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New Gold Achieves Top End of Consolidated Production Guidance

Press Release

TORONTO, Jan. 9, 2024  – New Gold Inc. (“New Gold” or the “Company”) (TSX: NGD) (NYSE American: NGD) reports fourth quarter and full year operational results for the Company as of December 31, 2023. The Company is also providing notice that it will release its fourth quarter and full year 2023 financial results after market close on Tuesday, February 13, 2024. The Company will host its fourth quarter and full year 2023 earnings conference call and webcast on Wednesday, February 14, 2024 at 8:30 am Eastern Time.

Continued Strong Quarterly Operational Performance Leads to New Gold Achieving the Top End of 2023 Consolidated Production Guidance

“Our strong fourth quarter production results mark our sixth consecutive quarter of delivering to our plan, with a 7% increase in gold equivalent production over the prior-year period,” stated Patrick Godin, President & CEO. “As a result, New Gold achieved the top end of its 2023 gold equivalent production guidance set at the start of 2023.”

  • Fourth quarter consolidated gold eq.1 production of 105,082 ounces (79,187 ounces of gold, 12.0 million pounds of copper and 157,788 ounces of silver), a 7% increase over the prior-year period.
  • Another excellent quarter from New Afton as a result of higher tonnes processed, higher gold and copper grades and higher recovery rates. B3 extraction rates continue to exceed plan. For the year, gold production exceeded 2023 guidance, with copper production achieving the top end.
  • Rainy River continues to deliver stable production quarter-over-quarter. Both the open pit and underground mines delivered in the quarter, aided by another strong performance from the processing plant. Gold production achieved the top end of 2023 guidance.
  • As a result of the strong fourth quarter operating results, 2023 consolidated gold eq.1 production was 423,517 ounces (321,178 ounces of gold, 47.4 million pounds of copper and 593,146 ounces of silver), achieving the top end of 2023 consolidated production guidance.
Entering Final Year of Growth Project Execution, Near-Term Significant Free Cash Flow Thesis Remains Intact

“Both operations exit 2023 performing well and having made excellent progress on growth initiatives. I expect 2024 to be transformational for our Company and position us well to increase production at decreasing costs and significantly less capital spend, allowing us to maximize our free cash flow generation in the years to come,” added Mr. Godin.

  • At Rainy River, Phase 4 of the open pit is underway, with overburden removal complete and waste stripping well advanced. Phase 4 waste stripping activities are expected to significantly decrease after 2024. Rainy River’s underground Main Zone remains on-track for first production in the fourth quarter of 2024 and is expected to ramp-up production throughout 2025.
  • At New Afton, C-Zone production commenced at the end of September 2023 with the first draw bell blast. Commercial production remains on-track for H2/2024, ramping up to full production by the end of 2025.
  • The Company’s near-term free cash flow thesis remains intact. Capital spending is expected to taper off significantly upon completion of growth projects and a significant reduction in open pit waste stripping at Rainy River after 2024. Together with increasing production profiles at both operations and decreasing costs, free cash flow is expected to increase significantly in the coming years.
  • The Company will provide additional details with the release of its inaugural three-year operational outlook in early-February.
Operational Highlights

Consolidated

Q4 2023

FY 2023

2023 Guidance

Gold eq. production (ounces)1

105,082

423,517

365,000 – 425,000

Gold eq. sold (ounces)1

103,504

415,181

Gold production (ounces)

79,187

321,178

280,000 – 320,000

Gold sold (ounces)

77,870

319,116

Copper production (Mlbs)

12.0

47.4

38 – 48

Copper sold (Mlbs)

11.9

44.4

Rainy River Mine

Q4 2023

FY 2023

2023 Guidance

Gold eq. production (ounces)1

64,290

259,679

235,000 – 265,000

Gold eq. sold (ounces)1

62,650

260,897

Gold production (ounces)

62,692

253,745

230,000 – 260,000

Gold sold (ounces)

61,086

254,932

New Afton Mine

Q4 2023

FY 2023

2023 Guidance

Gold eq. production (ounces)1

40,792

163,838

130,000 – 160,000

Gold eq. sold (ounces)1

40,853

154,284

Gold production (ounces)

16,495

67,433

50,000 – 60,000

Gold sold (ounces)

16,784

64,185

Copper production (Mlbs)

12.0

47.4

38 – 48

Copper sold (Mlbs)

11.9

44.4

Operating Key Performance Indicators

Rainy River Mine

Q4 2023

Q4 2022

FY 2023

FY 2022

Open Pit Only

Tonnes mined per day (ore and waste)

109,895

110,536

119,948

112,826

Ore tonnes mined per day

29,377

34,667

34,007

22,965

Operating waste tonnes per day

47,838

56,547

53,537

39,017

Capitalized waste tonnes per day

32,681

19,323

32,404

50,843

Total waste tonnes per day

80,519

75,870

85,942

89,860

Strip ratio (waste:ore)

2.74

2.19

2.53

3.91

Open Pit and Underground

Tonnes milled per calendar day

25,046

22,225

24,012

23,568

Gold grade milled (g/t)

0.94

1.16

0.99

0.91

Gold recovery (%)

90

92

91

91

Gold eq. production (ounces)1

64,290

71,221

259,679

235,194

Gold production (ounces)

62,692

69,753

253,745

229,822

New Afton Mine

Q4 2023

Q4 2022

FY 2023

FY 2022

New Afton Mine Only

Tonnes mined per day (ore and waste)

9,933

7,978

9,771

7,003

Tonnes milled per calendar day

8,181

6,9382

8,289

9,1052

Gold grade milled (g/t)

0.73

0.622

0.72

0.472

Gold recovery (%)

90

862

90

842

Copper grade milled (%)

0.79

0.57

0.77

0.51

Copper recovery (%)

91

87

91

83

Gold eq. production (ounces)1

40,239

25,018

159,042

108,097

Gold production (ounces)

15,942

9,356

62,637

37,788

Copper production (Mlbs)

12.0

6.9

47.4

31.1

Ore Purchase Agreements

Gold production (ounces)

553

1,585

4,796

3,763

New Afton Mine Total

Gold eq. production (ounces)1

40,792

26,603

163,838

111,860

Gold production (ounces)

16,495

10,941

67,433

41,551

Copper production (Mlbs)

12.0

6.9

47.4

31.1

Fourth Quarter and Full Year 2023 Conference Call and Webcast

The Company will release its fourth quarter and full year 2023 financial results after market close on Tuesday, February 13, 2024. A conference call and webcast will be hosted on Wednesday, February 14, 2024 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/QKynzVelmWD
  • 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 03373344.
  • To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3RAcXl4 to receive an instant automated call back.
  • A recorded playback of the conference call will be available until March 14, 2024 by calling North American toll free 1-888-390-0541, or 1-416-764-8677 outside of the U.S. and Canada, passcode 373344. 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 other Canadian-focused investments. New Gold’s vision is to build a leading diversified intermediate gold company based in Canada that is committed to the environment and social responsibility. 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 equivalent. All copper is produced/sold by the New Afton Mine. Gold eq. ounces for Rainy River in Q4 2023 includes production of 127,138 ounces of silver (124,421 ounces of silver sold) converted to a gold eq. based on a ratio of $1,750 per gold ounce and $22.00 per silver ounce used for 2023 guidance estimates. Gold eq. ounces for New Afton in Q4 2023 includes 12.0 million pounds of copper produced (11.9 million pounds sold) and 30,651 ounces of silver produced (28,838 ounces of silver sold) converted to a gold eq. based on a ratio of $1,750 per gold ounce, $3.50 per copper pound and $22.00 per silver ounce used for 2023 guidance estimates.

2.

Key performance indicator data is inclusive of gold 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 3% of total gold ounces produced at New Afton during the quarter, using New Afton’s excess mill capacity. All other ounces are mined and produced at New Afton.

IBF4

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