New Gold Reports Third Quarter Operational Results


Provides Notice of Release of Third Quarter Financial Results

(All amounts are in U.S. dollars unless otherwise indicated)

New Gold Inc. Logo (CNW Group/New Gold Inc.)
New Gold Inc. Logo (CNW Group/New Gold Inc.)

TORONTO, Oct. 13, 2021 /PRNewswire/ – New Gold Inc. (“New Gold” or the “Company”) (TSX: NGD) (NYSE American: NGD) reports third quarter operational results for the Company as of September 30, 2021. The Company is also providing notice that it will release its third quarter 2021 financial results before market on Friday, November 12, 2021. A conference call and webcast will follow at 8:30 am Eastern Time (details are provided at the end of this news release).

The third quarter had its challenges, particularly as Rainy River addressed the grade reconciliation issues experienced in July and August”, stated Renaud Adams, President & CEO. “Rainy River’s third quarter gold grade was up 10% compared to the first half, and with lower contribution expected from the East Lobe in the fourth quarter compared to the third quarter, we should see a step-up in production and a stronger finish to the year at Rainy River.”

“We remain on track to deliver on our updated guidance, and we continue to make progress towards securing the Company’s future growth at both assets. Our liquidity position improved for a third consecutive quarter, and I continue to expect meaningful free cash flow generation from our operations in the near-term,” added Mr. Adams.

Third Quarter Highlights

  • Total production was 105,628 gold equivalent1 (“gold eq.”) ounces (72,210 ounces of gold, 226,679 ounces of silver and 15.6 million pounds of copper)
  • The Rainy River Mine produced 60,785 gold eq.1 ounces (58,557 ounces of gold and 160,461 ounces of silver)
  • The New Afton Mine produced 44,843 gold eq.1 ounces (13,653 ounces of gold and 15.6 million pounds of copper)
  • During the quarter, the Company provided an update to its 2021 operational outlook for the Rainy River Mine and the consolidated operational outlook (refer to the Company’s September 13, 2021 news release for further information)
  • On August 23, the Company received the final C$50 million cash payment from Artemis Gold Inc. as part of the divestment of the Blackwater Project
  • At the end of the quarter, the Company had a cash position of $151 million and a strong liquidity position of $477 million

Consolidated Operational Highlights

Q3 2021

Q3 2020

9M 2021

9M 2020

Gold eq. production (ounces)1

105,628

115,536

307,359

317,050

Gold production (ounces)

72,210

78,959

205,849

210,043

Copper production (Mlbs)

15.6

18.2

47.5

53.6

Rainy River Mine

Operational Highlights

Rainy River Mine

Q3 2021

Q3 2020

9M 2021

9M 2020

Gold eq. production (ounces)1

60,785

64,221

172,462

164,960

Gold eq. sold (ounces)1

57,800

61,726

168,682

163,137

Gold production (ounces)

58,557

63,004

166,113

162,185

Gold sold (ounces)

55,597

60,592

162,454

160,438

Operating Key Performance Indicators

Rainy River Mine (Open Pit Mine only)

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Tonnes mined per day (ore and waste)

145,701

158,638

150,767

158,556

149,630

Ore tonnes mined per day

36,515

42,918

35,681

36,256

52,917

Operating waste tonnes per day

62,818

73,921

65,643

71,124

88,216

Capitalized waste tonnes per day

46,368

41,799

49,442

51,176

8,497

Total waste tonnes per day

109,186

115,720

115,085

122,300

96,713

Strip ratio (waste:ore)

2.99

2.70

3.23

3.37

1.83

Tonnes milled per calendar day

26,998

26,999

26,301

25,349

25,245

Gold grade milled (g/t)

0.88

0.93

0.80

0.82

0.89

Gold recovery (%)

89

90

89

87

89

Mill availability (%)

90

94

89

88

91

Gold production (ounces)

63,004

66,734

54,656

52,901

58,557

Gold eq. production (ounces)1

64,221

68,241

56,513

55,163

60,785

  • Third quarter gold eq.1 production was 60,785 ounces (58,557 ounces of gold and 160,461 ounces of silver), a decrease compared to the prior-year period due to lower tonnes milled.
  • The open pit mine achieved 149,630 tonnes per day during the quarter, in-line with the 2021 overall target of ~151,000 tonnes per day. Approximately 4.9 million ore tonnes and 8.9 million waste tonnes (including 0.8 million capitalized waste tonnes) were mined from the open pit at an average reduced strip ratio of 1.83:1. As planned, the strip ratio is expected to remain approximately 2:1 for the remainder of the year to achieve the original 2021 guidance of 2.7:1.
  • The mill processed 25,245 tonnes per day for the quarter, a decrease compared to the prior-year period due to maintenance activities performed on the gyratory crusher impacting mill throughput. The mill processed an average grade of 0.89 grams per tonne at a gold recovery of 89%. Mill availability for the quarter averaged 91%.
  • The East Lobe represents approximately 25% of planned production for the fourth quarter. During the fourth quarter, mining will focus on the ODM Center and ODM North zones and the gold grade is expected to increase in the quarter.
  • Rainy River remains on-track to meet its updated gold eq.1 production guidance range of 240,000 to 255,000 ounces and all-in sustaining cost2 guidance range of $1,365 to $1,440 per gold eq. ounce.
  • There are currently no active cases of COVID-19 at the Rainy River Mine. Rainy River has implemented measures to mitigate and limit the spread of COVID-19 to protect the well-being of its employees, contractors, their families, local communities, and other stakeholders. For more information see: http://newgold.com/covid-19/.

New Afton Mine

Operational Highlights

New Afton Mine

Q3 2021

Q3 2020

9M 2021

9M 2020

Gold eq. production (ounces)1

44,843

51,315

134,898

152,090

Gold eq. sold (ounces)1

39,395

49,179

124,553

143,094

Gold production (ounces)

13,653

15,955

39,735

47,858

Gold sold (ounces)

11,385

15,168

36,251

44,948

Copper production (Mlbs)

15.6

18.2

47.5

53.6

Copper sold (Mlbs)

14.0

17.5

44.2

50.5

Operating Key Performance Indicators

New Afton Mine

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Tonnes mined per day (ore and waste)

17,249

17,259

11,395

15,104

12,861

Tonnes milled per calendar day

15,483

15,358

13,564

13,795

13,068

Gold grade milled (g/t)

0.44

0.46

0.39

0.43

0.43

Gold recovery (%)

80

79

79

80

83

Gold production (ounces)

15,955

16,362

11,994

14,088

13,653

Copper grade milled (%)

0.71

0.73

0.64

0.79

0.72

Copper recovery (%)

82

81

80

83

82

Copper production (Mlbs)

18.2

18.5

13.8

18.2

15.6

Mill availability (%)

98

99

96

98

98

Gold eq. production (ounces)1

51,315

52,326

39,512

50,542

44,843

  • Third quarter gold eq.1 production was 44,843 ounces (13,653 ounces of gold, and 15.6 million pounds of copper), a decrease compared to the prior-year period primarily due to lower tonnes milled.
  • The underground mine averaged 12,861 tonnes per day during the quarter as the mine focused on drawpoint rehabilitation activities and the progressive ramp-up of the B3 zone. The mining rate is expected to increase as more drawpoints become available and as the B3 zone continues to ramp-up.
  • The mill averaged 13,068 tonnes per day, below the prior-year period, but in-line with mining rates and the plan to optimize metal recoveries while processing higher grade supergene ore. The mill processed gold grades of 0.43 grams per tonne and copper grades of 0.72%, with gold and copper recoveries of 83% and 82%, respectively.
  • C-Zone development advanced by approximately 790 metres and the project remains on track.
  • New Afton remains on track to meet its gold eq.1 production guidance range of 165,000 to 195,000 ounces and all-in sustaining costs2 are expected to be at the higher end of the cost range of $1,225 to $1,325 per gold eq. ounce.
  • There are currently no active cases of COVID-19 at the New Afton Mine. New Afton has implemented measures to mitigate and limit the spread of COVID-19 to protect the well-being of its employees, contractors, their families, local communities, and other stakeholders. For more information see: http://newgold.com/covid-19/.

Third Quarter 2021 Conference Call and Webcast

The Company will release its third quarter 2021 financial results before market on Friday, November 12, 2021. A conference call and webcast will follow at 8:30 am Eastern Time.



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