TORONTO--(BUSINESS WIRE)-- New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) reports fourth quarter and annual results for the Company as well as its operational outlook for 2020. (All amounts are in U.S. dollars unless otherwise indicated).An earnings conference call and webcast will begin at 12:00 pm Eastern Time to discuss the fourth quarter and year-end financial results and will be followed by a technical session to discuss the updated life of mine plans that were released today in a separate news release. (Details provided at the end of this news release).
(For detailed information, please refer to the Company’s Fourth 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.)
Fourth Quarter and Annual Highlights
Total production (excluding production from the Cerro San Pedro Mine) for the 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.
Revenues for the quarter were $139 million and $631 million for the year.
Operating expense for the quarter was $1,007 per gold eq. ounce and $762 per gold eq. ounce for the year.
Total cash costs1,2 for the quarter were $942 per gold eq. ounce and $792 per gold eq. ounce for the year, achieving guidance of $740 to $820 per gold eq. ounce.
All-in sustaining costs (AISC)1,2 for the quarter were $1,862 per gold eq. ounce and $1,310 per gold eq. ounce for the year, below guidance of $1,330 to $1,430 per gold eq. ounce due to lower sustaining capital spend.
Net earnings from continuing operations for the quarter was $0.3 million ($0.00 per share) with a net loss for the year of $74 million ($0.12 per share).
Adjusted net loss2 from continuing operations for the quarter was $28 million ($0.04 per share) and $47 million ($0.08 per share) for the year.
Operating cash flow generated from continuing operations for the quarter was $48 million ($0.07 per share) and $264 million ($0.43 per share) for the year. Operating cash flow generated from continuing operations for the quarter, before non-cash changes in working capital2, was $39 million ($0.06 per share) and $238 million ($0.39 per share) 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 released results of the updated Life of Mine plans for the Rainy River Mine (Rainy River) and the New Afton Mines (New Afton).
“In 2019 we began a journey to reposition the company for long-term success and sustainable shareholder value creation and we are encouraged by the progress we made as we have delivered on all our key commitments that position the Company for the future.” stated Renaud Adams, CEO. “With the release of our updated life of mine plans we now begin a new phase for the Company as we position Rainy River for profitable operations that drive free cash flow generation by the end of 2020 that will sustain over the life of the mine. We will also continue to focus on advancing development of the New Afton C-zone and expand our exploration program at both operations. The entire New Gold team is dedicated to executing on our updated mine plans that create value for our shareholders.”
“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)
Q4 2019 Q4 2018 2019 2018
Revenues from mining operations 139.2 157.4 630.6 604.5
Net earnings (loss), per share 0.00 (1.28) (0.12) (1.88)
Adj. net earnings (loss)2 per share (0.04) 0.01 (0.08) (0.04)
Operating cash flow, per share 0.07 0.10 0.43 0.33
Adj. operating cash flow2, per share 0.06 0.13 0.39 0.46
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 $139 million, a decrease over the prior-year quarter due to a decrease in gold eq. ounces sold and a decrease in the average realized price of copper partially offset by an increase in average realized price of gold.
Operating expenses for the quarter were $105 million, an increase over the prior-year quarter due to increased throughput at planned lower grades and an increase in operating waste tonnes mined at Rainy River. Operating expenses also included a non-cash charge of $14 million related to an inventory write down at Rainy River.
Net earnings for the quarter was $0.3 million ($0.00 per share), an increase over the prior year quarter due primarily to the prior year including an impairment charge relating to Rainy River.
Adjusted net loss for the quarter was $28.0 million ($0.04 per share), which is an increase in loss over the prior year quarter due to the planned lower grade ore mined and processed in the period.
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New Gold Releases Updated Life of Mine Results for the Rainy River and New Afton Mines DownloadPDF Format (opens in new window)Add to Briefcase
Provides Mineral Reserves & Resources Update
TORONTO--(BUSINESS WIRE)-- New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) reports results of the updated Life of Mine plans for the Rainy River (“Rainy River”) and New Afton (“New Afton”) Mines. A National Instrument 43-101 (“NI 43-101”) Technical Report for each operation will be filed within 45 days. (All amounts are in U.S. dollars unless otherwise indicated).The Company is also providing updated Mineral Reserves and Resources as of December 31, 2019.A technical session will be webcast directly following the Company’s fourth quarter earnings call, which is scheduled to begin at 12:00 p.m. Eastern time. (webcast details are provided at the end of this press release. The Technical Session presentation is available on the Company’s website at newgold.com).
Over the past year, the Company has undertaken a comprehensive mine optimization study for the Rainy River Mine that included a review of alternative open pit and underground mining scenarios with the overall objective of improving the return of investment and creating a life of mine plan that secures optimal profitability at a mineral reserve gold price of $1,275 per ounce. The Company is also releasing results of an integrated New Afton B3 and C-zone optimization life of mine study that is focused on de-risking the execution of the C-zone project, primarily targeting mine plan optimization and subsidence control, confirming capital requirements, finalization of the tailings disposal plan, dewatering and stabilization of the historic tailings area and advancing permitting efforts while maintaining a self-funded approach.
“Over the past number of months we have evaluated numerous scenarios for the Rainy River Mine and are pleased to release an updated life of mine plan that delivers a solid open pit and underground mine plan that positions the operation for profitability and free cash flow generation beginning in Q4 2020 that continues over the balance of the mine life.” said Renaud Adams, CEO. “We have also released an integrated mine plan that optimizes the self-funded development of New Afton’s B3 and C-Zone that could deliver significant free cash flow of more than 1 billion dollars over the life of mine. We now have a clear and profitable path forward for New Gold, a path that we are confident will create value for our shareholders.”
Rainy River Life of Mine Highlights
Over the past year, the Company worked diligently on creating a new operating vision for the Rainy River Mine with the objective of creating a mine plan that optimizes the return on investment, while achieving profitability at an early stage of the plan. Consistent with that objective, the Company has evaluated various open pit and underground mining scenarios that prioritized mining in areas that generate positive margins and drive meaningful cash flow over the balance of a shorter, but more profitable mine life. In future years, there remains potential to extend the underground mine life beyond 2028 should the prevailing gold price support the development of additional mining areas during that period and/or exploration efforts increase the resource inventory.
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