Provides Notice of Release of Fourth Quarter Financial Results

TORONTO--(BUSINESS WIRE)-- January 14, 2021- New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) reports fourth quarter and annual operational results for the Company as of December 31, 2020, achieving the mid-range of the revised annual production guidance (refer to the Company's July 30, 2020 news release for further information).An earnings conference call and webcast will be held on February 19, 2021 beginning at 8:30 am Eastern Time to discuss the fourth quarter financial results (details provided at the end of this news release).All amounts are in U.S. dollars unless otherwise indicated.

The Rainy River Mine achieved the higher end of the revised annual gold equivalent production1 guidance and continued to meet, or exceed, all key operational and cost targets. All deferred construction capital has been completed and the Rainy River Mine is now positioned for strong production growth at lower costs and higher margins that will drive strong free cash flow generation over the life of the mine.

The New Afton Mine achieved the mid-range of the revised annual gold equivalent production guidance (copper production achieved the mid-range and gold production achieved the lower end). Operational performance continued to improve over the prior quarter and benefited from the stronger copper prices realized during the quarter. A strategic drilling program was launched in October to unlock the epithermal and porphyry potential of the Cherry Creek trend as well as other near mine targets.

Sustainability and ESG

New Gold has four key areas of focus: Water, Climate, Indigenous Peoples and Tailings Management. In 2020, New Gold refocused its sustainability efforts to align with the most pressing ESG reporting issues facing the industry. We have adopted an embedded, systems-based approach to execute on our sustainability strategy that aligns with ESG global standards beginning in 2021.

Consolidated Fourth Quarter Highlights

Total production for the fourth quarter was 120,567 gold equivalent1 (gold eq.) ounces (83,096 ounces of gold, 199,428 ounces of silver and 18.5 million pounds of copper). For the year, production was 437,617 gold eq. ounces (293,139 ounces of gold, 636,952 ounces of silver and 72.1 million pounds of copper), achieving mid-range of the revised annual production guidance.
The Rainy River Mine produced 68,241 gold eq. ounces (66,734 ounces of gold and 127,390 ounces of silver) for the quarter. For the year, production was 233,201 gold eq. ounces (228,919 ounces of gold and 361,862 ounces of silver), achieving the higher end of the revised annual production guidance.
The New Afton Mine produced 52,326 gold eq. ounces (16,362 ounces of gold and 18.5 million pounds of copper) for the quarter. For the year, production was 204,416 gold eq. ounces (64,220 ounces of gold and 72.1 million pounds of copper), achieving the mid-range of revised annual production guidance.
On December 23, 2020, the Company completed the partial redemption of $200 million of the principal amount of the outstanding 6.25% senior notes due in 2025 that was funded with cash on hand. (refer to the Company's November 23, 2020 and December 23, 2020 news releases for further information)
The Company recently purchased copper put options with a floor of $3.10 per pound, covering 1,700 tonnes per month (approximately 65% of anticipated production), over the period from April 2021 to September 2021. At the end of 2020, all gold option contracts have expired and the Company is now fully exposed to current gold prices.
Exploration drilling programs at both assets were launched late in the fourth quarter and an update is expected to be released in the latter part of the first quarter.
At the end of the quarter, the Company had a cash position of $185 million and a strong liquidity position of approximately $490 million.
1. Refer to the “Non-GAAP Financial Performance Measures" section of this press release.

"During the year, we repositioned the Company for long-term success as we transition to free cash flow generation in 2021. We improved our operational and cost performance, executed on our strategic capital plans, restructured our balance sheet and improved our liquidity position and we have shifted our focus to driving further operational and cost optimizations at both our assets. We begin the new year as a much stronger company with a growing, higher-margin production profile, and following the expiration of our gold hedges at the end of 2020, we are now fully exposed to the higher gold price as well as the stronger copper price.” stated Renaud Adams, CEO. “The Rainy River Mine is now entering a phase of strong production growth and free cash flow generation and has the potential to extend the life of the underground mine. At the New Afton Mine, we continue to advance all key B3/C-Zone projects on a self-funded basis that will position this asset for a robust free cash flow stream as the C-Zone begins production in the latter part of 2023. We have launched exploration drilling programs at both assets that could increase our resource inventory and potentially extend mine life.”

Consolidated Fourth Quarter Operational Results
Q4 2020 FY 2020 2020 Revised Consolidated Guidance
Gold eq. production (ounces)1 120,567 437,617 415,000 – 455,000
Gold production (ounces) 83,096 293,139 284,000 – 304,000
Copper production (Mlbs) 18.5 72.1 65 - 75
Average realized gold price, per ounce21,623 1,559 -
Average realized copper price, per pound2 3.34 2.86 -

Total gold eq. ounces include silver and copper produced converted to a gold eq. 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 eq. 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.

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