New Gold lowers FY24 gold production view to 300,000-310,000 ounces

CEO Patrick Godin commented, “On an asset basis, New Afton full-year gold production is expected to be at the top end of the guidance range and Rainy River gold production is expected to be lower than planned, mainly due to less high-grade tonnes on two open pit benches, and our decision to voluntarily suspend operations in July and gradually return to full production. Considering the performance to date, and after reviewing the open pit ore blocks planned at Rainy River in the Q4, together with the excellent performance at New Afton, we are confident in our updated consolidated production forecasts to the end of this year and our previously provided 2025 and 2026 outlook. Furthermore, through operational discipline and capital management, we continue to successfully manage costs to generate significant free cash flow and offset the financial impact of lower production at Rainy River. Following the free cash flow inflection point, achieved in the middle of this year, and with the completion of key growth project milestones, the Company is well positioned to continue delivering on our targets and leverage the current metal price environment”. Gold production is expected to be in the range of 300,000-310,000 ounces, previously 310,000 to 350,000 ounces. New Afton gold production is expected to be at the top end of the guidance range of 60,000-70,000 ounces. Rainy River gold production is expected to be in the range of 230,000-240,000 ounces, previously 250,000 to 280,000 ounces. Copper production is expected to be at the mid-point of the guidance range of 50 to 60 million pounds. Cash costs are trending in-line with the mid-point of the guidance range of $725 to $825 per gold ounce sold, on a by-product basis, despite the slightly lower gold production outlook and lower capitalized waste stripping, as a result of lower mining and processing costs, achieved through operational discipline at both operations, and higher by-product revenues from higher copper prices. Overall, the unit mining cost per tonne is lower than plan due to operational efficiency improvements and cost reduction initiatives. All-in sustaining costs are expected to be at the low end of the guidance range of $1,240 to $1,340 per gold ounce sold, on a by-product basis, as a result of strong cash costs and lower sustaining capital spend. Rainy River’s all-in sustaining costs are expected to be at the top end of its guidance range as lower mining and processing costs offset the lower expected production. All-in sustaining costs at New Afton are expected to be below the low end of its guidance range. Operating expenses per gold ounce (co-product) are now tracking to the high end or slightly above the top end of the guidance range of $965-$1,065 per gold ounce sold as a result of lower capitalized waste stripping and slightly lower gold production, which offset the impact of lower mining and processing costs. Operating expenses per copper pound are trending in-line with the mid-point of the guidance range of $1.90-$2.40 per copper pound sold. Sustaining capital is tracking approximately $20 million below the low end of the guidance range of $115M-$130M due to efficient capital management, savings related to execution of the Rainy River tailings dam raise, lower capitalized waste stripping and timing of capital spend at New Afton. Growth capital is tracking to the low end of the guidance range of $175M-$200M, due to efficient capital management and early commissioning of the materials handling system at New Afton.