NEW GOLD REPORTS SECOND QUARTER 2024 RESULTS
Company Enters Sustained Free Cash Flow Generation Period
(All amounts are in
Operating to Plan Through First Half of the Year, Well Positioned for Increasing Production Profile in Second Half
"The second quarter saw
- Second quarter consolidated production was 68,598 ounces of gold and 13.6 million pounds of copper at all-in sustaining costs1 of
$1,381 per gold ounce sold (by-product basis). - New Afton had a strong second quarter, producing 18,300 ounces of gold and 13.6 million pounds of copper at all-in sustaining costs1 of (
$433 ) per gold ounce sold (by-product basis). Second quarter gold and copper production were in-line with plan. The B3 cave continues to perform slightly better than plan, and C-Zone ore production is ramping up concurrent with construction of the cave footprint. Commercial production from C-Zone and crusher commissioning remains on-track for the second half of the year. -
Rainy River's second quarter delivered to plan, producing 50,298 ounces of gold at all-in sustaining costs1 of$1,868 per gold ounce sold (by-product basis). Prioritizing open pit waste stripping activities in the first half positioned the open pit well to release higher grade ore and deliver stronger production in the second half. The mill continues to perform well, with throughput averaging over 26,000 tonnes per day and recoveries over 90% for the quarter. Both the mine and mill are well positioned to deliver on annual guidance. - Through the first six months of the year, gold production represented 42% of the mid-point of guidance, and copper production represented 49%, in-line with the previously stated outlook. For the first six months, consolidated all-in sustaining costs1 were
$1,389 per gold ounce sold. With production set to increase and all-in sustaining costs set to decrease in the second half of the year, the Company remains on-track to achieve 2024 consolidated production guidance of 310,000 to 350,000 ounces of gold and 50 to 60 million pounds of copper at all-in sustaining costs1 of$1,240 to$1,340 per gold ounce sold (by-product basis).
Multiple Corporate Milestones Achieved in a
"During the quarter, we also successfully delivered an accretive transaction for our shareholders by increasing our free cash flow interest in New Afton to 80.1%," added
- The Company delivered strong cash flow from operations during the second quarter of
$100 million , driven by higher copper production and higher metal prices. Cash generated from operations, before changes in non-cash operating working capital1, totaled$90 million . The Company delivered free cash flow1 of$20 million in the quarter while continuing to invest in its growth projects. With the Company exiting the first half of 2024 free cash flow positive,New Gold has now entered a sustained free cash flow generation period. - During the second quarter, the Company successfully entered into an agreement relating to its strategic partnership with Ontario Teachers' Pension Plan ('Ontario Teachers') whereby
New Gold increased its effective free cash flow interest in New Afton to 80.1%. Ontario Teachers' free cash flow interest in New Afton was reduced from 46.0% to 19.9% in exchange for an upfront cash payment of$255 million . To fund the payment, the Company completed an oversubscribed$173 million equity financing, and borrowed$100 million from its existing revolving credit facility. Through this transaction,New Gold was successfully able to deliver a meaningful increase in attributable life-of-mine cash flow in an existing high-quality operation while maintaining its balance sheet strength and financial liquidity. As atJune 30, 2024 , cash and cash equivalents were$184 million , and the Company maintained a liquidity position of$461 million . - During the second quarter, the Company also announced the publication of its 2023 Environmental, Social and Governance Reports ("ESG Reports") and its 2023
Task Force on Climate-Related Financial Disclosures Report ("TCFD Report").New Gold has published an annual ESG Report since 2015 (formerly, the Sustainability Report) reporting on the sustainability-related material topics that matter most to its stakeholders. The 2023 ESG Reports and TCFD Report are available onNew Gold's Sustainability Microsite, accessible through www.newgold.com.
Growth Projects Nearing Completion, to Add Significant Free Cash Flow Generation
"After a productive first half of 2024, our growth projects remain on track for completion by the end of the year. The second quarter saw numerous milestones at both the
- At
Rainy River , underground development rates continued to ramp up during the second quarter and are expected to continue to increase into the second half of the year. As previously discussed, one of the priorities for 2024 is to establish the primary ventilation circuit. At the end of the second quarter, both the ODM East ventilation loop and the fresh air raise were approximately 50% complete, in-line with plan. With the development of the in-pit portal set to commence in the third quarter, undergroundMain Zone remains on-track for first ore in the fourth quarter of 2024, with the ramp-up in underground production to approximately 5,500 tonnes per day by 2027. - At New Afton, the Company reiterates expectations to commission the C-Zone gyratory crusher and conveyor system on time, with the cave achieving hydraulic radius in the second half of 2024. Lateral development continues to advance on plan, with over 80% of development metres complete. C-Zone cave construction remains on track to achieve hydraulic radius in the second half of 2024. The new C-Zone gyratory crusher and conveyor system continued to make significant progress towards completion in the second half of 2024. With C-Zone development and the gyratory crusher and conveyor system nearing completion, the increase in processing rates, and decrease in costs is expected to generate meaningful free cash flow over the coming years.
Exploration Milestones Achieved in the Quarter, Sustainable Production Remains the Focus
"We made significant progress with our exploration efforts at both operations during the second quarter. After allocating additional funding to new opportunities at
- At
Rainy River , exploration drilling continues to make meaningful progress from both surface and underground. Through the first half of 2024, the Company has drilled approximately 20,000 metres atRainy River testing the down-plunge extension of ODM Main and 17 East Zones at depth, the Intrepid Strike-Extension, and exploring the Gap zone located between the Intrepid and Main Zones. During the second quarter, surface drilling prioritized targets with potential for open pit extraction including NW-Trend, Zone 280, and ODM East. Drilling continues to progress as planned for both surface and underground targets.Rainy River's priority is to sustain mill throughput beyond 2029. - Exploration efforts at New Afton achieved multiple notable milestones during the quarter. Following the intersection of high-grade copper-gold porphyry mineralization at K-Zone (refer to the Company's
May 29, 2024 news release for further information), the exploration drift being developed to provide additional drill platforms was completed and drilling of the K-Zone and AI-Southeast targets from the drift commenced as planned. The Company also completed exploration drilling to extend the D-Zone resource envelope. New Afton continues to execute on its exploration strategy to extend the mine life beyond 2030. Exploration efforts remain focused on potential near-mine zones located above the C-Zone extraction level to minimize capital investment and maximize free cash flow generation.
Consolidated Financial Highlights
|
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
Revenue ($M) |
218.2 |
184.4 |
410.3 |
386.0 |
Operating expenses ($M) |
109.5 |
104.9 |
216.3 |
222.1 |
Net earnings (loss) ($M) |
53.1 |
(2.6) |
9.6 |
(34.4) |
Net earnings (loss), per share ($) |
0.07 |
— |
0.01 |
(0.05) |
Adj. net earnings ($M)1 |
17.0 |
11.6 |
30.1 |
30.0 |
Adj. net earnings, per share ($)1 |
0.02 |
0.02 |
0.04 |
0.04 |
Cash generated from operations ($M) |
100.4 |
56.4 |
155.2 |
117.0 |
Cash generated from operations, per share ($) |
0.14 |
0.08 |
0.22 |
0.17 |
Cash generated from operations, before changes in non-cash operating working capital ($M)1 |
90.4 |
65.2 |
163.0 |
140.9 |
Cash generated from operations, before changes in non-cash operating working capital, per share ($)1 |
0.12 |
0.10 |
0.23 |
0.21 |
Free cash flow ($M)1 |
20.4 |
(26.1) |
5.6 |
(38.7) |
- Revenue increased over the prior-year periods primarily due to higher metal prices and higher copper sales volume, partially offset by lower gold sales volume.
- Operating expenses increased slightly over the prior-year period as the increase in copper production was partially offset by the decrease in gold production. For the six months ended
June 30, 2024 , operating expenses decreased over the prior-year period due to lower gold production and sales, and an inventory write-up gain atRainy River during the first quarter of 2024. - Net earnings increased over the prior-year periods primarily due to an increase in revenues resulting from higher metal prices, and a net gain on the derecognition of the New Afton free cash flow obligation.
- Adjusted net earnings1 increased in the second quarter compared to the prior-year period due to higher revenues resulting from higher metal prices, partially off-set by higher depreciation. For the six months ended
June 30, 2024 , adjusted net earnings1 was consistent when compared to the prior-year period. - Cash generated from operations and free cash flow1 increased over the prior-year periods primarily due to higher revenue and positive working capital movements. The Company delivered free cash flow in the first half of 2024 while continuing to invest in its growth projects.
-
June 30, 2024 cash and cash equivalents were$184 million .
Consolidated Operational Highlights
|
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
Gold production (ounces)2 |
68,598 |
76,527 |
139,496 |
159,004 |
Gold sold (ounces)2 |
67,697 |
74,219 |
137,774 |
161,426 |
Copper production (Mlbs)2 |
13.6 |
12.0 |
26.9 |
22.3 |
Copper sold (MIbs)2 |
13.3 |
10.1 |
25.3 |
19.5 |
Gold revenue, per ounce ($)3 |
2,313 |
1,948 |
2,185 |
1,903 |
Copper revenue, per pound ($)3 |
4.26 |
3.61 |
3.97 |
3.70 |
Average realized gold price, per ounce ($)1 |
2,346 |
1,970 |
2,216 |
1,927 |
Average realized copper price, per pound ($)1 |
4.49 |
3.82 |
4.19 |
3.96 |
Operating expenses per gold ounce sold ($/ounce, co-product)3 |
1,156 |
1,063 |
1,131 |
1,029 |
Operating expenses per copper pound sold ($/ounce, co-product)3 |
2.35 |
2.57 |
2.39 |
2.86 |
Depreciation and depletion per gold ounce sold ($/ounce) |
1,066 |
732 |
980 |
680 |
Cash costs per gold ounce sold (by-product basis) ($/ounce)1 |
740 |
898 |
808 |
911 |
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)1 |
1,381 |
1,582 |
1,389 |
1,460 |
Sustaining capital ($M)1 |
31.5 |
35.6 |
57.4 |
61.9 |
Growth capital ($M)1 |
40.8 |
36.0 |
75.9 |
72.8 |
Total capital ($M) |
72.3 |
71.6 |
133.3 |
134.7 |
Operational Highlights
|
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
Gold production (ounces)2 |
50,298 |
59,882 |
103,016 |
126,083 |
Gold sold (ounces)2 |
49,513 |
59,529 |
102,610 |
131,420 |
Gold revenue, per ounce ($)3 |
2,336 |
1,965 |
2,206 |
1,920 |
Average realized gold price, per ounce ($)1 |
2,336 |
1,965 |
2,206 |
1,920 |
Operating expenses per gold ounce sold ($/ounce)3 |
1,310 |
1,138 |
1,265 |
1,082 |
Depreciation and depletion per gold ounce sold ($/ounce) |
1,002 |
657 |
893 |
600 |
Cash costs per gold ounce sold (by-product basis) ($/ounce)1 |
1,231 |
1,090 |
1,197 |
1,040 |
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)1 |
1,868 |
1,720 |
1,749 |
1,531 |
Sustaining capital ($M)1 |
29.4 |
31.6 |
51.6 |
53.9 |
Growth capital ($M)1 |
10.4 |
4.5 |
17.8 |
10.3 |
Total capital ($M) |
39.8 |
36.1 |
69.4 |
64.1 |
Operating Key Performance Indicators
|
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
Open Pit Only |
|
|
|
|
Tonnes mined per day (ore and waste) |
119,023 |
130,488 |
105,305 |
124,517 |
Ore tonnes mined per day |
17,679 |
34,146 |
17,078 |
35,257 |
Operating waste tonnes per day |
56,344 |
61,796 |
53,915 |
61,082 |
Capitalized waste tonnes per day |
44,999 |
34,545 |
34,313 |
28,178 |
Total waste tonnes per day |
101,344 |
96,342 |
88,228 |
89,260 |
Strip ratio (waste:ore) |
5.73 |
2.82 |
5.17 |
2.53 |
Underground Only |
|
|
|
|
Ore tonnes mined per day |
553 |
1,001 |
715 |
884 |
Waste tonnes mined per day |
1,423 |
436 |
1,190 |
447 |
Lateral development (metres) |
1,307 |
846 |
2,258 |
1,722 |
|
|
|
|
|
Tonnes milled per calendar day |
26,068 |
23,252 |
25,545 |
22,828 |
Gold grade milled (g/t) |
0.74 |
0.97 |
0.78 |
1.04 |
Gold recovery (%) |
91 |
91 |
91 |
91 |
- Second quarter gold production was 50,298 ounces. For the six months ended
June 30, 2024 , gold production was 103,016 ounces. The planned decrease over the prior-year periods is primarily due to the mining sequence being in lower grade ore as planned, partially offset by higher tonnes processed. Production is expected to strengthen in the second half of the year as higher grade ore is accessed. - Operating expense per gold ounce sold increased over the prior-year periods primarily due to lower sales volumes.
- All-in sustaining costs1 per gold ounce sold (by-product basis) increased over the prior-year periods due to lower sales volumes, partially offset by lower sustaining capital spend. All-in sustaining costs per gold ounce sold are expected to decrease in the second half of 2024 as production increases.
- Total capital increased over the prior-year periods due to higher growth capital spend, partially offset by lower sustaining capital spend. Sustaining capital1 is primarily related to capitalized waste, capital components, and tailings management. Growth capital1 is related to underground development as the underground Main and Intrepid zones continue to advance.
- Free cash flow1 for the second quarter was
$12 million (net of stream payments), an increase over the prior-year period primarily due to higher gold prices and positive working capital movements. Free cash flow1 for the six months endedJune 30, 2024 was$9 million (net of stream payments), a decrease compared to the prior-year period primarily due to a decrease in revenues and higher growth capital spend, but in-line with the planned open pit sequence for the first half of the year as outlined in the Company's guidance.
Operational Highlights
|
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
Gold production (ounces)2 |
18,300 |
16,645 |
36,479 |
32,921 |
Gold sold (ounces)2 |
18,184 |
14,690 |
35,164 |
30,006 |
Copper production (Mlbs)2 |
13.6 |
12.0 |
26.9 |
22.3 |
Copper sold (Mlbs)2 |
13.3 |
10.1 |
25.3 |
19.5 |
Gold revenue, per ounce ($)3 |
2,250 |
1,878 |
2,124 |
1,829 |
Copper revenue, per ounce ($)3 |
4.26 |
3.61 |
3.97 |
3.70 |
Average realized gold price, per ounce ($)1 |
2,372 |
1,988 |
2,244 |
1,957 |
Average realized copper price, per pound ($)1 |
4.49 |
3.82 |
4.19 |
3.96 |
Operating expenses ($/oz gold, co-product)3 |
736 |
757 |
738 |
799 |
Operating expenses ($/lb copper, co-product)3 |
2.35 |
2.57 |
2.39 |
2.86 |
Depreciation and depletion ($/ounce) |
1,231 |
1,032 |
1,224 |
1,022 |
Cash costs per gold ounce sold (by-product basis) ($/ounce)1 |
(597) |
121 |
(325) |
349 |
Cash costs per gold ounce sold ($/ounce,co-product)1 |
806 |
823 |
877 |
1,276 |
Cash costs per copper pound sold ($/pound, co-product)1 |
2.57 |
2.80 |
2.62 |
3.14 |
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)1 |
(433) |
447 |
(107) |
664 |
All-in sustaining costs per gold ounce sold ($/ounce, co-product)1 |
856 |
920 |
874 |
972 |
All-in sustaining costs per copper pound sold ($/ounce, co-product)1 |
2.73 |
3.13 |
2.83 |
3.48 |
Sustaining capital ($M)1 |
2.0 |
4.1 |
5.8 |
8.1 |
Growth capital ($M)1 |
30.4 |
31.4 |
58.1 |
62.6 |
Total capital ($M) |
32.5 |
35.5 |
63.9 |
70.6 |
Operating Key Performance Indicators
|
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
New Afton Mine Only |
|
|
|
|
Tonnes mined per day (ore and waste) |
10,223 |
10,165 |
10,479 |
9,678 |
Tonnes milled per calendar day |
11,093 |
8,307 |
10,623 |
8,161 |
Gold grade milled (g/t) |
0.62 |
0.72 |
0.65 |
0.70 |
Gold recovery (%) |
90 |
89 |
89 |
89 |
Copper grade milled (%) |
0.67 |
0.78 |
0.69 |
0.74 |
Copper recovery (%) |
91 |
91 |
90 |
91 |
Gold production (ounces) |
18,100 |
15,704 |
35,958 |
29,429 |
Copper production (Mlbs) |
13.6 |
12.0 |
26.9 |
22.3 |
Ore Purchase Agreements4 |
|
|
|
|
Gold production (ounces) |
200 |
941 |
521 |
3,492 |
- Second quarter production was 18,300 ounces of gold and 13.6 million pounds of copper. For the six-months ended
June 30, 2024 , gold production was 36,479 ounces and copper production was 26.9 million pounds. The increase in gold and copper production over the prior-year periods is due to higher tonnes processed, partially offset by lower grade. - Operating expense per gold ounce sold and per copper pound sold decreased over the prior-year periods primarily due to higher gold and copper sales volumes.
- All-in sustaining costs1 per gold ounce sold (by-product basis) decreased over the prior-year periods due to the benefit of higher by-product revenues, higher gold sales volumes, and lower sustaining capital spend.
- Total capital decreased over the prior-year periods, primarily due to lower sustaining and growth capital1 spend. Sustaining capital1 primarily related to tailings management and stabilization activities. Growth capital primarily related to the C-Zone underground mine development and cave construction.
- Free cash flow1 for the second quarter and six-months ended
June 30, 2024 , was$15 million and$12 million , respectively, a significant improvement over the prior-year periods primarily due to higher revenue and lower overall capital spend.
Second Quarter 2024 Conference Call and Webcast
The Company will host a webcast and conference call tomorrow,
- Participants may listen to the webcast by registering on our website at www.newgold.com or via the following link
- https://app.webinar.net/ZEQL5OjmYVP
- 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. andCanada , passcode 26329578. - To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3Rwf1KB to receive an instant automated call back.
- A recorded playback of the conference call will be available until
August 31, 2024 by calling North American toll free 1-888-390-0541, or 1-416-764-8677 outside of theU.S. andCanada , passcode 329578. An archived webcast will also be available at www.newgold.com.
About New Gold
Endnotes
1. |
"Cash costs per gold ounce sold", "all-in sustaining costs (AISC) per gold ounce sold", "adjusted net earnings/(loss)", "adjusted tax expense", "sustaining capital and sustaining leases", "growth capital", "cash generated from operations before changes in non-cash operating working capital", "free cash flow", and "average realized gold/copper price per ounce/pound" 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 to the most directly comparable measure under IFRS, see the "Non-GAAP Financial Performance Measures" section of this news release. |
|
|
2. |
Production is shown on a total contained basis while sales are shown on a net payable basis, including final product inventory and smelter payable adjustments, where applicable. |
|
|
3. |
These are supplementary financial measures which are calculated as follows: "revenue per ounce and pound sold" is total revenue divided by total gold ounces sold and copper pounds sold, "Operating expenses per gold ounce sold" is total operating expenses divided by total gold ounces sold; "depreciation and depletion per gold ounce sold" is total depreciation and depletion divided by total gold ounces sold; and "operating expenses ($/oz gold, co-product)" and "operating expenses ($/lb copper, co-product)" is operating expenses apportioned to each metal produced on a percentage of activity basis, and subsequently divided by the total gold ounces, or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures. |
|
|
4. |
Key performance indicator data is inclusive of ounces from ore purchase agreements for New Afton. |
Non-GAAP Financial Performance Measures
Cash Costs per Gold Ounce Sold
"Cash costs per gold ounce sold" is a common non-GAAP financial performance measure used in the gold mining industry but does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
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. This measure is not necessarily indicative of cash generated from operations under IFRS or operating costs presented under IFRS.
Cash cost figures are calculated in accordance with a standard developed by
The Company produces copper and silver as by-products of its gold production. The calculation of total cash costs per gold ounce for
To provide additional information to investors,
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.
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.
All-In Sustaining Costs (AISC) per Gold Ounce Sold
"All-in sustaining costs per gold ounce sold" ("AISC") 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.
"All-in sustaining costs per gold ounce sold" 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.
Costs excluded from all-in sustaining costs per gold ounce sold 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.
To provide additional information to investors, the Company has also calculated all-in sustaining costs per gold ounce sold on a co-product basis for New Afton, which removes the impact of other metal sales that are produced as a by-product of gold production and apportions the all-in sustaining costs to each metal produced on a percentage of revenue basis, and subsequently divides the amount by the total gold ounces, or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures. By including cash costs as a component of all-in sustaining costs, the measure deducts by-product revenue from gross cash costs.
The following tables reconcile the above non-GAAP measures to the most directly comparable IFRS measure on an aggregate basis.
Cash Costs and All-in Sustaining Costs per Gold Ounce Reconciliation Tables
|
Three months ended |
Six months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
CONSOLIDATED CASH COST AND AISC RECONCILIATION |
|
|
|
|
Operating expenses |
109.5 |
104.9 |
216.3 |
222.1 |
Treatment and refining charges on concentrate sales |
5.4 |
3.8 |
10.1 |
9.0 |
By-product silver revenue |
(5.0) |
(3.5) |
(8.8) |
(6.7) |
By-product copper revenue |
(59.7) |
(38.5) |
(106.2) |
(77.3) |
Total cash cost1 |
50.1 |
66.7 |
111.3 |
147.1 |
Gold ounces sold2 |
67,697 |
74,219 |
137,774 |
161,426 |
Cash costs per gold ounce sold (by-product basis)1 |
740 |
898 |
808 |
911 |
Sustaining capital expenditures1 |
31.5 |
35.6 |
57.4 |
61.9 |
Sustaining exploration - expensed |
0.1 |
0.2 |
0.2 |
0.4 |
Sustaining leases1 |
0.5 |
3.8 |
1.8 |
6.3 |
Corporate G&A including share-based compensation |
8.7 |
8.1 |
15.2 |
13.9 |
Reclamation expenses |
2.7 |
2.9 |
5.4 |
6.2 |
Total all-in sustaining costs1 |
93.5 |
117.4 |
191.3 |
235.7 |
Gold ounces sold2 |
67,697 |
74,219 |
137,774 |
161,426 |
All-in sustaining costs per gold ounce sold (by-product basis)1 |
1,381 |
1,582 |
1,389 |
1,460 |
|
Three months ended |
Six months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
Operating expenses |
64.9 |
67.8 |
129.8 |
142.2 |
By-product silver revenue |
(3.9) |
(2.9) |
(7.0) |
(5.6) |
Total cash costs net of by-product revenue |
60.9 |
64.9 |
122.8 |
136.6 |
Gold ounces sold2 |
49,513 |
59,529 |
102,610 |
131,420 |
Cash costs per gold ounce sold (by-product basis)1 |
1,231 |
1,090 |
1,197 |
1,040 |
Sustaining capital expenditures1 |
29.4 |
31.6 |
51.6 |
53.9 |
Sustaining leases1 |
0.1 |
3.6 |
1.0 |
5.9 |
Reclamation expenses |
2.0 |
2.3 |
4.0 |
4.9 |
Total all-in sustaining costs1 |
92.5 |
102.4 |
179.5 |
201.3 |
Gold ounces sold2 |
49,513 |
59,529 |
102,610 |
131,420 |
All-in sustaining costs per gold ounce sold (by-product basis)1 |
1,868 |
1,720 |
1,749 |
1,531 |
|
Three months ended |
Six months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
NEW AFTON CASH COSTS AND AISC RECONCILIATION |
|
|
|
|
Operating expenses |
44.6 |
37.1 |
86.5 |
79.9 |
Treatment and refining charges on concentrate sales |
5.4 |
3.8 |
10.1 |
9.0 |
By-product silver revenue |
(1.1) |
(0.6) |
(1.8) |
(1.1) |
By-product copper revenue |
(59.7) |
(38.5) |
(106.2) |
(77.3) |
Total cash costs net of by-product revenue |
(10.9) |
1.8 |
(11.4) |
10.5 |
Gold ounces sold2 |
18,184 |
14,690 |
35,164 |
30,006 |
Cash costs per gold ounce sold (by-product basis)1 |
(597) |
121 |
(325) |
349 |
Sustaining capital expenditures1 |
2.0 |
4.1 |
5.8 |
8.1 |
Sustaining leases1 |
0.3 |
— |
0.5 |
0.1 |
Reclamation expenses |
0.7 |
0.6 |
1.4 |
1.3 |
Total all-in sustaining costs1 |
(7.9) |
6.6 |
(3.8) |
19.9 |
Gold ounces sold2 |
18,184 |
14,690 |
35,164 |
30,006 |
All-in sustaining costs per gold ounce sold (by-product basis)1 |
(433) |
447 |
(107) |
664 |
Three months ended |
|||
(in millions of |
Gold |
Copper |
Total |
NEW AFTON CASH COST AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) |
|
|
|
Operating expenses |
13.4 |
31.2 |
44.6 |
Units of metal sold |
18,184 |
13.3 |
|
Operating expenses ($/oz gold or lb copper sold, co-product)3 |
736 |
2.35 |
|
Treatment and refining charges on concentrate sales |
1.6 |
3.7 |
5.4 |
By-product silver revenue |
(0.3) |
(0.8) |
(1.1) |
Cash costs (co-product)3 |
14.7 |
34.2 |
48.9 |
Cash costs per gold ounce sold or lb copper sold (co-product)3 |
806 |
2.57 |
|
Sustaining capital expendituresI |
0.6 |
1.4 |
2.0 |
Sustaining leases |
0.1 |
0.2 |
0.3 |
Reclamation expenses |
0.2 |
0.5 |
0.7 |
All-in sustaining costs (co-product)2 |
15.6 |
36.3 |
51.9 |
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)2 |
856 |
2.73 |
|
I Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, 30% of operating costs were attributed to gold production and 70% of operating costs were attributed to copper production. |
Three months ended |
|||
(in millions of |
Gold |
Copper |
Total |
NEW AFTON CASH COST AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) |
|
|
|
Operating expenses |
11.1 |
26.0 |
37.1 |
Units of metal sold |
14,690 |
10.1 |
|
Operating expenses ($/oz gold or lb copper sold, co-product)3 |
757 |
2.57 |
|
Treatment and refining charges on concentrate sales |
1.1 |
2.7 |
3.8 |
By-product silver revenue |
(0.2) |
(0.4) |
(0.6) |
Cash costs (co-product)3 |
12.1 |
28.2 |
40.3 |
Cash costs per gold ounce sold or lb copper sold (co-product)3 |
823 |
2.80 |
|
Sustaining capital expendituresI |
1.2 |
2.9 |
4.1 |
Reclamation expenses |
0.2 |
0.4 |
0.6 |
All-in sustaining costs (co-product)2 |
13.5 |
31.5 |
45.1 |
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)2 |
920 |
3.13 |
|
I Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, 30% of operating costs were attributed to gold production and 70% of operating costs were attributed to copper production.
|
Six months ended |
|||
(in millions of |
Gold |
Copper |
Total |
NEW AFTON CASH COST AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) |
|
|
|
Operating expenses |
26.0 |
60.6 |
86.5 |
Units of metal sold |
35,164 |
25.3 |
|
Operating expenses ($/oz gold or lb copper sold, co-product)3 |
738 |
2.39 |
|
Treatment and refining charges on concentrate sales |
3.0 |
7.0 |
10.0 |
By-product silver revenue |
(0.5) |
(1.3) |
(1.8) |
Cash costs (co-product)3 |
28.4 |
66.3 |
94.7 |
Cash costs per gold ounce sold or lb copper sold (co-product)3 |
809 |
2.62 |
|
Sustaining capital expendituresI |
1.7 |
4.0 |
5.7 |
Sustaining leases |
0.2 |
0.4 |
0.6 |
Reclamation expenses |
0.4 |
1.0 |
1.4 |
All-in sustaining costs (co-product)2 |
30.7 |
71.7 |
102.4 |
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)2 |
874 |
2.83 |
|
I Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, 30% of operating costs were attributed to gold production and 70% of operating costs were attributed to copper production. |
Six months ended |
|||
(in millions of |
Gold |
Copper |
Total |
NEW AFTON CASH COST AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) |
|
|
|
Operating expenses |
24.0 |
55.9 |
79.9 |
Units of metal sold |
30,006 |
19.5 |
|
Operating expenses ($/oz gold or lb copper sold, co-product)3 |
799 |
2.86 |
|
Treatment and refining charges on concentrate sales |
2.7 |
6.3 |
9.0 |
By-product silver revenue |
(0.3) |
(0.8) |
(1.1) |
Cash costs (co-product)3 |
26.3 |
61.4 |
87.8 |
Cash costs per gold ounce sold or lb copper sold (co-product)3 |
877 |
3.14 |
|
Sustaining capital expendituresI |
2.4 |
5.7 |
8.1 |
Reclamation expenses |
0.4 |
0.9 |
1.3 |
All-in sustaining costs (co-product)2 |
29.2 |
68.0 |
97.2 |
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)2 |
972 |
3.48 |
|
I Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, 30% of operating costs were attributed to gold production and 70% of operating costs were attributed to copper production. |
Sustaining Capital Expenditures Reconciliation Table
|
Three months ended |
Six months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
TOTAL SUSTAINING CAPITAL EXPENDITURES |
|
|
|
|
Mining interests per consolidated statement of cash flows |
72.3 |
71.6 |
133.3 |
134.7 |
New Afton growth capital expenditures2 |
(30.4) |
(31.4) |
(58.1) |
(62.6) |
|
(10.4) |
(4.5) |
(17.8) |
(10.3) |
Sustaining capital expenditures2 |
31.5 |
35.6 |
57.4 |
61.9 |
|
|
|
|
|
Adjusted Net Earnings/(Loss) and Adjusted Net Earnings per Share
"Adjusted net earnings" and "adjusted net earnings per share" 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. "Adjusted net earnings" and "adjusted net earnings per share" exclude "other gains and losses" as per Note 3 of the Company's unaudited condensed interim consolidated financial statements; and loss on redemption of long-term debt. Net earnings have been adjusted, including the associated tax impact, for the group of costs in "Other gains and losses" on the unaudited condensed interim consolidated income statements. Key entries in this grouping are: fair value changes for the
The Company uses "adjusted net earnings" for its own internal purposes. Management's internal budgets and forecasts and public guidance do not reflect the items which have been excluded from the determination of "adjusted net earnings". Consequently, the presentation of "adjusted net earnings" enables investors to better understand the underlying operating performance of the Company's core mining business through the eyes of management. Management periodically evaluates the components of "adjusted net earnings" based on an internal assessment of performance measures that are useful for evaluating the operating performance of
|
Three months ended |
Six months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
ADJUSTED NET EARNINGS (LOSS) RECONCILIATION |
|
|
|
|
Income (loss) before taxes |
23.0 |
(1.8) |
(17.5) |
(33.3) |
Other losses |
0.5 |
14.3 |
55.6 |
64.3 |
Adjusted net earnings before taxes |
23.5 |
12.5 |
38.1 |
31.0 |
Income tax recovery (expense) |
30.1 |
(0.8) |
27.1 |
(1.1) |
Income tax adjustments |
(36.6) |
(0.1) |
(35.1) |
0.1 |
Adjusted income tax expense2 |
(6.5) |
(0.9) |
(8.0) |
(1.0) |
Adjusted net earnings2 |
17.0 |
11.6 |
30.1 |
30.0 |
Adjusted net earnings per share (basic and diluted)2 |
0.02 |
0.02 |
0.04 |
0.04 |
Cash Generated from Operations, before Changes in
"Cash generated from operations, before changes in non-cash operating working 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. Other companies may calculate this measure differently and this measure is unlikely to be comparable to similar measures presented by other companies. "Cash generated from operations, before changes in non-cash operating working capital" excludes changes in non-cash operating working capital.
Cash generated from operations, before non-cash changes in working capital 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. This measure is not necessarily indicative of operating profit or cash flows from operations as determined under IFRS. The following table reconciles this non-GAAP financial performance measure to the most directly comparable IFRS measure.
|
Three months ended |
Six months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
CASH RECONCILIATION |
|
|
|
|
Cash generated from operations |
100.4 |
56.4 |
155.2 |
117.0 |
Change in non-cash operating working capital |
(10.0) |
8.8 |
7.8 |
23.9 |
Cash generated from operations, before changes in non-cash operating working capital2 |
90.4 |
65.2 |
163.0 |
140.9 |
Free Cash Flow
"Free cash flow" 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.
|
Three months ended |
|||
(in millions of |
|
New Afton |
Other |
Total |
FREE CASH FLOW RECONCILIATION |
|
|
|
|
Cash generated from operations |
59.2 |
47.5 |
(6.3) |
100.4 |
Less Mining interest capital expenditures |
(39.7) |
(32.5) |
— |
(72.2) |
Add Proceeds of sale from other assets |
— |
0.2 |
— |
0.2 |
Less Lease payments |
(0.1) |
(0.3) |
(0.1) |
(0.5) |
Less Cash settlement of non-current derivative financial liabilities |
(7.5) |
— |
— |
(7.5) |
Free Cash Flow1 |
11.9 |
14.9 |
(6.4) |
20.4 |
|
Three months ended |
|||
(in millions of |
|
New Afton |
Other |
Total |
FREE CASH FLOW RECONCILIATION |
|
|
|
|
Cash generated from operations |
48.6 |
16.5 |
(8.8) |
56.3 |
Less Mining interest capital expenditures |
(36.1) |
(35.5) |
— |
(71.6) |
Add Proceeds of sale from other assets |
0.1 |
— |
— |
0.1 |
Less Lease payments |
(3.6) |
(0.1) |
(0.1) |
(3.9) |
Less Cash settlement of non-current derivative financial liabilities |
(7.0) |
— |
— |
(7.0) |
Free Cash Flow1 |
2.0 |
(19.1) |
(8.9) |
(26.1) |
|
Six months ended |
|||
(in millions of |
|
New Afton |
Other |
Total |
FREE CASH FLOW RECONCILIATION |
|
|
|
|
Cash generated from operations |
94.4 |
75.7 |
(14.9) |
155.2 |
Less Mining interest capital expenditures |
(69.4) |
(63.9) |
— |
(133.3) |
Add Proceeds of sale from other assets |
— |
0.2 |
— |
0.2 |
Less Lease payments |
(1.0) |
(0.5) |
(0.3) |
(1.8) |
Less Cash settlement of non-current derivative financial liabilities |
(14.7) |
— |
— |
(14.7) |
Free Cash Flow1 |
9.3 |
11.5 |
(15.2) |
5.6 |
|
Six months ended |
|||
(in millions of |
|
New Afton |
Other |
Total |
FREE CASH FLOW RECONCILIATION |
|
|
|
|
Cash generated from operations |
101.3 |
32.5 |
(16.8) |
117.0 |
Less Mining interest capital expenditures |
(64.1) |
(70.6) |
— |
(134.7) |
Add Proceeds of sale from other assets |
0.1 |
— |
— |
0.1 |
Less Lease payments |
(5.9) |
(0.10) |
(0.3) |
(6.3) |
Less Cash settlement of non-current derivative financial liabilities |
(14.8) |
— |
— |
(14.8) |
Free Cash Flow1 |
16.6 |
(38.2) |
(17.1) |
(38.7) |
Average Realized Price
"Average realized price per gold ounce or per copper pound sold" 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. Other companies may calculate this measure differently and this measure is unlikely to be comparable to similar measures presented by other companies. Management uses this measure to better understand the price realized for gold sales in each reporting period. "Average realized price per ounce of gold sold or copper pound sold" 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 reconcile this non-GAAP financial performance measure to the most directly comparable IFRS measure on an aggregate and mine-by-mine basis.
|
Three months ended |
Six months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
TOTAL AVERAGE REALIZED PRICE |
|
|
|
|
Revenue from gold sales |
156.6 |
144.6 |
301.0 |
307.2 |
Treatment and refining charges on gold concentrate sales |
2.2 |
1.6 |
4.2 |
3.9 |
Gross revenue from gold sales |
158.8 |
146.2 |
305.2 |
311.0 |
Gold ounces sold |
67,697 |
74,219 |
137,774 |
161,425 |
Total average realized price per gold ounce sold ($/ounce)1 |
2,346 |
1,970 |
2,216 |
1,927 |
|
Three months ended |
Six months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
Revenue from gold sales |
115.7 |
117.0 |
226.4 |
252.3 |
Gold ounces sold |
49,513 |
59,529 |
102,610 |
131,420 |
|
2,336 |
1,965 |
2,206 |
1,920 |
|
Three months ended |
Six months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
NEW AFTON AVERAGE REALIZED PRICE |
|
|
|
|
Revenue from gold sales |
40.9 |
27.6 |
74.7 |
54.9 |
Treatment and refining charges on gold concentrate sales |
2.2 |
1.6 |
4.2 |
3.9 |
Gross revenue from gold sales |
43.1 |
29.2 |
78.9 |
58.7 |
Gold ounces sold |
18,184 |
14,690 |
35,164 |
30,006 |
New Afton average realized price per gold ounce sold ($/ounce)1 |
2,372 |
1,988 |
2,244 |
1,957 |
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 in the MD&A for the three and six months ended
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release, including any information relating to
All forward-looking statements in this news release are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond
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
Technical Information
All scientific and technical information contained in this news release has been reviewed and approved by
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