Provides Notice of Release of Second Quarter Financial
Results
(All amounts are in U.S. dollars unless otherwise
indicated)
TORONTO, July 15, 2021 /CNW/ - New Gold Inc. ("New
Gold" or the "Company") (TSX: NGD) and (NYSE American:
NGD) reports second quarter operational results for the
Company as of June 30, 2021. The
Company is also providing notice that it will release its second
quarter 2021 financial results before market on Wednesday, August 11, 2021. A conference call and
webcast will follow at 8:30 am Eastern
Time (details are provided at the end of this news
release).
"Our operations continued to advance their primary objectives
during the quarter. Rainy River
had another solid operational quarter and is positioned to have a
stronger second half of production. As we start the third quarter,
the mine has now successfully transitioned from focusing on
stripping, and we are now seeing a marked improvement in grades
through the first half of July. At New Afton, mining rates were up
more than 30% over the first quarter as underground operations
returned to pre-incident levels. With the B3 permit now in hand,
the focus shifts to a safe execution of the extraction of the B3
zone during the second half of the year," stated Renaud Adams, President & CEO. "Lastly, I
would like to highlight the publication of our 2020 Sustainability
Report in the quarter. Sustainability and our approach to pressing
ESG issues remain central to our success, and I am very proud of
the work our team has done to deliver this report."
Second Quarter Highlights
- Total production was 105,705 gold equivalent1 ("gold
eq.") ounces (66,989 ounces of gold, 240,029 ounces of silver and
18.2 million pounds of copper)
- The Rainy River Mine produced 55,163 gold eq.1
ounces (52,901 ounces of gold and 162,879 ounces of silver)
- The New Afton Mine produced 50,542 gold eq.1 ounces
(14,088 ounces of gold and 18.2 million pounds of copper)
- During the quarter, the Company announced that the Mines Act
permit enabling mining of the B3 zone was issued by the Ministry of
Energy, Mines and Low Carbon innovation (refer to the Company's
May 25, 2021 news release for further
information)
- The Company's 2020 Sustainability Report was published on
June 4, 2021, and can be found on the
New Gold website
- At the end of the quarter, the Company had a cash position of
$138 million and a strong liquidity
position of $464 million
Consolidated Operational Highlights
|
Q2
2021
|
Q2
2020
|
H1
2021
|
H1
2020
|
Gold eq. production
(ounces)1
|
105,705
|
98,079
|
201,731
|
201,514
|
Gold production
(ounces)
|
66,989
|
64,294
|
133,639
|
131,084
|
Copper production
(Mlbs)
|
18.2
|
16.9
|
32.0
|
35.4
|
Rainy River Mine
Operational Highlights
Rainy River
Mine
|
Q2
2021
|
Q2
2020
|
H1
2021
|
H1
2020
|
Gold eq. production
(ounces)1
|
55,163
|
49,633
|
111,676
|
100,739
|
Gold eq. sold
(ounces)1
|
57,304
|
47,873
|
110,881
|
101,411
|
Gold production
(ounces)
|
52,901
|
48,800
|
107,557
|
99,181
|
Gold sold
(ounces)
|
55,062
|
47,064
|
106,857
|
99,846
|
Operating Key Performance Indicators
Rainy River Mine
(Open Pit Mine only)
|
Q2
2020
|
Q3
2020
|
Q4
2020
|
Q1
2021
|
Q2
2021
|
Tonnes mined per day
(ore and waste)
|
126,512
|
145,701
|
158,638
|
150,767
|
158,556
|
Ore tonnes mined per
day
|
23,101
|
36,515
|
42,918
|
35,681
|
36,256
|
Operating waste
tonnes per day
|
72,575
|
62,818
|
73,921
|
65,643
|
71,124
|
Capitalized waste
tonnes per day
|
30,836
|
46,368
|
41,799
|
49,442
|
51,176
|
Total waste tonnes
per day
|
103,411
|
109,186
|
115,720
|
115,085
|
122,300
|
Strip ratio
(waste:ore)
|
4.48
|
2.99
|
2.70
|
3.23
|
3.37
|
Tonnes milled per
calendar day
|
23,880
|
26,998
|
26,999
|
26,301
|
25,349
|
Gold grade milled
(g/t)
|
0.78
|
0.88
|
0.93
|
0.80
|
0.82
|
Gold recovery
(%)
|
89
|
89
|
90
|
89
|
87
|
Mill availability
(%)
|
90
|
90
|
94
|
89
|
88
|
Gold production
(ounces)
|
48,800
|
63,004
|
66,734
|
54,656
|
52,901
|
Gold eq. production
(ounces)1
|
49,633
|
64,221
|
68,241
|
56,513
|
55,163
|
- Second quarter gold eq.1 production was 55,163
ounces (52,901 ounces of gold and 162,879 ounces of silver). Lower
gold grades were expected during the first half of the year as
mining operations were focused on stripping to bring pit walls to
the final pit limit. During the second half of the year, grades are
expected to increase as the mine returns to higher-grade areas of
the pit. The 11% increase compared to the prior-year period is due
to higher tonnes processed and higher gold grades.
- The open pit mine achieved 158,556 tonnes per day, a 5%
increase over the prior quarter, and exceeding the 2021 target of
~151,000 tonnes per day. Approximately 3.3 million ore tonnes and
11.1 million waste tonnes (including 4.7 million capitalized waste
tonnes) were mined from the open pit at an average strip ratio of
3.37:1. As planned, during the second half of the year, the strip
ratio is expected to decrease.
- The mill processed 25,349 tonnes per day for the quarter, lower
than the prior period due to unplanned maintenance activities
performed at the mill during the quarter impacting mill
availability and operating time. The mill is expected to operate at
27,000 tonnes per day in the second half of the year. The mill
continued to process ore directly supplied by the open pit combined
with ore from the medium grade stockpile and processed an average
grade of 0.82 grams per tonne at a gold recovery of 87%. Mill
availability for the quarter averaged 88%.
- Rainy River is currently
on-track to meet the low end of the production guidance range.
- There are currently no active cases of COVID-19 at the Rainy
River Mine. Rainy River has
implemented measures to mitigate and limit the spread of COVID-19
to protect the well-being of its employees, contractors, their
families, local communities, and other stakeholders. For more
information see: http://newgold.com/covid-19/.
New Afton Mine
Operational Highlights
New Afton
Mine
|
Q2
2021
|
Q2
2020
|
H1
2021
|
H1
2020
|
Gold eq. production
(ounces)1
|
50,542
|
48,446
|
90,055
|
100,775
|
Gold eq. sold
(ounces)1
|
46,917
|
43,517
|
85,157
|
93,915
|
Gold production
(ounces)
|
14,088
|
15,494
|
26,082
|
31,903
|
Gold sold
(ounces)
|
13,122
|
13,789
|
24,866
|
29,780
|
Copper production
(Mlbs)
|
18.2
|
16.9
|
32.0
|
35.4
|
Copper sold
(Mlbs)
|
16.9
|
15.3
|
30.2
|
33.0
|
Operating Key Performance Indicators
New Afton
Mine
|
Q2
2020
|
Q3
2020
|
Q4
2020
|
Q1
2021
|
Q2
2021
|
Tonnes mined per day
(ore and waste)
|
15,358
|
17,249
|
17,259
|
11,395
|
15,104
|
Tonnes milled per
calendar day
|
14,240
|
15,483
|
15,358
|
13,564
|
13,795
|
Gold grade milled
(g/t)
|
0.46
|
0.44
|
0.46
|
0.39
|
0.43
|
Gold recovery
(%)
|
81
|
80
|
79
|
79
|
80
|
Gold production
(ounces)
|
15,494
|
15,955
|
16,362
|
11,994
|
14,088
|
Copper grade milled
(%)
|
0.72
|
0.71
|
0.73
|
0.64
|
0.79
|
Copper recovery
(%)
|
83
|
82
|
81
|
80
|
83
|
Copper production
(Mlbs)
|
16.9
|
18.2
|
18.5
|
13.8
|
18.2
|
Mill availability
(%)
|
92
|
98
|
99
|
96
|
98
|
Gold eq. production
(ounces)1
|
48,446
|
51,315
|
52,326
|
39,512
|
50,542
|
- Second quarter gold eq.1 production was 50,542
ounces (14,088 ounces of gold, and 18.2 million pounds of copper).
The increase compared to the prior-year period is due to higher
copper production as a result of higher copper grades.
- The underground mine averaged 15,104 tonnes per day for the
quarter, higher than the previous quarter, as the mine initiated a
safe and secure ramp up of Lift 1, including the West Cave, East
Cave and Pillar, to return to pre-incident mining rates.
- The mill averaged 13,795 tonnes per day, slightly below
prior-year period, but in-line with plan to optimize metal
recoveries while processing higher grade supergene ore. The mill
processed gold grades of 0.43 grams per tonne and higher than
expected copper grades of 0.79%, with gold and copper recoveries of
80% and 83%, respectively.
- B3 production commenced in June following receipt of the Mines
Act Permit on May 25, 2021 and will
advance through the second half of the year. With the permit being
received later than anticipated, ore extraction transitioning from
Lift 1 to B3, and with current metal prices significantly above
reserve pricing, New Afton is looking for ways to optimize its
current mine plan.
- C-Zone development advanced by approximately 919 metres and the
project remains on track.
- There are currently no active cases of COVID-19 at the New
Afton Mine. New Afton has implemented measures to mitigate and
limit the spread of COVID-19 to protect the well-being of its
employees, contractors, their families, local communities, and
other stakeholders. For more information see:
http://newgold.com/covid-19/.
Second Quarter 2021 Conference Call and Webcast
- The Company will release its second quarter 2021 financial
results before market on Wednesday, August
11, 2021. 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://produceredition.webcasts.com/starthere.jsp?ei=1479944&tp_key=e9367fef15
- 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
26663480.
- A recorded playback of the conference call will be available
until September 11, 2021, by calling
North American toll free 1-888-390-0541, or 1-416-764-8677 outside
of the U.S. and Canada, passcode
663480. 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 an 8% gold stream on the Artemis Gold Blackwater project
located in Canada, a 6% equity
stake in Artemis, and other Canadian-focused investments. The
Company also owns the Cerro San Pedro Mine in Mexico (in reclamation). New Gold's vision is
to build a leading diversified intermediate gold company based in
Canada that is committed to
environment and social responsibility. For further information on
the Company, visit www.newgold.com.
Endnotes
1. Total gold eq. ounces include silver
and copper produced/sold converted to a gold eq. based on a ratio
of $1,800 per gold ounce,
$25.00 per silver ounce and
$3.50 per copper pound used for 2021
guidance estimates. All copper is produced/sold by the New Afton
Mine. Gold eq. ounces for Rainy
River in Q2 2021 includes production of 162,879 ounces of
silver (161,472 ounces sold) converted to a gold eq. based on a
ratio of $1,800 per gold ounce and
$25.00 per silver ounce used for 2021
guidance estimates. Gold eq. ounces for New Afton in Q2 2021
includes 18.2 million pounds of copper produced (16.9 million
pounds sold) and 77,150 ounces of silver produced (67,888 ounces of
silver sold) converted to a gold eq. based on a ratio of
$1,800 per gold ounce, 3.50 per
copper pound and $25.00 per silver
ounce used for 2021 guidance estimates.
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 plans regarding the release its second quarter
2021 financial results and the timing and details of its conference
call and webcast relating thereto; the Company's expectations in
respect of stronger production and safe execution of the
extraction of the B3 zone in the second half of the year; the
planned mining of higher-grade areas of the Rainy River mine pit
and the expected increase in gold grades during the second half of
the year as a result thereof; the anticipated decrease in the strip
ratio at Rainy River during the
second half of the year; the expected daily operating capacity of
the mill in the second half of 2021; and the Company's planned
development of the C-Zone and advancement of B3 production through
the second half of the year.
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 management's discussion and
analysis ("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 other than
as set out herein; (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; (4) the exchange rate between the Canadian
dollar and U.S. dollar, and to a lesser extent, the Mexican Peso,
being approximately consistent with current levels; (5) prices for
diesel, natural gas, fuel oil, electricity and other key supplies
being approximately consistent with current levels; (6) equipment,
labour and materials costs increasing on a basis consistent with
New Gold's current expectations; (7) arrangements with First
Nations and other Aboriginal groups in respect of the New Afton
Mine and Rainy River 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; (9) there being no
significant disruptions to the Company's workforce at either the
Rainy River or New Afton Mine due to cases of COVID-19 or any
required self-isolation requirements (due, among other things, to
cross-border travel to the United
States or any other country); (10) the responses of the
relevant governments to the COVID-19 outbreak being sufficient to
contain the impact of the COVID-19 outbreak; (11) there being no
material disruption to the Company's supply chains and workforce
that would interfere with the Company's anticipated course of
action at the Rainy River Mine and the systematic ramp-up of
operations; and (12) the long-term economic effects of the COVID-19
outbreak not having a material adverse impact on the Company's
operations or liquidity position.
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: significant capital requirements and the availability
and management of capital resources; additional funding
requirements; price volatility in the spot and forward markets for
metals and other commodities; 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; volatility in the market
price of the Company's securities; hedging and investment related
risks; dependence on the Rainy River Mine and New Afton Mine;
discrepancies between actual and estimated production, between
actual and estimated mineral reserves and mineral resources and
between actual and estimated metallurgical recoveries; 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; risks related to
construction, including changing costs and timelines; adequate
infrastructure; fluctuation in treatment and refining charges;
changes in national and local government legislation in
Canada, the United States and, to a lesser extent,
Mexico or any other country in
which New Gold currently or may in the future carry on business;
global economic and financial conditions; risks relating to New
Gold's debt and liquidity; the adequacy of internal and disclosure
controls; taxation; impairment; conflicts of interest; risks
relating to climate change; controls, regulations and political or
economic developments in the countries in which New Gold does or
may carry on business; 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; the lack of
certainty with respect to foreign 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
uncertainties inherent to current and future legal challenges New
Gold is or may become a party to; risks relating to proposed
acquisitions and the integration thereof; information systems
security threats; diminishing quantities or grades of mineral
reserves and mineral resources; competition; loss of, or inability
to attract, key employees; rising costs of labour, supplies, fuel
and equipment; actual results of current exploration or reclamation
activities; uncertainties inherent to mining economic studies;
changes in project parameters as plans continue to be refined;
accidents; labour disputes; defective title to mineral claims or
property or contests over claims to mineral properties; unexpected
delays and costs inherent to consulting and accommodating rights of
Indigenous groups; risks, uncertainties and unanticipated delays
associated with obtaining and maintaining necessary licenses,
permits and authorizations and complying with permitting
requirements; 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 any required self-isolation (due to cross-border
travel, exposure to a case of COVID-19 or otherwise); the responses
of the relevant governments to the COVID-19 outbreak not being
sufficient to contain the impact of the COVID-19 outbreak;
disruptions to the Company's supply chain and workforce due to the
COVID-19 outbreak; an economic recession or downturn as a result of
the COVID-19 outbreak that materially adversely affects the
Company's operations or liquidity position; there being further
shutdowns at the Rainy River or New Afton Mines; the Company not
being able to complete its construction projects at the Rainy River
Mine or the New Afton Mines on the anticipated timeline or at all;
the Company not being able to complete the exploration drilling
program to be launched at the Rainy River Mine and Cherry Creek on the anticipated timeline or at
all; Artemis Gold Inc. not being able to make the remaining
C$50 million cash payment due in
connection with its acquisition of the Blackwater Project on
August 24, 2021. In addition, there
are risks and hazards associated with the business of mineral
exploration, development 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 contained in this news release has been reviewed and
approved by Eric Vinet, Senior Vice
President, Operations of New Gold. Mr. Vinet is a
Professional Engineer and member of the Ordre des ingénieurs du
Québec. He is a "Qualified Person" for the purposes of National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
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SOURCE New Gold Inc.