TORONTO--(BUSINESS WIRE)-- New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) reports third quarter and nine-month results for the Company as of September 30, 2019 and reaffirms that the Company remains on-track to achieve consolidated annual production and cost guidance. (All amounts are in U.S. dollars unless otherwise indicated).A conference call and webcast will follow to discuss these results at 8:30 a.m. Eastern time (details are provided at the end of this press release).

(For detailed information, please refer to the Company’s Third Quarter Management’s Discussion and Analysis (MD&A) and Financial Statements 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 press release. Please refer to the “Non-GAAP Financial Performance Measures” section of this press release and the MD&A.).

Third Quarter and Nine-Month Highlights

Total production for the quarter (excluding production from the Cerro San Pedro Mine) of 128,899 gold equivalent (gold eq.) ounces (91,087 ounces of gold, 168,159 ounces of silver and 20.1 million pounds of copper). For the nine-month period, production was 384,719 gold eq. ounces (255,701 ounces of gold, 455,977 ounces of silver and 61.2 million pounds of copper). Production is on track to meet annual guidance of 465,000 to 520,000 gold eq. ounces.
Revenues for the quarter were $168 million and $491 million for the nine-month period.
Operating expense of $761 per gold eq. ounce1 for the quarter and $695 per gold eq. ounce for the nine-month period.
Total cash costs of $819 per gold eq. ounce1,2 for the quarter and $751 per gold eq. ounce for the nine-month period. Total cash costs are on track to meet annual guidance of $740 to $820 per gold eq. ounce.
All-in sustaining costs (AISC)1,2 of $1,318 per gold eq. ounce for the quarter and $1,161 for the nine-month period. AISC for the year are expected to achieve the low-end of the annual guidance of $1,330 to $1,430 per gold eq. ounce as sustaining capital at Rainy River is expected to be below annual guidance.
Net loss from continuing operations for the quarter was $25 million ($0.04 per share) and $74 million ($0.13 per share) for the nine-month period.
Adjusted net loss2 from continuing operations for the quarter, which excludes other gains and losses, was $10 million ($0.02 per share) and $19 million ($0.03 per share) for the nine-month period.
Operating cash flow generated from continuing operations for the quarter was $91 million ($0.15 per share) and $216 million ($0.37 per share) for the nine-month period. Operating cash flow generated from continuing operations for the quarter, before non-cash changes in working capital2, was $67 million ($0.11 per share) and $199 million ($0.34 per share) for the nine-month period.
On August 30, the Company completed a bought deal financing for gross proceeds of C$150 million, the net proceeds of which were used primarily for debt repayment, with approximately $100 million of the Company’s 2022 senior unsecured notes repurchased for cancellation. Following this, the Company had available liquidity of $421 million, including $135 million in cash and cash equivalents.
“The Company has delivered another quarter of improving operational and cost performance from both assets as we continue to advance our short-term operational plan and reposition the company for long-term success. The quarter over quarter improvement in our performance has underpinned the completion of a strategic equity financing during the quarter, which allowed us to reduce our debt position by $100 million and strengthen our balance sheet.” stated Renaud Adams, CEO. “We will maintain our diligent focus on completing substantially all remaining construction projects at Rainy River in order to reposition the asset for efficient and sustainable mining, as we continue to advance C-zone development at New Afton. We continue to advance our updated life of mine plans for Rainy River and New Afton, which are expected to be released in mid-first quarter of 2020 and provide a path forward that is premised on maximizing profitability and shareholder value creation.”

“Operating expense per gold equivalent ounce” and “AISC per gold equivalent ounce” are calculated using gold equivalent ounces sold.
Refer to the “Non-GAAP Performance Measures section of this press release.
Financial Highlights (Continuing Operations 1 )

Q3 2019 Q3 2018 9M 2019 9M 2018
Revenues from mining operations 168.4 147.1 491.4 447.1
Net earnings (loss), per share (0.04) (0.00) (0.13) (0.59)
Adj. net earnings (loss)2 per share (0.02) (0.01) (0.03) (0.06)
Operating cash flow, per share 0.15 0.07 0.37 0.23
Adj. operating cash flow2, per share 0.11 0.12 0.34 0.33

Continuing operations include the Rainy River, New Afton and Cerro San Pedro Mines.
Refer to the “Non-GAAP Performance Measures” section of this press release.
Revenues for the quarter from continuing operations were $168 million, an increase over the prior-year quarter due to an increase in gold ounces sold and an increase in average realized price of gold and silver, offset by a decrease in the average realized copper price.
Operating expenses for the quarter were $95 million, an increase over the prior-year quarter due to higher sales volume and increased throughput at planned lower grades and an increase in operating waste tonnes mined at Rainy River.
Net loss for the quarter was $24.7 million ($0.04 per share), an increase in loss over the prior year quarter due primarily to unrealized losses on the revaluation of derivative instruments.
Adjusted net loss for the quarter was $10.3 million ($0.02 per share), which is an increase in loss over the prior year quarter due to an increase in depreciation and depletion associated with higher sales volumes.
Operational Highlights
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