Provides Notice of Release of Fourth Quarter Financial
Results and 2022 Operational Outlook
(All amounts are in U.S. dollars unless otherwise
indicated)
TORONTO, Jan. 12, 2022 /CNW/ - New Gold Inc. ("New
Gold" or the "Company") (TSX: NGD) (NYSE American:
NGD) reports fourth quarter and annual operational
results for the Company as of December 31,
2021. The Company is also providing notice that it will
release its fourth quarter and full year 2021 financial results and
2022 operational outlook before markets open on Wednesday, February 23, 2022. A conference call
and webcast will follow at 8:30 am Eastern
Time (details are provided at the end of this news
release).
"2021 was not without its challenges for New Gold, but we
continued to execute on our plans, with the fourth quarter
representing our strongest quarter of the year, allowing us to meet
our updated consolidated gold equivalent production guidance",
stated Renaud Adams, President &
CEO. "Rainy River's fourth quarter
production was up 16% compared to the third quarter, representing
Rainy River's strongest quarter
over the last two years, despite a 3-day mill shutdown in December,
mainly driven by improved grade due to lower contribution from the
East Lobe. At New Afton, the team was able to execute on its plans
and achieved both gold and copper production guidance."
Fourth Quarter and Annual Highlights
- Total production for the fourth quarter was 111,574 gold
equivalent1 ("gold eq.") ounces consisting of 81,072
ounces of gold, 214,030 ounces of silver and 14.2 million pounds of
copper. For the year, production was 418,933 gold eq.1
ounces (guidance of 405,000 to 450,000 gold eq.1 ounces)
consisting of 286,921 ounces of gold (guidance of 287,000 to
312,000 ounces), 867,961 ounces of silver and 61.7 million pounds
of copper (guidance of 56 to 66 million pounds). The Company
achieved the updated consolidated gold equivalent guidance
range.
- The Rainy River Mine produced 70,500 gold eq.1
ounces for the quarter consisting of 68,356 ounces of gold and
154,364 ounces of silver. For the year, production was 242,961 gold
eq.1 ounces (guidance of 240,000 to 255,000 gold
eq.1 ounces) consisting of 234,469 ounces of gold
(guidance of 235,000 to 250,000 ounces) and 611,433 ounces of
silver. The Rainy River Mine achieved the low end of the updated
gold equivalent guidance range.
- The New Afton Mine produced 41,074 gold eq.1 ounces
for the quarter consisting of 12,716 ounces of gold and 14.2
million pounds of copper. For the year, production was 175,972 gold
eq.1 ounces (guidance of 165,000 to 195,000 gold
eq.1 ounces) consisting of 52,452 ounces of gold
(guidance of 52,000 to 62,000 ounces) and 61.7 million pounds of
copper (guidance of 56 to 66 million pounds). The New Afton Mine
achieved the gold equivalent guidance range.
Consolidated Operational Highlights
|
Q4
2021
|
FY
2021
|
2021
Guidance
|
Gold eq. production
(ounces)1
|
111,574
|
418,933
|
405,000 -
450,000
|
Gold production
(ounces)
|
81,072
|
286,921
|
287,000 -
312,000
|
Copper production
(Mlbs)
|
14.2
|
61.7
|
56 - 66
|
Rainy River Mine
Operational Highlights
Rainy River
Mine
|
Q4
2021
|
FY
2021
|
2021
Guidance
|
Gold eq. production
(ounces)1
|
70,500
|
242,961
|
240,000 -
255,000
|
Gold eq. sold
(ounces)1
|
68,380
|
237,061
|
-
|
Gold production
(ounces)
|
68,356
|
234,469
|
235,000 -
250,000
|
Gold sold
(ounces)
|
66,239
|
228,693
|
-
|
Operating Key Performance Indicators
Rainy River Mine
(Open Pit Mine only)
|
Q1
2021
|
Q2
2021
|
Q3
2021
|
Q4
2021
|
Tonnes mined per day
(ore and waste)
|
150,767
|
158,556
|
149,630
|
129,775
|
Ore tonnes mined per
day
|
35,681
|
36,256
|
52,917
|
33,885
|
Operating waste
tonnes per day
|
65,643
|
71,124
|
88,216
|
62,348
|
Capitalized waste
tonnes per day
|
49,442
|
51,176
|
8,497
|
33,542
|
Total waste tonnes
per day
|
115,085
|
122,300
|
96,713
|
95,890
|
Strip ratio
(waste:ore)
|
3.23
|
3.37
|
1.83
|
2.83
|
Tonnes milled per
calendar day
|
26,301
|
25,349
|
25,245
|
24,492
|
Gold grade milled
(g/t)
|
0.80
|
0.82
|
0.89
|
1.03
|
Gold recovery
(%)
|
89
|
87
|
89
|
92
|
Mill availability
(%)
|
89
|
88
|
91
|
94
|
Gold production
(ounces)
|
54,656
|
52,901
|
58,557
|
68,356
|
Gold eq. production
(ounces)1
|
56,513
|
55,163
|
60,785
|
70,500
|
New Afton Mine
Operational Highlights
New Afton
Mine
|
Q4
2021
|
FY
2021
|
2021
Guidance
|
Gold eq. production
(ounces)1
|
41,074
|
175,972
|
165,000 -
195,000
|
Gold eq. sold
(ounces)1
|
40,835
|
165,387
|
-
|
Gold production
(ounces)
|
12,716
|
52,452
|
52,000 -
62,000
|
Gold sold
(ounces)
|
12,507
|
48,758
|
-
|
Copper production
(Mlbs)
|
14.2
|
61.7
|
56 - 66
|
Copper sold
(Mlbs)
|
14.2
|
58.4
|
-
|
Operating Key Performance Indicators
New Afton
Mine
|
Q1
2021
|
Q2
2021
|
Q3
2021
|
Q4
2021
|
Tonnes mined per day
(ore and waste)
|
11,395
|
15,104
|
12,861
|
13,705
|
Tonnes milled per
calendar day
|
13,564
|
13,795
|
13,068
|
13,125
|
Gold grade milled
(g/t)
|
0.39
|
0.43
|
0.43
|
0.41
|
Gold recovery
(%)
|
79
|
80
|
83
|
81
|
Gold production
(ounces)
|
11,994
|
14,088
|
13,653
|
12,716
|
Copper grade milled
(%)
|
0.64
|
0.79
|
0.72
|
0.67
|
Copper recovery
(%)
|
80
|
83
|
82
|
80
|
Copper production
(Mlbs)
|
13.8
|
18.2
|
15.6
|
14.2
|
Mill availability
(%)
|
96
|
98
|
98
|
97
|
Gold eq. production
(ounces)1
|
39,512
|
50,542
|
44,843
|
41,074
|
Fourth Quarter 2021 Conference Call and Webcast
The Company will release its fourth quarter and full year 2021
financial results and 2022 operational outlook before markets open
on Wednesday, February 23, 2022. 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=1521870&tp_key=6fecc53dc8
- 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
70681110.
- A recorded playback of the conference call will be available
until March 23, 2022 by calling North
American toll free 1-888-390-0541, or 1-416-764-8677 outside of the
U.S. and Canada, passcode 681110.
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 a 5% equity stake in Artemis Gold Inc. and other
Canadian-focused investments. 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
- 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 Q4
2021 includes production of 154,364 ounces of silver (154,144
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 Q4 2021
includes 14.2 million pounds of copper produced (14.2 million
pounds sold) and 59,666 ounces of silver produced 55,938 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 anticipated timing with respect to the release of its
fourth quarter and full year 2021 financial results and 2022
operational outlook and the associated conference call and
webcast.
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 news 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)
all required permits, licenses and authorizations being obtained
from the relevant governments and other relevant stakeholders
within the expected timelines; (4) 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); and (5) 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;
and 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. 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.