Achieves 2021 Updated Consolidated Guidance; Rainy River Mine Converts 569,000 Underground Gold Ounces to Mineral Reserves

(All amounts are in U.S. dollars unless otherwise indicated)

TORONTO, Feb. 23, 2022 /CNW/ - February 23, 2022 – New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) reports fourth quarter and full year 2021 results, updates Mineral Reserves and Mineral Resources for the Company as of December 31, 2021, and provides its 2022 operational outlook. The Company will host a conference call and webcast today at 8:30 am Eastern Time to discuss these items (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 consolidated financial statements for the year ended December 31, 2021 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 Fourth Quarter and Full Year Highlights

Total production for the fourth quarter was 111,574 gold equivalent1 ("gold eq.") ounces (81,072 ounces of gold, 214,030 ounces of silver and 14.2 million pounds of copper). For the year, production was 418,933 gold eq.1 ounces (286,921 ounces of gold, 867,961 ounces of silver and 61.7 million pounds of copper). The Company achieved the updated consolidated gold equivalent guidance range.
Operating expenses for the quarter were $912 per gold eq. ounce and $938 per gold eq. ounce for the year.
Total cash costs2 for the quarter were $965 per gold eq. ounce and $991 per gold eq. ounce for the year, achieving the updated annual guidance range of $960 to $1,030 per gold eq. ounce.
All-in sustaining costs2 for the quarter were $1,355 per gold eq. ounce and $1,463 per gold eq. ounce for the year, achieving the updated annual guidance range of $1,415 to $1,495 per gold eq. ounce.
Average realized gold price2 was $1,798 per ounce and average realized copper price2 was $4.37 per pound for the quarter. For the year, average realized gold price2 was $1,798 per ounce and average realized copper price2 was $4.24 per pound.
Cash generated from operations for the quarter was $106 million ($0.16 per share) and $324 million ($0.48 per share) for the year. Cash generated from operations for the quarter, before changes in non-cash operating working capital2, was $93 million ($0.14 per share) and $323 million ($0.47 per share) for the year.
Net earnings for the quarter were $151 million ($0.22 per share), and $141 million ($0.21 per share) for the year.
Adjusted net earnings2 for the quarter were $25 million ($0.04 per share) and $83 million ($0.12 per share) for the year.
During the quarter, the Company closed the previously announced sale of the Blackwater gold stream to Wheaton Precious Metals Corp. for $300 million (refer to the Company's December 13, 2021 and December 22, 2021 press releases).
During the quarter, the Company amended its secured credit facility, extending the maturity date to December 2025 from October 2023 and increasing the maximum borrowing limit to $400 million from $350 million.
2021 year-end Mineral Reserves of 3.7 million ounces of gold; Rainy River underground conversion fully offsets 2021 gold ounce depletion.
At the end of the quarter, the Company had a cash position of $482 million and a strong liquidity position of $857 million.
"While we had to navigate challenges throughout 2021, I am extremely proud of our resilient team and the way we ended the year," stated Renaud Adams, President & CEO. "The fourth quarter delivered our strongest production quarter of the year, allowing us to meet our updated guidance. It was also our lowest quarter from a cost perspective, leading to our highest free cash flow quarter of the year. Adding to that, we exited the year on a strong note with the sale of the Blackwater gold stream. The value we have been able to crystallize through multiple Blackwater-related transactions since August 2020 has positioned our Company with a peer-leading balance sheet and the financial strength to execute on our strategy."

"Looking to 2022, our strategy remains focused on operational excellence and optimization at both assets. At Rainy River, we converted meaningful underground Mineral Resources to Mineral Reserves resulting in a net increase to total gold reserves for New Gold. We continue to seek ways to further optimize the operation and reduce costs while we advance the development of the Intrepid underground zone, targeting initial production in the second half of the year. At New Afton, our priorities remain on advancing the B3 ramp-up and C-Zone development, exhausting the Lift 1 cave, including the recovery level zone, and completing commissioning of the in-pit tailings," added Mr. Adams.

Consolidated Financial Highlights
Q4 2021 Q4 2020 FY 2021 FY 2020
Revenue ($M) 202.6 198.9 745.5 643.4
Operating expenses ($M) 99.6 97.3 377.3 339.9
Net earnings (loss), per share ($) 0.22 (0.03) 0.21 (0.12)
Adj. net earnings, per share ($)2 0.04 0.04 0.12 0.03
Operating cash flow, per share ($) 0.16 0.15 0.48 0.44

Cash generated from operations, before changes in non-cash operating working capital, per share ($)2. 0.14 0.14 0.47 0.41

Revenues for the quarter were $203 million and $745 million for the year ended December 31, 2021, an increase compared to the prior-year periods due to higher gold and copper prices, partially offset by lower sales volume.
Operating expenses for the quarter and year ended December 31, 2021, were higher than the prior-year periods due to the strengthening of the Canadian dollar relative to the U.S. dollar and the prior year benefitting from the wage subsidy.
Net earnings for the quarter were $151 million ($0.22 per share) compared to a net loss for the prior-year period of $21 million ($0.03 per share). Net earnings for the year ended December 31, 2021, were $141 million ($0.21 per share) compared to a net loss for the prior year of $79 million ($0.12 per share). The increase in net earnings compared to the prior-year periods were primarily due to higher revenue, the gain on the sale of the Blackwater gold stream to Wheaton Precious Metals Corp., and lower finance costs, partially offset by an increase in operating expenses and an unrealized loss on the revaluation of certain investments.
Adjusted net earnings2 for the quarter were $25 million ($0.04 per share), a decrease compared to the prior-year period primarily due to higher adjusted tax expense2. Adjusted net earnings2 for the year ended December 31, 2021, were $83 million ($0.12 per share), an increase compared to the prior year primarily due to higher revenue less cost of goods sold and lower finance costs.
Consolidated Operational Highlights

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