(All figures are in US dollars unless otherwise indicated)
VANCOUVER, May 6 /PRNewswire-FirstCall/ - New Gold Inc.
("New Gold") (TSX and NYSE AMEX:NGD) today announces financial and
operational results for the first quarter of 2010. The company had
a strong operational quarter with gold sales of 80,020 ounces at a
total cash cost(1) of $472 per ounce,
net of by-product sales, resulting in $36.6
million of earnings from mine operations. New Gold is also
pleased to reiterate its 2010 full year guidance of 330,000 to
360,000 ounces of gold production at total cash cost(1) of
$445 to $465 per ounce sold, net of
by-product sales.
First Quarter Highlights
Results presented below are for the period of ownership for the
Mesquite Mine (June 1, 2009).
- Gold sales increased by 44% to 80,020 ounces from 55,397 ounces in
the same period in 2009
- Total cash cost(1) decreased 8% to $472 per ounce sold, net of by-
product sales, from $513 per ounce sold in the same period in 2009
- Earnings from mine operations increased by 202% to $36.6 million from
$12.1 million in the same period in 2009
- Net earnings from continuing operations increased to $17.2 million
from $12.1 million in the same period in 2009
- Cash flow from operations increased to $20.0 million from cash flow
used by operations of $2.7 million in the same period in 2009
- Cash balance increased by $72.2 million from year-end 2009 to
$343.7 million at March 31, 2010
"With continued strong operational results and a significantly
improved balance sheet, the first quarter proved to be an
outstanding start to 2010 for New Gold," stated Randall Oliphant, Executive Chairman. "Through
the rest of 2010 and going forward, we will continue our focus on
delivering increased production at lower costs and will strive to
further increase the value of our portfolio of operating and
development assets."
First Quarter Consolidated Financial Results
Consolidated revenue for the first quarter of 2010 was
$101.6 million compared to
$44.3 million for the same period in
2009. Revenue increased in 2010 as a result of additional gold
sales from the Mesquite mine after the business combination with
Western Goldfields Inc. as well as higher average realized gold
prices in 2010.
Earnings from mine operations for the first quarter of 2010 were
$36.6 million compared to
$12.1 million for the same period in
2009. The increase in earnings from mine operations in 2010 was
driven by increased gold sales, higher average realized gold prices
and lower total cash cost(1) during the quarter.
Net earnings from continuing operations for the first quarter of
2010 were $17.2 million or
$0.04 per share compared to net
earnings of $12.1 million or
$0.06 per share for the same period
in 2009. The first quarter 2010 net earnings included a pre-tax
gain of $3.9 million related to the
sale of Asset Backed Notes which was offset by a pre-tax
$4.8 million foreign exchange
translation loss. Comparatively, the first quarter of 2009 net
earnings included a pre-tax gain of $14.2
million related to the redemption of long-term debt which
was partially offset by a pre-tax $2.0
million foreign exchange translation loss.
Cash flow from operations for the first quarter of 2010 was
$20.0 million compared to cash flow
used by operations of $2.7 million
for the same period in 2009. The significant increase in quarterly
cash flow is a direct result of the company's strong operating
performance during the quarter.
New Gold's cash balance at the end of the quarter was
$343.7 million representing a
significant increase over the year-end 2009 cash balance of
$271.5 million, including restricted
cash. In addition, subsequent to quarter end, the company closed
the sale of Amapari and as part of the consideration received
$37 million in cash. During the
quarter, New Gold fully pre-paid the remaining $27.2 million of the Mesquite term loan facility,
leaving the company with $217.7
million in debt, which is due in 2014 and 2017.
First Quarter Operational Review
All three of New Gold's operating mines had strong operating
quarters, with Mesquite and Peak producing gold at targeted rates
at lower than forecasted costs. Despite the delay in receiving the
explosives permit, Cerro San Pedro successfully optimized the
processing of ore on the leach pad and maximized the gold
production and related earnings contribution from the mine. New
Afton also continued its strong progress with a fifth straight
quarter of increased underground advance.
"We continue to be very proud of our operational teams at each
of the sites," stated Robert
Gallagher, President and Chief Executive Officer. "With the
continued progress of Mesquite, the flexibility of Cerro San Pedro,
the year-over-year consistency of Peak and the exciting future of
New Afton and El Morro we are very pleased with the outlook of our
properties."
Historical results presented below include gold production,
sales and total cash cost(1) for the first quarter of 2009 which
reflects a period prior to the acquisition of the Mesquite Mine
(June 1, 2009).
Mesquite Mine Showing Continued Improvement
Gold sales in the first quarter at Mesquite increased by 51% to
49,502 ounces from 32,715 ounces sold in the first quarter 2009.
The increase in gold sales, combined with a 4% decrease in total
cash cost(1) per ounce sold to $550
from $573 in the first quarter of
2009, resulted in a significant increase in earnings from mine
operations at Mesquite during the quarter. With these improved
operating results and higher realized gold prices, earnings from
mine operations in the first quarter were $17.4 million compared to $7.1 million in the same period in 2009.
The increased gold sales and production at Mesquite during the
first quarter were primarily driven by mining at reserve grade when
compared to the lower grade ore mined in the first quarter of 2009
as well as continued improvement in gold recoveries. Total cash
cost(1) benefitted from higher gold sales in the quarter and were
partially offset by higher consumable and labour costs when
compared to the first quarter of 2009.
The Mesquite Mine is forecast to produce 145,000 to 155,000
ounces of gold in 2010 at total cash cost(1) of $540 to $560 per ounce sold.
Cerro San Pedro Mine Back Up and Running
As a result of a previously disclosed legal challenge that was
subsequently dismissed in mid-March, the renewal of the Mine's
explosives permit was delayed until March
18, 2010. Despite limited ore delivery in the first quarter,
the team focused on optimizing the processing of heap leach ore to
maximize the production of gold and silver during the quarter.
Gold and silver sales in the first quarter at Cerro San Pedro
were 13,124 and 193,506 ounces, respectively, compared to 18,314
and 372,219 ounces in the same period in 2009. The decline in sales
of both gold and silver was directly attributable to limited
delivery of ore to the leach pad. As a result of the fixed portion
of operating costs at Cerro San Pedro being attributed to fewer
gold ounces sold as well as lower by-product credits resulting from
lower silver sales during the quarter, the total cash cost(1) per
ounce of gold sold, net of by-product sales, for the first quarter
was $622 compared to $551 in the first quarter of 2009. Despite the
permitting delay, Cerro San Pedro's earnings from mine operations
during the first quarter increased to $3.2
million from $2.6 million in
the same period in 2009.
The company continues to work with federal and local levels of
government in Mexico to resolve
the ongoing legal challenges at Cerro San Pedro.
Since the receipt of the explosives permit the mine has been
fully operational and the forecast for Cerro San Pedro remains
unchanged with expected production of 95,000 to 105,000 ounces of
gold and 1.4 to 1.6 million ounces of silver in 2010. Total cash
cost(1) is forecast to be $390 to
$410 per ounce sold, net of by-product sales. The full year
total cash cost(1) assumption is based on a by-product silver price
of $15 per ounce.
Peak Mines Makes Strong Earnings Contribution
Gold and copper sales in the first quarter at Peak Mines were
17,393 ounces and 4.1 million pounds, respectively, compared to
20,856 ounces and 2.8 million pounds sold in the first quarter of
2009. Total cash cost(1) per ounce of gold sold, net of by-product
sales, for the first quarter was $136
compared to $337 in the first quarter
of 2009. The combination of steady gold production, a higher
realized gold price and lower total cash cost(1) resulted in first
quarter 2010 earnings from mine operations increasing by 68% to
$16.0 million from $9.5 million in the same period in 2009.
The decrease in gold sales was a result of timing of concentrate
shipments while the increase in copper sales was attributable to
higher copper grades and recoveries. The decrease in total cash
cost(1) is due to higher by-product sales resulting from increased
copper volumes and higher average copper prices during the first
quarter of 2010 compared to 2009. The first quarter cash cost
further benefited from copper sales of 4.1 million pounds being
netted against 17,393 ounces of gold sales. As gold sales are
expected to increase in subsequent quarters of 2010, with copper
sales remaining consistent, the relative by-product benefit should
be lower than that recorded in the first quarter. These cost
reductions were partially offset by an increase in the Australian
dollar exchange rate when compared to the first quarter of
2009.
Peak Mines remains on target to produce 90,000 to 100,000 ounces
of gold and 15 to 17 million pounds of copper in 2010. Total cash
cost(1) is forecast to be $360 to
$380 per ounce sold, net of by-product sales. The full year
total cash cost(1) assumption is based on a by-product copper price
of $2.75 per pound.
New Afton Increases Advance Rate
New Gold's primary development project continued on schedule
during the first quarter and is expected to commence production in
the second half of 2012. The project will be an underground mine
and concentrator which will produce an annual estimated average of
85,000 ounces of gold, and 75 million pounds of copper.
During the first quarter of 2010, the New Afton underground
development crews continued their track record of continuous
improvement advancing development 742 metres. This marks the fifth
consecutive quarter of increased development and a significant
improvement over the 195 metres of advance completed in the first
quarter of 2009. Capital expenditures during the quarter were
$15.9 million, including $5.1 million of capitalized interest, compared to
$18.2 million in the same period in
2009.
As previously disclosed, due to the company's increased
financial flexibility, $50 million of
surface construction related capital has been moved into 2010 that
was previously budgeted for 2011 and 2012. This will help more
evenly spread the surface construction over the coming years
helping to further optimize the development of New Afton which
remains on time and on budget. Total capital expenditures for 2010
at New Afton are projected to be $133.5
million, including $21.5
million of capitalized interest.
The company looks forward to production commencing in just over
two years, as New Afton is expected to contribute significantly to
New Gold's current portfolio of operating assets. As a low-cost
operation, New Afton should meaningfully expand the company's
operating margin and cash flow generation. At current commodity
prices, the mine is expected to double the company's cash flow.
El Morro Project Update
New Gold's 70% joint venture partner on the El Morro Project,
Goldcorp Inc., continues to work through the permit review process
for the project with a target to begin construction in early 2011.
A project team has been assembled to advance exploration and
development at the site during 2010 and plans to further optimize
the existing feasibility study are underway. Goldcorp Inc. has
stated that exploration expenditures at El Morro during 2010 are
estimated to be approximately $10
million.
First Quarter Production and Total Cash Cost(1) Overview
Results presented below are for the period of ownership for the
Mesquite Mine (June 1, 2009).
-------------------------------------------------------------------------
Q1 2010 Q1 2009
-------------------------------------------------------------------------
Production
-------------------------------------------------------------------------
Mesquite Gold (ounces) 44,034 -
-------------------------------------------------------------------------
Cerro San Pedro
Gold (ounces) 12,938 20,583
Silver (ounces) 206,700 427,439
-------------------------------------------------------------------------
Peak Mines
Gold (ounces) 20,243 20,629
Copper (million pounds) 4.0 3.8
-------------------------------------------------------------------------
Amapari Gold (ounces) - 13,726
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total Production
-------------------------------------------------------------------------
Gold (ounces) 77,215 54,938
-------------------------------------------------------------------------
Silver (ounces) 206,700 427,439
-------------------------------------------------------------------------
Copper (million pounds) 4.0 3.8
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Gold sales (ounces) 80,020 55,397
-------------------------------------------------------------------------
Total cash cost(1) ($ per ounce) $472 $513
-------------------------------------------------------------------------
Note: As announced on April 13, 2010, the company has sold the Amapari
asset.
Key Financial Information
At March 31, 2010, New Gold had a
cash balance of $343.7 million, an
increase of $72.2 million when
compared to the year-end 2009 balance. The net increase in the cash
balance during the first quarter of 2010 is summarized below:
-------------------------------------------------------------------------
Cash Balance
(US$m)
-------------------------------------------------------------------------
December 31, 2009 (including restricted cash) $271.5
-------------------------------------------------------------------------
Cash flow from operations 20.0
-------------------------------------------------------------------------
January sale of asset backed notes 48.1
-------------------------------------------------------------------------
Net cash consideration as part of El Morro transaction 46.3
-------------------------------------------------------------------------
Mesquite Term Loan Facility prepayment (27.2)
-------------------------------------------------------------------------
Capital expenditures (19.0)
-------------------------------------------------------------------------
Other 4.0
-------------------------------------------------------------------------
March 31, 2010 $343.7
-------------------------------------------------------------------------
During the quarter, the company's cash flow was in excess of the
New Afton development costs and sustaining capital expenditures at
New Gold's operations. Subsequent to the quarter end, the company
received an additional $37 million in
cash proceeds after the closing of the sale of the Amapari Mine.
The consolidated debt position of the company is $217.7 million which includes: $174.5 million of 10% senior secured notes
(C$187 million), $39.5 million of 5% convertible debentures (face
value of C$55 million) and
$3.7 million in El Morro funding
loans. The senior secured notes are due in 2017 and the convertible
debentures are due in 2014 and have a C$9.35 conversion price.
2010 Outlook
During the first quarter of 2010 New Gold continued to make
significant progress both from an operational and financial
perspective. With the Mesquite and Peak Mines performing well and
Cerro San Pedro now back to full operations, the company's
producing assets are well positioned to meet the 2010 guidance.
Through various corporate development initiatives including the new
El Morro partnership and sale of Amapari, New Gold has streamlined
its portfolio of assets, while simultaneously strengthening the
balance sheet and increasing the company's financial flexibility.
From this position, the company looks forward to the continued
development of its exciting New Afton project, which has the
potential to significantly enhance the cash flow generation of the
company, as well as the pursuit of other value enhancing
opportunities.
Conference Call-in and Webcast
New Gold will discuss full first quarter earnings results as
part of the company's Annual General Meeting of Shareholders
("AGM") on May 6, 2010 at
4:00pm Eastern Time. New Gold will
hold a conference call and webcast of its AGM. Anyone may join the
call by dialling toll free 1-866-696-5910 or 1-416-340-2217 to
access the call from outside Canada or the U.S. - Passcode 1174247. You can
listen to a recorded playback of the call after the event by
dialling 1-800-408-3053 or 1-416-695-5800 for calls outside
Canada and the U.S. - Passcode
7164763.
A live and archived webcast will also be available at
www.newgold.com.
About New Gold
New Gold is an intermediate gold mining company with the
Mesquite Mine in the United
States, the Cerro San Pedro Mine in Mexico and the Peak Gold Mines in Australia. The company is expected to produce
between 330,000 and 360,000 ounces of gold in 2010, growing to over
400,000 ounces in 2012. In addition, New Gold has a strong
portfolio of development and exploration assets in North and
South America. For further
information on the company, please visit www.newgold.com.
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 may be deemed "forward looking". All
statements in this news release, other than statements of
historical fact, that address events 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 words "expects", "does
not expect", "plans", "anticipates", "does not anticipate",
"believes", "intends", "estimates", "projects", "potential",
"scheduled", "forecast", "budget" and similar expressions, or that
events or conditions "will", "would", "may", "could", "should" or
"might" occur. All such forward-looking statements 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 New Gold's ability to
control or predict. 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 New Gold's 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: significant capital requirements; fluctuations
in the international currency markets and in the rates of exchange
of the currencies of Canada,
the United States, Australia, Brazil, Mexico and Chile; price volatility in the spot and
forward markets for commodities; impact of any hedging activities,
including margin limits and margin calls; discrepancies between
actual and estimated production, between actual and estimated
reserves and resources and between actual and estimated
metallurgical recoveries; changes in national and local government
legislation in Canada,
the United States, Australia, Brazil, Mexico and Chile or any other country in which New Gold
currently or may in the future carry on business; taxation;
controls, regulations and political or economic developments in the
countries in which New Gold does or may carry on business; 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 that New Gold
operates, including, but not limited to, Mexico, where New Gold is involved with
ongoing challenges relating to its environmental impact statement
for the Cerro San Pedro Mine; the lack of certainty with respect to
the Mexican and other foreign 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
uncertainties inherent to current and future legal challenges the
company is or may become a party to, including the third party
claim related to the El Morro transaction with respect to New
Gold's exercise of its right of first refusal on the El Morro
copper-gold project in Chile and
its partnership with Goldcorp Inc., which transaction and third
party claim were announced by New Gold in January 2010; diminishing quantities or grades of
reserves; competition; loss of key employees; additional funding
requirements; actual results of current exploration or reclamation
activities; changes in project parameters as plans continue to be
refined; accidents; labour disputes; defective title to mineral
claims or property or contests over claims to mineral properties.
In addition, there are risks and hazards associated with the
business of mineral exploration, development and mining, including
environmental 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 Annual Information Form filed on March 26, 2010 and Management's Discussion and
Analysis for the year ended December 31,
2009, both available at www.sedar.com. 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 of the 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.
(1) TOTAL CASH COST
"Total cash cost" per ounce figures are calculated in accordance
with a standard developed by The Gold Institute, which was a
worldwide association of suppliers of gold and gold products and
included leading North American gold producers. The Gold Institute
ceased operations in 2002, but the standard is widely accepted as
the standard of reporting cash cost of production in North America. Adoption of the standard is
voluntary and the cost measures presented may not be comparable to
other similarly titled measures of other companies. New Gold
reports total cash cost on a sales basis. Total cash cost includes
mine site operating costs such as mining, processing,
administration, royalties and production taxes, but is exclusive of
amortization, reclamation, capital and exploration costs. Total
cash cost is reduced by any by-product revenue and is then divided
by ounces sold to arrive at the total by-product cash cost of
sales. The measure, along with sales, is considered to be a key
indicator of a company's ability to generate operating earnings and
cash flow from its mining operations. This data is furnished to
provide additional information and is a non-GAAP measure. Total
cash cost presented do not have a standardized meaning prescribed
by GAAP and may not be comparable to similar measures presented by
other mining companies. It should not be considered in isolation as
a substitute for measures of performance prepared in accordance
with GAAP and is not necessarily indicative of operating costs
presented under GAAP. A reconciliation will be provided in the
MD&A accompanying the quarterly financial statements.
New Gold Inc.
Consolidated Statements of Operations
Three month periods ended March 31
(Expressed in thousands of U.S. dollars, except share and per share
amounts)
(Unaudited)
-------------------------------------------------------------------------
2010 2009
-------------------------------------------------------------------------
$ $
Revenues 101,620 44,325
Operating expenses (52,256) (23,773)
Depreciation and depletion (12,741) (8,479)
-------------------------------------------------------------------------
Earnings from mine operations 36,623 12,073
Corporate administration (7,989) (4,860)
Exploration (1,794) (1,067)
-------------------------------------------------------------------------
Income from operations 26,840 6,146
Other income (expense)
Realized and unrealized gain on investments 3,944 -
Unrealized gain on prepayment option 1,907 -
Interest and other income 616 246
Gain on redemption of long-term debt - 14,236
Interest and finance fees (232) (84)
Other expense (2,082) -
Loss on foreign exchange (4,813) (1,984)
-------------------------------------------------------------------------
Earnings before taxes 26,180 18,560
Income and mining taxes (8,992) (6,491)
-------------------------------------------------------------------------
Net earnings from continuing operations 17,188 12,069
Earnings from discontinued operations 305 10
-------------------------------------------------------------------------
Net earnings 17,493 12,079
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings per share from continuing operations
Basic 0.04 0.06
Diluted 0.04 0.06
-------------------------------------------------------------------------
Earnings per share from discontinued operations
Basic 0.00 0.00
Diluted 0.00 0.00
-------------------------------------------------------------------------
Earnings per share
Basic 0.04 0.06
Diluted 0.04 0.06
-------------------------------------------------------------------------
Weighted average number of shares outstanding
(in thousands)
Basic 388,956 212,848
Diluted 398,190 212,930
(i) Stock option expense (a non-cash item
included in corporate administration) 2,302 1,332
New Gold Inc.
Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
(Unaudited)
-------------------------------------------------------------------------
March 31, December 31,
2010 2009
-------------------------------------------------------------------------
$ $
Assets
Current assets
Cash and cash equivalents 343,715 262,325
Restricted cash - 9,201
Accounts receivable 15,644 10,345
Inventories 88,743 86,299
Future income and mining taxes 6,934 8,848
Current portion of mark-to-market gain
on fuel contracts 726 706
Prepaid expenses and other 6,539 6,933
Current assets of operations held for sale 10,585 10,298
-------------------------------------------------------------------------
Total current assets 472,886 394,955
Investments 2,149 45,890
Mining interests 2,012,749 2,000,438
Future income tax asset 2,028 2,250
Reclamation deposits and other 19,739 17,646
Assets of operations held for sale 27,009 27,080
-------------------------------------------------------------------------
Total assets 2,536,560 2,488,259
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 40,610 36,033
Current portion of long-term debt - 12,088
Current portion of mark-to-market loss
on gold contracts 20,288 19,206
Income and mining taxes payable 15,067 15,677
Current liabilities of operations
held for sale 8,943 10,414
-------------------------------------------------------------------------
Total current liabilities 84,908 93,418
Reclamation and closure cost obligations 21,040 19,889
Mark-to-market loss on gold contracts 76,782 76,780
Future income and mining taxes 314,606 316,426
Long-term debt 217,704 225,456
Deferred benefit 46,276 -
Employee benefits and other 5,618 5,355
Liabilities of operations held for sale 19,272 19,890
-------------------------------------------------------------------------
Total liabilities 786,206 757,214
-------------------------------------------------------------------------
Shareholders' equity
Common shares 1,812,625 1,810,865
Contributed surplus 84,291 82,984
Share purchase warrants 150,656 150,656
Equity component of convertible debentures 21,604 21,604
Accumulated other comprehensive loss (30,456) (29,205)
Deficit (288,366) (305,859)
-------------------------------------------------------------------------
(318,822) (335,064)
-------------------------------------------------------------------------
Total shareholders' equity 1,750,354 1,731,045
-------------------------------------------------------------------------
Total liabilities and shareholders' equity 2,536,560 2,488,259
-------------------------------------------------------------------------
-------------------------------------------------------------------------
New Gold Inc.
Consolidated Statements of Cash Flows
Three month periods ended March 31
(Expressed in thousands of U.S. dollars)
(Unaudited)
-------------------------------------------------------------------------
2010 2009
-------------------------------------------------------------------------
$ $
Operating activities
Net earnings 17,493 12,079
Earnings from discontinued operations (305) (10)
Items not involving cash
Unrealized and realized gain on gold
contracts (2,076) -
Unrealized gain on fuel contracts 65 -
Unrealized foreign exchange loss 4,812 2,719
Gain on disposal of investments (3,944) -
Loss on disposal of assets 398 -
Depreciation and depletion 12,522 8,480
Stock option expense 2,302 1,332
Gain on embedded derivative contract (1,907) -
Remediation costs incurred (16) -
Future income and mining taxes (1,067) 2,787
Gain on redemption of long-term debt - (14,236)
Other - 327
Change in non-cash working capital (8,331) (16,209)
-------------------------------------------------------------------------
Cash provided by (used in) continuing
operations 19,946 (2,731)
Cash provided by (used in) discontinued
operations (1,696) 10,452
-------------------------------------------------------------------------
Investing activities
Mining interests (18,968) (26,408)
Reclamation deposits (41) -
Receipt of accrued interest on investments - 4,716
Reduction of restricted cash 9,201 -
Proceeds from disposal of assets 29 -
Cash received in El Morro transaction 46,276 -
Investment in El Morro (463,000) -
Proceeds from settlement of investments 48,112 -
-------------------------------------------------------------------------
Cash provided by (used in) continuing
operations (378,391) (21,692)
Cash used in discontinued operations (219) (721)
-------------------------------------------------------------------------
Financing activities
Common shares issued - 46
Exercise of options to purchase common stock 765 -
El Morro loan 463,000 -
Repayment of long-term debt (27,235) (25,575)
-------------------------------------------------------------------------
Cash provided by (used in) continuing
operations 436,530 (25,529)
Cash provided by (used in) discontinued
operations - (7,000)
-------------------------------------------------------------------------
Effect of exchange rate changes on cash and
cash equivalents 5,295 (1,837)
-------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents 81,465 (49,058)
Cash and cash equivalents, beginning of period 263,151 185,668
-------------------------------------------------------------------------
Cash and cash equivalents, end of period 344,616 136,610
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Comprised of
Cash and cash equivalents of continuing
operations 343,715 130,224
Cash and cash equivalents of discontinued
operations 901 6,386
-------------------------------------------------------------------------
344,616 136,610
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash and cash equivalents are comprised of
Cash 113,202 39,640
Short-term money market instruments 231,414 96,970
-------------------------------------------------------------------------
344,616 136,610
-------------------------------------------------------------------------
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SOURCE New Gold Inc.