Provides Notice of Release of Second Quarter Financial
Results
(All amounts are in U.S. dollars unless otherwise
indicated)
TORONTO, July 11,
2022 /CNW/ - New Gold Inc. ("New Gold" or the
"Company") (TSX: NGD) (NYSE American: NGD) reports second
quarter operational results for the Company as of June 30, 2022, and provides an update to its 2022
operational outlook for the Rainy River Mine, the New Afton Mine,
and the consolidated operational outlook. The Company is also
providing notice that it will release its second quarter 2022
financial results before markets open on Thursday, August 4, 2022.
During the second quarter, operations at the Rainy River Mine
were adversely impacted by heavy rainfall and flooding around the
Fort Frances area in northwestern
Ontario. Total tonnes mined from
the open pit in the quarter were below expectations as flooding in
the pit due to the unfavorable weather impacted the mining rate,
the mine sequencing, and access to higher grade ore planned for the
second half of the year. The Rainy River Mine therefore utilized
the low-grade ore material during the quarter, resulting in both
lower grades processed and lower gold ounces produced. The lower
tonnes mined (ore and waste) year-to-date has caused a change to
the mine plan for the remainder of 2022. The Company's new Chief
Operating Officer is incorporating these impacts on the mine plan,
and together with newly hired operating expertise at the site, will
focus on positioning the open pit operations to its optimal
conditions. This change requires the operation to continue to
process low-grade ore material in the second half of 2022. As a
result, Rainy River's gold
equivalent1 production for 2022 is now expected to be
between 230,000 to 250,000 ounces (previously 265,000 to 295,000
ounces). Primarily due to lower gold production, as well as,
current inflationary cost pressures, operating expenses per gold
eq. ounce are now expected to be between $960 to $1,040 per
gold eq. ounce2 (previously $730 to $810 per
gold eq. ounce), and all-in sustaining costs are now expected to be
between $1,620 to $1,720 per gold eq. ounce3 (previously
$1,270 to $1,370 per gold eq. ounce). Underground
development continues to advance, with Intrepid on track for
initial production in the fourth quarter. The mine continues to
assess opportunities to offset the negative impact to both
production and costs.
During the second quarter, New Afton focused on B3 and C-Zone
development and closed the low grade-higher cost recovery level
zone earlier than planned. As a result of the early shutdown,
tonnes mined was lower than expected. To maintain mill feed, the
operation utilized the low-grade stockpile during the quarter,
resulting in lower grades and recoveries, and ultimately, lower
production. Copper production guidance for 2022 is now expected to
be between 25 to 35 million pounds (previously 35 to 45 million
pounds). Gold production is expected to be at the low end of the
annual production guidance range of 35,000 to 45,000 ounces. Due to
the lower production, as well as, current inflationary cost
pressures, operating expenses per gold eq. ounce are now expected
to be between $1,485 to $1,565 per gold eq. ounce2 (previously
$1,100 to $1,180 per gold eq. ounce), and all-in sustaining
costs are now expected to be between $2,210 to $2,310
per gold eq. ounce3 (previously $1,695 to $1,795
per gold eq. ounce). Production ramp-up at the B3 zone continues to
advance with development expected to be completed by September.
Due to the of the revisions at both Rainy River and New Afton, consolidated gold
equivalent1 production for 2022 is now expected to be
between 325,000 and 365,000 ounces (previously 380,000 to 440,000
ounces), consisting of consolidated gold production guidance of
260,000 to 290,000 ounces (previously 295,000 to 335,000 ounces)
and consolidated copper production guidance of 25 to 35 million
pounds (previously 35 to 45 million pounds). New Gold expects its
consolidated 2022 operating expenses per gold eq. ounce to be
between $1,120 to $1,200 per gold eq. ounce2 (previously
$840 to $920 per gold eq. ounce), and all-in sustaining
costs to be between $1,875 to
$1,975 per gold eq. ounce3
(previously $1,470 to $1,570 per gold eq. ounce). All other
consolidated and mine site capital investment and exploration
estimate guidance, including sustaining capital and sustaining
leases and growth capital, remain unchanged.
"Rainy River experienced
challenges during the quarter as the Fort
Frances area saw extreme rainfall and flooding," stated
Renaud Adams, President & CEO.
"I remain confident about the increased production profile as
outlined in Rainy River's latest
updated Technical Report announced earlier this year. At New Afton,
the planned closure of the Lift 1 cave, including the recovery
level, is now complete. While we've announced revisions to New
Afton's copper guidance for the year, the priority remains on the
B3 ramp-up and advancing C-Zone development, which remains on time
for first ore in the second half of 2023. With another solid
quarter of development prioritizing long-term growth initiatives at
both of our operations behind us, I remain confident both are on
the cusp of increasing production profiles leading to strong free
cash flow generation for our Company for multiple years to come.
Concurrently, our exploration efforts have continued to focus on
high priority targets with a planned exploration update expected in
the third quarter. I believe there is additional value to unlock at
our assets through substantial resource to reserve conversion and
look forward to updating the market on our progress."
Consolidated Operational
Highlights
|
Q2
2022
|
Q2
2021
|
H1
2022
|
H1
2021
|
Gold eq. production
(ounces)1
|
70,514
|
105,705
|
158,210
|
201,731
|
Gold eq. sold
(ounces)1
|
62,367
|
104,221
|
154,903
|
196,039
|
Gold production
(ounces)
|
52,431
|
66,989
|
120,532
|
133,639
|
Gold sold
(ounces)
|
51,223
|
68,184
|
121,786
|
131,723
|
Copper production
(Mlbs)
|
7.4
|
18.2
|
15.6
|
32.0
|
Copper sold
(Mlbs)
|
4.4
|
16.9
|
13.6
|
30.2
|
Note: Concentrate sales
in the quarter were impacted by timing of sales. As a result,
approximately $12 million in sales will be deferred to the third
quarter.
|
Rainy River Mine
Rainy River Mine (Open
Pit Mine only)
|
Q2
2022
|
Q2
2021
|
H1
2022
|
H1
2021
|
Tonnes mined per day
(ore and waste)
|
110,153
|
158,556
|
114,381
|
154,683
|
Ore tonnes mined per
day
|
12,295
|
36,256
|
16,136
|
35,970
|
Operating waste tonnes
per day
|
19,560
|
71,124
|
27,337
|
68,399
|
Capitalized waste
tonnes per day
|
78,298
|
51,176
|
70,909
|
50,314
|
Total waste tonnes per
day
|
97,858
|
122,300
|
98,246
|
118,712
|
Strip ratio
(waste:ore)
|
7.96
|
3.37
|
6.09
|
3.30
|
Tonnes milled per
calendar day
|
23,302
|
25,349
|
23,807
|
25,822
|
Gold grade milled
(g/t)
|
0.69
|
0.82
|
0.80
|
0.81
|
Gold recovery
(%)
|
90
|
87
|
92
|
89
|
Gold eq. production
(ounces)1
|
43,759
|
55,163
|
103,654
|
111,676
|
Gold production
(ounces)
|
42,516
|
52,901
|
101,349
|
107,557
|
New Afton Mine
New Afton
Mine
|
Q2
2022
|
Q2
2021
|
H1
2022
|
H1
2021
|
Tonnes mined per day
(ore and waste)
|
6,477
|
15,104
|
6,751
|
13,259
|
Tonnes milled per
calendar day
|
11,472
|
13,795
|
10,889
|
13,680
|
Gold grade milled
(g/t)
|
0.37
|
0.43
|
0.37
|
0.41
|
Gold recovery
(%)
|
80
|
80
|
81
|
80
|
Copper grade milled
(%)
|
0.42
|
0.79
|
0.45
|
0.72
|
Copper recovery
(%)
|
78
|
83
|
79
|
82
|
Gold eq. production
(ounces)1
|
26,755
|
50,542
|
54,556
|
90,055
|
Gold production
(ounces)
|
9,916
|
14,088
|
19,183
|
26,082
|
Copper production
(Mlbs)
|
7.4
|
18.2
|
15.6
|
32.0
|
2022 Consolidated Operational
Outlook
Operational
Estimates
|
Revised
Guidance
|
Original
Guidance
|
Gold eq. production
(ounces) 1
|
325,000 -
365,000
|
380,000 -
440,000
|
Gold production
(ounces)
|
260,000 -
290,000
|
295,000 -
335,000
|
Copper production
(Mlbs)
|
25 -
35
|
35 - 45
|
Operating expenses, per
gold eq. ounce2
|
$1,120 -
$1,200
|
$840 -
$920
|
All-in sustaining
costs, per gold eq. ounce3
|
$1,875 -
$1,975
|
$1,470 -
$1,570
|
2022 Rainy River Operational
Outlook
Operational
Estimates
|
Revised
Guidance
|
Original
Guidance
|
Gold eq. production
(ounces)1
|
230,000 -
250,000
|
265,000 -
295,000
|
Gold production
(ounces)
|
225,000 -
245,000
|
260,000 -
290,000
|
Operating expenses, per
gold eq. ounce2
|
$960 -
$1,040
|
$730 -
$810
|
All-in sustaining
costs, per gold eq. ounce3
|
$1,620 -
$1,720
|
$1,270 -
$1,370
|
2022 New Afton Operational
Outlook
Operational
Estimates
|
Revised
Guidance
|
Original
Guidance
|
Gold eq. production
(ounces)1
|
95,000 -
115,000
|
115,000 -
145,000
|
Gold production
(ounces)
|
35,000 -
45,000
|
35,000 -
45,000
|
Copper production
(Mlbs)
|
25 -
35
|
35 - 45
|
Operating expenses, per
gold eq. ounce2
|
$1,485 -
$1,565
|
$1,100 -
$1,180
|
All-in sustaining
costs, per gold eq. ounce3
|
$2,210 -
$2,310
|
$1,695 -
$1,795
|
Second Quarter 2022 Conference
Call and Webcast
The Company will release its second quarter 2022 financial
results before markets open on Thursday,
August 4, 2022. A conference call and webcast will follow at
8:30 am Eastern Time.
- Participants may listen to the webcast by registering on our
website at www.newgold.com or via the following link
https://produceredition.webcasts.com/starthere.jsp?ei=1556145&tp_key=026884e3d6
- Participants may also listen to the conference call by calling
North American toll free 1-888-664-6383, or 1-416-764-8650 outside
of the U.S. and Canada, passcode
67678068
- A recorded playback of the conference call will be available
until September 4, 2022 by calling
North American toll free 1-888-390-0541, or 1-416-764-8677 outside
of the U.S. and Canada, passcode
678068. An archived webcast will also be available at
www.newgold.com.
About New Gold
New Gold is a Canadian-focused intermediate mining Company with
a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New
Afton copper-gold mine. The Company also holds a 5% equity stake in
Artemis Gold Inc., and other Canadian-focused investments. New
Gold's vision is to build a leading diversified intermediate gold
company based in Canada that is
committed to the environment and social responsibility. For further
information on the Company, visit www.newgold.com.
Endnotes
- Total gold eq. ounces include silver and copper produced/sold
converted to a gold equivalent. All copper is produced/sold by the
New Afton Mine. Gold eq. ounces for Rainy
River in Q2 2022 includes production of 93,210 ounces of
silver converted to a gold eq. based on a ratio of $1,800 per gold ounce and $24.00 per silver ounce used for 2022 guidance
estimates. Gold eq. ounces for New Afton in Q2 2022 includes 7.4
million pounds of copper produced and 24,108 ounces of silver
produced converted to a gold eq. based on a ratio of $1,800 per gold ounce, 4.00 per copper pound and
$24.00 per silver ounce used for 2022
guidance estimates.
- "Operating expenses per gold eq. ounce" is a supplementary
financial measure which is calculated as total operating expenses
divided by total gold equivalent ounces.
- "All-in sustaining costs", "sustaining capital and sustaining
leases", and "growth capital" are all non-GAAP financial
performance measures that are used in this news release. These
measures do not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. For more information about these measures, why they
are used by the Company, and a reconciliation for Q1 2022 and Q1
2021 to the most directly comparable measure under IFRS, see the
"Non-GAAP Financial Performance Measures" section of this news
release.
Non-GAAP Financial Performance
Measures
All-In Sustaining Costs per Gold eq. Ounce
"All-in sustaining costs per gold equivalent ounce" is a
non-GAAP financial performance measure that does not have any
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. New Gold calculates
"all-in sustaining costs per gold equivalent ounce" based on
guidance announced by the World Gold Council ("WGC") in
September 2013. The WGC is a
non-profit association of the world's leading gold mining companies
established in 1987 to promote the use of gold to industry,
consumers and investors. The WGC is not a regulatory body and does
not have the authority to develop accounting standards or
disclosure requirements. The WGC has worked with its member
companies to develop a measure that expands on IFRS measures to
provide visibility into the economics of a gold mining company.
Current IFRS measures used in the gold industry, such as operating
expenses, do not capture all of the expenditures incurred to
discover, develop and sustain gold production. New Gold believes
that "all-in sustaining costs per gold equivalent ounce" provides
further transparency into costs associated with producing gold and
will assist analysts, investors, and other stakeholders of the
Company in assessing its operating performance, its ability to
generate free cash flow from current operations and its overall
value. In addition, the Human Resources and Compensation Committee
of the Board of Directors uses "all-in sustaining costs", together
with other measures, in its Company scorecard to set incentive
compensation goals and assess performance.
"All-in sustaining costs per gold equivalent ounce" is intended
to provide additional information only and does not have any
standardized meaning under IFRS and may not be comparable to
similar measures presented by other mining companies. It should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The measure is not
necessarily indicative of cash flow from operations under IFRS or
operating costs presented under IFRS.
New Gold defines "all-in sustaining costs per gold equivalent
ounce" as the sum of total cash costs, net of capital expenditures
that are sustaining in nature, corporate general and administrative
costs, capitalized and expensed exploration that is sustaining in
nature, lease payments that are sustaining in nature, and
environmental reclamation costs, all divided by the total gold
equivalent ounces sold to arrive at a per ounce figure. The
definition of sustaining versus non-sustaining is similarly applied
to capitalized and expensed exploration costs and lease payments.
Exploration costs and lease payments to develop new operations or
that relate to major projects at existing operations where these
projects are expected to materially increase production are
classified as non-sustaining and are excluded. Gold equivalent
ounces of copper and silver produced or sold in a quarter are
computed using a consistent ratio of copper and silver prices to
the gold price and multiplying this ratio by the pounds of copper
and silver ounces produced or sold during that quarter.
Costs excluded from all-in sustaining costs are non-sustaining
capital expenditures, non-sustaining lease payments and exploration
costs, financing costs, tax expense, and transaction costs
associated with mergers, acquisitions and divestitures, and any
items that are deducted for the purposes of adjusted earnings.
Sustaining Capital and Sustaining Leases
"Sustaining capital" and "sustaining lease" are non-GAAP
financial performance measures that do not have any standardized
meaning under IFRS and therefore may not be comparable to similar
measures presented by other issuers. New Gold defines "sustaining
capital" as net capital expenditures that are intended to maintain
operation of its gold producing assets. Similarly, a "sustaining
lease" is a lease payment that is sustaining in nature. To
determine "sustaining capital" expenditures, New Gold uses cash
flow related to mining interests from its consolidated statement of
cash flows and deducts any expenditures that are capital
expenditures to develop new operations or capital expenditures
related to major projects at existing operations where these
projects will materially increase production. Management uses
"sustaining capital" and "sustaining lease", to understand the
aggregate net result of the drivers of all-in sustaining costs
other than total cash costs. These measures are intended to provide
additional information only and should not be considered in
isolation or as substitutes for measures of performance prepared in
accordance with IFRS.
Growth Capital
"Growth capital" is a non-GAAP financial performance measure
that does not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. New Gold considers non-sustaining capital costs to
be "growth capital", which are capital expenditures to develop new
operations or capital expenditures related to major projects at
existing operations where these projects will materially increase
production. To determine "growth capital" expenditures, New Gold
uses cash flow related to mining interests from its consolidated
statement of cash flows and deducts any expenditures that are
capital expenditures that are intended to maintain operation of its
gold producing assets. Management uses "growth capital" to
understand the cost to develop new operations or related to major
projects at existing operations where these projects will
materially increase production. This measure is intended to provide
additional information only and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
The following tables, which are specifically included for
regulatory compliance purposes, reconcile the non-GAAP measures to
the most directly comparable IFRS measure for the periods of Q1
2022 and Q1 2021.
|
Three months ended
March 31
|
(in millions of U.S.
dollars, except where noted)
|
2022
|
2021
|
CONSOLIDATED OPEX,
CASH COST AND ALL-IN SUSTAINING COSTS RECONCILIATION
|
|
|
Operating
expenses
|
95.2
|
93.9
|
Gold equivalent ounces
solda
|
92,536
|
91,818
|
Operating expenses
per gold equivalent ounce sold ($/ounce)
|
1,029
|
1,022
|
Operating
expenses
|
95.2
|
93.9
|
Treatment and refining
charges on concentrate sales
|
3.7
|
4.1
|
Total cash
costs
|
99.0
|
98.0
|
Gold equivalent ounces
solda
|
92,536
|
91,818
|
Total cash costs per
gold equivalent ounce sold ($/ounce)b
|
1,069
|
1,067
|
Sustaining capital
expendituresb
|
52.5
|
35.1
|
Sustaining exploration
– expensed
|
0.3
|
0.3
|
Sustaining
leasesb
|
2.6
|
2.7
|
Corporate G&A
including share-based compensation
|
6.9
|
3.8
|
Reclamation
expenses
|
3.3
|
2.3
|
Total all-in
sustaining costs
|
164.6
|
142.3
|
Gold equivalent ounces
solda
|
92,536
|
91,818
|
All-in sustaining
costs per gold equivalent ounce sold
($/ounce)b
|
1,778
|
1,550
|
|
Three months ended
March 31
|
(in millions of U.S.
dollars, except where noted)
|
2022
|
2021
|
RAINY RIVER OPEX,
CASH COSTS AND AISC RECONCILIATION
|
|
|
Operating
expenses
|
58.4
|
53.9
|
Gold equivalent ounces
solda
|
61,684
|
53,577
|
Operating expenses
per unit of gold sold ($/ounce)
|
948
|
1,006
|
Operating
expenses
|
58.4
|
53.9
|
Total cash
costs
|
58.5
|
53.9
|
Gold equivalent ounces
solda
|
61,684
|
53,577
|
Total cash costs per
gold equivalent ounce sold ($/ounce)b
|
948
|
1,006
|
Sustaining capital
expendituresb
|
34.8
|
26.8
|
Sustaining
leasesb
|
2.3
|
2.5
|
Reclamation
expenses
|
2.6
|
1.8
|
Total all-in
sustaining costs
|
98.2
|
85.0
|
Gold equivalent ounces
solda
|
61,684
|
53,577
|
All-in sustaining
costs per gold equivalent ounce sold
($/ounce)b
|
1,592
|
1,586
|
|
Three months ended
March 31
|
(in millions of U.S.
dollars, except where noted)
|
2022
|
2021
|
NEW AFTON OPEX, CASH
COSTS AND AISC RECONCILIATION
|
|
|
Operating
expenses
|
36.8
|
40.0
|
Gold equivalent ounces
solda
|
30,852
|
38,241
|
Operating expenses
per unit of gold sold ($/ounce)
|
1,192
|
1,046
|
Operating
expenses
|
36.8
|
40.0
|
Treatment and refining
charges on concentrate sales
|
3.7
|
4.1
|
Total cash
costs
|
40.5
|
44.1
|
Gold equivalent ounces
solda
|
30,852
|
38,241
|
Total cash costs per
gold equivalent ounce sold ($/ounce)b
|
1,313
|
1,153
|
Sustaining capital
expendituresb
|
17.7
|
8.3
|
Sustaining
leasesb
|
0.1
|
0.1
|
Reclamation
expenses
|
0.7
|
0.5
|
Total all-in
sustaining costs
|
59.0
|
53.1
|
Gold equivalent ounces
solda
|
30,852
|
38,241
|
All-in sustaining
costs per gold equivalent ounce sold
($/ounce)b
|
1,913
|
1,388
|
a.
|
Refer to end note 1
above.
|
b.
|
Refer to end note 3
above.
|
For additional information with respect to the non-GAAP measures
used by the Company, refer to the detailed "Non-GAAP Financial
Performance Measure" section disclosure starting on page 26 in the
MD&A for the three months ended March
31, 2022 filed on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
Cautionary Note Regarding Forward-Looking
Statements
Certain information contained in this news
release, including any information relating to New Gold's future
financial or operating performance are "forward-looking". All
statements in this news release, other than statements of
historical fact, which address events, results, outcomes or
developments that New Gold expects to occur are "forward-looking
statements". Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by
the use of forward-looking terminology such as "plans", "expects",
"is expected", "budget", "scheduled", "targeted", "estimates",
"forecasts", "intends", "anticipates", "projects", "potential",
"believes" or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"should", "might" or "will be taken", "occur" or "be achieved" or
the negative connotation of such terms. Forward-looking statements
in this news release include, among others, statements with respect
to: the anticipated timing with respect to the release of its
second quarter 2022 financial results and the associated conference
call and webcast; the intended focus on positioning the open pit
operations to its optimal conditions and continued processing of
the low-grade ore material in the second half of 2022 at
Rainy River; the Company's
expectations and guidance regarding production, costs, capital
investments and expenses on a consolidated and mine-by-mine basis,
and the factors contributing to those expected results; continued
underground development and projected timing for initial production
from the Intrepid; the intention to continue to assess
opportunities to improve production and costs; planned
prioritization of B3 ramp-up and C-Zone development at New Afton
and projected timing for first ore; guidance revisions being
limited to this year; the anticipated increase in production
profiles and resulting strong free cash flow generation for
multiple years to come; expectations regarding additional value
through resource to reserve conversion; planned timing of an
exploration update expected to be released in the third quarter;
and the deferral of certain sales to the third quarter of 2022.
All forward-looking statements in this news release are based on
the opinions and estimates of management that, while considered
reasonable as at the date of this news release in light of
management's experience and perception of current conditions and
expected developments, are inherently subject to important risk
factors and uncertainties, many of which are beyond New Gold's
ability to control or predict. Certain material assumptions
regarding such forward-looking statements are discussed in this
news release, New Gold's latest annual management's discussion and
analysis ("MD&A"), its most recent annual information form and
technical reports on the Rainy River Mine and New Afton Mine filed
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. In addition
to, and subject to, such assumptions discussed in more detail
elsewhere, the forward-looking statements in this news release are
also subject to the following assumptions: (1) there being no
significant disruptions affecting New Gold's operations other than
as set out herein; (2) political and legal developments in
jurisdictions where New Gold operates, or may in the future
operate, being consistent with New Gold's current expectations; (3)
the accuracy of New Gold's current mineral reserve and mineral
resource estimates and the grade of gold, silver and copper
expected to be mined and the grade of gold, copper and silver
expected to be mined; (4) the exchange rate between the Canadian
dollar and U.S. dollar, and to a lesser extent, the Mexican Peso,
and commodity prices being approximately consistent with current
levels and expectations for the purposes of 2022 guidance and
otherwise; (5) prices for diesel, natural gas, fuel oil,
electricity and other key supplies being approximately consistent
with current levels; (6) equipment, labour and materials costs
increasing on a basis consistent with New Gold's current
expectations; (7) arrangements with First Nations and other
Aboriginal groups in respect of the New Afton Mine and Rainy River
Mine being consistent with New Gold's current expectations; (8) all
required permits, licenses and authorizations being obtained from
the relevant governments and other relevant stakeholders within the
expected timelines and the absence of material negative comments or
obstacles during any applicable regulatory processes; (9) there
being no significant disruptions to the Company's workforce at
either the Rainy River Mine or New Afton Mine due to cases of
COVID-19 (including any required self-isolation requirements due to
cross-border travel to the United
States or any other country or any other reason) or
otherwise; (10) the responses of the relevant governments to the
COVID-19 outbreak being sufficient to contain the impact of the
COVID-19 outbreak; (11) there being no material disruption to the
Company's supply chains and workforce that would interfere with the
Company's anticipated course of action at the Rainy River Mine and
the New Afton Mine; and (12) the long-term economic effects of the
COVID-19 outbreak not having a material adverse impact on the
Company's operations or liquidity position.
Forward-looking statements are necessarily based on estimates
and assumptions that are inherently subject to known and unknown
risks, uncertainties and other factors that may cause actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Such factors include, without
limitation: price volatility in the spot and forward markets for
metals and other commodities; discrepancies between actual and
estimated production, between actual and estimated costs, between
actual and estimated Mineral Reserves and Mineral Resources and
between actual and estimated metallurgical recoveries; equipment
malfunction, failure or unavailability; accidents; risks related to
early production at the Rainy River Mine, including failure of
equipment, machinery, the process circuit or other processes to
perform as designed or intended; the speculative nature of mineral
exploration and development, including the risks of obtaining and
maintaining the validity and enforceability of the necessary
licenses and permits and complying with the permitting requirements
of each jurisdiction in which New Gold operates, including, but not
limited to: obtaining the necessary permits for the New Afton
C-Zone; uncertainties and unanticipated delays associated with
obtaining and maintaining necessary licenses, permits and
authorizations and complying with permitting requirements,
including those associated with the C-Zone permitting process;
changes in project parameters as plans continue to be refined;
changing costs, timelines and development schedules as it relates
to construction; the Company not being able to complete its
construction projects at the Rainy River Mine or the New Afton Mine
on the anticipated timeline or at all; volatility in the market
price of the Company's securities; changes in national and local
government legislation in the countries in which New Gold does or
may in the future carry on business; controls, regulations and
political or economic developments in the countries in which New
Gold does or may in the future carry on business; the Company's
dependence on the Rainy River Mine and New Afton Mine; the Company
not being able to complete its exploration drilling programs on the
anticipated timeline or at all; disruptions to the Company's
workforce at either the Rainy River Mine or the New Afton Mine, or
both, due to cases of COVID-19 or any required self-isolation (due
to cross-border travel, exposure to a case of COVID-19 or
otherwise); the responses of the relevant governments to the
COVID-19 outbreak not being sufficient to contain the impact of the
COVID-19 outbreak; disruptions to the Company's supply chain and
workforce due to the COVID-19 outbreak; an economic recession or
downturn as a result of the COVID-19 outbreak that materially
adversely affects the Company's operations or liquidity position;
there being further shutdowns at the Rainy River Mine or New Afton
Mine; significant capital requirements and the availability and
management of capital resources; additional funding requirements;
diminishing quantities or grades of Mineral Reserves and Mineral
Resources; actual results of current exploration or reclamation
activities; uncertainties inherent to mining economic studies
including the Technical Reports for the Rainy River Mine and New
Afton Mine; impairment; unexpected delays and costs inherent to
consulting and accommodating rights of First Nations and other
indigenous groups; climate change, environmental risks and hazards
and the Company's response thereto; tailings dam and structure
failures; actual results of current exploration or reclamation
activities; fluctuations in the international currency markets and
in the rates of exchange of the currencies of Canada, the United
States and, to a lesser extent, Mexico; global economic and financial
conditions and any global or local natural events that may impede
the economy or New Gold's ability to carry on business in the
normal course; compliance with debt obligations and maintaining
sufficient liquidity; taxation; fluctuation in treatment and
refining charges; transportation and processing of unrefined
products; rising costs or availability of labour, supplies, fuel
and equipment; adequate infrastructure; relationships with
communities, governments and other stakeholders; geotechnical
instability and conditions; labour disputes; the uncertainties
inherent in current and future legal challenges to which New Gold
is or may become a party; defective title to mineral claims or
property or contests over claims to mineral properties;
competition; loss of, or inability to attract, key employees; use
of derivative products and hedging transactions; counterparty risk
and the performance of third party service providers; investment
risks and uncertainty relating to the value of equity investments
in public companies held by the Company from time to time; the
adequacy of internal and disclosure controls; conflicts of
interest; the lack of certainty with respect to foreign operations
and legal systems, which may not be immune from the influence of
political pressure, corruption or other factors that are
inconsistent with the rule of law; the successful acquisitions and
integration of business arrangements and realizing the intended
benefits therefrom; and information systems security threats. In
addition, there are risks and hazards associated with the business
of mineral exploration, development, construction, operation and
mining, including environmental events and hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-ins,
flooding and gold bullion losses (and the risk of inadequate
insurance or inability to obtain insurance to cover these risks) as
well as "Risk Factors" included in New Gold's most recent annual
information form, MD&A and other disclosure documents filed on
and available on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov. Forward looking statements are not guarantees of
future performance, and actual results and future events could
materially differ from those anticipated in such statements. All
forward-looking statements contained in this news release are
qualified by these cautionary statements. New Gold expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
events or otherwise, except in accordance with applicable
securities laws.
Technical Information
The scientific and technical information contained in this news
release has been reviewed and approved by Patrick Godin, Executive Vice President and
Chief Operating Officer of New Gold. Mr. Godin is a
Professional Engineer and member of the Ordre des ingénieurs du
Québec. He is a "Qualified Person" for the purposes of National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
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SOURCE New Gold Inc.