circuit is complete and operating at target recoveries and utilization.
Efforts during the quarter continued to focus on de-risking the execution of the C-zone project, primarily focusing on the finalization of the tailings disposal plan and advancing permitting efforts. Sub-level cave (SLC) definition, mining operability and sequencing will continue to be further defined for potential incorporation of the SLC zone into the mine plan. During the quarter, exploration-heading development towards the C-zone advanced by approximately 1,135 metres. The results of the updated life of mine plan are scheduled for release on February 13, 2020.
The New Afton delineation and exploration programs completed in 2019 include three key initiatives: 1) underground drilling to delineate and expand mineral resources within and beneath the SLC zone, located to the east of the planned B3 block cave; 2) underground exploration drilling of the D-zone target to test the potential for additional mineral resources down plunge of the C-zone block cave mineral reserve; and 3) surface geophysical and geochemical surveys along the prospective Cherry Creek trend located within three kilometres of the New Afton mill (See May 29, 2019 press release). The regional exploration program advanced during the quarter with the definition of high priority drill targets within the Cherry Creek trend area. First-pass exploration drilling program has been finalized and is currently scheduled to start during the first quarter 2020 upon permit issuance.
Fourth Quarter Conference Call and Webcast and Technical Session Webcast

On February 13, 2020, the Company will release: 1) fourth quarter and year-end financial results; 2) 2020 operational outlook; 3) updated Mineral Reserves and Resources; and 4) updated Life of Mine plans for the Rainy River and New Afton Mines.

An earnings conference call and webcast will begin at 12:00 pm Eastern Time to discuss the financial results followed by a technical session webcast to discuss the updated life of mine plans. Details are provided below:

Participants may listen to the webcast by registering on our website at www.newgold.com or via the following link https://onlinexperiences.com/Launch/QReg/ShowUUID=CEE17A95-4B57-414E-90A0-E7B1596C1592
Participants may also listen to the conference call by calling toll free 1-866-211-3198, or 1-647-689-6603 outside of the U.S. and Canada.
A recorded playback of the conference call will be available until by calling toll free 1-800-585-8367, or 1-416-621-4642 outside of the U.S. and Canada, passcode 2441039. An archived webcast will also be available until March 13, 2020 at www.newgold.com.
About New Gold Inc.

New Gold is a Canadian-focused intermediate gold mining company with a portfolio of two core producing assets in Canada, the Rainy River and New Afton Mines as well as the 100% owned Blackwater development project. The Company also operates the Cerro San Pedro Mine in Mexico (in reclamation). New Gold’s vision is to build a leading diversified intermediate gold company based in Canada that is committed to environment and social responsibility. For further information on the Company, visit www.newgold.com