New Gold Reports First Quarter Financial Results
TORONTO– New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) reports first quarter results for the Company as of March 31, 2019. (All amounts are in U.S. dollars unless otherwise indicated)
A conference call and webcast will follow to discuss these results at 8:30 a.m. Eastern time (details are provided at the end of this press release).
(For detailed information, please refer to the Company’s First Quarter Management’s Discussion and Analysis (MD&A) 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 press release. Please refer to the “Non-GAAP Financial Performance Measures” section of this press release and in the MD&A.)
First Quarter Highlights
Highlights for the first quarter include:
- Total production of 123,263 gold equivalent (eq.) ounces (79,398 ounces of gold, 136,513 ounces of silver and 19.5 million pounds of copper) at average realized gold and copper prices1 of $1,301 per ounce and $2.79 per pound, respectively. Production is on track to meet annual guidance of 465,000 to 520,000 gold equivalent ounces.
- Revenues of $167.9 million.
- Operating expense of $645 per gold eq. ounce, on track to meet annual guidance of $690 to $790.
- All-in sustaining costs (AISC)1 of $1,083 per gold eq. ounce, on track to meet annual guidance of $1,330 to $1,430.
- Net loss from continuing operations of $13.4 million ($0.02 per share).
- Adjusted net loss1 from continuing operations, which excludes other gains and losses, was $1.8 million ($0.00 per share).
- Operating cash flow generated from continuing operations of $74.3 million ($0.13 per share). Operating cash flow generated from continuing operations, before changes in non-cash operating working capital1, was $71.1 million ($0.12 per share).
“We are encouraged by the progress made at Rainy River during the first quarter as we re-position the operation for efficient and sustainable mining. Over the course of the year, we expect to drive further efficiencies throughout the operation with the objective of delivering free cash flow starting in late 2020,” stated Renaud Adams, CEO. “The New Afton Mine reported another strong quarter of operating results as the team further advanced the development of the C-zone. We are particularly encouraged with the organic growth potential of the D-zone with the first hole of the exploration drilling program intersecting 140 metres of mineralization located 360 metres below the C-zone and a second hole is currently underway.”
Financial Highlights (Continuing Operations 1 )
| First Quarter 2019 | First Quarter 2018 | ||||
| Revenues from mining operations | 167.9 | 147.5 | |||
| Net earnings (loss), per share | (0.02) | (0.05) | |||
| Adj. net earnings (loss)2 per share | (0.00) | (0.03) | |||
| Operating cash flow, per share | 0.13 | 0.07 | |||
| Adj. operating cash flow2, per share | 0.12 | 0.09 | |||
| 1. Continuing operations include the Rainy River, New Afton and Cerro San Pedro Mines.
2. Refer to the “Non-GAAP Performance Measures” section of this press release. |
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1. Refer to the “Non-GAAP Performance Measures section of this press release.
- Revenues for the quarter from continuing operations were $167.9 million, an increase over the prior-year quarter due to an increase in gold ounces sold, offset by a decrease in average realized prices.
- Net loss for the quarter was $13.4 million, or $0.02 per share, and adjusted net loss was $1.8 million, or $0.00 per share, which improved over the prior-year quarter due to the increase in revenue.
- The March 31, 2019 cash balance was $132.3 million.
IBF4
