New Gold Reports 2023 Second Quarter Results

Press Release

TORONTO, July 26, 2023 – New Gold Inc. (“New Gold” or the “Company”) (TSX: NGD) (NYSE American: NGD) reports second quarter results for the Company as of June 30, 2023. The Company will host a conference call and webcast tomorrow, July 27, 2023 at 8:30 am Eastern Time to discuss the second quarter consolidated results (details are provided at the end of this news release). For detailed information, please refer to the Company’s Management’s Discussion and Analysis (“MD&A”) and financial statements for the quarter ended June 30, 2023 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 and the MD&A for more information. Numbered note references throughout this news release are to endnotes which can be found at the end of this news release.

Consolidated Second Quarter Highlights

Gold equivalent¹ (“gold eq.”) production for the quarter of 102,374 ounces (76,527 ounces of gold, 12.0 million pounds of copper and 152,208 ounces of silver)
Operating expenses of $1,090 per gold eq. ounce
All-in sustaining costs²of $1,657 per gold eq. ounce, including total cash costs² of $1,129 per gold eq. ounce
Average realized gold price² of $1,970 per ounce and average realized copper price² of $3.82 per pound
Cash generated from operations of $56 million, or $0.08 per share
Cash generated from operations, before changes in non-cash operating working capital² of $65 million, or $0.10 per share
Net loss of $3 million, or $0.00 per share
Adjusted net earnings² of $12 million, or $0.02 per share
Cash and cash equivalents of $174 million as at June 30, 2023
During the quarter, the Company published its 2022 Environmental, Social and Governance Report (refer to the Company’s June 19, 2023 news release for further information)

“New Gold carried the momentum from a strong start to the year and delivered another excellent quarter,” stated Patrick Godin, President & CEO. “We delivered a 45% increase in gold equivalent production with lower all-in sustaining costs, significantly increasing our margins over the prior-year period, accomplishing our goals safely. I am also proud that during the second quarter, the New Afton Mine received the J.T Ryan Safety Award for British Columbia and Yukon and British Columbia’s Safest Large Underground Mine Award. We will continue to build on these positive results as we look to the second half of the year, and we remain well positioned to meet our guidance ranges set out earlier in the year.”

“Looking beyond 2023, we continued to make progress advancing our growth initiatives. During the quarter, underground development at Rainy River continued, with development of the ramp access to the underground Main Zone advancing 98 metres. Following detailed internal optimization studies, I am excited to share that access to the underground Main Zone commenced from the Intrepid Zone, providing the mine with a number of efficiencies over the previous plan. C-Zone development at New Afton continued well in the quarter, advancing 1,415 metres. Our development rate increased substantially over the first quarter, and I remain confident in our ability to achieve first production ore during the fourth quarter, with commercial production planned for the second half of 2024,” added Mr. Godin.

Consolidated Financial Highlights

	Q2 2023	Q2 2022	H1 2023	H1 2022
Revenue ($M)	184.4	115.7	386.0	290.4
Operating expenses ($M)	104.9	79.8	222.1	175.0
Net (loss) earnings ($M)	(2.6)	(37.9)	(34.4)	(45.7)
Net (loss) earnings, per share ($)	(0.00)	(0.06)	(0.05)	(0.07)
Adj. net earnings ($M)²	11.6	(16.7)	30.0	(6.4)
Adj. net earnings, per share ($)²	0.02	(0.02)	0.04	(0.01)
Cash generated from operations ($M)	56.4	37.4	117.0	105.2
Cash generated from operations, per share ($)	0.08	0.05	0.17	0.15
Cash generated from operations, before changes in non-cash operating working capital ($M)²	65.2	27.4	140.9	93.8
Cash generated from operations, before changes in non-cash operating working capital, per share ($)²	0.10	0.04	0.21	0.14

Revenue increased over the prior-year periods due to higher gold prices and higher gold and copper sales volumes, partially offset by lower copper prices.
Operating expenses increased over the prior-year periods primarily due to higher production and sales at both sites.
Net loss decreased over the prior-year periods primarily due to higher revenues, lower finance costs, and a smaller loss on the revaluation of investments, partially offset by higher operating expenses, and depreciation and depletion.
Adjusted net earnings² increased over the prior-year periods due to higher revenues and lower finance costs, partially offset by higher operating expenses, and depreciation and depletion.
Cash generated from operations increased over the prior-year periods due to higher revenue, partially offset by negative working capital movements.

Consolidated Operational Highlights

	Q2 2023	Q2 2022	H1 2023	H1 2022
Gold eq. production (ounces)¹	102,374	70,514	207,231	158,210
Gold eq. sold (ounces)¹	96,184	62,509	204,116	155,045
Gold production (ounces)	76,527	52,431	159,004	120,532
Gold sold (ounces)	74,219	51,263	161,426	121,825
Copper production (Mlbs)	12.0	7.4	22.3	15.6
Copper sold (MIbs)	10.1	4.4	19.5	13.6
Gold revenue, per ounce ($)	1,948	1,870	1,903	1,876
Copper revenue, per pound ($)	3.61	3.97	3.70	4.17
Average realized gold price, per ounce ($)²	1,970	1,879	1,927	1,889
Average realized copper price, per pound ($)²	3.82	4.14	3.96	4.41
Operating expenses, per gold eq. ounce ($)	1,090	1,277	1,088	1,129
Total cash costs, per gold eq. ounce ($)²	1,129	1,296	1,132	1,161
Depreciation and depletion, per gold eq. ounce ($)	566	628	538	569
All-in sustaining costs, per gold eq. ounce ($)²	1,657	2,373	1,566	2,018
Sustaining capital ($M)²	35.6	57.2	61.9	109.8
Growth capital ($M)²	36.0	18.9	72.8	41.8
Total capital ($M)	71.6	76.1	134.7	151.6