New Gold Announces 2018 Third Quarter Results
Press Release
TORONTO, Oct. 24, 2018 – New Gold Inc. (“New Gold” or the “Company”) (TSX:NGD) (NYSE American:NGD) today announces its 2018 third quarter results. Unless otherwise noted, all operating and financial results have been presented on a continuing basis and exclude the Mesquite Mine and Peak Mines, which have been classified as discontinued operations.
( For detailed information, please refer to the Company’s Third Quarter Management’s Discussion and Analysis and Financial Statements that are available on the Company’s website at www.newgold.com and on SEDAR at www.sedar.com. The Company uses certain non-GAAP financial performance measures throughout this news release. Please refer to the “Non-GAAP Financial Performance Measures” section of this news release.)
2018 Third Quarter Highlights
- Appointed Mr. Renaud Adams as President and CEO effective September 12, 2018
- Appointed Mr. James Gowans to the Board of Directors effective July 8, 2018
- Announced the sale of the Mesquite Mine for gross proceeds of $158 million, subject to closing adjustments, expected to close during the fourth quarter
- Gold production from total operations of 114,025 ounces and copper production of 21.7 million pounds
- Operating expense from continuing operations of $644 per gold ounce and $1.57 per copper pound
- All-in sustaining costs from total operations(1) of $966 per ounce, including total cash costs(2) of $424 per ounce
- Revenues of $147 million from continuing operations
- Operating cash flows of $51 million, or $0.09 per share
- Operating cash flows before changes in non-cash operating working capital of $83 million, or $0.14 per share
- Loss from continuing operations of $2 million, or $0.00 per share
- Net loss of $166 million, or $0.29 per share, including an impairment loss, net of tax of $162 million, relating to the sale of the Mesquite Mine
- September 30, 2018 total liquidity of $253 million, including cash and cash equivalents of $129 million, prior to the receipt of Mesquite sale proceeds
“The third quarter included many positive changes for New Gold that will help reposition the Company as a leading, Canadian-focused intermediate gold producer. We strengthened the technical experience of the Board and senior executive team and announced the sale of the Mesquite Mine, which improves our cash position, secures the liquidity to complete the ramp-up of Rainy River, and allows us to focus exclusively on our two producing assets, Rainy River and New Afton, and unlocking value for our Blackwater project,” stated Renaud Adams, President and Chief Executive Officer. “The fourth quarter will be a pivotal quarter for New Gold as we advance a short-term operational plan at Rainy River to reposition this core operation for long-term success. We are confident that additional productivity improvements will be realized during the fourth quarter. Our New Afton Mine continues to deliver solid and consistent results, and we are currently evaluating alternative scenarios to advance the development of the C-zone beginning in early 2019. We will launch exploration programs at both assets as we seek to achieve organic growth opportunities by expanding our resource base.”
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