TORONTO--(BUSINESS WIRE)-- April 15, 2020 – New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) reports preliminary first quarter operational results from the Rainy River and New Afton mines. (All amounts are in US dollars unless otherwise indicated.)The Company is also announcing that due to the rapidly changing and unpredictable environment caused by the global COVID-19 pandemic, the Company is withdrawing its 2020 operational guidance until any impact is better understood.

During this unprecedented period, the health and safety of our workforce and Indigenous and other communities remains our number one concern. We will support all initiatives that align with that objective and will remain vigilant in providing a safe working environment for our workforce.

Consolidated First Quarter and Recent Highlights

Total production for the first quarter was 103,435 gold equivalent (gold eq.) ounces (66,790 ounces of gold, 131,417 ounces of silver and 18.5 million pounds of copper).
The Rainy River Mine produced 51,106 gold eq. ounces (50,381 ounces of gold and 61,265 ounces of silver) for the quarter, including 12 days of the temporary 14-day suspension of operations announced on March 20, 2020. Operations resumed on April 3, 2020 and will gradually be ramped up over the coming weeks. (refer to the Company's April 3, 2020 news release for further information)
The New Afton Mine produced 52,329 gold eq. ounces (16,409 ounces of gold and 18.5 million pounds of copper) for the quarter.
The Company’s available liquidity has increased to approximately $600 million following the completion of a strategic partnership with Ontario Teachers’ Pension Plan (“OTPP”) whereby OTPP has acquired a 46.0% free cash flow interest in the New Afton mine for proceeds of $300 million. (refer to the Company's February 25 and March 31, 2020 news releases for further information)
Given the rapidly changing and unpredictable environment caused by the spread of the COVID-19 virus, the Company is withdrawing its guidance for 2020.
National Instrument 43-101 (“NI 43-101”) Technical Reports for the Rainy River and New Afton mines were filed on SEDAR (www.sedar.com) on March 27, 2020.
Consolidated First Quarter Operational Results

Q1 2020
Gold eq. production (ounces)1 103,435
Gold production (ounces) 66,790
Copper production (Mlbs) 18.5
Average realized gold price, per ounce 2 1,458
Average realized copper price, per pound 2 2.56

Total gold equivalent ounces include silver and copper produced (excluding production from the Cerro San Pedro Mine) converted to a gold equivalent based on a ratio of $1,500 per gold ounce, $17.75 per silver ounce and $2.85 per copper pound. Throughout the year the company will report gold equivalent ounces using a constant ratio of those prices. All copper is produced by the New Afton Mine.
Refer to the “Non-GAAP Financial Performance Measures" section of this press release.
“We are pleased to report New Gold's operational results for the quarter, which are very encouraging when considering the 2-week suspension at Rainy River in the latter part of March as well as the enhanced COVID-19 safety protocols put in place at both operations. At the end of the quarter, we closed a strategic $300 million transaction with the Ontario Teachers Pension Plan, which strengthens our balance sheet and provides additional financial flexibility and enhanced liquidity.” stated Renaud Adams, CEO. “Throughout this challenging time, New Gold will continue to prioritize the safety and well-being of our employees and local communities and we will continue to work with our Indigenous and community leaders to implement and coordinate actions to reduce the risk of the spread of COVID-19.”

Rainy River Mine Highlights

Rainy River Mine Q1 2020
Gold eq. production (ounces)1 51,106
Gold eq. sold (ounces) 53,538
Gold production (ounces) 50,381
Gold sold (ounces) 52,782
Average realized gold price, per ounce 2 1,455

1 Gold equivalent ounces for Rainy River in Q1 2020 includes 61265 ounces of silver converted to a gold equivalent based on a ratio of $1,500 per gold ounce and $17.75 per silver ounce.
2 Refer to the “Non-GAAP Financial Performance Measures" section of this press release.

Rainy River Operating KPI’s
Rainy River Mine
FY 2018 Q1 19 Q2 19 Q3 19 Q4 19 Q1 2020
Tonnes mined per day (ore and waste) 108,392 111,679 114,544 111,078 136,124
127,684
Ore tonnes mined per day 33,687 15,739 21,368 18,220 19,485 26,012
Operating waste tonnes per day 47,128 62,955 82,488 75,206 74,020 75,596
Capitalized waste tonnes per day 25,576 32,986 10,688 17,652 42,619 26,077

Total waste tonnes per day 74,705 95,941 93,176 92,858 116,639 101,673

Strip ratio (waste: ore) 2.22 6.10 4.36 5.10 5.99 3.91
Tonnes milled per calendar day 17,934 19,725 21,117 24,500 22,521 18,441
Gold grade milled (g/t) 1.25 1.19 1.15 1.14 0.85 1.03
Gold recovery (%) 86 90 93 91 91 90
Mill availability (%) 77 89 88 88 89 91

Gold production (oz) 227,284 61,557 66,013 75,080 51,122 50,381
Gold eq. production1 (oz) 230,349 62,278 66,765 76,092 51,915 51,106

Gold equivalent ounces for Rainy River in Q1 2020 includes 61,265 ounces of silver converted to a gold equivalent based on a ratio of $1,500 per gold ounce and $17.75 per silver ounce.
The Rainy River mine completed a temporary two-week shutdown from March 20 to April 2 that allowed the local workforce to follow a 14-day period of self-isolation relating to travel outside of Canada. On April 3, operations resumed with operations gradually ramping up over the coming weeks. (refer to the Company's April 3, 2020 press release for further information)
The mine is primarily utilizing its local workforce and will steadily ramp-up operations over the coming weeks as we continue to assess different scenarios to safely reintroduce the non-local workforce into the daily operations to enhance our drilling and maintenance capacity. The mine is currently averaging approximately 100,000 tonnes per day, which is approximately 70% of the productivity achieved in the first quarter prior to the shutdown.
The mill facility is currently processing ore directly supplied by the open pit mine combined with ore from the medium grade stockpile and is operating at full capacity.
For the first quarter, the mine reported gold eq. production of 51,106 ounces (50,381 ounces of gold and 61,265 ounces of silver), including 12-days of downtime related to the suspension of operations.
During the quarter, approximately 2.4 million ore tonnes and 9.3 million waste tonnes (including 2.4 million capitalized waste tonnes) were mined from the open pit at an average strip ratio of 3.91:1. Prior to the suspension of operations, the open pit was mining an average of approximately 140,000 tonnes per day in the first quarter.
Mill throughput for the quarter averaged 18,441 tonnes per day, including the 12-days of downtime related to the suspension of operations in the quarter, as well as completion of maintenance projects and adjustments related to the grinding circuit early in the quarter. Adjustments to the grinding circuit, including the commissioning of the pebble crusher, were required to process harder ore feed, which contributed to lower run rates in January. Mill productivity achieved first quarter target levels of 24,000 tonnes per day in February and early March (prior to the suspension).
Mill availability for the quarter averaged 91%, excluding the 12-days of downtime, in-line with plan.
Gold recovery averaged 90% for the quarter, slightly above planned levels.
Exploration activities included exploration reconnaissance target definition and drill campaign planning, aimed to commence upon the receipt of the required permits.

New Afton Mine Operational Highlights
New Afton Mine Q1 2020
Gold eq. production (ounces) 1 52,329
Gold eq. sold (ounces) 50,398
Gold production (ounces) 16,409
Gold sold (ounces) 15,991
Copper production (Mlbs) 18.5
Copper sold (Mlbs) 17.7

Average realized gold price, per ounce2 1,464

Average realized copper price, per pound2 2.56

1 Gold equivalent ounces for New Afton in Q1 2020 includes 18.5 pounds of copper and 70,152 ounces of silver converted to a gold equivalent based on a ratio of $1,500 per gold ounce, $2.85 per copper pound and $17.75 per silver ounce.
2 Refer to the “Non-GAAP Financial Performance Measures" section of this press release.
New Afton Operating KPI’s

New Afton Mine
FY 2018 Q1 19 Q2 19 Q3 19 Q4 19 Q1 2020
Tonnes mined per day (ore and waste) 16,156 15,824 16,357 15,773 14,539 16,727
Tonnes milled per calendar day 14,668 14,759 14,992 15,572 15,861 15,377
Gold grade milled (g/t) 0.53 0.50 0.53 0.43 0.42 0.45
Gold recovery (%) 85 83 83 80 79 81
Gold production (oz) 77,329 17,841 19,203 16,007 15,734 16,409
Copper grade milled (%) 0.87 0.80 0.86 0.76 0.70 0.73
Copper recovery (%) 83 83 83 84 81 82
Copper production (Mlbs) 85.1 19.5 21.6 20.1 18.3 18.5
Gold eq. production1 (oz) 279,755 60,986 65,791 52,807 49,507 52,329

Gold equivalent ounces for New Afton in Q1 2020 includes 18.5 pounds of copper and 70,152 ounces of silver converted to a gold equivalent based on a ratio of $1,500 per gold ounce, $2.85 per copper pound and $17.75 per silver ounce.
The mine produced 52,329 gold eq. ounces for the quarter (16,409 ounces of gold, and 18.5 million pounds of copper), gold production is above plan, while copper production is below plan.
During the quarter, total development towards the B3 and C-zone advanced by approximately 1,231 metres, in-line with plan. B3 and C-zone development may be reduced in the coming weeks due to the implementation of COVID-19 protocols, which will temporarily impact productivity levels.
The underground mine averaged 16,727 tonnes per day for the quarter, in-line with plan.
The mill averaged 15,377 tonnes per day for the quarter, at an average gold and copper grade of 0.45 g/t gold and 0.73% copper, respectively, with copper grade lower than plan, at gold and copper recoveries of 81% and 82%, respectively. During the quarter, lower than planned copper grades were mined in a portion of the Lift 1 east cave, primarily due to higher than expected dilution rates that were encountered.
Exploration activities in the quarter included underground delineation drilling on the East Extension zone and refinement of exploration targets for the planned drilling campaign within the Cherry Creek Trend area.
2020 Guidance and Financial Liquidity

The Company continues to assess the potential impacts of the COVID-19 pandemic on its 2020 production and cost structure during this unprecedented period. While operations continue at both mines, the Company believes it is prudent to temporarily withdraw our 2020 guidance as the global COVID-19 crisis continues to develop, particularly given the significant risk related to the potential for government laws, regulations or other measures that might be required that could impact our ability to operate, business disruptions in our supply chain, disruptions in the markets for our products, commodity prices generally as well as global health and economic impacts.

The Company has a strong liquidity position of approximately $600 million, which management feels is more than adequate to fund our business during this period. Additionally, as approximately 90-95% of our costs are denominated in Canadian dollars, the Company benefits from favourable Canadian / U.S. foreign exchange rates.