NEW GOLD PUBLISHES 2023 ESG REPORTS

Rhea-AI Summary

On June 4, 2024, New Gold (TSX: NGD, NYSE American: NGD) published its 2023 Environmental, Social, and Governance (ESG) Reports along with its Task Force on Climate-Related Financial Disclosures Report. The company highlighted significant achievements in 2023, including a 4% reduction in scope 1 and 2 greenhouse gas emissions from 2022, a 50% reduction in water withdrawal, and a decrease in the total recordable injury frequency rate (TRIFR) to 0.80. Indigenous employees now make up 25% of the workforce. Additionally, New Gold contributed over C$1 million to non-governmental agencies, charities, and research institutions. The company also closed a strategic partnership with Ontario Teachers' Pension Plan, increasing its free cash flow interest in the New Afton Mine to 80.1%.

Positive

• Achieved a 4% reduction in scope 1 and 2 greenhouse gas emissions from 2022.
• Reduced water withdrawal by 50% across operations.
• Decreased total recordable injury frequency rate (TRIFR) from 0.95 in 2022 to 0.80 in 2023.
• Indigenous employees now represent 25% of the workforce.
• Contributed over C$1 million to non-governmental agencies, charities, and research institutions.
• Successfully closed a strategic partnership with Ontario Teachers' Pension Plan, increasing New Gold's free cash flow interest in the New Afton Mine to 80.1%.

Negative

• None.

Insights

Financial Analyst

New Gold's achievements outlined in their 2023 ESG Reports have several noteworthy elements that could impact their financial performance. The 4% reduction in scope 1 and scope 2 greenhouse gas emissions as well as the 50% reduction in water withdrawal indicate significant improvements in operational efficiency. These reductions can not only lower operational costs but also position the company favorably in the eyes of environmentally conscious investors. Furthermore, the closing of the strategic partnership agreement with the Ontario Teachers' Pension Plan, which increased New Gold's effective free cash flow interest in the New Afton Mine to 80.1%, presents a positive shift for the company's cash flow and potentially its overall financial health.

However, it's important to consider the broader market response to ESG initiatives. While many investors view strong ESG performance favorably, the direct financial impact can vary. The upfront cash payment of $255 million from the partnership may provide a short-term boost, but the long-term financial implications will depend on how effectively these funds are utilized for further operational improvements or debt reduction.

In conclusion, the financial improvements and strategic partnerships highlighted in the news are positive for New Gold's financial health. Investors should keep an eye on how these initiatives translate into tangible financial benefits over the long term.

Environmental Consultant

The 2023 ESG Reports from New Gold showcase significant strides in environmental sustainability, which is becoming an increasingly important factor for stakeholders. The 4% reduction in scope 1 and scope 2 greenhouse gas emissions is notable, particularly given the mining industry's typically high environmental footprint. The increase in the use of battery electric vehicles at New Afton and improved emissions tracking exemplify proactive measures to reduce the company's carbon footprint. Additionally, the 50% reduction in water withdrawal is significant, especially in regions where water scarcity is a concern.

These environmental initiatives not only reflect a commitment to sustainability but also potentially reduce regulatory risks and compliance costs in the future. Moreover, such improvements can enhance the company's reputation among environmentally conscious consumers and investors, leading to increased shareholder value.

Overall, New Gold's environmental achievements reported in the 2023 ESG Reports indicate a strong commitment to sustainable practices, which can have long-term benefits for both the company and its stakeholders. The reduced environmental impact and improved operational efficiency are promising signs for the company's future.

Corporate Social Responsibility (CSR) Expert

New Gold's 2023 ESG Reports place a strong emphasis on social responsibility and governance, which are critical areas for modern businesses. The company's achievement of a total recordable injury frequency rate (TRIFR) of 0.80—the lowest in its history—demonstrates a steadfast commitment to employee safety. This not only helps in maintaining a motivated and healthy workforce but also reduces costs related to workplace injuries and liabilities.

Furthermore, the company's efforts in supporting local communities, including a contribution of C$1,000,000 to non-governmental agencies and charities, highlight New Gold's commitment to social development. The high representation of Indigenous employees (25%) in the workforce reflects efforts to foster diversity and inclusion, strengthening relationships with local communities and potentially improving social license to operate.

From a governance perspective, aligning the ESG Reports with the Global Reporting Initiative (GRI) Standards and other recognized frameworks like the Sustainability Accounting Standards Board (SASB) ensures transparency and accountability, which can build investor trust and confidence.

In summary, New Gold's social and governance initiatives presented in the 2023 ESG Reports suggest robust efforts to embed sustainability into its operations. These initiatives can lead to enhanced reputation, improved stakeholder relationships and potentially better long-term financial performance.

PROVIDES CORPORATE ACTIVITIES UPDATE

(All dollar figures are in US dollars unless otherwise indicated)

TORONTO, June 4, 2024 /PRNewswire/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) is pleased to announce the publication of its 2023 Environmental, Social and Governance Reports (the "2023 ESG Reports") and its 2023 Task Force on Climate-Related Financial Disclosures Report (the "TCFD Report"). New Gold has published an annual ESG Report since 2015 (formerly, the Sustainability Report), reporting on the sustainability-related material topics that matter most to our stakeholders. The 2023 ESG Report and TCFD Report are available on New Gold's Sustainability Microsite, accessible through www.newgold.com.

"New Gold's impressive sustainability performance in 2023 was made possible by the dedicated teams working on the ground to advance our environmental, social and governance performance," stated Patrick Godin, President and CEO. "These 2023 ESG Reports capture our achievements over the past year, but they also showcase the spirit of who we are. At New Gold, we live by our Core Values and our notable performance is an embodiment of these practices. I am proud of our team for their shared achievements in 2023 and look forward to continuing to embed ESG into our operations as One New Gold."

Gillian Davidson, Chair of Technical and Sustainability Committee, commented "As a company, sustainability is core to our strategy and decision making. I am pleased to see the progress of our work and the release of New Gold's 2023 ESG Reports. These reports demonstrate our commitments and priorities in embedding sustainability throughout the organization. During the year, the New Gold team have worked collaboratively internally and externally to advance us towards our sustainability goals, and I congratulate them on a successful year."

New Gold's 2023 ESG Reports were prepared in alignment with the Global Reporting Initiative (GRI) Standards, the Sustainability Accounting Standards Board (SASB) Metals and Mining Standards, the Mining Local Procurement Reporting Mechanism (LPRM) and Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.

2023 ESG Highlights

• Across operations, New Gold achieved a 4% reduction in scope 1 and scope 2 greenhouse gas emissions from 2022, with an overall 8% reduction from New Gold's 2020 baseline year. The reductions were achieved through an increase in the use of battery electric production vehicles at New Afton and increased emissions tracking and mitigation practices at Rainy River.
• Reduction in water withdrawal by 50% across operations. While this reduction is partially associated with below average precipitation, significant work was accomplished to reduce the volume of water required in operations.
• New Gold's total recordable injury frequency rate ("TRIFR") decreased from 0.95 in 2022 to 0.80 in 2023, achieving the lowest consolidated TRIFR in New Gold history. This performance exemplifies New Gold's safety-first culture and what it means to have the Courage to Care.
• Indigenous employees represent 25% of New Gold's workforce across operations. The Company is committed to engaging in ways that foster respectful relationships that are built on trust and acceptance and promote Indigenous cultural awareness throughout its operations.
• New Gold contributed over C$1,000,000 to non-governmental agencies, charities and research institutions in 2023. Striving to go beyond traditional philanthropic practices, New Gold support helps to create long term economic growth and social development in local communities.

Strategic Partnership Agreement with Ontario Teachers' Pension Plan Successfully Closed

The previously announced strategic partnership agreement with Ontario Teacher's Pension Plan at the New Afton Mine closed at the end of May.  The previously announced partnership increased New Gold's effective free cash flow interest in the New Afton Mine increased to 80.1%. Ontario Teachers' free cash flow interest in New Afton has now reduced from 46.0% to 19.9% in exchange for an upfront cash payment of $255 million from New Gold.

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 other 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.

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SOURCE New Gold Inc.

FAQ

What are the key highlights of New Gold's 2023 ESG Reports?

New Gold achieved a 4% reduction in greenhouse gas emissions, a 50% reduction in water withdrawal, and decreased its total recordable injury frequency rate to 0.80. Indigenous employees now make up 25% of the workforce.

How did New Gold perform in terms of greenhouse gas emissions in 2023?

New Gold achieved a 4% reduction in scope 1 and 2 greenhouse gas emissions from 2022.

What is the significance of New Gold's strategic partnership with Ontario Teachers' Pension Plan?

The strategic partnership increased New Gold's free cash flow interest in the New Afton Mine to 80.1%, following an upfront cash payment of $255 million.

How did New Gold reduce its water withdrawal in 2023?

New Gold reduced its water withdrawal by 50% across operations through significant work and below-average precipitation.

What was New Gold's total recordable injury frequency rate (TRIFR) in 2023?

New Gold's total recordable injury frequency rate (TRIFR) decreased from 0.95 in 2022 to 0.80 in 2023.

What contributions did New Gold make to non-governmental organizations in 2023?

New Gold contributed over C$1 million to non-governmental agencies, charities, and research institutions in 2023.

What percentage of New Gold's workforce is Indigenous?

Indigenous employees represent 25% of New Gold's workforce across operations.