NEW GOLD REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS
New Gold Inc. (NGD) has reported its fourth quarter and full year 2024 results, demonstrating strong cost discipline and operational performance. The company achieved full-year production of 298,303 gold ounces at all-in sustaining costs of $1,239 per gold ounce, beating the low end of their guidance range.
Fourth quarter production reached 80,438 ounces of gold and 14.5 million pounds of copper, with all-in sustaining costs of $1,018 per gold ounce, marking the lowest cost quarter of 2024. The company generated $22 million in free cash flow during Q4 while investing $65 million in growth projects.
Notable achievements include generating $85 million in free cash flow for 2024, delivering C-Zone commercial production at New Afton, and achieving first ore from Rainy River underground ahead of schedule. The company ended the year with $105 million in cash after repaying the remaining $50 million outstanding on their credit facility.
New Gold Inc. (NGD) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, dimostrando una forte disciplina dei costi e prestazioni operative. L'azienda ha raggiunto una produzione annuale totale di 298.303 once d'oro a costi sostenibili totali di $1.239 per oncia d'oro, superando il limite inferiore della loro guida.
La produzione del quarto trimestre ha raggiunto 80.438 once d'oro e 14,5 milioni di libbre di rame, con costi sostenibili totali di $1.018 per oncia d'oro, segnando il trimestre con i costi più bassi del 2024. L'azienda ha generato $22 milioni di flusso di cassa libero durante il Q4, investendo $65 milioni in progetti di crescita.
Tra i risultati notevoli ci sono la generazione di $85 milioni di flusso di cassa libero per il 2024, la consegna della produzione commerciale della zona C presso New Afton e il raggiungimento della prima miniera dalla Rainy River sotterranea in anticipo rispetto al programma. L'azienda ha chiuso l'anno con $105 milioni in contante dopo aver rimborsato i restanti $50 milioni dovuti sulla loro linea di credito.
New Gold Inc. (NGD) ha informado sus resultados del cuarto trimestre y del año completo 2024, demostrando una fuerte disciplina de costos y un rendimiento operativo sólido. La compañía logró una producción anual total de 298,303 onzas de oro a costos sostenibles totales de $1,239 por onza de oro, superando el límite inferior de su rango de orientación.
La producción del cuarto trimestre alcanzó 80,438 onzas de oro y 14.5 millones de libras de cobre, con costos sostenibles totales de $1,018 por onza de oro, marcando el trimestre con los costos más bajos de 2024. La compañía generó $22 millones en flujo de caja libre durante el Q4, mientras invertía $65 millones en proyectos de crecimiento.
Entre los logros notables se incluye la generación de $85 millones en flujo de caja libre para 2024, la entrega de producción comercial en la zona C en New Afton y la obtención del primer mineral de Rainy River subterránea antes de lo programado. La compañía terminó el año con $105 millones en efectivo después de haber pagado los $50 millones restantes en su línea de crédito.
New Gold Inc. (NGD)는 2024년 4분기 및 연간 실적을 발표하며 강력한 비용 관리와 운영 성과를 보여주었습니다. 이 회사는 연간 총 298,303 온스의 금을 생산하였으며, 금 1온스당 지속 가능한 총 비용은 $1,239로, 예상 범위의 하한선을 넘었습니다.
4분기 생산량은 80,438 온스의 금과 14.5백만 파운드의 구리를 달성하였으며, 금 1온스당 지속 가능한 총 비용은 $1,018로 2024년 중 가장 낮은 비용의 분기를 기록했습니다. 이 회사는 4분기에 $22 백만의 자유 현금 흐름을 창출하면서 $65 백만을 성장 프로젝트에 투자했습니다.
주요 성과로는 2024년 동안 $85 백만의 자유 현금 흐름을 생성하고, New Afton에서 C-존 상업 생산을 제공하며, Rainy River 지하에서 조기 채굴을 달성한 것입니다. 이 회사는 신용 시설에서 남은 $50 백만을 상환한 후 $105 백만의 현금으로 연도를 마감했습니다.
New Gold Inc. (NGD) a publié ses résultats du quatrième trimestre et de l'année complète 2024, démontrant une forte discipline des coûts et une performance opérationnelle solide. L'entreprise a atteint une production annuelle totale de 298 303 onces d'or à des coûts soutenus de $1 239 par once d'or, dépassant ainsi le bas de leur fourchette de prévisions.
La production du quatrième trimestre a atteint 80 438 onces d'or et 14,5 millions de livres de cuivre, avec des coûts soutenus de $1 018 par once d'or, marquant le trimestre le moins coûteux de 2024. L'entreprise a généré $22 millions de flux de trésorerie libre au cours du Q4 tout en investissant $65 millions dans des projets de croissance.
Les réalisations notables incluent la génération de $85 millions de flux de trésorerie libre pour 2024, la livraison de la production commerciale de la zone C à New Afton et l'atteinte du premier minerai de Rainy River souterrain en avance sur le calendrier. L'entreprise a terminé l'année avec $105 millions en liquidités après avoir remboursé les $50 millions restants de sa ligne de crédit.
New Gold Inc. (NGD) hat die Ergebnisse des vierten Quartals und des gesamten Jahres 2024 veröffentlicht und zeigt eine starke Kostenkontrolle sowie eine gute operative Leistung. Das Unternehmen erzielte eine Gesamtjahresproduktion von 298.303 Unzen Gold zu nachhaltigen Gesamtkosten von $1.239 pro Unze Gold und übertraf damit die untere Grenze ihrer Prognose.
Die Produktion im vierten Quartal erreichte 80.438 Unzen Gold und 14,5 Millionen Pfund Kupfer, wobei die nachhaltigen Gesamtkosten $1.018 pro Unze Gold betrugen, was das kostengünstigste Quartal 2024 markiert. Das Unternehmen generierte $22 Millionen an freiem Cashflow im Q4, während es $65 Millionen in Wachstumsprojekte investierte.
Zu den bemerkenswerten Erfolgen gehört die Generierung von $85 Millionen an freiem Cashflow für 2024, die Auslieferung der kommerziellen Produktion in der C-Zone bei New Afton und die frühzeitige Erzielung der ersten Erze aus Rainy River unter Tage. Das Unternehmen schloss das Jahr mit $105 Millionen in bar ab, nachdem es die verbleibenden $50 Millionen auf seiner Kreditlinie zurückgezahlt hatte.
- All-in sustaining costs of $1,239 per gold ounce beat guidance range of $1,240-$1,340
- Generated $85 million in free cash flow for 2024
- Q4 produced lowest all-in sustaining costs of 2024 at $1,018 per gold ounce
- Successfully repaid $50 million credit facility
- Early delivery of C-Zone commercial production and Rainy River underground
- Lower gold production at Rainy River compared to prior year
- Mechanical downtime issues at Rainy River in December affecting production
- Operating expenses per gold ounce at Rainy River exceeded 2024 guidance range
Insights
New Gold's Q4 and full-year 2024 results reveal a company successfully executing on multiple fronts, with particularly impressive cost management driving AISC to $1,239 per gold ounce, beating the bottom end of guidance. This achievement is especially noteworthy given the operational challenges faced, including mechanical downtime at Rainy River in December.
The company's robust cash flow generation -
Several key operational developments warrant attention:
- The achievement of commercial production at C-Zone and first ore from Rainy River underground Main ahead of schedule indicates strong project execution capabilities
- The increased ownership in New Afton to
80.1% through the OTPP buyout strengthens the company's asset control and future cash flow potential - Despite lower gold production at Rainy River, strong cost discipline and operational efficiency improvements led to decreased operating expenses across both mines
The company's capital allocation strategy balances growth investments with maintaining financial strength. Total capital expenditures came in below guidance at both operations, demonstrating efficient capital management while still advancing key growth projects. This positions New Gold well for production growth in coming years while maintaining operational flexibility.
Strong Cost Discipline Leads to All-In Sustaining Costs Beating the Low End of Guidance and Delivering Another Strong Quarter of Free Cash Flow
(All amounts are in
Focus on Cost Performance Leads to 2024 All-In Sustaining Cost Beating Guidance
"2024 was a year of perseverance for New Gold, highlighted by operational discipline and capital management by our operations and our people," stated Patrick Godin, President and CEO. "We delivered all-in sustaining costs better than our guidance range set out at the start of the year despite the impacts to production late in the year. As a result, New Gold delivered three quarters in a row of solid free cash flow generation, while continuing to invest in our projects and exploration, and delivering key catalysts ahead of schedule and on budget."
- Fourth quarter consolidated production of 80,438 ounces of gold and 14.5 million pounds of copper at all-in sustaining costs4 of
per gold ounce (by-product basis)2, the lowest all-in sustaining cost2 quarter of 2024. Fourth quarter production represented a$1,018 2% gold and21% copper increase over the prior-year period, while all-in sustaining costs were31% lower than the prior-year period and trended down quarter-over-quarter throughout 2024. - Full year consolidated gold production was 298,303 ounces of gold and 54.0 million pounds of copper at all-in sustaining costs4 of
per gold ounce, below the bottom end of the 2024 consolidated cost guidance of$1,239 to$1,240 per gold ounce (by-product basis)2.$1,340 - During the fourth quarter the Company generated free cash flow4 of
after investing$22 million in advancing growth projects.$65 million Rainy River generated in free cash flow2, net of$36 million in capital expenditures and$30 million in stream payments.$11 million - The Company generated
in free cash flow2 for 2024 after investing over$85 million in total capital, including$270 million in growth capital delivering C-Zone commercial production at New Afton and first ore from$184 million Rainy River underground Main ahead of schedule. - December 31, 2024 cash and cash equivalents were
after repaying the remaining$105 million outstanding on the credit facility during the quarter, which was drawn to finance the partial repurchase of the Ontario Teachers' Pension Plan ("OTPP") free cash flow interest in New Afton, increasing New Gold's interest to$50 million 80.1% .
Consolidated Financial Highlights
Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | |
Revenue ($M) | 262.2 | 199.2 | 924.5 | 786.5 |
Operating expenses ($M) | 112.4 | 120.8 | 436.3 | 450.4 |
Depreciation and depletion ($M) | 56.7 | 66.0 | 247.5 | 234.2 |
Net earnings (loss) ($M) | 55.1 | (27.4) | 102.6 | (64.5) |
Net earnings (loss), per share ($) | 0.07 | (0.04) | 0.14 | (0.09) |
Adj. net earnings ($M)1 | 59.1 | (4.7) | 153.4 | 48.4 |
Adj. net earnings, per share ($)1 | 0.07 | (0.01) | 0.20 | 0.07 |
Cash generated from operations ($M) | 109.6 | 70.6 | 392.8 | 287.6 |
Cash generated from operations, per share ($) | 0.14 | 0.10 | 0.52 | 0.42 |
Cash generated from operations, before changes in non-cash operating working capital ($M)1 | 125.7 | 64.9 | 408.8 | 293.4 |
Cash generated from operations, before changes in non-cash operating working capital, per share ($)1 | 0.16 | 0.09 | 0.54 | 0.43 |
Free cash flow ($M)1 | 22.1 | 0.7 | 84.9 | 16.6 |
- Revenue increased over the prior-year periods primarily due to higher gold and copper prices and higher copper sales volume, partially offset by lower gold sales volume.
- Operating expenses were lower than the prior-year periods due to lower gold production at
Rainy River , and lower operating expenses at New Afton. - Depreciation expense in the fourth quarter decreased when compared to the prior-year period due to lower gold production at
Rainy River . For the year ended December 31, 2024, depreciation and depletion increased when compared to the prior-year period due to higher gold and copper production at New Afton, and the achievement of commercial production at C-Zone. - Net earnings increased over the prior-year periods due to an increase in revenues and lower operating expenses.
- Adjusted net earnings1 increased compared to the prior-year periods primarily due to higher revenue and lower operating expenses.
- Cash generated from operations and free cash flow1 increased over the prior-year periods primarily due to higher revenue.
Consolidated Operational Highlights
Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | |
Gold production (ounces)4 | 80,438 | 79,187 | 298,303 | 321,178 |
Gold sold (ounces)4 | 77,281 | 77,870 | 296,846 | 319,116 |
Copper production (Mlbs)4 | 14.5 | 12.0 | 54.0 | 47.4 |
Copper sold (MIbs)4 | 13.6 | 11.9 | 50.0 | 44.4 |
Gold revenue, per ounce ($)5 | 2,633 | 1,977 | 2,384 | 1,920 |
Copper revenue, per pound ($)5 | 3.96 | 3.52 | 3.97 | 3.61 |
Average realized gold price, per ounce ($)1 | 2,667 | 2,001 | 2,413 | 1,944 |
Average realized copper price, per pound ($)1 | 4.18 | 3.72 | 4.19 | 3.84 |
Operating expenses per gold ounce sold ($/ounce, co-product)3 | 1,093 | 1,154 | 1,091 | 1,048 |
Operating expenses per copper pound sold ($/pound, co-product)3 | 2.04 | 2.61 | 2.25 | 2.61 |
Depreciation and depletion per gold ounce sold ($/ounce)5 | 733 | 851 | 836 | 736 |
Cash costs per gold ounce sold (by-product basis) ($/ounce)2 | 728 | 994 | 769 | 891 |
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)2 | 1,018 | 1,481 | 1,239 | 1,434 |
Sustaining capital ($M)1 | 10.3 | 24.1 | 87.5 | 121.6 |
Growth capital ($M)1 | 65.0 | 36.5 | 183.6 | 144.3 |
Total capital ($M) | 75.3 | 60.6 | 271.1 | 265.9 |
New Afton Mine
Operational Highlights
New Afton Mine | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
Gold production (ounces)4 | 19,652 | 16,495 | 72,609 | 67,433 |
Gold sold (ounces)4 | 18,442 | 16,784 | 68,170 | 64,185 |
Copper production (Mlbs)4 | 14.5 | 12.0 | 54.0 | 47.4 |
Copper sold (Mlbs)4 | 13.6 | 11.9 | 50.0 | 44.4 |
Gold revenue, per ounce ($)5 | 2,539 | 1,898 | 2,298 | 1,846 |
Copper revenue, per ounce ($)5 | 3.96 | 3.52 | 3.97 | 3.61 |
Average realized gold price, per ounce ($)1 | 2,679 | 2,009 | 2,424 | 1,964 |
Average realized copper price, per pound ($)1 | 4.18 | 3.72 | 4.19 | 3.84 |
Operating expenses ($/oz gold, co-product)3 | 647 | 790 | 707 | 775 |
Operating expenses ($/lb copper, co-product)3 | 2.04 | 2.61 | 2.25 | 2.61 |
Depreciation and depletion ($/ounce)5 | 1,000 | 1,069 | 1,057 | 1,049 |
Cash costs per gold ounce sold (by-product basis) ($/ounce)2 | (691) | 224 | (479) | 166 |
Cash costs per gold ounce sold ($/ounce, co-product)3 | 721 | 856 | 778 | 847 |
Cash costs per copper pound sold ($/pound, co-product)3 | 2.27 | 2.83 | 2.47 | 2.86 |
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)2 | (540) | 502 | (289) | 502 |
All-in sustaining costs per gold ounce sold ($/ounce, co-product)3 | 766 | 939 | 835 | 948 |
All-in sustaining costs per copper pound sold ($/pound, co-product)3 | 2.42 | 3.10 | 2.66 | 3.20 |
Sustaining capital ($M)1 | 1.4 | 3.8 | 9.2 | 18.7 |
Growth capital ($M)1 | 44.0 | 32.2 | 130.8 | 126.5 |
Total capital ($M) | 45.4 | 36.1 | 139.9 | 145.2 |
Operating Key Performance Indicators
New Afton Mine | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
New Afton Mine Only | ||||
Tonnes mined per day (ore and waste) | 11,890 | 9,933 | 10,616 | 9,771 |
Tonnes milled per calendar day | 13,189 | 8,181 | 11,439 | 8,289 |
Gold grade milled (g/t) | 0.58 | 0.73 | 0.61 | 0.72 |
Gold recovery (%) | 85 % | 90 % | 87 % | 90 % |
Copper grade milled (%) | 0.62 | 0.79 | 0.65 | 0.77 |
Copper recovery (%) | 87 % | 91 % | 89 % | 91 % |
Gold production (ounces) | 19,310 | 15,942 | 71,551 | 62,637 |
Copper production (Mlbs) | 14.5 | 12.0 | 54.0 | 47.4 |
Ore Purchase Agreements6 | ||||
Gold production (ounces) | 342 | 553 | 1,058 | 4,796 |
- Fourth quarter production was 19,652 ounces of gold (inclusive of ore purchase agreements) and 14.5 million pounds of copper. For the year ended December 31, 2024, gold production was 72,609 ounces (inclusive of ore purchase agreements) and 54.0 million pounds of copper. The increase over the prior-year periods was due to higher tonnes processed, partially offset by lower grade and recovery.
- Operating expenses per gold ounce sold5 and copper pound sold for the quarter and for the year ended December 31, 2024 decreased over the prior-year periods, primarily due to lower underground mining and processing costs, and higher gold and copper sales volumes. Full year operating expense per gold ounce sold was well below the 2024 guidance range of
to$720 per gold ounce sold, and operating expense per copper pound sold was within the 2024 guidance range of$820 to$1.90 per copper pound sold.$2.40 - All-in sustaining costs1 per gold ounce sold (by-product basis) for the fourth quarter and for the year ended December 31, 2024 decreased over the prior-year periods, primarily due to higher sales volume, higher by-product revenues, and lower sustaining capital spend. Full year all-in sustaining costs1 per gold ounce sold (by-product basis) was well below the 2024 guidance range of
to$25 per gold ounce sold.$125 - Total capital expenditures for the quarter increased over the prior-year period, primarily from the increase in growth capital as C-Zone achieved commercial production in the fourth quarter. For the year ended December 31, 2024, total capital decreased over the prior-year period, mainly from lower sustaining capital. Sustaining capital1 is primarily related to the continuation of tailings management and stabilization activities. Growth capital1 is primarily related to C-Zone underground mine development and cave construction. Full year total capital is below the 2024 guidance range of
to$145 million , with approximately$165 million deferred into 2025.$15 million - Free cash flow1 for the quarter was a net outflow of
, an improvement over the prior year period due to higher revenues. Free cash flow1 for the quarter was negative due to the increased spending to achieve C-Zone commercial production. Free cash flow1 for the year ended December 31, 2024 was an inflow of$6 million , an improvement over the prior-year period due to higher revenues and lower operating expenses.$24 million
Rainy River Mine
Operational Highlights
Rainy River Mine | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
Gold production (ounces)4 | 60,786 | 62,692 | 225,694 | 253,745 |
Gold sold (ounces)4 | 58,839 | 61,086 | 228,676 | 254,932 |
Gold revenue, per ounce ($)5 | 2,662 | 1,999 | 2,410 | 1,939 |
Average realized gold price, per ounce ($)1 | 2,662 | 1,999 | 2,410 | 1,939 |
Operating expenses per gold ounce sold ($/ounce)5 | 1,233 | 1,254 | 1,205 | 1,117 |
Depreciation and depletion per gold ounce sold ($/ounce) | 647 | 788 | 767 | 655 |
Cash costs per gold ounce sold (by-product basis) ($/ounce)1 | 1,172 | 1,206 | 1,141 | 1,074 |
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)2 | 1,358 | 1,593 | 1,524 | 1,547 |
Sustaining capital ($M)1 | 8.8 | 20.2 | 78.3 | 102.8 |
Growth capital ($M)1 | 21.0 | 4.2 | 52.8 | 17.8 |
Total capital ($M) | 29.8 | 24.5 | 131.1 | 120.6 |
Operating Key Performance Indicators
Rainy River Mine | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
Open Pit Only | ||||
Tonnes mined per day (ore and waste) | 75,644 | 109,895 | 91,895 | 119,948 |
Ore tonnes mined per day | 21,774 | 29,377 | 20,092 | 34,007 |
Operating waste tonnes per day | 53,870 | 47,838 | 53,443 | 53,537 |
Capitalized waste tonnes per day | 0 | 32,681 | 18,361 | 32,404 |
Total waste tonnes per day | 53,870 | 80,519 | 71,803 | 85,942 |
Strip ratio (waste:ore) | 2.47 | 2.74 | 3.57 | 2.53 |
Underground Only | ||||
Ore tonnes mined per day | 1,068 | 859 | 834 | 857 |
Waste tonnes mined per day | 1,506 | 653 | 1,251 | 506 |
Lateral development (metres) | 1,602 | 659 | 5,235 | 3,030 |
Open Pit and Underground | ||||
Tonnes milled per calendar day | 22,656 | 25,046 | 24,563 | 24,012 |
Gold grade milled (g/t) | 0.97 | 0.94 | 0.85 | 0.99 |
Gold recovery (%) | 93 | 90 | 92 | 91 |
- Fourth quarter gold production1 was 60,786 ounces, a decrease over the prior-year period due to lower tonnes processed impacted by unexpected mechanical down-time on the crushing and conveying system in December, partially offset by higher grade and higher recovery. For the year ended December 31, 2024, gold production was 225,694 ounces, a decrease over the prior-year period due to lower gold grade, partially offset by higher tonnes processed and higher gold recovery.
- Operating expenses per gold ounce sold for the fourth quarter decreased over the prior-year period due to lower processing cost associated with lower mill maintenance and mining consumables. For the year ended December 31, 2024, operating expenses per gold ounce sold increased over the prior-year period due to lower gold sales and lower capitalized waste stripping, partially offset by lower processing costs and an increase in the net realizable value of the low-grade stockpile. Full year operating expenses per gold ounce sold was above the 2024 guidance range of
to$1,025 per gold ounce sold as a result of lower capitalized waste stripping.$1,125 - All-in sustaining costs1 per gold ounce sold (by-product basis)2 for the fourth quarter and the year ended December 31, 2024 decreased over the prior-year period primarily due to lower sustaining capital. Full year all-in sustaining costs1 per gold ounce sold was within the 2024 guidance range of
to$1,425 per gold ounce sold, despite lower production.$1,525 - Total capital expenditures for the quarter and year ended December 31, 2024 increased over the prior-year periods due to higher underground mine development metres, partially offset by lower capitalized waste in the year. Sustaining capital1 for the full year is primarily related to capitalized waste and tailings dam raise. Growth capital1 for the full year is related to underground development as the underground Main and Intrepid zones continue to advance. Full year total capital is below the 2024 guidance range of
to$145 million , due to efficient capital management, savings related to execution of the Rainy River tailings dam raise, and lower capitalized waste stripping with approximately$165 million deferred into 2025..$5 million - Free cash flow for the quarter and year ended December 31, 2024 was
and$36 million (net of$90 million and$11 million stream payments), respectively, an improvement over the prior-year periods primarily due to higher revenue and lower operating expenses.$34 million
Fourth Quarter and Full Year 2024 Conference Call and Webcast
The Company will release its fourth quarter and full year 2024 financial results after market close on Wednesday, February 19, 2025. A conference call and webcast will be hosted on Thursday, February 20, 2025 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/nvDNqb8B0py
- Participants may also listen to the conference call by calling North American toll free 1-888-699-1199, or 1-416-945-7677 outside of the
U.S. andCanada , passcode 58557 - To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4fR2dsv to receive an instant automated call back.
- A recorded playback of the conference call will be available until March 20, 2025 by calling North American toll free 1-888-660-6345, or 1-289-819-1450 outside of the
U.S. andCanada , passcode 58557. 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
Endnotes | |
1. | "Cash costs per gold ounce sold", "all-in sustaining costs per gold ounce sold" (or "AISC"), "adjusted net earnings/(loss)", "adjusted tax expense", "sustaining capital and sustaining leases", "growth capital", "average realized gold/copper price per ounce/pound", "cash generated from operations before changes in non-cash operating working capital", "free cash flow" are all non-GAAP financial performance measures that are used in this news release. These measures do not have any standardized meaning under International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"), and therefore may not be comparable to similar measures presented by other issuers. |
3. | The Company produces copper and silver as by-products of its gold production. All-in sustaining costs based on a by-product basis, which includes silver and copper net revenues as by-product credits to the total costs. These are extraction concepts, as the commodities produced represent commodities sold in the course of the Company's ordinary activities. |
4. | Co-product basis includes net silver sales revenues as by-product credits and apportions net costs to each metal produced by |
4. | 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. |
5. | These are supplementary financial measures which are calculated as follows: "Revenue gold ($/ounce)" and "Revenue copper ($/pound)" is total gold revenue divided by total gold ounces sold and total copper revenue divided by copper pounds sold, respectively, "Operating expenses ($/oz gold, co-product)" is total operating expenses apportioned to gold based on a percentage of activity basis divided by total gold ounces sold, "Operating expenses ($/lb copper, co-product)" is total operating expenses apportioned to copper based on a percentage of activity basis divided by total copper pounds sold; "Depreciation and depletion ($/oz gold)" is depreciation and depletion expenses divided by total gold ounces sold. |
6. | Key performance indicator data for the three months and year ended December 31, 2024 is exclusive of ounces from ore purchase agreements for New Afton. The New Afton Mine purchases small amounts of ore from local operations, subject to certain grade and other criteria. These ounces represented approximately |
Non-GAAP Financial Performance Measures
Cash Costs per Gold Ounce Sold
"Cash costs per gold ounce sold" is a common non-GAAP financial performance measure used in the gold mining industry but does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. New Gold reports 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 Accounting Standards, 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 Accounting Standards. This measure is not necessarily indicative of cash generated from operations under IFRS Accounting Standards or operating costs presented under IFRS Accounting Standards.
Cash costs 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. 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 and net of by-product revenue. Cash costs are then divided by gold ounces sold to arrive at the cash costs per gold ounce sold.
The Company produces copper and silver as by-products of its gold production. The calculation of cash costs per gold ounce for
To provide additional information to investors, New Gold has also calculated New Afton's cash costs on a co-product basis, which removes the impact of copper sales that are produced as a by-product of gold production and apportions the cash costs to each metal produced by
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 Accounting Standards 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 significantly 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 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 Accounting Standards.
Growth Capital
"Growth capital" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS Accounting Standards 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 significantly 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 significantly 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 Accounting Standards.
All-In Sustaining Costs (AISC) per Gold Ounce Sold
"All-in sustaining costs per gold ounce sold" or ("AISC") is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. New Gold calculates "all-in sustaining costs per gold ounce sold" 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 Accounting Standards measures to provide visibility into the economics of a gold mining company. Current IFRS Accounting Standards 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 ounce sold" 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 ounce sold" is intended to provide additional information only and does not have any standardized meaning under IFRS Accounting Standards 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 Accounting Standards. The measure is not necessarily indicative of cash flow from operations under IFRS Accounting Standards or operating costs presented under IFRS Accounting Standards.
New Gold defines all-in sustaining costs per gold ounce sold as the sum of cash costs, net capital expenditures that are sustaining in nature, corporate general and administrative costs, sustaining leases, capitalized and expensed exploration costs that are sustaining in nature, and environmental reclamation costs, all divided by the total gold ounces sold to arrive at a per ounce figure. 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 non-sustaining (growth). Capital expenditures to develop new operations or capital expenditures related to major projects at existing operations where these projects will significantly benefit the operation are classified as growth and are excluded. The definition of sustaining versus non-sustaining is similarly applied to capitalized and expensed exploration costs. Exploration costs to develop new operations or that relate to major projects at existing operations where these projects are expected to significantly benefit the operation are classified as non-sustaining and are excluded.
Costs excluded from all-in sustaining costs per gold ounce sold 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.
To provide additional information to investors, the Company has also calculated all-in sustaining costs per gold ounce sold on a co-product basis for New Afton, which removes the impact of other metal sales that are produced as a by-product of gold production and apportions the all-in sustaining costs to each metal produced on a percentage of revenue basis, and subsequently divides the amount by the total gold ounces, or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures. By including cash costs as a component of all-in sustaining costs, the measure deducts by-product revenue from gross cash costs.
The following tables reconcile the above non-GAAP measures to the most directly comparable IFRS measure on an aggregate basis.
Cash Costs and All-in Sustaining Costs per Gold Ounce Reconciliation Tables
Three months ended December 31 | Year ended | |||
(in millions of | 2024 | 2023 | 2024 | 2023 |
CONSOLIDATED CASH COST AND AISC RECONCILIATION | ||||
Operating expenses | 112.4 | 120.8 | 436.3 | 450.4 |
Treatment and refining charges on concentrate sales | 5.7 | 4.3 | 19.8 | 18.1 |
By-product silver revenue | (4.7) | (3.6) | (18.5) | (13.6) |
By-product copper revenue | (57.1) | (44.1) | (209.4) | (170.6) |
Total cash costs1 | 56.2 | 77.4 | 228.2 | 284.3 |
Gold ounces sold4 | 77,281 | 77,870 | 296,846 | 319,116 |
Cash costs per gold ounce sold (by-product basis)(2) | 728 | 994.4 | 769 | 891.0 |
Sustaining capital expenditures1 | 10.3 | 24.1 | 87.5 | 121.6 |
Sustaining exploration - expensed | 0.1 | 0.2 | 0.3 | 0.9 |
Sustaining leases1 | 0.8 | 1.5 | 2.6 | 9.3 |
Corporate G&A including share-based compensation | 8.4 | 9.2 | 37.9 | 29.3 |
Reclamation expenses | 2.9 | 2.8 | 11.2 | 12.1 |
Total all-in sustaining costs1 | 78.7 | 115.3 | 367.7 | 457.5 |
Gold ounces sold4 | 77,281 | 77,870 | 296,846 | 319,116 |
All-in sustaining costs per gold ounce sold (by-product basis)2 | 1,018 | 1,481 | 1,239 | 1,434 |
Three months ended December 31 | Year ended | |||
(in millions of | 2024 | 2023 | 2024 | 2023 |
Operating expenses | 72.6 | 76.6 | 275.6 | 284.7 |
By-product silver revenue | (3.6) | (2.9) | (14.7) | (11.0) |
Total cash costs1 | 69.0 | 73.7 | 260.9 | 273.7 |
Gold ounces sold4 | 58,839 | 61,086 | 228,676 | 254,932 |
Cash costs per gold ounce sold (by-product basis)2 | 1,172 | 1,206 | 1,141 | 1,074 |
Sustaining capital expenditures1 | 8.8 | 20.2 | 78.3 | 102.8 |
Sustaining leases1 | — | 1.1 | 1.0 | 8.3 |
Reclamation expenses | 2.2 | 2.3 | 8.4 | 9.6 |
Total all-in sustaining costs1 | 80.0 | 97.3 | 348.6 | 394.4 |
Gold ounces sold4 | 58,839 | 61,086 | 228,676 | 254,932 |
All-in sustaining costs per gold ounce sold (by-product basis)2 | 1,358 | 1,593 | 1,524 | 1,547 |
Three months ended December 31 | Year ended | |||
(in millions of | 2024 | 2023 | 2024 | 2023 |
NEW AFTON CASH COSTS AND AISC RECONCILIATION | ||||
Operating expenses | 39.8 | 44.2 | 160.7 | 165.7 |
Treatment and refining charges on concentrate sales | 5.7 | 4.3 | 19.8 | 18.0 |
By-product silver revenue | (1.1) | (0.6) | (3.8) | (2.5) |
By-product copper revenue | (57.1) | (44.1) | (209.4) | (170.6) |
Total cash costs1 | (12.7) | 3.8 | (32.7) | 10.7 |
Gold ounces sold4 | 18,442 | 16,784 | 68,170 | 64,185 |
Cash costs per gold ounce sold (by-product basis)2 | (691) | 224 | (479) | 166 |
Sustaining capital expenditures1 | 1.4 | 3.8 | 9.2 | 18.7 |
Sustaining leases(1) | 0.6 | 0.3 | 1.1 | 0.4 |
Reclamation expenses | 0.7 | 0.6 | 2.7 | 2.5 |
Total all-in sustaining costs1 | (10.0) | 8.4 | (19.7) | 32.2 |
Gold ounces sold4 | 18,442 | 16,784 | 68,170 | 64,185 |
All-in sustaining costs per gold ounce sold (by-product basis)2 | (540) | 502 | (289) | 502 |
Three months ended December 31, 2024 | |||
(in millions of | Gold | Copper | Total |
NEW AFTON CASH COSTS AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) | |||
Operating expenses | 11.9 | 27.9 | 39.8 |
Units of metal sold | 18,442 | 13.6 | |
Operating expenses ($/oz gold or lb copper sold, co-product3 | 647 | 2.04 | |
Treatment and refining charges on concentrate sales | 1.7 | 4.0 | 5.7 |
By-product silver revenue | (0.3) | (0.8) | (1.1) |
Cash costs (co-product)3 | 13.3 | 31.1 | 44.3 |
Cash costs per gold ounce sold or lb copper sold (co-product)3 | 721 | 2.27 | |
Sustaining capital expenditures1 | 0.4 | 1.0 | 1.4 |
Sustaining leases1 | 0.2 | 0.4 | 0.6 |
Reclamation expenses | 0.2 | 0.5 | 0.7 |
All-in sustaining costs (co-product)3 | 14.1 | 33.0 | 47.1 |
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)3 | 766 | 2.42 | |
(i) Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, |
Three months ended December 31, 2023 | |||
(in millions of | Gold | Copper | Total |
NEW AFTON CASH COSTS AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) | |||
Operating expenses | 13.3 | 30.9 | 44.2 |
Units of metal sold | 16,784 | 11.9 | |
Operating expenses ($/oz gold or lb copper sold, co-product3 | 790 | 2.61 | |
Treatment and refining charges on concentrate sales | 1.3 | 3.0 | 4.3 |
By-product silver revenue | (0.2) | (0.5) | (0.6) |
Cash costs (co-product)3 | 14.4 | 33.5 | 47.9 |
Cash costs per gold ounce sold or lb copper sold (co-product)3 | 856 | 2.83 | |
Sustaining capital expenditures1 | 1.2 | 2.7 | 3.8 |
Reclamation expenses | 0.2 | 0.4 | 0.6 |
All-in sustaining costs (co-product)3 | 15.8 | 36.8 | 52.6 |
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)3 | 939 | 3.10 | |
(i) Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, |
Year ended December 31, 2024 | |||
(in millions of | Gold | Copper | Total |
NEW AFTON CASH COSTS AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) | |||
Operating expenses | 48.2 | 112.5 | 160.7 |
Units of metal sold | 68,170 | 50.0 | |
Operating expenses ($/oz gold or lb copper sold, co-product3 | 707 | 2.25 | |
Treatment and refining charges on concentrate sales | 5.9 | 13.8 | 19.7 |
By-product silver revenue | (1.1) | (2.6) | (3.7) |
Cash costs (co-product)3 | 53.0 | 123.7 | 176.7 |
Cash costs per gold ounce sold or lb copper sold (co-product)3 | 778 | 2.47 | |
Sustaining capital expenditures1 | 2.7 | 6.4 | 9.2 |
Sustaining leases1 | 0.3 | 0.8 | 1.1 |
Reclamation expenses | 0.8 | 1.9 | 2.7 |
All-in sustaining costs (co-product)3 | 56.9 | 132.8 | 189.7 |
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)3 | 835 | 2.66 | |
(i) Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, |
Year ended December 31, 2023 | |||
(in millions of | Gold | Copper | Total |
NEW AFTON CASH COSTS AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) | |||
Operating expenses | 49.7 | 116.0 | 165.7 |
Units of metal sold | 64,185 | 44.4 | |
Operating expenses ($/oz gold or lb copper sold, co-product3 | 775 | 2.61 | |
Treatment and refining charges on concentrate sales | 5.4 | 12.6 | 18.0 |
By-product silver revenue | (0.8) | (1.8) | (2.5) |
Cash costs (co-product)3 | 54.4 | 126.9 | 181.2 |
Cash costs per gold ounce sold or lb copper sold (co-product)3 | 847 | 2.86 | |
Sustaining capital expenditures1 | 5.6 | 13.1 | 18.7 |
Reclamation expenses | 0.8 | 1.8 | 2.5 |
All-in sustaining costs (co-product)3 | 60.8 | 142.0 | 202.8 |
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)3 | 948 | 3.20 | |
(i) Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, |
Sustaining Capital Expenditures Reconciliation Table
Three months ended December 31 | Twelve months ended December 31 | |||
(in millions of | 2024 | 2023 | 2024 | 2023 |
TOTAL SUSTAINING CAPITAL EXPENDITURES | ||||
Mining interests per consolidated statement of cash flows | 75.3 | 60.6 | 271.1 | 265.9 |
New Afton growth capital expenditures1 | (44.0) | (32.2) | (130.8) | (126.5) |
(21.0) | (4.2) | (52.8) | (17.8) | |
Sustaining capital expenditures1 | 10.3 | 24.1 | 87.5 | 121.6 |
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 Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Net earnings have been adjusted, including the associated tax impact, for loss on repayment of long-term debt, corporate restructuring and the group of costs in "Other gains and losses" as per Note 4 of the Company's consolidated financial statements. Key entries in this grouping are: the fair value changes for the Rainy River gold stream obligation, fair value changes for the New Afton free cash flow interest obligation, fair value changes for copper price option contracts, foreign exchange gains/loss, fair value changes in investments. 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 Accounting Standards. These measures are not necessarily indicative of operating profit or cash flows from operations as determined under IFRS Accounting Standards. The following table reconciles these non-GAAP financial performance measures to the most directly comparable IFRS Accounting Standards measure.
Three months ended December 31 | Twelve months ended December 31 | |||
(in millions of | 2024 | 2023 | 2024 | 2023 |
ADJUSTED NET EARNINGS (LOSS) RECONCILIATION | ||||
Earnings (loss) before taxes | 64.6 | (30.8) | 83.2 | (59.2) |
Other losses | 4.3 | 30.7 | 88.9 | 115.3 |
Adjusted net earnings (loss) before taxes | 68.9 | (0.1) | 172.1 | 56.1 |
Income tax (expense) recovery | (9.5) | 3.4 | 19.4 | (5.3) |
Income tax adjustments | (0.3) | (8.0) | (38.1) | (2.4) |
Adjusted income tax (expense) recovery1 | (9.8) | (4.6) | (18.7) | (7.7) |
Adjusted net earnings (loss)1 | 59.1 | (4.7) | 153.4 | 48.4 |
Adjusted net earnings (loss) per share (basic and diluted) ($/share)1 | 0.07 | (0.01) | 0.20 | 0.07 |
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 Accounting Standards 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 Accounting Standards. This measure is not necessarily indicative of operating profit or cash flows from operations as determined under IFRS Accounting Standards. The following table reconciles this non-GAAP financial performance measure to the most directly comparable IFRS Accounting Standards measure.
Three months ended December 31 | Twelve months ended December 31 | |||
(in millions of | 2024 | 2023 | 2024 | 2023 |
CASH RECONCILIATION | ||||
Cash generated from operations | 109.6 | 70.6 | 392.8 | 287.6 |
Change in non-cash operating working capital | 16.1 | (5.7) | 16.0 | 5.8 |
Cash generated from operations, before changes in non-cash operating working capital1 | 125.7 | 64.9 | 408.8 | 293.4 |
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 Rainy River 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, 2024 | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 77.6 | 39.6 | (7.7) | 109.5 |
Less Mining interest capital expenditures | (29.8) | (45.4) | (0.2) | (75.4) |
Add Proceeds of sale from other assets | — | — | — | — |
Less Lease payments | (0.1) | (0.6) | — | (0.7) |
Less Cash settlement of non-current derivative financial liabilities | (11.3) | — | — | (11.3) |
Free Cash Flow1 | 36.4 | (6.4) | (7.9) | 22.1 |
Three months ended December 31, 2023 | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 56.6 | 25.6 | (11.6) | 70.6 |
Less Mining interest capital expenditures | (24.5) | (36.1) | — | (60.6) |
Add Proceeds of sale from other assets | — | — | (0.1) | (0.1) |
Less Lease payments | (1.1) | (0.3) | (0.2) | (1.6) |
Less Cash settlement of non-current derivative financial liabilities | (7.5) | — | (0.1) | (7.6) |
Free Cash Flow1 | 23.6 | (10.8) | (12.0) | 0.7 |
Twelve months ended December 31, 2024 | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 256.0 | 165.2 | (28.5) | 392.8 |
Less Mining interest capital expenditures | (131.1) | (139.9) | (0.1) | (271.1) |
Add Proceeds of sale from other assets | — | — | — | — |
Less Lease payments | (1.0) | (1.1) | (0.5) | (2.6) |
Less Cash settlement of non-current derivative financial liabilities | (34.2) | — | — | (34.2) |
Free Cash Flow1 | 89.7 | 24.2 | (29.0) | 84.9 |
Twelve months ended December 31, 2023 | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 212.7 | 101.6 | (26.7) | 287.6 |
Less Mining interest capital expenditures | (120.6) | (145.2) | (0.1) | (265.9) |
Add Proceeds of sale from other assets | — | — | (0.1) | (0.1) |
Less Lease payments | (8.3) | (0.4) | (0.6) | (9.3) |
Less Cash settlement of non-current derivative financial liabilities | (28.8) | — | (0.1) | (28.9) |
Free Cash Flow1 | 55.0 | (44.0) | (27.6) | (16.6) |
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 | Twelve months ended December 31 | |||
(in millions of | 2024 | 2023 | 2024 | 2023 |
TOTAL AVERAGE REALIZED PRICE | ||||
Revenue from gold sales | 203.5 | 153.9 | 707.8 | 612.8 |
Treatment and refining charges on gold concentrate sales | 2.6 | 1.9 | 8.6 | 7.6 |
Gross revenue from gold sales | 206.1 | 155.8 | 716.4 | 620.4 |
Gold ounces sold | 77,281 | 77,870 | 296,846 | 319,116 |
Total average realized price per gold ounce sold ($/ounce)1 | 2,667 | 2,001 | 2,413 | 1,944 |
Three months ended December 31 | Twelve months ended December 31 | |||
(in millions of | 2024 | 2023 | 2024 | 2023 |
Revenue from gold sales | 156.7 | 122.1 | 551.1 | 494.3 |
Gold ounces sold | 58,839 | 61,086 | 228,676 | 254,932 |
2,662 | 1,999 | 2,410 | 1,939 |
Three months ended December 31 | Twelve months ended December 31 | |||
(in millions of | 2024 | 2023 | 2024 | 2023 |
NEW AFTON AVERAGE REALIZED PRICE | ||||
Revenue from gold sales | 46.8 | 31.9 | 156.6 | 118.5 |
Treatment and refining charges on gold concentrate sales | 2.6 | 1.9 | 8.6 | 7.6 |
Gross revenue from gold sales | 49.4 | 33.8 | 165.3 | 126.1 |
Gold ounces sold | 18,442 | 16,784 | 68,170 | 64,185 |
New Afton average realized price per gold ounce sold ($/ounce)1 | 2,679 | 2,009 | 2,424 | 1,964 |
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, 2024 filed on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.
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 with respect to production, costs, capital investment and expenses on a mine-by-mine and consolidated basis, associated timing and accomplishing the factors contributing to those expectations; successfully completing the Company's growth projects and the significant increase in production in coming years as a result thereof; successfully reducing operating costs and capital expenditures and the significant free cash flow anticipated to be generated as a result thereof over the next three years; expectations regarding strengthened production in the second half of 2025; expectations of successfully ramping up production at
All forward-looking statements in this news release are based on the opinions and estimates of management as of the date such statements are made and are 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, its most recent Annual Information Form and NI 43-101 Technical Reports on the Rainy River Mine and New Afton Mine filed on SEDAR+ at www.sedarplus.ca 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, including material disruptions to the Company's supply chain, workforce or otherwise; (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, silver and copper expected to be mined; (4) the exchange rate between the Canadian dollar and
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; the ability to successfully implement strategic plans; 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; inadequate water management and stewardship; tailings storage facilities and structure failures; failing to complete stabilization projects according to plan; geotechnical instability and conditions; disruptions to the Company's workforce at either the Rainy River Mine or the New Afton Mine, or both; 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; ability to obtain and maintain sufficient insurance; management and reporting of environmental, social and governance ("ESG") matters; actual results of current exploration or reclamation activities; fluctuations in the international currency markets and in the rates of exchange of the currencies of
Technical Information
The scientific and technical information relating to the Mineral Reserves and Mineral Resources contained herein has been reviewed and approved by the following New Gold employees, all of whom are "Qualified Persons" for the purposes of NI 43-101.
All other scientific and technical information in this news release has been reviewed and approved by Travis Pastachak, Senior Director, Project Development of New Gold. Mr. Pastachak is a Professional Geoscientist and a member of the Association of Professional Engineers and Geoscientists of
The estimates of Mineral Reserves and Mineral Resources discussed in this MD&A may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing and other risks and relevant issues. New Gold's current NI 43-101 Technical Reports, which are available on SEDAR+ at www.sedarplus.ca, contain further information regarding Mineral Reserve and Mineral Resource estimates, classification, reporting parameters, key assumptions and risks for each of New Gold's material mineral properties. Please refer to "Technical Report on the New Afton Mine,
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SOURCE New Gold Inc.