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New Gold Reports Fourth Quarter and Full Year 2023 Results

Press Release

TORONTO, Feb. 13, 2024 – New Gold Inc. (“New Gold” or the “Company”) (TSX: NGD) (NYSE American: NGD) reports fourth quarter and full year 2023 results. Full year 2023 production totaled 423,517 gold equivalent1 (“gold eq.”) ounces at all-in sustaining costs2 of $1,545 per gold eq. ounce, achieving the top end of the Company’s 2023 gold equivalent production guidance range. Another solid quarterly performance delivered strong cash flow from operations of $71 million and positive free cash flow, while still investing in and advancing growth projects that are expected to significantly increase production in the coming years.

Focus on Operational Excellence Leads to Achieving 2023 Production and Cost Guidance Ranges

“2023 was a successful year for New Gold. We executed on our key priority of stabilizing our operations and delivered consistent results throughout the year,” stated Patrick Godin, President and CEO. “As a result, New Gold achieved the top end of its 2023 gold equivalent production guidance, and the midpoint of all-in sustaining cost guidance set out at the start of 2023. The Company was able to once again demonstrate the free cash flow generation potential in the fourth quarter, despite the capital investment in our projects.”

  • 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) at all-in sustaining costs2 of $1,575 per gold eq. ounce.
  • Full year 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.
  • Full year consolidated all-in sustaining costs2 of $1,545 per gold eq. ounce achieved the midpoint of 2023 consolidated cost guidance.
  • During the fourth quarter, the Company generated positive free cash flow2 of $1 million after investing over $61 million in advancing growth projects. Rainy River had another excellent quarter generating $24 million in free cash flow2, net of $24 million in capital expenditures and $7 million in stream payments.

2024 an Inflection Point as Growth Projects Set for Completion, Company Expected to Enter Prolonged Free Cash Flow Generation Period in the Second Half of the Year

“Last week we outlined our Operational Outlook for the next three years highlighting an approximately 35% increase in gold production and approximately 60% increase in copper production by 2026. As we work towards completing our growth projects this year, the reduction in operating costs and capital expenditures should see consistent free cash flow generation commencing in the second half of this year. This free cash flow growth is expected to increase over the next three years in-line with our increasing production profiles. We have reached the free cash flow inflection point, and I look forward to sharing progress throughout the year,” added Mr. Godin.

  • 2024 consolidated gold production is expected to be 310,000 to 350,000 ounces, compared to 321,178 in 2023. Production is expected to strengthen in the second half of the year, with the second half of 2024 expected to represent approximately 60% of annual production as waste stripping at Rainy River is sequenced in the first half of the year. 2024 copper production is expected to be 50 to 60 million pounds, approximately 16% higher than 2023 driven by increased contribution from C-Zone at New Afton.
  • 2024 total capital is expected to be $290 to $330 million, as growth projects at both operations are completed in the year. Commercial production at C-Zone remains on-track for the second half of 2024, along with commissioning of the underground crusher and conveyor. Initial production from Rainy River’s underground Main Zone remains on-track for the fourth quarter of 2024.
  • 2024 is expected to be the final year of significant capital spending, as the Company starts to realize the benefits of these expenditures. As a result, consolidated gold production is expected to increase by approximately 35% over 2023 to 410,000 to 460,000 ounces in 2026. Copper production is expected to increase by approximately 60% compared to 2023 to 71 to 81 million pounds in 2026. All-in sustaining costs (on a by-product basis)2 are expected to decrease by over 50% compared to 2023 to between $650 and $750 per ounce in 2026.
  • The higher production, lower total cash costs, and lower capital spend over the next three years are expected to drive significant free cash flow for the Company.

Consolidated Financial Highlights

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