Provides 2023 Operational Outlook and Updated Mineral
Reserves and Resources
(All amounts are in U.S. dollars unless otherwise
indicated)
TORONTO, Feb. 16,
2023 /CNW/ - New Gold Inc. ("New Gold" or the
"Company") (TSX: NGD) (NYSE American: NGD) reports fourth
quarter and full year 2022 results, updates Mineral Reserves and
Mineral Resources for the Company as of December 31, 2022, and provides its 2023
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, 2022 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 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 97,824 gold
equivalent1 ("gold eq.") ounces (80,694 ounces of gold,
128,145 ounces of silver and 6.9 million pounds of copper). For the
year, production was 347,054 gold eq.1 ounces (271,373
ounces of gold, 497,647 ounces of silver and 31.1 million pounds of
copper), achieving the updated annual guidance for all metals
- Operating expenses4 for the quarter were
$1,140 per gold eq. ounce and
$1,116 per gold eq. ounce for the
year, below the updated annual guidance range of $1,120 to $1,200
per gold eq. ounce
- Total cash costs2 for the quarter were $1,167 per gold eq. ounce and $1,150 per gold eq. ounce for the year
- All-in sustaining costs2 for the quarter were
$1,668 per gold eq. ounce and
$1,818 per gold eq. ounce for the
year, below the updated annual guidance range of $1,875 to $1,975
per gold eq. ounce
- Average realized gold price2 was $1,751 per ounce and average realized copper
price2 was $3.74 per pound
for the quarter. Average realized gold price2 was
$1,808 per ounce and average realized
copper price2 was $3.94
per pound for the year
- Cash generated from operations for the quarter was $32 million ($0.05
per share) and $191 million
($0.28 per share) for the year
- Cash generated from operations for the quarter, before changes
in non-cash operating working capital2 was $44 million ($0.06
per share) and $182 million
($0.27 per share) for the year
- Net loss for the quarter was $17
million ($0.02 per share) and
$67 million ($0.10 per share) for the year
- Adjusted net loss2 for the quarter was $6 million ($0.01
per share) and $26 million
($0.04 per share) for the year
- 2022 year-end Mineral Reserves of 3.3 million ounces of gold
and 607 million pounds of copper
- December 31, 2022 cash and cash
equivalents of $201 million
"Although the year presented several challenges for New Gold,
our teams remained resilient, accomplishing a number of key
objectives, including meeting or beating all updated annual
production and cost guidance ranges," stated Patrick Godin, President and CEO. "This was
underpinned by a strong fourth quarter which included Rainy River's strongest production quarter of
the year, as we began to incorporate higher grade material from the
Intrepid zone, as well as New Afton ramping up production from B3
to its targeted rate of 8,000 tonnes per day, ahead of
schedule."
"Looking ahead to 2023, our core strategy and objectives
remain unchanged. We will advance key priorities at both sites with
the health and safety of our team at the forefront. At Rainy River, we will continue to advance
underground production from the Intrepid zone and begin developing
the Main zone below the pit with the first in-pit portal to be
completed in the second half of the year. This year will also be
the last significant capital waste stripping year which will reduce
sustaining capital in future years. We will continue to focus on
improving the reliability of the processing plant while looking for
opportunities to optimize our costs. At New Afton, the focus
remains on steady state mining rates from B3, first ore from C-Zone
in the second half of the year and continuing to advance and grow
our exploration program based on the positive results seen to date.
Achieving these objectives is expected to lead to a 10% increase in
production with lower costs compared to 2022 and secure strong
future production at both assets. I remain confident in our team's
ability to deliver on these objectives and look forward to updating
the market on our progress through the year."
Consolidated Financial Highlights
|
Q4
2022
|
Q4
2021
|
FY
2022
|
FY
2021
|
Revenue ($M)
|
162.8
|
202.6
|
604.4
|
745.5
|
Operating expenses
($M)
|
108.5
|
99.6
|
382.7
|
377.3
|
Net (loss) earnings
($M)
|
(16.9)
|
150.9
|
(66.8)
|
140.6
|
Net (loss) earnings,
per share ($)
|
(0.02)
|
0.22
|
(0.10)
|
0.21
|
Adj. net (loss)
earnings ($M)2
|
(6.3)
|
24.7
|
(26.1)
|
82.9
|
Adj. net (loss)
earnings, per share ($)2
|
(0.01)
|
0.04
|
(0.04)
|
0.12
|
Cash generated from
operations ($M)
|
31.9
|
105.7
|
190.7
|
323.7
|
Cash generated from
operations, per share ($)
|
0.05
|
0.16
|
0.28
|
0.48
|
Cash generated from
operations, before changes in non-cash operating working capital
($M)2
|
44.3
|
92.9
|
181.6
|
322.7
|
Cash generated from
operations, before changes in non-cash operating working capital,
per share ($)2
|
0.06
|
0.14
|
0.27
|
0.47
|
- Revenue for the quarter decreased over the prior-year period
primarily due to lower copper sales volume and lower gold and
copper average realized prices. For the year ended December 31, 2022, the decrease in revenue over
the prior-year period was due to lower gold and copper sales volume
and lower copper average realized prices.
- Operating expenses were higher than the prior-year periods due
to higher operating expenses at New Afton, as production from B3
continued to ramp-up, and inflation-driven price increases.
- Net earnings decreased over the prior-year periods primarily
due to lower revenue, higher operating expenses, and the gain on
the sale of the Blackwater gold stream in the prior-year
period.
- Adjusted net earnings2 decreased over the prior-year
periods primarily due to lower revenue and higher operating
expenses.
- Cash generated from operations for the quarter decreased over
the prior-year periods primarily due to lower revenue and negative
working capital movements. For the full year, the decrease in cash
generated from operations was due to lower revenue, partially
offset by positive working capital movements.
Consolidated Operational Highlights
|
Q4
2022
|
Q4
2021
|
FY
2022
|
FY
2021
|
Gold eq. production
(ounces)1,3
|
97,824
|
111,574
|
347,054
|
418,933
|
Gold eq. sold
(ounces)1,3
|
95,161
|
109,214
|
342,839
|
402,449
|
Gold production
(ounces)3
|
80,694
|
81,072
|
271,373
|
286,921
|
Gold sold
(ounces)3
|
78,507
|
78,745
|
269,147
|
277,451
|
Copper production
(Mlbs)3
|
6.9
|
14.2
|
31.1
|
61.7
|
Copper sold
(Mlbs)3
|
6.8
|
14.2
|
30.2
|
58.4
|
Gold revenue, per ounce
($)4
|
1,736
|
1,778
|
1,791
|
1,778
|
Copper revenue, per
pound ($)4
|
3.53
|
4.07
|
3.70
|
3.97
|
Average realized gold
price, per ounce ($)2
|
1,751
|
1,798
|
1,808
|
1,798
|
Average realized copper
price, per pound ($)2
|
3.74
|
4.37
|
3.94
|
4.24
|
Operating expenses, per
gold eq. ounce ($)4
|
1,140
|
912
|
1,116
|
938
|
Total cash costs, per
gold eq. ounce ($)2
|
1,167
|
965
|
1,150
|
991
|
Depreciation and
depletion, per gold eq. ounce ($)4
|
551
|
469
|
572
|
489
|
All-in sustaining
costs, per gold eq. ounce ($)2
|
1,668
|
1,355
|
1,818
|
1,463
|
Sustaining capital and
sustaining leases ($M)2
|
37.2
|
33.6
|
195.1
|
156.8
|
Growth capital
($M)2
|
37.1
|
26.9
|
109.2
|
101.7
|
Total capital and
leases ($M)
|
74.3
|
60.5
|
304.3
|
258.5
|
Rainy River Mine
Operational Highlights
Rainy River
Mine
|
Q4
2022
|
Q4
2021
|
FY
2022
|
FY
2021
|
Gold eq. production
(ounces)1,3
|
71,221
|
70,500
|
235,194
|
242,961
|
Gold eq. sold
(ounces)1,3
|
68,392
|
68,380
|
233,788
|
237,061
|
Gold production
(ounces)3
|
69,753
|
68,356
|
229,822
|
234,469
|
Gold sold
(ounces)3
|
66,992
|
66,239
|
228,565
|
228,693
|
Gold revenue, per ounce
($)4
|
1,748
|
1,796
|
1,807
|
1,797
|
Average realized gold
price, per ounce ($)2
|
1,748
|
1,796
|
1,807
|
1,797
|
Operating expenses, per
gold eq. ounce ($)4
|
1,014
|
897
|
985
|
955
|
Total cash costs, per
gold eq. ounce ($)2
|
1,014
|
897
|
985
|
955
|
Depreciation and
depletion, per gold eq. ounce ($)4
|
559
|
571
|
634
|
625
|
All-in sustaining
costs, per gold eq. ounce ($)2
|
1,467
|
1,281
|
1,605
|
1,415
|
Sustaining capital and
sustaining leases ($M)2
|
28.5
|
24.0
|
136.5
|
100.9
|
Growth capital
($M)2
|
4.2
|
2.3
|
17.7
|
11.6
|
Total capital and
leases ($M)
|
32.7
|
26.3
|
154.2
|
112.5
|
Operating Key Performance Indicators
Rainy River Mine (Open
Pit Mine only)
|
Q4
2022
|
Q4
2021
|
FY
2022
|
FY
2021
|
Tonnes mined per day
(ore and waste)
|
110,536
|
129,775
|
112,826
|
147,131
|
Ore tonnes mined per
day
|
34,667
|
33,885
|
22,965
|
39,716
|
Operating waste tonnes
per day
|
56,547
|
62,348
|
39,017
|
71,869
|
Capitalized waste
tonnes per day
|
19,323
|
33,542
|
50,843
|
35,546
|
Total waste tonnes per
day
|
75,870
|
95,890
|
89,860
|
107,415
|
Strip ratio
(waste:ore)
|
2.19
|
2.83
|
3.91
|
2.70
|
Tonnes milled per
calendar day
|
22,225
|
24,492
|
23,568
|
25,342
|
Gold grade milled
(g/t)
|
1.16
|
1.03
|
0.91
|
0.88
|
Gold recovery
(%)
|
92
|
92
|
91
|
89
|
- Fourth quarter gold eq.1 production was 71,221
ounces (69,753 ounces of gold and 110,133 ounces of silver), an
increase over the prior-year period due to higher gold grade with
the inclusion of higher grade underground tonnes, partially offset
by lower tonnes processed. Full year gold eq.1
production was 235,194 ounces (229,822 ounces of gold and 402,964
ounces of silver), a decrease over the prior year mainly due to
lower tonnes processed. Full year gold eq.1 production
fell within the updated guidance range of 230,000 to 250,000
ounces.
- Operating expense4 per gold eq. ounce increased over
the prior-year periods as inflation-driven price increases were
partially offset by a weakening of the Canadian dollar relative to
the U.S. dollar. Full year operating expense per gold eq. ounce
achieved the updated annual guidance range of $960 to $1,040 per
gold eq. ounce.
- All-in sustaining costs2 per gold eq. ounce
increased over the prior-year periods primarily due to higher
operating costs and higher sustaining capital. Full year all-in
sustaining costs2 per gold eq. ounce was slightly below
the updated annual guidance range of $1,620 to $1,720
per gold eq. ounce.
- Total capital and leases for the quarter and full year were
$33 million and $154 million, respectively, an increase over the
prior-year periods due to higher sustaining capitalized waste
mining costs as a result of the higher strip ratio, and the
continued development of the Intrepid underground zone. Sustaining
capital2 during the quarter primarily related to
capitalized waste as well as capital maintenance, and the
advancement of the annual tailings dam raise. Growth
capital2 related to the development of the Intrepid
underground zone.
- Free cash flow2 for the quarter was a net inflow of
$4 million (net of a $6 million stream payment), a decrease over the
prior-year period primarily due to a decrease in cash generated
from operations and an increase in capital expenditures. Full year
free cash flow2 was a net inflow of $18 million (net of a $24
million stream payment), a decrease over the prior year
primarily due to an increase in capital expenditures, partially
offset by an increase in cash generated from operations.
New Afton Mine
Operational Highlights
New Afton
Mine
|
Q4
2022
|
Q4
2021
|
FY
2022
|
FY
2021
|
Gold
eq. production (ounces)1,3
|
26,603
|
41,074
|
111,860
|
175,972
|
Gold eq. sold
(ounces)1,3
|
26,769
|
40,835
|
109,051
|
165,387
|
Gold production
(ounces)3
|
10,941
|
12,716
|
41,551
|
52,452
|
Gold sold
(ounces)3
|
11,514
|
12,507
|
40,582
|
48,758
|
Copper production
(Mlbs)3
|
6.9
|
14.2
|
31.1
|
61.7
|
Copper sold
(Mlbs)3
|
6.8
|
14.2
|
30.2
|
58.4
|
Gold revenue, per ounce
($)4
|
1,668
|
1,685
|
1,699
|
1,690
|
Copper revenue, per
ounce ($)4
|
3.53
|
4.07
|
3.70
|
3.97
|
Average realized gold
price, per ounce ($)2
|
1,766
|
1,807
|
1,808
|
1,804
|
Average realized copper
price, per pound ($)2
|
3.74
|
4.37
|
3.94
|
4.24
|
Operating expenses, per
gold eq. ounce ($)4
|
1,461
|
938
|
1,395
|
912
|
Total cash costs, per
gold eq. ounce ($)2
|
1,557
|
1,079
|
1,503
|
1,042
|
Depreciation and
depletion, per gold eq. ounce ($)4
|
527
|
297
|
434
|
288
|
All-in sustaining
costs, per gold eq. ounce ($)2
|
1,870
|
1,330
|
2,044
|
1,385
|
Sustaining capital and
sustaining leases ($M)2
|
7.9
|
9.5
|
56.8
|
54.5
|
Growth capital
($M)2
|
32.9
|
24.6
|
91.5
|
90.1
|
Total capital and
leases ($M)
|
40.8
|
34.1
|
148.3
|
144.6
|
Operating Key Performance Indicators
New Afton
Mine
|
Q4
2022
|
Q4
2021
|
FY
2022
|
FY
2021
|
Tonnes mined per day
(ore and waste)
|
7,978
|
13,705
|
7,003
|
13,271
|
Tonnes milled per
calendar day
|
6,938
|
13,125
|
9,105
|
13,386
|
Gold grade milled
(g/t)
|
0.62
|
0.41
|
0.47
|
0.41
|
Gold recovery
(%)
|
86
|
81
|
84
|
81
|
Copper grade milled
(%)
|
0.57
|
0.67
|
0.51
|
0.70
|
Copper recovery
(%)
|
87
|
80
|
83
|
81
|
- Fourth quarter gold eq.1 production was 26,603
ounces (10,941 ounces of gold and 6.9 million pounds of copper),
and for the year ended December 31,
2022, gold eq.1 production was 111,860 ounces
(41,551 ounces of gold and 31.1 million pounds of copper). The
decrease over the prior-year periods was due to lower tonnes mined
and processed. Full year gold eq.1 production fell
within the updated guidance range of 95,000 to 115,000 ounces.
- Operating expense4 per gold eq. ounce increased over
the prior-year periods, primarily due to lower sales volume. Full
year operating expense per gold eq. ounce was below the updated
guidance range of $1,485 to
$1,565 per gold eq. ounce due to a
weaker Canadian dollar relative to the U.S. dollar assumption used
to set guidance.
- All-in sustaining costs2 per gold eq. ounce
increased over the prior-year periods, primarily due to lower sales
volume and higher sustaining capital spend for the year ended
December 31, 2022. Full year all-in
sustaining costs2 per gold eq. ounce was below the
updated annual guidance range of $2,210 to $2,310
per gold eq. ounce due to a weaker Canadian dollar relative to the
U.S. dollar assumption used to set guidance.
- Total capital and leases for the quarter and full year were
$41 million and $148 million, respectively, relatively in-line
with prior-year periods. Sustaining capital2 in the
quarter primarily related to the completion of B3 mine development,
and the continuation of tailings management and stabilization
activities. Growth capital2 in the quarter primarily
related to C-Zone development, which advanced 1,076 meters during
the quarter.
- Free cash flow2 for the quarter and full year was a
net outflow of $41 million and
$138 million, respectively, a
decrease over the prior-year periods due to a decrease in cash
generated from operations and an increase in capital
expenditures.
2023 Operational Outlook
Operational
Estimates
|
Rainy River
Mine
|
New Afton
Mine
|
2023 Consolidated
Guidance
|
Gold eq. production
(ounces) 1,3,5
|
235,000 -
265,000
|
130,000 -
160,000
|
365,000 -
425,000
|
Gold production
(ounces)
|
230,000 -
260,000
|
50,000 -
60,000
|
280,000 -
320,000
|
Copper production
(Mlbs)
|
-
|
38 - 48
|
38 -
48
|
Operating expenses, per
gold eq. ounce4
|
$905 - $985
|
$1,035 -
$1,115
|
$950 -
$1,030
|
All-in sustaining
costs, per gold eq. ounce2
|
$1,475 -
$1,575
|
$1,320 -
$1,420
|
$1,505 -
$1,605
|
Capital Investment
& Exploration Estimates
|
Rainy River
Mine
|
New Afton
Mine
|
2023 Consolidated
Guidance
|
Total capital
($M)
|
$145 - $165
|
$145 - $185
|
$290 -
$350
|
Sustaining capital
($M)2
|
$125 - $135
|
$15 - $35
|
$140 -
$170
|
Growth capital
($M)2
|
$20 - $30
|
$130 - $150
|
$150 -
$180
|
Gold equivalent production3,5 is expected to be
between 365,000 to 425,000 ounces, approximately 13% higher than
2022 production. Production is expected to strengthen in the second
half of the year, with the second half of 2023 to represent
approximately 55% of annual production.
Operating expenses4 are expected to be $950 to $1,030 per
gold eq. ounce, lower than the prior year as a result of higher
production and sales volumes from both sites. All-in
sustaining costs2 are expected to be $1,505 to $1,605
per gold eq. ounce, lower than the prior year due to lower
sustaining capital spend and higher sales volumes. All-in
sustaining costs2 are expected to trend lower in the
second half of the year, consistent with the production
profile.
Total capital is expected to be $290 to $350
million, of which, sustaining capital2 is
expected to be $140 to $170 million, and growth capital2 is
expected to be $150 to $180 million. The decrease in sustaining
capital2 over the prior year predominantly relates to
the completion of B3 mine development in 2022. The increase in
growth capital2 relates to C-Zone development, advancing
underground development at the Intrepid underground zone, and
commencing development at the Main underground zone at Rainy River. Quarterly sustaining capital and
growth capital2 are expected to be relatively consistent
through the year.
In 2023, the Company will report production on a gold
equivalent, gold and copper basis. Operating expenses and all-in
sustaining costs will be reported on a per gold equivalent ounce
basis. Throughout the year, the Company will report gold equivalent
ounces using a constant ratio of $1,750 per gold ounce, $22.00 per silver ounce and $3.50 per copper pound, and a foreign exchange
rate of $1.32 Canadian dollars to
$1.00 US dollar.
2023 Rainy River Operational Outlook
Operational
Estimates
|
2023
Guidance
|
Gold eq. production
(ounces) 1,3
|
235,000 -
265,000
|
Gold production
(ounces)
|
230,000 -
260,000
|
Operating expenses, per
gold eq. ounce4
|
$905 - $985
|
All-in sustaining
costs, per gold eq. ounce2
|
$1,475 -
$1,575
|
Capital Investment
& Exploration Estimates
|
2023
Guidance
|
Total capital
($M)
|
$145 - $165
|
Sustaining capital
($M)2
|
$125 - $135
|
Growth capital
($M)2
|
$20 - $30
|
- Gold equivalent production1,3 is expected to be
235,000 to 265,000 ounces, an increase over the prior year due to
an increase in gold grade, tonnes mined and processed, as well as
ramping-up ore extraction from the Intrepid underground zone
throughout the year. Production is expected to strengthen in the
second half of the year as planned maintenance activities for the
processing plant are to be completed in the first half of the year.
The second half of 2023 is expected to represent approximately 55%
of the annual production.
- Operating expenses4 are expected to be $905 to $985 per
gold eq. ounce, a decrease over the prior year, primarily due to
higher production and sales volume.
- All-in sustaining costs2 are expected to be
$1,475 to $1,575 per gold eq. ounce, a decrease over the
prior year, primarily due to higher production and sales volume.
All-in sustaining costs2 are expected to trend lower in
the second half of the year, consistent with the production
profile.
- Total capital is expected to be $145 to $165
million. Sustaining capital2 is expected to be
$125 to $135
million, including approximately $70
million in capitalized waste, $35
million towards the annual tailings dam raise, $15 million in capital parts and components
replacement programs, $5 million in
sustaining capital development for the Intrepid underground zone,
and $5 million related to other
general sustaining capital and working capital payments. Growth
capital2 is expected to be $20 to $30 million,
related to the continued development of the Intrepid underground
zone, and the commencement of development of the Main underground
zone below the pit. Sustaining capital and growth
capital2 are expected to be generally consistent
throughout the year.
2023 New Afton Operational Outlook
Operational
Estimates
|
2023
Guidance
|
Gold eq. production
(ounces) 1,3,5
|
130,000 -
160,000
|
Gold production
(ounces)
|
50,000 -
60,000
|
Copper production
(Mlbs)
|
38 - 48
|
Operating expenses, per
gold eq. ounce4
|
$1,035 -
$1,115
|
All-in sustaining
costs, per gold eq. ounce2
|
$1,320 -
$1,420
|
Capital Investment
& Exploration Estimates
|
2023
Guidance
|
Total capital
($M)
|
$145 - $185
|
Sustaining capital
($M)2
|
$15 - $35
|
Growth capital
($M)2
|
$130 - $150
|
- Gold equivalent production3,5 is expected to be
130,000 to 160,000 ounces, approximately 30% higher than 2022, as
B3 production achieves steady-state mining rates and higher gold
and copper grades. B3 mining rate is expected to average
approximately 8,000 tonnes per day as all drawpoint development is
completed.
- Operating expenses4 are expected to be $1,035 to $1,115
per gold eq. ounce, a decrease over the prior year, primarily due
to higher production and sales volume.
- All-in sustaining costs2 are expected to be
$1,320 to $1,420 per gold eq. ounce, a decrease over the
prior year, primarily due to lower sustaining capital spend with B3
development completed in 2022 and higher production and sales
volume. All-in sustaining costs2 are expected to trend
higher in the first half of the year due to timing of the tailings
management and stabilization work.
- Total capital is expected to be $145 to $185
million. Sustaining capital2 is expected to be
$15 to $35
million, including approximately $15
million related to stabilization activities, $5 million related to tailings management and
$5 million related to other general
sustaining capital and working capital payments. Growth
capital2 is expected to be $130 to $150
million, related to the continued advancement of the C-Zone
project, primarily focused on mine development, infrastructure
installation, and continued progress on stabilization. Growth
capital2 is expected to be generally consistent
throughout the year.
- Exploration expenditures are expected to be approximately
$15 million and will focus on
underground exploration and infill drilling on the mineralized zone
defined within the New Afton footprint, follow-up surface drilling,
and reconnaissance exploration drilling on regional targets that
were defined in 2022.
Mineral Reserves and Mineral Resources (as at December 31, 2022)
As at December 31, 2022, New Gold
is reporting Mineral Reserves and Mineral Resources as summarized
in the table below. Detailed Mineral Reserve and Mineral Resource
tables follow at the end of this press release.
Mineral Reserves and
Mineral Resources Summary1
|
As at December 31,
20222
|
As at December 31,
2021
|
Gold
koz
|
Silver
koz
|
Copper
Mlbs
|
Gold
koz
|
Silver
koz
|
Copper
Mlbs
|
Proven and Probable
Mineral Reserves
|
Rainy River
|
2,493
|
6,176
|
-
|
2,799
|
7,022
|
-
|
Open Pit
|
1,081
|
2,212
|
-
|
1,230
|
2,170
|
-
|
Underground
|
1,228
|
2,966
|
-
|
1,241
|
3,084
|
-
|
Low grade and
stockpile
|
185
|
999
|
-
|
328
|
1,768
|
-
|
New Afton
|
804
|
1,999
|
607
|
883
|
2,327
|
675
|
Total Proven and
Probable Mineral Reserves3
|
3,297
|
8,176
|
607
|
3,682
|
9,349
|
675
|
Measured and
Indicated Mineral Resources (exclusive of Mineral
Reserves)1
|
Rainy River
|
1,501
|
3,627
|
-
|
1,543
|
3,894
|
-
|
Open Pit
|
127
|
161
|
-
|
195
|
472
|
-
|
Underground
|
1,374
|
3,466
|
-
|
1,348
|
3,422
|
-
|
New Afton
|
1,222
|
4,495
|
1,035
|
1,174
|
4,187
|
1,006
|
Total Measured and
Indicated Mineral Resources3
|
2,722
|
8,122
|
1,035
|
2,717
|
8,081
|
1,006
|
Total Inferred
Mineral Resources3
|
375
|
782
|
135
|
387
|
831
|
137
|
1.
Refer to the detailed Mineral Reserve and
Mineral Resource tables that follow at the end of this press
release for the estimates as at December 31, 2022 and the Company's
Annual Information Form dated March 31, 2022 for estimates as at
December 31, 2021.
2.
The Mineral Reserves and Mineral
Resources stated above are as at December 31, 2022 and do not
reflect any events subsequent to that date.
3.
Numbers may not add due to
rounding
|
Consolidated Mineral Reserves decreased by approximately 385,000
gold ounces compared to the prior year. At Rainy River, total Mineral Reserves decreased
by approximately 306,000 gold ounces over the prior year due to
approximately 252,000 gold ounces of annual mine production,
approximately 48,000 gold ounces related to a resource mineability
adjustment, and approximately 6,000 gold ounces related to a slope
design update. At New Afton, Mineral Reserves decreased by
approximately 79,000 gold ounces over the prior year due to
approximately 44,000 gold ounces of annual mine depletion and
approximately 45,000 gold ounces from the Sub Level Cave and East
Cave Recovery Level converted to Mineral Resources, partially
offset by an increase of approximately 10,000 gold ounces from mine
plan optimization.
Consolidated Measured and Indicated Mineral Resources increased
by approximately 5,000 gold ounces, with Rainy River decreasing by approximately 42,000
gold ounces due to an updated open pit design, offset by an
increase of approximately 47,000 gold ounces at New Afton from the
Sub Level Cave and East Cave Recovery Level converted to Mineral
Resources and additional exploration drilling. Consolidated
Inferred Mineral Resources decreased by approximately 12,000 gold
ounces to 375,000 gold ounces.
Fourth Quarter 2022 Conference Call and Webcast
The Company will release its fourth quarter 2022 financial
results before markets open on Thursday,
February 16, 2023. A conference call and webcast will follow
at 8:30 am Eastern Time.
- Participants may listen to the webcast by registering on our
website at www.newgold.com or via the following link
https://app.webinar.net/mX1v9XP9zGK
- Participants may also listen to the conference call by calling
North American toll free 1-888-664-6383, or 1-416-764-8650 outside
of the U.S. and Canada, passcode
24329001
- To join the conference call without operator assistance, you
may register and enter your phone number at
https://connectnow1.accutel.com/EventMeet/rest/users/login?password=h5hnf4cq8qa76
to receive an instant automated call back.
- A recorded playback of the conference call will be available
until March 16, 2023 by calling North
American toll free 1-888-390-0541, or 1-416-764-8677 outside of the
U.S. and Canada, passcode 329001.
An archived webcast will also be available at www.newgold.com.
About New Gold
New Gold is a Canadian-focused intermediate mining Company with
a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New
Afton copper-gold mine. The Company also holds Canadian-focused
investments. New Gold's vision is to build a leading diversified
intermediate gold company based in Canada that is committed to the environment
and social responsibility. For further information on the Company,
visit www.newgold.com.
Endnotes
- Total gold eq. ounces include silver and copper
produced/sold converted to a gold equivalent. All copper is
produced/sold by the New Afton Mine. Gold eq. ounces for
Rainy River in Q4 2022 includes
production of 110,133 ounces of silver (104,968 ounces sold)
converted to a gold eq. based on a ratio of $1,800 per gold ounce and $24.00 per silver ounce used for 2022 guidance
estimates. Gold eq. ounces for New Afton in Q4 2022 includes 6.9
million pounds of copper produced (6.8 million pounds sold) and
18,012 ounces of silver produced (17,023 ounces of silver sold)
converted to a gold eq. based on a ratio of $1,800 per gold ounce, $4.00 per copper pound and $24.00 per silver ounce used for 2022 guidance
estimates.
- "Total cash costs", "all-in sustaining costs" (or
"AISC"), "adjusted net earnings/(loss)", "adjusted tax expense",
"sustaining capital and sustaining leases", "growth capital", "cash
generated from operations, before changes in non-cash operating
working capital", "free cash flow", and "average realized
gold/copper price per ounce/pound" are all non-GAAP financial
performance measures that are used in this news release. These
measures do not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. For more information about these measures, why they
are used by the Company, and a reconciliation to the most directly
comparable measure under IFRS, see the "Non-GAAP Financial
Performance Measures" section of this news release.
- Production is shown on a total contained basis while sales are
shown on a net payable basis, including final product inventory and
smelter payable adjustments, where applicable.
- These are supplementary financial measures which are calculated
as follows: "revenue per ounce/pound" is total revenue divided by
total gold ounces sold and copper pounds sold. "Operating expenses
per gold eq. ounce sold" is total operating expenses divided by
total gold equivalent ounces sold and "depreciation and depletion
per gold eq. ounce sold" is total depreciation and depletion
divided by total gold equivalent ounces sold.
- New Afton 2023 operational estimates are exclusive of any
material from the ore purchase agreement.
Non-GAAP Financial Performance Measures
Total Cash Costs per Gold eq. ounce
"Total cash costs per gold equivalent ounce" is a non-GAAP
financial performance measure that is a common financial
performance measure in the gold mining industry but does not have
any standardized meaning under IFRS and therefore may not be
comparable to similar measures presented by other issuers. New Gold
reports total cash costs on a sales basis and not on a production
basis. The Company believes that, in addition to conventional
measures prepared in accordance with IFRS, this measure, along with
sales, is a key indicator of the Company's ability to generate
operating earnings and cash flow from its mining operations. This
measure allows investors to better evaluate corporate performance
and the Company's ability to generate liquidity through operating
cash flow to fund future capital exploration and working capital
needs.
This measure is intended to provide additional information only
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. This
measure is not necessarily indicative of cash generated from
operations under IFRS or operating costs presented under IFRS.
Total cash cost figures are calculated in accordance with a
standard developed by The Gold Institute, a worldwide association
of suppliers of gold and gold products that ceased operations in
2002. Adoption of the standard is voluntary and the cost measures
presented may not be comparable to other similarly titled measures
of other companies. Total cash costs include mine site operating
costs such as mining, processing and administration costs,
royalties, and production taxes, but are exclusive of amortization,
reclamation, capital and exploration costs. Total cash costs are
then divided by gold equivalent ounces sold to arrive at the total
cash costs per equivalent ounce sold.
In addition to gold, the Company produces copper and silver.
Gold equivalent ounces of copper and silver produced or sold in a
quarter are computed using a consistent ratio of copper and silver
prices to the gold price and multiplying this ratio by the pounds
of copper and silver ounces produced or sold during that
quarter.
Notwithstanding the impact of copper and silver sales, as the
Company is focused on gold production, New Gold aims to assess the
economic results of its operations in relation to gold, which is
the primary driver of New Gold's business. New Gold believes this
metric is of interest to its investors, who invest in the Company
primarily as a gold mining business. To determine the relevant
costs associated with gold equivalent ounces, New Gold believes it
is appropriate to reflect all operating costs incurred in its
operations.
All-In Sustaining Costs per Gold eq. ounce
"All-in sustaining costs per gold equivalent ounce" is a
non-GAAP financial performance measure that does not have any
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. New Gold calculates
"all-in sustaining costs per gold equivalent ounce" based on
guidance announced by the World Gold Council ("WGC") in
September 2013. The WGC is a
non-profit association of the world's leading gold mining companies
established in 1987 to promote the use of gold to industry,
consumers and investors. The WGC is not a regulatory body and does
not have the authority to develop accounting standards or
disclosure requirements. The WGC has worked with its member
companies to develop a measure that expands on IFRS measures to
provide visibility into the economics of a gold mining company.
Current IFRS measures used in the gold industry, such as operating
expenses, do not capture all of the expenditures incurred to
discover, develop and sustain gold production. New Gold believes
that "all-in sustaining costs per gold equivalent ounce" provides
further transparency into costs associated with producing gold and
will assist analysts, investors, and other stakeholders of the
Company in assessing its operating performance, its ability to
generate free cash flow from current operations and its overall
value. In addition, the Human Resources and Compensation Committee
of the Board of Directors uses "all-in sustaining costs", together
with other measures, in its Company scorecard to set incentive
compensation goals and assess performance.
"All-in sustaining costs per gold equivalent ounce" is intended
to provide additional information only and does not have any
standardized meaning under IFRS and may not be comparable to
similar measures presented by other mining companies. It should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The measure is not
necessarily indicative of cash flow from operations under IFRS or
operating costs presented under IFRS.
New Gold defines "all-in sustaining costs per gold equivalent
ounce" as the sum of total cash costs, capital expenditures that
are sustaining in nature, corporate general and administrative
costs, capitalized and expensed exploration that is sustaining in
nature, lease payments that are sustaining in nature, and
environmental reclamation costs, all divided by the total gold
equivalent ounces sold to arrive at a per ounce figure. The
"Sustaining Capital Expenditure Reconciliation" table below
reconciles New Gold's sustaining capital to its cash flow
statement. The definition of sustaining versus non-sustaining
is similarly applied to capitalized and expensed exploration costs
and lease payments. Exploration costs and lease payments to develop
new operations or that relate to major projects at existing
operations where these projects are expected to materially increase
production are classified as non-sustaining and are excluded. Gold
equivalent ounces of copper and silver produced or sold in a
quarter are computed using a consistent ratio of copper and silver
prices to the gold price and multiplying this ratio by the pounds
of copper and silver ounces produced or sold during that
quarter.
Costs excluded from all-in sustaining costs are non-sustaining
capital expenditures, non-sustaining lease payments and exploration
costs, financing costs, tax expense, and transaction costs
associated with mergers, acquisitions and divestitures, and any
items that are deducted for the purposes of adjusted earnings.
Sustaining Capital and Sustaining Leases
"Sustaining capital" and "sustaining lease" are non-GAAP
financial performance measures that do not have any standardized
meaning under IFRS and therefore may not be comparable to similar
measures presented by other issuers. New Gold defines "sustaining
capital" as net capital expenditures that are intended to maintain
operation of its gold producing assets. Similarly, a "sustaining
lease" is a lease payment that is sustaining in nature. To
determine "sustaining capital" expenditures, New Gold uses cash
flow related to mining interests from its consolidated statement of
cash flows and deducts any expenditures that are capital
expenditures to develop new operations or capital expenditures
related to major projects at existing operations where these
projects will materially increase production. Management uses
"sustaining capital" and "sustaining lease" to understand the
aggregate net result of the drivers of all-in sustaining costs
other than total cash costs. These measures are intended to provide
additional information only and should not be considered in
isolation or as substitutes for measures of performance prepared in
accordance with IFRS.
Growth Capital
"Growth capital" is a non-GAAP financial performance measure
that does not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. New Gold considers non-sustaining capital costs to
be "growth capital", which are capital expenditures to develop new
operations or capital expenditures related to major projects at
existing operations where these projects will materially increase
production. To determine "growth capital" expenditures, New Gold
uses cash flow related to mining interests from its consolidated
statement of cash flows and deducts any expenditures that are
capital expenditures that are intended to maintain operation of its
gold producing assets. Management uses "growth capital" to
understand the cost to develop new operations or related to major
projects at existing operations where these projects will
materially increase production. This measure is intended to provide
additional information only and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
The following tables reconcile the above non-GAAP measures to
the most directly comparable IFRS measure on an aggregate
basis.
Consolidated OPEX, Cash Cost and All-in Sustaining Costs
Reconciliation
|
Three months ended
December 31
|
Year ended December
31
|
(in millions of U.S.
dollars, except where noted)
|
2022
|
2021
|
2022
|
2021
|
CONSOLIDATED OPEX,
CASH COST AND ALL-IN SUSTAINING COSTS RECONCILIATION
|
|
|
|
|
Operating
expenses
|
108.5
|
99.6
|
382.7
|
377.3
|
Gold equivalent ounces
sold1
|
95,161
|
109,214
|
342,839
|
402,449
|
Operating expenses per
gold equivalent ounce sold ($/ounce)
|
1,140
|
912
|
1,116
|
938
|
Operating
expenses
|
108.5
|
99.6
|
382.7
|
377.3
|
Treatment and refining
charges on concentrate sales
|
2.6
|
5.8
|
11.7
|
21.5
|
Total cash
costs2
|
111.0
|
105.4
|
394.2
|
398.8
|
Gold equivalent ounces
sold1
|
95,161
|
109,214
|
342,839
|
402,449
|
Total cash costs per
gold equivalent ounce sold ($/ounce)2
|
1,167
|
965
|
1,150
|
991
|
Sustaining capital
expenditures2
|
34.2
|
30.7
|
182.9
|
144.2
|
Sustaining exploration
- expensed
|
—
|
—
|
0.5
|
0.8
|
Sustaining
leases2
|
2.9
|
2.4
|
10.8
|
10.4
|
Corporate G&A
including share-based compensation
|
7.6
|
5.9
|
23.3
|
22.8
|
Reclamation
expenses
|
3.0
|
3.6
|
11.5
|
11.6
|
Total all-in
sustaining costs2
|
158.8
|
148.0
|
623.2
|
588.6
|
Gold equivalent ounces
sold1
|
95,161
|
109,214
|
342,839
|
402,449
|
All-in sustaining costs
per gold equivalent ounce sold ($/ounce)2
|
1,668
|
1,355
|
1,818
|
1,463
|
|
Three months ended
December 31
|
Year ended December
31
|
(in millions of U.S.
dollars, except where noted)
|
2022
|
2021
|
2022
|
2021
|
RAINY RIVER OPEX,
CASH COSTS AND AISC RECONCILIATION
|
|
|
|
|
Operating
expenses
|
69.4
|
61.3
|
230.4
|
226.5
|
Gold equivalent ounces
sold1
|
68,392
|
68,380
|
233,788
|
237,061
|
Operating expenses per
unit of gold sold ($/ounce)
|
1,014
|
897
|
985
|
955
|
Operating
expenses
|
69.4
|
61.3
|
230.4
|
226.5
|
Total cash
costs2
|
69.4
|
61.3
|
230.4
|
226.5
|
Gold equivalent ounces
sold1
|
68,392
|
68,380
|
233,788
|
237,061
|
Total cash costs per
gold equivalent ounce sold ($/ounce)2
|
1,014
|
897
|
985
|
955
|
Sustaining capital
expenditures2
|
26.2
|
21.1
|
126.3
|
90.5
|
Sustaining
leases2
|
2.3
|
2.3
|
9.4
|
9.5
|
Reclamation
expenses
|
2.5
|
2.8
|
9.2
|
8.9
|
Total all-in sustaining
costs2
|
100.3
|
87.6
|
375.2
|
335.5
|
Gold equivalent ounces
sold1
|
68,392
|
68,380
|
233,788
|
237,061
|
All-in sustaining costs
per gold equivalent ounce sold ($/ounce)2
|
1,467
|
1,281
|
1,605
|
1,415
|
|
Three months ended
December 31
|
Year ended December
31
|
(in millions of U.S.
dollars, except where noted)
|
2022
|
2021
|
2022
|
2021
|
NEW AFTON OPEX, CASH
COSTS AND AISC RECONCILIATION
|
|
|
|
|
Operating
expenses
|
39.1
|
38.3
|
152.3
|
150.8
|
Gold equivalent ounces
sold1
|
26,769
|
40,835
|
109,051
|
165,387
|
Operating expenses per
unit of gold sold ($/ounce)
|
1,461
|
938
|
1,395
|
912
|
Operating
expenses
|
39.1
|
38.3
|
152.3
|
150.8
|
Treatment and refining
charges on concentrate sales
|
2.6
|
5.8
|
11.7
|
21.5
|
Total cash
costs2
|
41.7
|
44.1
|
164.0
|
172.3
|
Gold equivalent ounces
sold1
|
26,769
|
40,835
|
109,051
|
165,387
|
Total cash costs per
gold equivalent ounce sold ($/ounce)2
|
1,557
|
1,079
|
1,503
|
1,042
|
Sustaining capital
expenditures2
|
7.9
|
9.5
|
56.4
|
53.7
|
Sustaining
leases2
|
—
|
—
|
0.3
|
0.3
|
Reclamation
expenses
|
0.5
|
0.7
|
2.3
|
2.6
|
Total all-in sustaining
costs2
|
50.1
|
54.3
|
223.0
|
229.0
|
Gold equivalent
ounces sold1
|
26,769
|
40,835
|
109,051
|
165,387
|
All-in sustaining costs
per gold equivalent ounce sold ($/ounce)2
|
1,870
|
1,330
|
2,044
|
1,385
|
Sustaining Capital Expenditures Reconciliation Table
|
Three months ended
December 31
|
Year ended December
31
|
(in millions of U.S.
dollars, except where noted)
|
2022
|
2021
|
2022
|
2021
|
TOTAL SUSTAINING
CAPITAL EXPENDITURES
|
|
|
|
|
Mining interests per
consolidated statement of cash flows
|
(71.3)
|
58.1
|
(292.9)
|
247.3
|
New Afton growth
capital expenditures2
|
(32.9)
|
(24.6)
|
(91.5)
|
(90.1)
|
Rainy River growth
capital expenditures2
|
(4.2)
|
(2.2)
|
(17.7)
|
(11.6)
|
Sustaining capital
expenditures2
|
(34.2)
|
31.3
|
(183.7)
|
145.6
|
Adjusted Net Earnings/(Loss) and Adjusted Net Earnings per
Share
"Adjusted net earnings" and "adjusted net earnings per share"
are non-GAAP financial performance measures that do not have any
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. "Adjusted net
earnings" and "adjusted net earnings per share" excludes "loss on
repayment of long term debt" and "other gains and losses" as per
Note 3 of the Company's condensed consolidated financial
statements. Net earnings have been adjusted, including the
associated tax impact, for loss on repayment of long-term debt and
the group of costs in "Other gains and losses" on the condensed
consolidated income statements. Key entries in this grouping are:
the fair value changes for the gold stream obligation, fair value
changes for the free cash flow interest obligation, fair value
changes for copper price option contracts, foreign exchange
gains/loss, fair value changes in investments and gain on disposal
of the Blackwater stream and Blackwater project. The income tax
adjustments reflect the tax impact of the above adjustments and is
referred to as "adjusted tax expense".
The Company uses "adjusted net earnings" for its own internal
purposes. Management's internal budgets and forecasts and public
guidance do not reflect the items which have been excluded from the
determination of "adjusted net earnings". Consequently, the
presentation of "adjusted net earnings" enables investors to better
understand the underlying operating performance of the Company's
core mining business through the eyes of management. Management
periodically evaluates the components of "adjusted net earnings"
based on an internal assessment of performance measures that are
useful for evaluating the operating performance of New Gold's
business and a review of the non-GAAP financial performance
measures used by mining industry analysts and other mining
companies. "Adjusted net earnings" and "adjusted net earnings per
share" are intended to provide additional information only and
should not be considered in isolation or as substitutes for
measures of performance prepared in accordance with IFRS. These
measures are not necessarily indicative of operating profit or cash
flows from operations as determined under IFRS. The following table
reconciles these non-GAAP financial performance measures to the
most directly comparable IFRS measure.
|
Three months ended
December 31
|
Year ended December
31
|
(in millions of U.S.
dollars, except where noted)
|
2022
|
2021
|
2022
|
2021
|
ADJUSTED NET (LOSS)
EARNINGS RECONCILIATION
|
|
|
|
|
(Loss) earnings before
taxes
|
(5.7)
|
156.8
|
(65.4)
|
160.3
|
Other losses
|
(7.3)
|
(123.6)
|
25.7
|
(57.5)
|
Loss on repayment of
long-term debt
|
—
|
—
|
4.3
|
—
|
Corporate
restructuring
|
2.1
|
—
|
2.1
|
—
|
Adjusted net (loss)
earnings before taxes
|
(10.9)
|
33.2
|
(33.3)
|
102.8
|
Income tax
expense
|
(11.2)
|
(5.9)
|
(1.4)
|
(19.7)
|
Income tax
adjustments
|
15.8
|
(2.6)
|
8.6
|
(0.2)
|
Adjusted income tax
recovery (expense)2
|
4.6
|
(8.5)
|
7.2
|
(19.9)
|
Adjusted net (loss)
earnings2
|
(6.3)
|
24.7
|
(26.1)
|
82.9
|
Adjusted (loss)
earnings per share (basic and diluted)2
|
(0.01)
|
0.04
|
(0.04)
|
0.12
|
Cash Generated from Operations, before Changes in Non-Cash
Operating Working Capital
"Cash generated from operations, before changes in non-cash
operating working capital" is a non-GAAP financial performance
measure that does not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. Other companies may calculate this measure
differently and this measure is unlikely to be comparable to
similar measures presented by other companies. "Cash generated from
operations, before changes in non-cash operating working capital"
excludes changes in non-cash operating working capital. New Gold
believes this non-GAAP financial measure provides further
transparency and assists analysts, investors and other stakeholders
of the Company in assessing the Company's ability to generate cash
from its operations before temporary working capital changes.
Cash generated from operations, before non-cash changes in
working capital is intended to provide additional information only
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. This
measure is not necessarily indicative of operating profit or cash
flows from operations as determined under IFRS. The following table
reconciles this non-GAAP financial performance measure to the most
directly comparable IFRS measure.
|
Three months ended
December 31
|
Year ended December
31
|
(in millions of U.S.
dollars)
|
2022
|
2021
|
2022
|
2021
|
CASH
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
31.9
|
105.7
|
190.7
|
323.7
|
Change in non-cash
operating working capital
|
12.4
|
(12.8)
|
(9.1)
|
(1.0)
|
Cash generated from
operations, before changes in non-cash operating working
capital2
|
44.3
|
92.9
|
181.6
|
322.7
|
Free Cash Flow
"Free cash flow" is a non-GAAP financial performance measure
that does not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. New Gold defines "free cash flow" as cash generated
from operations and proceeds of sale of other assets less capital
expenditures on mining interests, lease payments, settlement of
non-current derivative financial liabilities which include the gold
stream obligation and the Ontario Teachers' Pension Plan free cash
flow interest. New Gold believes this non-GAAP financial
performance measure provides further transparency and assists
analysts, investors and other stakeholders of the Company in
assessing the Company's ability to generate cash flow from current
operations. "Free cash flow" is intended to provide additional
information only and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. This measure is not necessarily indicative of operating
profit or cash flows from operations as determined under IFRS. The
following tables reconcile this non-GAAP financial performance
measure to the most directly comparable IFRS measure on an
aggregate and mine-by-mine basis.
|
Three months ended
December 31, 2022
|
(in millions of U.S.
dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
42.2
|
(0.7)
|
(9.6)
|
31.9
|
Less Mining interest
capital expenditures
|
(30.4)
|
(40.7)
|
(0.2)
|
(71.3)
|
Add Proceeds of sale
from other assets
|
—
|
—
|
—
|
—
|
Less Lease
payments
|
(2.3)
|
—
|
(0.3)
|
(2.6)
|
Less Cash settlement of
non-current derivative financial liabilities
|
(5.7)
|
—
|
—
|
(5.7)
|
Free Cash
Flow2
|
3.8
|
(41.4)
|
(10.1)
|
(47.7)
|
|
Three months ended
December 31, 2021
|
(in millions of U.S.
dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
67.7
|
44.5
|
(6.5)
|
105.7
|
Less Mining interest
capital expenditures
|
(24.0)
|
(34.3)
|
0.2
|
(58.1)
|
Add Proceeds of sale
from other assets
|
0.6
|
—
|
—
|
0.6
|
Less Lease
payments
|
(2.3)
|
0.1
|
(0.2)
|
(2.4)
|
Less Cash settlement of
non-current derivative financial liabilities
|
(6.5)
|
—
|
—
|
(6.5)
|
Free Cash
Flow2
|
35.5
|
10.3
|
(6.5)
|
39.3
|
|
Year ended December
31, 2022
|
(in millions of U.S.
dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
195.4
|
22.6
|
(27.3)
|
190.7
|
Less Mining interest
capital expenditures
|
(144.8)
|
(147.9)
|
(0.3)
|
(292.9)
|
Add Proceeds of sale
from other assets
|
0.8
|
0.1
|
—
|
0.9
|
Less Lease
payments
|
(9.4)
|
(0.3)
|
(0.6)
|
(10.3)
|
Less Cash settlement of
non-current derivative financial liabilities
|
(24.0)
|
(12.4)
|
—
|
(36.4)
|
Free Cash
Flow2
|
18.0
|
(137.9)
|
(28.1)
|
(148.0)
|
|
Year ended December
31, 2021
|
(in millions of U.S.
dollars)
|
Rainy
River
|
New
Afton
|
Other
|
Total
|
FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
Cash generated from
operations
|
184.9
|
165.1
|
(26.3)
|
323.7
|
Less Mining interest
capital expenditures
|
(103.0)
|
(144.4)
|
0.1
|
(247.3)
|
Add Proceeds of sale
from other assets
|
0.9
|
0.5
|
—
|
1.4
|
Less Lease
payments
|
(9.5)
|
(0.3)
|
(0.6)
|
(10.4)
|
Less Cash settlement of
non-current derivative financial liabilities
|
(27.3)
|
(5.0)
|
—
|
(32.3)
|
Free Cash
Flow2
|
46.0
|
15.9
|
(26.8)
|
35.1
|
Average Realized Price
"Average realized price per ounce of gold sold" is a non-GAAP
financial performance measure that does not have any standardized
meaning under IFRS and therefore may not be comparable to similar
measures presented by other issuers. Other companies may calculate
this measure differently and this measure is unlikely to be
comparable to similar measures presented by other companies.
Management uses this measure to better understand the price
realized in each reporting period for gold sales. "Average realized
price per ounce of gold sold" is intended to provide additional
information only and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. The following tables reconcile this non-GAAP financial
performance measure to the most directly comparable IFRS measure on
an aggregate and mine-by-mine basis.
|
Three months ended
December 31
|
Year ended December
31
|
(in millions of U.S.
dollars, except where noted)
|
2022
|
2021
|
2022
|
2021
|
TOTAL AVERAGE
REALIZED PRICE
|
|
|
|
|
Revenue from gold
sales
|
136.3
|
139.9
|
482.2
|
492.6
|
Treatment and refining
charges on gold concentrate sales
|
1.1
|
1.5
|
4.4
|
5.6
|
Gross revenue from gold
sales
|
137.4
|
141.4
|
486.6
|
498.2
|
Gold ounces
sold
|
78,507
|
78,745
|
269,147
|
277,451
|
Total average realized
price per gold ounce sold ($/ounce)2
|
1,751
|
1,798
|
1,808
|
1,798
|
|
Three months ended
December 31
|
Year ended December
31
|
(in millions of U.S.
dollars, except where noted)
|
2022
|
2021
|
2022
|
2021
|
RAINY RIVER AVERAGE
REALIZED PRICE
|
|
|
|
|
Revenue from gold
sales
|
117.1
|
119.0
|
413.1
|
410.9
|
Gold ounces
sold
|
66,992
|
66,239
|
228,565
|
228,693
|
Rainy River average
realized price per gold ounce sold ($/ounce)2
|
1,748
|
1,796
|
1,807
|
1,797
|
|
Three months ended
December 31
|
Year ended December
31
|
(in millions of U.S.
dollars, except where noted)
|
2022
|
2021
|
2022
|
2021
|
NEW AFTON AVERAGE
REALIZED PRICE
|
|
|
|
|
Revenue from gold
sales
|
19.2
|
20.9
|
69.1
|
81.7
|
Treatment and refining
charges on gold concentrate sales
|
1.1
|
1.5
|
4.4
|
5.5
|
Gross revenue from gold
sales
|
20.3
|
22.4
|
73.5
|
87.2
|
Gold ounces
sold
|
11,514
|
12,507
|
40,582
|
48,758
|
New Afton average
realized price per gold ounce sold ($/ounce)2
|
1,766
|
1,807
|
1,808
|
1,804
|
For additional information with respect to the non-GAAP measures
used by the Company, refer to the detailed "Non-GAAP Financial
Performance Measure" section disclosure in the MD&A for the
three months and year ended December 31,
2022 filed on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
MINERAL RESERVES AND MINERAL RESOURCES
New Gold's Mineral Reserve estimates as at December 31, 2022, is presented in the following
table.
Mineral Reserves
|
Metal
grade
|
Contained
metal
|
|
Tonnes
000s
|
Gold
g/t
|
Silver
g/t
|
Copper
%
|
Gold
Koz
|
Silver
Koz
|
Copper
Mlbs
|
RAINY
RIVER
|
Direct processing
reserves
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
|
Proven
|
6,579
|
1.25
|
2.1
|
-
|
264
|
444
|
-
|
Probable
|
18,066
|
1.22
|
2.1
|
-
|
707
|
1,192
|
-
|
Open Pit P&P
(direct proc.)
|
24,645
|
1.23
|
2.1
|
-
|
972
|
1,636
|
-
|
Stockpile
DPO
|
|
|
|
|
|
|
|
Proven
|
1,221
|
0.71
|
2.5
|
-
|
28
|
100
|
-
|
Probable
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
Stockpile
|
1,221
|
0.71
|
2.5
|
-
|
28
|
100
|
-
|
Low grade
reserves
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
|
Proven
|
1,973
|
0.36
|
1.8
|
-
|
23
|
113
|
-
|
Probable
|
7,550
|
0.36
|
1.9
|
-
|
86
|
462
|
-
|
Open Pit P&P (low
grade)
|
9,523
|
0.36
|
1.9
|
-
|
109
|
575
|
-
|
Stockpile
|
|
|
|
|
|
|
|
Proven
|
12,475
|
0.39
|
2.2
|
-
|
157
|
899
|
-
|
Probable
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Open Pit P&P
(stockpile)
|
12,475
|
0.39
|
2.2
|
-
|
157
|
899
|
-
|
Open Pit P&P
(Direct proc. & Low grade)
|
47,863
|
0.82
|
2.1
|
-
|
1,265
|
3,210
|
-
|
Underground
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
12,499
|
3.06
|
7.4
|
-
|
1,228
|
2,966
|
-
|
Underground P&P
(direct proc.)
|
12,499
|
3.06
|
7.4
|
-
|
1,228
|
2,966
|
-
|
Combined Direct
proc. & Low grade
|
|
|
|
|
|
|
|
Proven
|
22,247
|
0.66
|
2.2
|
-
|
472
|
1,556
|
-
|
Probable
|
38,115
|
1.65
|
3.8
|
-
|
2,022
|
4,620
|
-
|
Total Rainy River
P&P
|
60,362
|
1.28
|
3.2
|
-
|
2,493
|
6,176
|
-
|
NEW
AFTON
|
B3
Zone
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
7,236
|
0.65
|
1.4
|
0.76
|
151
|
333
|
121
|
C
Zone
|
|
|
|
|
|
|
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
29,756
|
0.68
|
1.7
|
0.74
|
653
|
1,666
|
486
|
Total New Afton
P&P
|
36,992
|
0.68
|
1.7
|
0.74
|
804
|
1,999
|
607
|
TOTAL PROVEN &
PROBABLE RESERVES
|
3,297
|
8,176
|
607
|
Notes to the Mineral
Reserve and Mineral Resource estimates are provided
below.
|
MEASURED AND INDICATED MINERAL RESOURCES
Mineral Resource estimates as at December
31, 2022, are presented in the following tables:
Measured and Indicated Mineral Resources (Exclusive of
Mineral Reserves)
|
Metal
grade
|
Contained
metal
|
|
Tonnes
000s
|
Gold
g/t
|
Silver
g/t
|
Copper
%
|
Gold
Koz
|
Silver
Koz
|
Copper
Mlbs
|
RAINY
RIVER
|
Direct processing
resources
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
|
Measured
|
344
|
1.85
|
2.1
|
-
|
20
|
23
|
-
|
Indicated
|
1,699
|
1.82
|
2.0
|
-
|
99
|
111
|
-
|
Open Pit M&I
(direct proc.)
|
2,043
|
1.82
|
2.0
|
-
|
120
|
134
|
-
|
Underground
|
|
|
|
|
|
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
14,213
|
3.01
|
7.6
|
-
|
1,374
|
3,466
|
-
|
Underground M&I
(direct proc.)
|
14,213
|
3.01
|
7.6
|
-
|
1,374
|
3,466
|
-
|
Low grade
resources
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
|
Measured
|
105
|
0.35
|
1.1
|
-
|
1
|
4
|
-
|
Indicated
|
570
|
0.35
|
1.3
|
-
|
6
|
23
|
-
|
Open Pit M&I
(low grade)
|
675
|
0.35
|
1.3
|
-
|
8
|
27
|
-
|
Combined
M&I
|
|
|
|
|
|
|
|
Measured
|
449
|
1.50
|
1.9
|
-
|
22
|
27
|
-
|
Indicated
|
16,482
|
2.79
|
6.8
|
-
|
1,479
|
3,600
|
-
|
Total Rainy River
M&I
|
16,931
|
2.76
|
6.7
|
-
|
1,501
|
3,627
|
-
|
NEW
AFTON
|
A&B
Zones
|
|
|
|
|
|
|
|
Measured
|
23,173
|
0.50
|
1.7
|
0.66
|
374
|
1,290
|
339
|
Indicated
|
11,869
|
0.40
|
2.1
|
0.64
|
151
|
794
|
168
|
A&B Zone
M&I
|
35,042
|
0.47
|
1.8
|
0.66
|
525
|
2,084
|
507
|
C-zone
|
|
|
|
|
|
|
|
Measured
|
3,791
|
0.92
|
2.3
|
1.16
|
112
|
281
|
97
|
Indicated
|
1,705
|
1.68
|
4.2
|
2.11
|
92
|
232
|
79
|
C-zone
M&I
|
5,496
|
1.16
|
2.9
|
1.45
|
204
|
513
|
176
|
HW
Lens
|
|
|
|
|
|
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
11,563
|
0.50
|
2.0
|
0.43
|
187
|
740
|
111
|
HW Lens
M&I
|
11,563
|
0.50
|
2.0
|
0.43
|
187
|
740
|
111
|
D
Zone
|
|
|
|
|
|
|
|
Measured
|
1,468
|
0.80
|
1.9
|
0.82
|
38
|
91
|
26
|
Indicated
|
5,886
|
0.70
|
1.9
|
0.79
|
132
|
363
|
102
|
D Zone
M&I
|
7,353
|
0.72
|
1.9
|
0.79
|
169
|
454
|
129
|
Eastern
Extension
|
|
|
|
|
|
|
|
Measured
|
3,214
|
0.81
|
4.9
|
1.07
|
84
|
509
|
75
|
Indicated
|
3,860
|
0.42
|
1.5
|
0.44
|
52
|
186
|
37
|
Eastern Extension
M&I
|
7,074
|
0.60
|
3.1
|
0.72
|
136
|
696
|
113
|
Combined
M&I
|
|
|
|
|
|
|
|
Measured
|
31,645
|
0.60
|
2.1
|
0.77
|
608
|
2,173
|
538
|
Indicated
|
34,883
|
0.55
|
2.1
|
0.65
|
614
|
2,322
|
497
|
Total New Afton
M&I
|
66,528
|
0.57
|
2.1
|
0.71
|
1,222
|
4,495
|
1,035
|
Total M&I
RESOURCES
|
|
|
|
|
2,722
|
8,122
|
1,035
|
Notes to the Mineral
Reserve and Mineral Resource estimates are provided
below.
|
Inferred Mineral Resources
|
Metal
grade
|
Contained
metal
|
|
Tonnes
000s
|
Gold
g/t
|
Silver
g/t
|
Copper
%
|
Gold
Koz
|
Silver
Koz
|
Copper
Mlbs
|
RAINY
RIVER
|
|
|
|
|
|
|
|
Direct
processing
|
|
|
|
|
|
|
|
Open Pit
|
175
|
1.16
|
3.3
|
-
|
7
|
19
|
-
|
Underground
|
1,584
|
3.29
|
2.6
|
-
|
168
|
133
|
-
|
Total Direct
Processing
|
1,759
|
3.08
|
2.7
|
-
|
174
|
152
|
-
|
Low grade
resources
|
|
|
|
|
|
|
|
Open Pit
|
160
|
0.35
|
1.7
|
-
|
2
|
9
|
-
|
Rainy River
Inferred
|
1,919
|
2.85
|
2.6
|
-
|
176
|
161
|
-
|
NEW
AFTON
|
|
|
|
|
|
|
|
A&B
Zones
|
6,184
|
0.39
|
1.4
|
0.34
|
78
|
270
|
47
|
C-zone
|
1,783
|
0.50
|
0.8
|
0.19
|
29
|
44
|
8
|
HW Lens
|
232
|
0.42
|
1.5
|
0.69
|
3
|
11
|
4
|
D Zone
|
4,696
|
0.32
|
1.3
|
0.51
|
48
|
196
|
53
|
Eastern
Extension
|
3,158
|
0.40
|
1.0
|
0.35
|
41
|
100
|
24
|
New Afton
Inferred
|
16,053
|
0.38
|
1.2
|
0.38
|
198
|
621
|
135
|
Total
Inferred
|
|
|
|
|
375
|
782
|
135
|
Notes to the mineral
reserve and mineral resource estimates are provided
below.
|
Notes to Mineral Reserve and Resource Estimates
1. New Gold's Mineral Reserves and Mineral Resources
have been estimated in accordance with the CIM Standards, which are
incorporated by reference in NI 43-101.
2. All Mineral Reserve and Mineral Resource
estimates for New Gold's properties and projects are effective
December 31, 2022.
3. New Gold's year-end 2022 Mineral Reserves and
Mineral Resources have been estimated based on the following metal
prices and foreign exchange (FX) rate criteria:
|
Gold
$/ounce
|
Silver
$/ounce
|
Copper
$/pound
|
FX
CAD:USD
|
Mineral
Reserves
|
$1,400
|
$19.00
|
$3.25
|
$1.25
|
Mineral
Resources
|
$1,500
|
$21.00
|
$3.50
|
$1.25
|
4. Lower cut-offs for the Company's Mineral Reserves and
Mineral Resources are outlined in the following table:
Mineral Property
|
Mineral Reserves
Lower cut-off
|
Mineral Resources
Lower Cut-off
|
Rainy River
|
O/P direct
processing:
|
0.46 – 0.49 g/t
AuEq
|
0.44 – 0.45 g/t
AuEq
|
|
O/P low grade
material:
|
0.30 g/t
AuEq
|
0.30 g/t
AuEq
|
|
U/G direct
processing:
|
Intrepid Zone: 1.93 g/t
AuEq
ODM Main Zones: 2.25
g/t AuEq
|
1.70 g/t
AuEq
|
|
U/G with LGO
Stockpile processing:
|
ODM Main Zones: 1.74
g/t AuEq
|
1.70 g/t
AuEq
|
New Afton
|
A&B
Zones:
|
USD$
10.00/t
|
All Resources:
0.40% CuEq
|
|
B3 Block &
C-zone:
|
USD$
24.00/t
|
5. New Gold reports its measured and indicated mineral
resources exclusive of mineral reserves. Measured and indicated
mineral resources that are not mineral reserves do not have
demonstrated economic viability. Inferred mineral resources have a
greater amount of uncertainty as to their existence and technical
feasibility, do not have demonstrated economic viability, and are
likewise exclusive of mineral reserves. Numbers may not add
due to rounding.
6. Mineral resources are classified as measured, indicated
and inferred based on relative levels of confidence in their
estimation and on technical and economic parameters consistent with
the methods considered to be most suitable to their potential
commercial extraction. The designators 'open pit' and 'underground'
may be used to indicate the envisioned mining method for different
portions of a resource. Similarly, the designators 'direct
processing' and 'lower grade material' may be applied to
differentiate material envisioned to be mined and processed
directly from material to be mined and stored separately for future
processing. Mineral reserves and mineral resources may be
materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing and other risks and relevant
issues. Additional details regarding mineral reserve and mineral
resource estimation, classification, reporting parameters, key
assumptions and associated risks for each of New Gold's material
properties are provided in the respective NI 43-101 Technical
Reports, which are available at www.sedar.com.
7. Rainy River Mine: In addition to the criteria described
above, mineral reserves and mineral resources for the Rainy River
project are reported according to the following criteria:
Underground mineral reserves are reported peripheral to and/or
below the open pit mineral reserve pit shell, which has been
designed and optimized based on a $1,400/oz gold price. Open pit and underground
mineral resources are reported based on a $1,500/oz gold price. Open pit mineral
resources are reported from within an open pit resource shell that
extends to a depth of approximately 340 meters from surface. Open
pit mineral resources exclude material reported as underground
mineral reserves. New Afton Mine: C Zone resources reported at
YE2020 have been further subdivided under C Zone, D-Zone and
Eastern Extension based upon geological model refinement and
location within the New Afton deposit.
8. The preparation of New Gold's consolidated statement as
it relates to the New Afton Mine and Rainy River Mine and
estimation of mineral reserves has been completed under the
oversight and review of Mr. John
Ritter, General Manager for the New Afton Mine and Mr. Gord
Simms, General Manager for the Rainy River Mine, respectively. Both
Mr. John Ritter and Mr. Gord Simms
are Professional Engineers and members of the Engineers and
Geoscientist of British Columbia.
Preparation of New Gold's consolidated statement and estimation of
mineral resources has been completed under the oversight and review
of Mr. Michele Della Libera,
Director, Exploration for the Company. Mr. Della Libera is a Professional Geoscientist and
member of the Association of Professional Geoscientist of
Ontario and of the Engineers and
Geoscientist of British Columbia.
Mr. Ritter, Mr. Simms and Mr. Della
Libera are "Qualified Persons" as defined by NI 43-101.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release, including
any information relating to New Gold's future financial or
operating performance are "forward-looking". All statements in this
news release, other than statements of historical fact, which
address events, results, outcomes or developments that New Gold
expects to occur are "forward-looking statements". Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the use of forward-looking
terminology such as "plans", "expects", "is expected", "budget",
"scheduled", "targeted", "estimates", "forecasts", "intends",
"anticipates", "projects", "potential", "believes" or variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "would", "should", "might" or "will be
taken", "occur" or "be achieved" or the negative connotation of
such terms. Forward-looking statements in this news release
include, among others, statements with respect to: the Company's
expectations and guidance regarding production, costs, capital
investments and expenses on a consolidated and mine-by-mine basis,
and the factors and timing contributing to those expected results;
the Company's core strategy and objectives remaining unchanged and
the intended advancement of key priorities at both sites; planned
advancement of underground production from the Intrepid zone,
development of the Main zone below the pit and completion of the
first in-pit portal in the second half of the year at Rainy River; expectations that 2023 will be
the last significant capital waste stripping year and the
corresponding reduction in sustaining capital in future years at
Rainy River; plans to improve
reliability of the Rainy Rive processing plant and look for
opportunities to optimize costs; anticipated timing for first ore
from the C-Zone at New Afton; the continued advancement and growth
of New Afton's exploration program; projected benefits relating to
production and costs upon achieving Company objectives; plans to
deliver on objectives and update the market on progress; projected
percentage of annual production during the second half of 2023 at
Rainy River; expected B3 mining
rate; intended focus areas for exploration expenditures at New
Afton; and Mineral Reserves and Mineral Resources estimates.
All forward-looking statements in this news release are based on
the opinions and estimates of management that, while considered
reasonable as at the date of this press release in light of
management's experience and perception of current conditions and
expected developments, are inherently subject to important risk
factors and uncertainties, many of which are beyond New Gold's
ability to control or predict. Certain material assumptions
regarding such forward-looking statements are discussed in this
news release, New Gold's latest annual MD&A, its most recent
annual information form and technical reports on the Rainy River
Mine and New Afton Mine filed on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov. In addition to, and subject to, such
assumptions discussed in more detail elsewhere, the forward-looking
statements in this news release are also subject to the following
assumptions: (1) there being no significant disruptions affecting
New Gold's operations; (2) political and legal developments in
jurisdictions where New Gold operates, or may in the future
operate, being consistent with New Gold's current expectations; (3)
the accuracy of New Gold's current Mineral Reserve and Mineral
Resource estimates and the grade of gold, copper and silver
expected to be mined; (4) the exchange rate between the Canadian
dollar and U.S. dollar, and to a lesser extent the Mexican peso,
and commodity prices being approximately consistent with current
levels and expectations for the purposes of 2023 guidance and
otherwise; (5) prices for diesel, natural gas, fuel oil,
electricity and other key supplies being approximately consistent
with current levels; (6) equipment, labour and material costs
increasing on a basis consistent with New Gold's current
expectations; (7) arrangements with First Nations and other
Indigenous groups in respect of the Rainy River Mine and New Afton
Mine being consistent with New Gold's current expectations; (8) all
required permits, licenses and authorizations being obtained from
the relevant governments and other relevant stakeholders within the
expected timelines and the absence of material negative comments or
obstacles during any applicable regulatory processes; (9) the
results of the life of mine plans for the Rainy River Mine and the
New Afton Mine described herein being realized; (10) there being no
material disruption to the Company's supply chains and workforce at
either the Rainy River Mine or New Afton Mine due to cases of
COVID-19 or otherwise that would interfere with the Company's
anticipated course of action at its operations.
Forward-looking statements are necessarily based on estimates
and assumptions that are inherently subject to known and unknown
risks, uncertainties and other factors that may cause actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Such factors include, without
limitation: price volatility in the spot and forward markets for
metals and other commodities; discrepancies between actual and
estimated production, between actual and estimated costs, between
actual and estimated Mineral Reserves and Mineral Resources and
between actual and estimated metallurgical recoveries; equipment
malfunction, failure or unavailability; accidents; risks related to
early production at the Rainy River Mine, including failure of
equipment, machinery, the process circuit or other processes to
perform as designed or intended; the speculative nature of mineral
exploration and development, including the risks of obtaining and
maintaining the validity and enforceability of the necessary
licenses and permits and complying with the permitting requirements
of each jurisdiction in which New Gold operates, including, but not
limited to: uncertainties and unanticipated delays associated with
obtaining and maintaining necessary licenses, permits and
authorizations and complying with permitting requirements; changes
in project parameters as plans continue to be refined; changing
costs, timelines and development schedules as it relates to
construction; the Company not being able to complete its
construction projects at the Rainy River Mine or the New Afton Mine
on the anticipated timeline or at all; volatility in the market
price of the Company's securities; changes in national and local
government legislation in the countries in which New Gold does or
may in the future carry on business; compliance with public company
disclosure obligations; controls, regulations and political or
economic developments in the countries in which New Gold does or
may in the future carry on business; the Company's dependence on
the Rainy River Mine and New Afton Mine; the Company not being able
to complete its exploration drilling programs on the anticipated
timeline or at all; disruptions to the Company's workforce at
either the Rainy River Mine or the New Afton Mine, or both, due to
cases of COVID-19 or otherwise; the responses of the relevant
governments to any disease, epidemic or pandemic outbreak,
including the COVID-19 outbreak, not being sufficient to contain
the impact of such outbreak; disruptions to the Company's supply
chain and workforce due to any disease, epidemic or pandemic
outbreak, including the COVID-19 outbreak; an economic recession or
downturn as a result of any disease, epidemic or pandemic outbreak,
including the COVID-19 outbreak, that materially adversely affects
the Company's operations or liquidity position; there being further
shutdowns at the Rainy River Mine or New Afton Mine; significant
capital requirements and the availability and management of capital
resources; additional funding requirements; diminishing quantities
or grades of Mineral Reserves and Mineral Resources; actual results
of current exploration or reclamation activities; uncertainties
inherent to mining economic studies including the Technical Reports
for the Rainy River Mine and New Afton Mine; impairment; unexpected
delays and costs inherent to consulting and accommodating rights of
First Nations and other indigenous groups; climate change,
environmental risks and hazards and the Company's response thereto;
tailings dam and structure failures; ability to obtain and maintain
sufficient insurance; actual results of current exploration or
reclamation activities; fluctuations in the international currency
markets and in the rates of exchange of the currencies of
Canada, the United States and, to a lesser extent,
Mexico; global economic and
financial conditions and any global or local natural events that
may impede the economy or New Gold's ability to carry on business
in the normal course; inflation; compliance with debt obligations
and maintaining sufficient liquidity; taxation; fluctuation in
treatment and refining charges; transportation and processing of
unrefined products; rising costs or availability of labour,
supplies, fuel and equipment; adequate infrastructure;
relationships with communities, governments and other stakeholders;
geotechnical instability and conditions; labour disputes; the
uncertainties inherent in current and future legal challenges to
which New Gold is or may become a party; defective title to mineral
claims or property or contests over claims to mineral properties;
competition; loss of, or inability to attract, key employees; use
of derivative products and hedging transactions; reliance on
third-party contractors; counterparty risk and the performance of
third party service providers; investment risks and uncertainty
relating to the value of equity investments in public companies
held by the Company from time to time; the adequacy of internal and
disclosure controls; conflicts of interest; the lack of certainty
with respect to foreign operations and legal systems, which may not
be immune from the influence of political pressure, corruption or
other factors that are inconsistent with the rule of law; the
successful acquisitions and integration of business arrangements
and realizing the intended benefits therefrom; and information
systems security threats. In addition, there are risks and hazards
associated with the business of mineral exploration, development,
construction, operation and mining, including environmental events
and hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion losses
(and the risk of inadequate insurance or inability to obtain
insurance to cover these risks) as well as "Risk Factors" included
in New Gold's most recent annual information form, MD&A and
other disclosure documents filed on and available on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov. Forward looking
statements are not guarantees of future performance, and actual
results and future events could materially differ from those
anticipated in such statements. All forward-looking statements
contained in this news release are qualified by these cautionary
statements. New Gold expressly disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, events or otherwise, except
in accordance with applicable securities laws.
Technical Information
The scientific and technical information relating to the Mineral
Resources contained herein has been reviewed and approved by
Michele Della Libera, Director,
Exploration for the Company. The scientific and technical
information relating to the Mineral Reserves of the New Afton Mine
and all other scientific and technical information about the New
Afton Mine contained herein has been reviewed and approved by
John Ritter, General Manager of the
New Afton Mine. The scientific and technical information relating
to the Mineral Reserves of the Rainy River Mine and all other
scientific and technical information about the Rainy River Mine
contained herein has been reviewed and approved by Gord Simms,
General Manager of the Rainy River Mine. Mr. Della Libera is a Professional Geologist and a
member of the Association of Professional Geoscientists of
Ontario and the Engineers and
Geoscientists British Columbia. Mr. Ritter is a Professional
Engineer and member of the Engineers and Geoscientists British
Columbia. Mr. Simms is a Professional Engineer and member of the
Engineers and Geoscientists British Columbia. Mr.
Della Libera, Mr. Ritter and Mr.
Simms are all "Qualified Persons" for the purposes of National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
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SOURCE New Gold Inc.