New Gold Inc.: Third Quarter 2007 Financial Results
13 November 2007 - 6:36PM
Marketwired
VANCOUVER, BRITISH COLUMBIA (AMEX: NGD) is pleased to announce
its financial results for the period ended September 30, 2007. (To
review the complete interim unaudited financial statements, or
Management Discussion and Analysis, please see the Company's SEDAR
filings at www.sedar.com or the Company's website at
www.newgoldinc.com).
The Company incurred a loss of $16.4 million or $0.45 per share
in the third quarter compared with a loss of $750,000 or $0.03 per
share in the third quarter of 2006. On a year-to-date basis, the
Company incurred a loss of $18.9 million or $0.66 per share as
compared to $2.1 million in the comparative period in 2006. Of the
$16.4 million loss in the third quarter, $17.2 million was
attributable to an impairment charge in respect of the Company's
holdings in non-bank sponsored Asset Backed Commercial Paper
("ABCP") and approximately $11.4 million was attributable to
accretion and interest costs in respect of the debt financings
completed in June and July, 2007. These losses were offset as the
Company recorded a future income tax gain totaling $10.6 million
during the third quarter of 2007 as a consequence of having
received the mine permit on October 31, 2007.
During the third quarter of 2007, the Company invested
approximately $5.9 million on its mineral properties as compared to
$4.5 million in the comparative quarter in 2006. During the current
quarter the Company spent $4.3 million on underground development,
principally related to the underground development from the
existing decline, $1.1 million on surface exploration programs in
and around the current resource and $0.4 million at the Company's
Magnum/Ajax properties. This compares to spending in the 2006
comparative quarter of $1.3 million on underground exploration and
support, $2.2 million on the feasibility study and $1.0 million on
surface exploration at Afton and Ajax.
As previously announced on November 1, the Company received the
mine permit under the Mines Act (B.C.) which approves the
construction, operation and reclamation of the New Afton Mine. The
Company also announced the completion of the surface rights
acquisition for the New Afton project from Teck Cominco Ltd., on
October 25th.
The Company presently has approximately $218 million in cash and
cash equivalents plus its short-term investments in ABCP of $153
million (this amount reflecting the adjustment resulting from the
impairment charge) which are subject to the Montreal Accord
restructuring. The Company has 37 million shares outstanding.
Certain of the statements made and information contained herein
is "forward- looking information" within the meaning of the Ontario
Securities Act or "forward-looking statements" within the meaning
of Section 21E of the Securities Exchange Act of 1934 of the United
States. Forward-looking statements are subject to a variety of
risks and uncertainties which could cause actual events or results
to differ from those reflected in the forward-looking statements,
including, without limitation, risks and uncertainties relating to
the interpretation of drill results and the estimation of mineral
resources and reserves, the geology, grade and continuity of
mineral deposits, the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations, metal recoveries, accidents, equipment
breakdowns, title matters and surface access, labour disputes or
other unanticipated difficulties with or interruptions in
production, the potential for delays in exploration or development
activities or the completion of feasibility studies, the inherent
uncertainty of production and cost estimates and the potential for
unexpected costs and expenses, commodity price fluctuations,
currency fluctuations, failure to obtain adequate financing on a
timely basis and other risks and uncertainties, including those
described under Risk Factors Relating to the Company's Business in
the Company's Annual Information Form and in each management
discussion and analysis. Forward looking information is in addition
based on various assumptions including, without limitation, the
expectations and beliefs of management, the assumed long term price
of copper and gold, that the feasibility study will confirm that a
technically viable and economic operation exists, that the Company
will receive required permits and access to surface rights, that
the Company can access financing, appropriate equipment and
sufficient labour and that the political environment within British
Columbia and Canada will continue to support the development of
environmentally safe mining projects so that the Company will be
able to commence the development of the New Afton project within
the timetable to be established by the feasibility study. Should
one or more of these risks and uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those described in forward-looking statements.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements.
Cautionary note to U.S. investors concerning estimates of
Measured and Indicated Resources, and the use the terms "measured"
and "indicated resources." We advise U.S. investors that, while
those terms are recognized and required by Canadian regulations,
the U.S. Securities and Exchange Commission does not recognize
them. U.S. investors are cautioned not to assume that any part or
all of mineral deposits in these categories will ever be converted
into reserves.
WARNING: The Company relies upon litigation protection for
"forward-looking" statements.
Contacts: New Gold Inc. Chris Bradbrook President and Chief
Executive Officer 1-877-977-1067 or (604) 687-1629 (604) 687-2845
(FAX) Email: invest@newgoldinc.com Website: www.newgoldinc.com
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