(All dollar figures are in US dollars unless otherwise
indicated)
TORONTO, April 29, 2015 /CNW/ - New Gold Inc. ("New Gold")
(TSX:NGD) (NYSE MKT:NGD) today announces its 2015 first quarter
operational and financial results. The company produced 94,977
ounces of gold and generated net cash from operations before
changes in working capital(1) of
$67 million.
2015 FIRST QUARTER HIGHLIGHTS
- Gold production increased by 4% to 94,977 ounces when compared
to the prior-year quarter
- Copper production of 23.0 million pounds
- Silver production of 0.4 million ounces
- All-in sustaining costs(2) of
$1,014 per ounce, including total
cash costs(3) of $486 per ounce
- Adjusted net loss(4) of $5 million, or $0.01 per share
- March 31, 2015 cash balance of
$366 million
- Received Federal and Provincial approval of Rainy River's Environmental Assessment in
January 2015
- Land clearing and other construction-related activities
commenced in February 2015
- New Afton mill expansion currently being commissioned – ahead
of schedule and under budget at a total capital cost of
approximately $35 million
- Once fully optimized, the mill expansion should enable New
Afton to achieve an average throughput of over 14,000 tonnes per
day
"The first quarter delivered a solid start to the year for our
company," stated Randall Oliphant,
Executive Chairman. "Our portfolio of operations continued to
generate free cash flow which we are reinvesting in the future of
our business. We achieved a significant milestone with the approval
of the Rainy River Environmental Assessment early in the year and
construction activities are now accelerating. At the same time, we
are proud of the New Afton team for commissioning the mill
expansion ahead of schedule and below budget which should further
enhance the mine's strong operating performance."
2015 FIRST QUARTER OPERATIONAL RESULTS
New Gold's first quarter gold production increased by 4% to
94,977 ounces. The increase in gold production relative to the
prior-year quarter was driven by a combination of significant
production growth from Cerro San
Pedro and steady performance from Mesquite and the Peak
Mines, the benefits of which more than offset a slight decrease in
gold production at New Afton. Consolidated copper production in the
first quarter of 23.0 million pounds was 2.9 million pounds below
the prior-year quarter while silver production of 0.4 million
ounces remained consistent.
Total cash costs(3) of $486 per ounce increased relative to the
prior-year quarter primarily due to a $21
million, or $209 per ounce,
decrease in copper and silver by-product revenues. The lower
by-product revenues were 50% attributable to a decrease in
by-product sales volumes and 50% due to lower realized copper and
silver prices(5). Quarterly all-in
sustaining costs(2) of $1,014 per ounce were impacted as the company's
consolidated sustaining capital expenditures of $38 million increased by $10 million, or $116 per ounce, relative to the prior-year
quarter primarily due to increased expenditures at Mesquite.
NEW GOLD SUMMARY OPERATIONAL
RESULTS
|
|
|
|
|
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Three months ended March 31
|
|
2015
|
2014
|
|
|
|
GOLD PRODUCTION (thousand
ounces)
|
|
|
New Afton
|
23.9
|
27.4
|
Mesquite
|
25.7
|
25.7
|
Peak Mines
|
19.4
|
20.9
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Cerro San Pedro
|
26.0
|
17.3
|
Total Gold Production
|
95.0
|
91.3
|
|
|
|
|
|
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Total Gold Sales (thousand ounces)
|
92.4
|
94.1
|
Average Realized Gold Price per
ounce(5)
|
$1,229
|
$1,308
|
|
|
|
COPPER PRODUCTION (million
pounds)
|
|
|
New Afton
|
19.6
|
22.0
|
Peak Mines
|
3.4
|
3.9
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Total Copper Production
|
23.0
|
25.9
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|
|
|
|
|
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Total Copper Sales (million pounds)
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22.1
|
25.1
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Average Realized Copper Price per
pound(5)
|
$2.59
|
$2.98
|
|
|
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SILVER PRODUCTION (thousand
ounces)
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|
|
New Afton
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60.2
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63.8
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Peak Mines
|
25.5
|
32.3
|
Cerro San Pedro
|
296.6
|
318.6
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Total Silver Production
|
382.3
|
414.7
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|
|
|
|
|
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Total Silver Sales (thousand
ounces)
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332.7
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416.6
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Average Realized Silver Price per
ounce(5)
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$16.65
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$20.40
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|
|
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TOTAL CASH COSTS(3)($ per
ounce)
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|
|
New Afton
|
($834)
|
($1,283)
|
Mesquite
|
889
|
893
|
Peak Mines
|
846
|
757
|
Cerro San Pedro
|
1,027
|
947
|
Total Cash
Costs(3)
|
$486
|
$254
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|
|
|
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|
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All-IN SUSTAINING COSTS(2)($ per
ounce)
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|
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New Afton
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($359)
|
($664)
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Mesquite
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1,708
|
1,069
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Peak Mines
|
1,189
|
1,102
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Cerro San Pedro
|
1,041
|
1,080
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All-in Sustaining
Costs(2)
|
$1,014
|
$674
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|
|
|
New Afton
Gold production at New Afton during the first quarter of 23,912
ounces was below the prior-year quarter. The impact of lower gold
grade and recovery was only partially offset by a 5% increase in
tonnes processed. The decrease in recovery was primarily driven by
the higher daily throughput and resulting increase in the grind
size of ore, as well as lower grade. With the commissioning of the
new vertimill, the grinding capacity of the New Afton mill will be
increased which should enable grind size to be optimized and
recoveries to be improved. As a result, gold production from New
Afton is expected to increase in the coming quarters.
New Afton's quarterly copper production of 19.6 million pounds
was similarly impacted as the benefit of the increase in throughput
was offset by a decrease in copper grade and recovery. Consistent
with the expectation for gold recoveries, copper recoveries should
improve with the commissioning of the vertimill and optimization of
the grind size.
The increase in New Afton's total cash
costs(3) to ($834) per ounce was primarily attributable to a
$16 million, or $266 per ounce, decrease in copper by-product
revenue relative to the prior-year quarter, resulting from a
combination of lower copper sales volumes and a decrease in the
realized price(5). Total cash
costs(3) in the first quarter were further
affected by the decrease in gold sales volumes, the impact of which
was only partially offset by a 13% depreciation of the Canadian
dollar relative to the U.S. dollar. The mine's operating costs,
including mining, processing and general and administrative costs,
were $17.71 per tonne. New Afton's
sustaining capital expenditures of $11
million decreased by $6
million, or $140 per ounce,
relative to the prior-year quarter, thus resulting in all-in
sustaining costs(1) of ($359) per ounce in the first quarter of
2015.
New Afton's first quarter co-product cash
costs(3) of $494 per ounce of gold and $1.01 per pound of copper increased slightly when
compared to the prior-year quarter. However, as a result of the
decrease in quarterly sustaining capital expenditures, the mine's
first quarter co-product all-in sustaining
costs(2) of $667 per ounce of gold and $1.37 per pound of copper remained consistent
with the first quarter of 2014.
Mesquite
Mesquite had a strong start to the year with first quarter gold
production of 25,687 ounces remaining consistent with the
prior-year quarter, despite a planned focus on waste stripping
during the first quarter of 2015. As anticipated, Mesquite's first
quarter production benefitted from the large number of recoverable
ounces that were placed on the leach pad towards the end of 2014.
Ore tonnes mined and placed on the leach pad during the quarter
were below the prior-year quarter at 1.5 million tonnes. However,
with the additional trucks purchased in 2014 as well as increased
operational efficiencies, the total material moved at Mesquite
increased by 35% to 15.3 million tonnes. As a result of the
increased waste stripping, Mesquite is well positioned to deliver
on its scheduled quarterly increases in ore tonnes mined and placed
which should result in higher production in the second half of
2015.
Mesquite's total cash costs(3) of
$889 per ounce were consistent with
the prior-year quarter. Quarterly sustaining capital expenditures
of $23 million were $19 million higher than the first quarter of 2014
and resulted in Mesquite's all-in sustaining
costs(2) of $1,708 per ounce being well above normal levels.
The increase in sustaining capital expenditures was attributable to
costs associated with Mesquite's leach pad expansion as well as the
capitalization of a portion of the mine's waste stripping costs as
the quarterly ratio of waste to ore of 9.2 to 1.0 significantly
exceeded the life-of-mine average.
Looking forward, Mesquite's all-in sustaining
costs(2) are expected to temporarily remain
well above historical levels in the second quarter before coming
down significantly in the second half of 2015. The second quarter
will be impacted by a combination of lower production, as less ore
tonnes were placed on the pad in the first quarter, and continued
elevated sustaining capital expenditures associated with the
completion of the leach pad expansion and capitalized waste
stripping as the high strip cycle continues during the second
quarter. As approximately 70% of the mine's full-year production is
expected in the second half of 2015 and the majority of the
sustaining capital is expected to have been spent, all in
sustaining costs(2) should come down
significantly in the third and fourth quarters and into 2016 as
strip ratios return to life-of-mine averages.
During the quarter, the company hedged 54% of Mesquite's
scheduled diesel consumption for the balance of 2015 and 2016 at a
delivered price of approximately $2.25 per gallon, which is the same price the
company used in setting Mesquite's 2015 cost guidance. The current
spot price of the Mesquite diesel is approximately $2.23 per gallon.
Peak Mines
First quarter gold production at the Peak Mines of 19,428 ounces
was 1,492 ounces below that of the prior-year quarter as a decrease
in tonnes processed was only partially offset by the combined
benefit of increased grade and recovery. The 13% decrease in
throughput was partially attributable to geotechnical challenges in
the main stoping area of the Perseverance ore body which led to
reduced accessibility and a decrease in tonnes mined and processed.
The Perseverance ore body was not accessed for mining in the final
three weeks of the quarter and into early April as the team focused
its efforts on rehabilitation and remediation of the impacted area.
As the Peak Mines comprise multiple ore bodies that feed a central
mill, plans have been put in place to source additional material
from alternative production headings while activity at Perseverance
is temporarily limited. Mining activity in Perseverance was
successfully restarted in mid-April, however, mining of the ore
body will not be proceeding at full capacity until ground
conditions have fully stabilized.
Quarterly copper production of 3.4 million pounds was 0.5
million pounds below the prior-year quarter due to the decrease in
ore tonnes processed.
Total cash costs(3) at the Peak Mines of
$846 per ounce increased by
$89 per ounce relative to the
prior-year quarter which was driven by a $2
million, or $102 per ounce,
decrease in copper by-product revenue stemming from a combination
of lower copper sales volumes and a decrease in the realized copper
price(5). The impact of the lower
by-product revenue was partially offset by a 14% depreciation of
the Australian dollar relative to the U.S. dollar. Quarterly
sustaining capital expenditures of $6
million and gold sales volumes both remained consistent with
the first quarter of 2014. As a result, the increase in all-in
sustaining costs(2) to $1,189 per ounce was entirely attributable to the
increase in total cash costs(3).
Cerro San
Pedro
Cerro San Pedro had a strong
start to the year delivering its highest quarterly production since
the second quarter of 2013. Relative to the first quarter of 2014,
gold production increased by 50% to 25,950 ounces. The increase in
production was driven by a 150% increase in ore tonnes mined and
placed on the leach pad coupled with a 29% increase in gold grade.
The combination of increased ore tonnes and higher grades being
placed positions Cerro San Pedro
well for the balance of the year.
At the same time, Cerro San
Pedro's quarterly silver production remained consistent with
the prior year at 0.3 million ounces.
Cerro San Pedro's first quarter
all-in sustaining costs(2) of $1,041 per ounce decreased by $39 per ounce relative to the prior-year quarter
despite an $80 per ounce increase in
total cash costs(3) to $1,027 per ounce. The increase in total cash
costs(3) was driven by a decrease in silver
by-product revenue due to lower silver sales volumes coupled with a
decrease in the realized silver price(5).
Quarterly sustaining capital expenditures decreased by $2 million, or $110
per ounce, relative to the first quarter of 2014. As Cerro San Pedro is in its final year of active
mining, sustaining capital expenditures in 2015 are scheduled to be
minimal.
"As a whole, our mines are off to a good start this year,"
stated David Schummer, Executive
Vice President and Chief Operating Officer. "The commissioning of
the mill expansion at New Afton should enable us to further
optimize the mill circuit, and both Mesquite and Cerro San Pedro had solid production quarters
giving them the potential to reach the high end of their guidance.
At the same time, the challenges we encountered at depth at
Perseverance are being addressed and the team is working to
minimize the full-year production impact at the Peak Mines. We
remain well positioned for a strong second half of 2015."
2015 FIRST QUARTER FINANCIAL RESULTS
NEW GOLD SUMMARY FINANCIAL
RESULTS
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Three months ended March 31
|
(in millions of U.S. dollars, except where
noted)
|
2015
|
2014
|
|
|
|
Revenues
|
168.9
|
190.5
|
|
|
|
Operating Margin(6)
|
69.3
|
92.0
|
|
|
|
Adjusted Net
(Loss)/Earnings(4)
|
(4.9)
|
18.2
|
Adjusted Net (Loss)/Earnings per
Share(4)
|
(0.01)
|
0.04
|
|
|
|
Net (Loss)/Earnings
|
(43.8)
|
(1.8)
|
Net (Loss)/Earnings per Share
|
(0.09)
|
(0.00)
|
|
|
|
Net Cash Generated from Operations before Changes in
Working Capital(1)
|
67.4
|
90.1
|
Net Cash Generated from Operations
|
69.8
|
81.4
|
|
|
|
First quarter revenues decreased relative to the prior-year
quarter due to a combination of lower sales volumes and lower
realized metal prices(5). The decrease in
revenues was 50% attributable to the decrease in metal sales
volumes and 50% due to lower realized
prices(5) of gold, copper and silver. As
gold production increased relative to the prior-year quarter, the
decrease in gold sales volumes was attributable to the timing of
shipments while the lower copper and silver volumes were due to the
above-noted decreases in production. When compared to the first
quarter of 2014, the average realized
price(5) decreased by $79 per ounce of gold, $0.39 per pound of copper and $3.75 per ounce of silver.
New Gold's first quarter operating
margin(6) was impacted by the decrease in
revenues. The company's operating expenses remained consistent with
the prior-year quarter as costs associated with increased mining
activity at New Afton and the Peak Mines were offset by the
combined benefit of the depreciation of the Canadian and Australian
dollars relative to the U.S. dollar.
New Gold had an adjusted net loss(4) of
$5 million, or $0.01 per share, in the first quarter of 2015.
The adjusted net loss(4) was attributable
to the decrease in operating margin(6)
coupled with increased depreciation and depletion as well as
finance costs. The increase in depreciation was driven by higher
quarterly production while the increase in finance costs was due to
the company no longer capitalizing a portion of its interest
expense for activities at Blackwater. The company reported a net loss of
$44 million, or $0.09 per share. The reported net loss included
the impact of a $36 million pre-tax
foreign exchange loss which was partially offset by a $5 million pre-tax gain on the mark to market of
the company's share purchase warrants.
The company's first quarter net cash generated from operations
before changes in working capital(1) was
$67 million. The decrease in cash
flow relative to the prior-year quarter was primarily attributable
to the decrease in operating margin(6), the
impact of which was partially offset by an $8 million decrease in cash taxes and a
$2 million decrease in exploration
and business development expenses. During the first quarter, New
Gold received $8 million in tax
refunds which related to instalment overpayments in prior periods
for Cerro San Pedro which resulted
in a net tax refund for the company in the first quarter of 2015.
Net cash generated from operations was $70
million with the decrease relative to the prior-year quarter
due to factors consistent with those noted above.
FINANCIAL UPDATE
New Gold's cash and cash equivalents were $366 million as at March
31, 2015. In addition, the company has a $300 million revolving credit facility of which
$61 million has been used to issue
letters of credit with the balance remaining undrawn. As a
significant portion of the Rainy River project's capital
expenditures are denominated in Canadian dollars, the company
purchased $200 million worth of
Canadian dollars during the quarter at an average C$1.25/US$ exchange rate. At the quarter end, New
Gold held 51% of its cash in Canadian dollars.
At the end of the first quarter of 2015, the face value of the
company's long-term debt was $891
million (book value – $877
million). The components of the debt include: $300 million of 7.00% face value senior unsecured
notes due in April of 2020, $500
million of 6.25% face value senior unsecured notes due in
November of 2022, and $91 million in
El Morro funding loans, repayable out of a portion of New Gold's
30% share of El Morro cash flow upon the start of commercial
production. The company currently has approximately 509 million
shares outstanding.
"We continue to be in a strong financial position as our cash
balance has remained largely unchanged since the beginning of the
year despite our investment in our growth projects," stated
Brian Penny, Executive Vice
President and Chief Financial Officer. "During the quarter we
hedged a portion of our diesel exposure and shifted a part of our
cash balance to Canadian dollars in order to gain additional
certainty with respect to these important variables in our future
spending."
PROJECTS UPDATE
RAINY
RIVER
At New Gold's Rainy River
project, located in northwestern Ontario, the Federal and Provincial
governments approved the project's Environmental Assessment in
January 2015, and land clearing and
other construction-related activities commenced in late
February.
RAINY RIVER – KEY
PROJECT UPDATES
- Canadian Environmental Assessment Agency and Ontario Ministry
of Environment and Climate Change approved Environmental Assessment
for the project in January 2015
- Detailed engineering – on schedule and over 80% complete
- Construction-related activities progressing on schedule
- Clearing and logging – over 75% complete
- Temporary accommodation facility – 25% complete with occupation
targeted for early June
- First major earthworks contract for the process plant site
awarded subsequent to the end of the quarter
- Accepted into the Industrial Electricity Incentive Program
("IEI Stream 3") which enables the project to receive a reduction
in electricity costs through the end of 2024
- Incorporated drilling completed by Bayfield Ventures Ltd.
("Bayfield") into Rainy River
mineral resource estimate
The Rainy River project achieved multiple important milestones
during the first quarter of 2015. Most notably, site clearing is
now nearing completion and the installation of the temporary
accommodation facility is progressing on schedule, which will allow
activities at site to move forward apace over the coming quarters.
In addition, the company was accepted into the IEI Stream 3 program
which enables the project to receive a reduction in electricity
costs through the end of 2024. Capital expenditures at Rainy River during the first quarter totalled
$19 million.
New Gold is targeting first production from Rainy River in mid-2017. Over its first nine
years of full production, the 21,000 tonne per day, combined open
pit-underground operation is scheduled to produce an average of
325,000 ounces of gold per year. At the current exchange rate of
C$1.25/US$, total cash
costs(3) and all-in sustaining
costs(2) are expected to average
approximately $570 and $670 per ounce over the first nine years of the
project's life.
The incorporation of Bayfield's
Burns block exploration drilling results into the mineral resource
estimate has resulted in the addition of 222 thousand ounces of
contained gold and 3.6 million ounces of contained silver to the
combined open pit and underground Measured and Indicated mineral
resource (exclusive of reserves) when compared to the 2014 year-end
mineral resource reported by the company on February 4, 2015. This positive impact is driven
by the addition of 9.6 million tonnes at an average gold grade of
0.74 g/t and an average silver grade of 11.9 g/t.
With the completion of resource delineation and
development-oriented exploration work in 2014, New Gold's
exploration strategy going forward is focused on the identification
of new areas of untested gold potential within the company's
broader land position. The current focus is on prospective areas
located within three kilometres of the planned open pit where
potential extensions of favourable geology and mineralization may
occur. Field reconnaissance to identify targets for possible drill
testing later this year is in progress.
Overall, the Rainy River project enhances New Gold's growth
pipeline through its manageable capital costs, significant
production scale at below current industry average costs and
exciting regional exploration potential in a great mining
jurisdiction. The company looks forward to advancing the Rainy
River project and providing further updates on its development
through the remainder of 2015 and beyond.
NEW AFTON MILL EXPANSION AND C-ZONE
New Gold is pleased to provide an update on the two
value-enhancing initiatives underway at the company's New Afton
mine. Firstly, the mill expansion project is currently in the midst
of commissioning and will be subsequently optimized. Secondly,
evaluation of the C-zone, which provides the company with
longer-term potential to extend New Afton's mine life, was also
progressed during the first quarter.
NEW AFTON – KEY PROJECT UPDATES
Mill Expansion
- Mill expansion project currently being commissioned, ahead of
schedule and below budget
- Vertimill successfully commissioned in mid-April, approximately
one month ahead of schedule
- Additional flotation cells currently being commissioned
- Project capital cost of approximately $35 million is $10
million, or 22%, below budget – attributable to
combination of project execution and depreciation of the Canadian
dollar relative to the U.S. dollar since the project budget was
established in 2014
C-zone
- Further evaluating mine design, production schedule and
preliminary economics for inclusion in a feasibility study targeted
for early 2016
- Baseline environmental work is ongoing
- Tailings stabilization test work programs are scheduled to
commence in the coming weeks
Based on the results of the C-zone scoping study, New Gold is
targeting the completion of a feasibility study in the first
quarter of 2016. Subject to the completion of a positive
feasibility study, a development decision by the company and
receipt of the requisite permits, development of the C-zone could
begin in 2017, with the main access ramps being completed by the
end of 2020. The C-zone has an estimated development cost of
$349 million and, including the
ramp-up period, could provide New Afton with an additional five
years of mine life with the potential to produce an annual
full-year average of 107,000 ounces of gold and 77 million pounds
of copper.
"We have made significant progress at both Rainy River and New Afton over the last few
months and we thank all of our local stakeholders for their
continued support," stated Robert
Gallagher, President and Chief Executive Officer. "In
addition to our team's successful development of Cerro San Pedro, Mesquite and New Afton, I
believe the completion of the mill expansion ahead of schedule and
below budget provides our development team with further valuable
experience that we can draw upon as the development of Rainy River continues to advance."
BLACKWATER
The company's Blackwater
project, located in south-central British
Columbia, is expected to produce an average of 485,000
ounces of gold per year at below industry average costs. The
current focus at Blackwater is
working towards the approval of the Environmental Assessment. Draft
sections of the Environmental Assessment were submitted to the
Provincial and Federal assessment agencies and their reviews were
completed subsequent to the end of the quarter. Additional
information regarding the proposed design of the tailings storage
facility has been requested by the Province. Separately, New Gold
is working with key First Nations in the area of the Blackwater project to develop an independent
review of the tailings facility and mine plan. Capital expenditures
during the first quarter were $2
million and were related to the continued advancement of the
environmental assessment process and related environmental and
engineering studies.
During the 2014 field program, New Gold's exploration team
established a link between the known gold-silver mineralization in
the Blackwater deposit and an area
of prospective porphyry-style base and precious metal
mineralization identified two kilometres to the south. Looking
ahead, the company's exploration plan for 2015 is to test
prospective areas for additional gold-silver resources within a
five-kilometre radius south and west of the planned open pit.
Preparations for a field program involving follow-up surface
targeting and drill testing is on track to commence during the
second quarter.
In the current commodity price environment, New Gold plans to
sequence the development of its projects with the near-term focus
being on the advancement of the lower capital cost Rainy River project. Thereafter, the timing of
Blackwater's development will be
driven by prevailing market conditions over the coming years.
EL MORRO
New Gold's share of the El Morro project provides the company
with a 30% fully-carried interest in a world-class gold-copper
project in north-central Chile.
Under the terms of New Gold's agreement with Goldcorp Inc.
("Goldcorp"), Goldcorp is responsible for funding New Gold's full
30% share of capital costs. The carried funding accrues interest at
a fixed rate of 4.58%. New Gold will repay its share of capital
plus accumulated interest out of 80% of its share of the project's
cash flow with New Gold retaining 20% of its share of cash flow
from the time production commences.
On November 7, 2014, Goldcorp
announced that it had withdrawn the Environmental Impact Study
("EIS") for the El Morro project. The decision was made after an
October 7, 2014 ruling by the Chilean
Supreme Court that invalidated the EIS. Since that time, the El
Morro project team has continued to progress its studies to
determine the optimal development plan for the El Morro
project.
El Morro remains one of the highest-grade undeveloped deposits
in the world with a substantial base of gold and copper mineral
reserves. In addition, the broader El Morro land package totals 417
square kilometres with significant untested exploration
potential.
2015 Outlook
Based on the company's first quarter production, New Gold is
pleased to reiterate its consolidated production guidance for all
metals with expected gold production of 390,000 to 430,000 ounces,
copper production of 100 to 112 million pounds and silver
production of 1.75 to 1.95 million ounces. As part of New Gold's
2015 guidance, the company indicated that approximately 55% of the
year's production would be in the second half of the year. As a
result of the geotechnical challenges at the Peak Mines and related
revisions to the mine plan, the company now anticipates
approximately 60% of its planned production will be in the third
and fourth quarters of 2015. For the full year, the company expects
gold production at Mesquite and Cerro San
Pedro to be at the high end of their respective ranges,
while New Afton and the Peak Mines may be toward the low end of
their ranges.
New Gold's 2015 cost guidance was for all-in sustaining
costs(2) of $745 to
$785 per ounce, including total cash
costs(3) of $340 to
$380 per ounce. The company's cost guidance is based on
assumptions of $2.75 per pound of
copper and $16.00 per ounce of silver
and foreign exchange rates for the Canadian dollar, Australian
dollar and Mexican peso of $1.25,
$1.25 and $15.00 to the U.S. dollar. The company's all-in
sustaining costs(2) are most sensitive to
movements in the copper price, where a $0.25 per pound change in the realized copper
price results in an approximate $65
per ounce change in all-in sustaining
costs(2). As a result, the prevailing
copper price over the balance of 2015 will influence the company's
full-year costs, particularly as the average realized copper price
in the first quarter was $0.16 per
pound below the guidance assumption. In addition to the copper
price, costs will be impacted by the relative production
contribution of the company's four operations. As a higher
percentage of production is expected to be delivered by New Gold's
two higher cost, open pit mines, total cash
costs(3) and all-in sustaining
costs(2) may be at the high end, or
slightly above, their respective ranges for the year.
WEBCAST AND CONFERENCE CALL
A webcast and conference call to discuss the 2015 first quarter
results will be held on Thursday, April 30,
2015 beginning at 9:00 a.m. Eastern
time. Participants may listen to the webcast by registering
from our website at www.newgold.com. You may also listen to the
conference by calling toll-free 1-888-231-8191 or 1-647-427-7450
outside of Canada and the U.S. A
recorded playback of the call will be available until May 31, 2015 by calling toll-free 1-855-859-2056,
or 1-416-849-0833 outside of Canada and the U.S., passcode 18736131. An
archived webcast will also be available until July 28, 2015 at www.newgold.com following the
event.
ABOUT NEW GOLD INC.
New Gold is an intermediate gold mining company. The company has
a portfolio of four producing assets and three significant
development projects. The New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in
Australia and the Cerro San Pedro
Mine in Mexico, provide the
company with its current production base. In addition, New Gold
owns 100% of the Rainy River and Blackwater projects, both in Canada, as well as 30% of the El Morro project
located in Chile. New Gold's
objective is to be the leading intermediate gold producer, focused
on the environment and social responsibility. 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 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, the statements under the heading "2015
Outlook" and statements with respect to: mineral reserve and
resource estimates; the expected production, costs and operating
parameters of the Rainy River project; planned production and
activities for 2015 and beyond at the company's operations and
projects, as well as planned exploration activities; the results of
the C-zone study, including expected mine life and costs; plans to
advance the C-zone project, including potential timelines; expected
production for the Blackwater
project; targeted timing for commissioning and full production (and
other activities) related to the New Afton mill expansion and
Rainy River and the sequencing of
Blackwater.
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 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 annual and quarterly management's discussion and analysis
("MD&A"), its Annual Information Form and its Technical Reports
filed at www.sedar.com. 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; (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 resource
estimates; (4) the exchange rate between the Canadian dollar,
Australian dollar, Mexican peso and U.S. dollar being approximately
consistent with current levels; (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 Rainy
River and Blackwater 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; (9) the results of the feasibility studies for
the Rainy River and Blackwater
projects being realized; and (10) in the case of production, cost
and expenditure outlooks at operating mines for 2016 and 2017,
additionally, commodity prices and exchange rates being consistent
with those estimated for purposes of 2015 guidance.
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: significant capital requirements and the availability
and management of capital resources; additional funding
requirements; price volatility in the spot and forward markets for
metals and other commodities; fluctuations in the international
currency markets and in the rates of exchange of the currencies of
Canada, the United States, Australia, Mexico and Chile; 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, 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 in which New
Gold operates, including, but not limited to: in Canada, obtaining the necessary permits for
the Rainy River and Blackwater
projects; in Mexico, where
Cerro San Pedro has a history of
ongoing legal challenges related to our environmental authorization
(EIS); and in Chile, where certain
activities at El Morro have been delayed due to litigation relating
to its environmental permit; the lack of certainty with respect to
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 New Gold is or may become a
party to; diminishing quantities or grades of reserves and
resources; competition; loss of key employees; rising costs of
labour, supplies, fuel and equipment; actual results of current
exploration or reclamation activities; uncertainties inherent to
mining economic studies including the feasibility studies for
Rainy River and Blackwater and the C-zone study; the
uncertainty with respect to prevailing market conditions necessary
for a positive development decision at Blackwater; 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; unexpected delays and costs inherent to
consulting and accommodating rights of First Nations and other
Aboriginal groups; uncertainties with respect to obtaining all
necessary surface and other land use rights or tenure for
Rainy River; risks, uncertainties
and unanticipated delays associated with obtaining and maintaining
necessary licenses, permits and authorizations and complying with
permitting requirements, including those associated with the
environmental assessment process for Blackwater. In addition, there are risks and
hazards associated with the business of mineral exploration,
development 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
Annual Information Form and Management's Discussion and Analysis
for the year ended December 31, 2014
filed on and 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.
CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF
MINERAL RESERVES AND MINERAL RESOURCES
Information concerning the properties and operations of New Gold
has been prepared in accordance with Canadian standards under
applicable Canadian securities laws, and may not be comparable to
similar information for United
States companies. The terms "Mineral Resource", "Measured
Mineral Resource", "Indicated Mineral Resource" and "Inferred
Mineral Resource" used in this news release are Canadian mining
terms as defined in the Canadian Institute of Mining, Metallurgy
and Petroleum ("CIM") Definition Standards for Mineral Resources
and Mineral Reserves adopted by CIM Council on May 10, 2014 and incorporated by reference in
National Instrument 43-101 ("NI 43-101"). While the terms
"Mineral Resource", "Measured Mineral Resource", "Indicated Mineral
Resource" and "Inferred Mineral Resource" are recognized and
required by Canadian securities regulations, they are not defined
terms under standards of the United States Securities and Exchange
Commission. As such, certain information contained in this
news release concerning descriptions of mineralization and mineral
resources under Canadian standards is not comparable to similar
information made public by United
States companies subject to the reporting and disclosure
requirements of the United States Securities and Exchange
Commission.
An "Inferred Mineral Resource" has a great amount of uncertainty
as to its existence and as to its economic and legal
feasibility. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or
pre-feasibility studies. It cannot be assumed that all or any
part of an "Inferred Mineral Resource" will ever be upgraded to a
higher confidence category through additional exploration drilling
and technical evaluation. Readers are cautioned not to
assume that all or any part of an "Inferred Mineral Resource"
exists or is economically or legally mineable.
Under United States standards,
mineralization may not be classified as a "Reserve" unless the
determination has been made that the mineralization could be
economically and legally produced or extracted at the time the
reserve estimation is made. Readers are cautioned not to
assume that all or any part of the measured or indicated mineral
resources will ever be converted into mineral reserves. In
addition, the definitions of "Proven Mineral Reserves" and
"Probable Mineral Reserves" under CIM standards differ in certain
respects from the standards of the United States Securities and
Exchange Commission.
TECHNICAL INFORMATION
The scientific and technical information in this news release
has been reviewed and approved by Mark A.
Petersen, Vice President, Exploration of New Gold. Mr.
Petersen is a Registered Member of the Society for Mining,
Metallurgy & Exploration (SME), a Certified Professional
Geologist and member of the American Institute of Professional
Geologists (AIPG), and a "Qualified Person" as defined under
National Instrument 43-101.
For a detailed breakdown of Mineral Reserves and Mineral
Resources by category, as well as key assumptions, parameters and
risks, refer to New Gold's Annual Information Form for the year
ended December 31, 2014.
NON-GAAP MEASURES
(1) NET CASH GENERATED FROM OPERATIONS BEFORE CHANGES IN WORKING
CAPITAL
"Net cash generated from operations before changes in working
capital" is a non-GAAP financial measure. Net cash generated from
operations has been adjusted to remove the impact of the change in
working capital. The company believes the presentation of net cash
generated from operations before changes in working capital enables
investors and analysts to better understand the underlying
operating performance of our core mining business. Net cash
generated from operations before changes in working capital is
intended to provide additional information only and does not have
any standardized meaning under IFRS. It should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
NET CASH GENERATED FROM OPERATIONS BEFORE CHANGES
IN WORKING CAPITAL RECONCILIATION
|
|
|
|
|
Three months ended March 31
|
(in millions of U.S. dollars, except where
noted)
|
2015
|
2014
|
|
|
|
Net cash (used) generated from
operations
|
69.8
|
81.4
|
Add back (deduct): Change in non-cash operating
working capital
|
(2.4)
|
8.7
|
Net cash generated from operations before changes in
non-cash working capital
|
67.4
|
90.1
|
(2) ALL-IN SUSTAINING COSTS
"All-in sustaining costs" per ounce is a non-GAAP financial
measure. Consistent with guidance announced in 2013 by the World
Gold Council, an association of various gold mining companies from
around the world of which New Gold is a member, New Gold defines
"all-in sustaining costs" per ounce as the sum of total cash costs,
capital expenditures that are sustaining in nature, corporate
general and administrative costs, capitalized and expensed
exploration that is sustaining in nature and environmental
reclamation costs, all divided by the ounces of gold sold to arrive
at a per ounce figure. New Gold believes this non-GAAP financial
measure provides further transparency into costs associated with
producing gold and assists analysts, investors and other
stakeholders of the company in assessing the company's operating
performance, its ability to generate free cash flow from current
operations and its overall value. This data is furnished to provide
additional information and is a non-GAAP financial measure. All-in
sustaining costs presented do not have a 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 and is not necessarily indicative of cash flow from
operations under IFRS or operating costs presented under IFRS.
Further details regarding historical all-in sustaining costs and a
reconciliation to the nearest IFRS measures are provided below and
in the MD&A accompanying New Gold's financial statements filed
from time to time on www.sedar.com.
(3) TOTAL CASH COSTS
"Total cash costs" per ounce is a non-GAAP financial measure which
is calculated in accordance with a standard developed by The Gold
Institute, a worldwide association of suppliers of gold and gold
products that ceased operations in 2002. 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 costs on a sales basis. The company believes
that certain investors use this information to evaluate the
company's performance and ability to generate liquidity through
operating cash flow to fund future capital expenditures and working
capital needs. This measure, along with sales, is considered
to be a key indicator of the company's ability to generate
operating earnings and cash flow from its mining operations. Total
cash costs include mine site operating costs such as mining,
processing and administration costs, royalties, production taxes,
and realized gains and losses on fuel contracts, but are exclusive
of amortization, reclamation, capital and exploration costs and net
of by-product sales. Total cash costs are then divided by ounces of
gold sold to arrive at a per ounce figure. Co-product cash costs
remove the impact of other metal sales that are produced as a
by-product of gold production and apportion the cash costs to each
metal produced on a percentage of revenue basis, and subsequently
divides the amount by the total ounces of gold or silver or pounds
of copper sold, as the case may be, to arrive at per ounce or per
pound figures. Unless otherwise indicated, all total cash cost
information in this news release is net of by-product sales. This
data is furnished to provide additional information and is a
non-GAAP financial measure. Total cash costs and co-product cash
costs presented do not have a 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 and is not necessarily indicative of cash flow from operations
under IFRS or operating costs presented under GAAP. Further details
regarding historical total cash costs and a reconciliation to the
nearest IFRS measures are provided below and in the MD&A
accompanying New Gold's financial statements filed from time to
time on www.sedar.com.
TOTAL CASH COSTS AND ALL-IN SUSTAINING COSTS
RECONCILIATION
|
|
|
|
|
|
Three months ended March 31
|
(in millions of U.S. dollars, except where
noted)
|
2015
|
2014
|
|
|
|
Operating expenses
|
99.6
|
98.5
|
Treatment and refining charges on concentrate
sales
|
7.4
|
8.8
|
Adjustments
|
0.7
|
(0.2)
|
Total cash costs before by-product
revenue
|
107.7
|
107.1
|
By-product copper and silver sales
|
(62.8)
|
(83.2)
|
Total cash costs net of by-product
revenue
|
44.9
|
23.9
|
Gold ounces sold
|
92,398
|
94,052
|
Total cash costs per gold ounce sold
($/ounce)
|
486
|
254
|
Total cash costs per gold ounce sold on a co-product
basis($/ounce)
|
729
|
658
|
Total cash costs net of by-product
revenue
|
44.9
|
23.9
|
Sustaining capital expenditures
|
37.8
|
27.6
|
Sustaining exploration - expensed &
capitalized
|
2.0
|
2.2
|
Corporate G&A including share-based
compensation
|
8.0
|
8.4
|
Reclamation expenses
|
1.0
|
1.3
|
Total all-in sustaining costs
|
93.7
|
63.4
|
All-in sustaining costs per gold ounce sold
($/ounce)
|
1,014
|
674
|
All-in sustaining costs per gold ounce sold on a
co-product basis($/ounce)
|
1,069
|
908
|
(4) ADJUSTED NET (LOSS)/EARNINGS
"Adjusted net (loss)/earnings" and "adjusted net (loss)/earnings
per share" are non-GAAP financial measures. Net (loss)/earnings
have been adjusted and tax affected for the group of costs in
"Other gains and losses" on the condensed consolidated income
statement. The adjusted entries are also impacted for tax to the
extent that the underlying entries are impacted for tax in the
unadjusted net (loss)/earnings from continuing operations. The
company uses this measure for its own internal purposes.
Management's internal budgets and forecasts and public guidance do
not reflect fair value changes on senior notes and non-hedged
derivatives, foreign currency translation and fair value through
profit or loss and financial asset gains/losses. Consequently, the
presentation of adjusted net earnings and adjusted net earnings per
share enables investors and analysts to better understand the
underlying operating performance of our core mining business
through the eyes of management. Management periodically evaluates
the components of adjusted net earnings and adjusted net earnings
per share based on an internal assessment of performance measures
that are useful for evaluating the operating performance of our
business and a review of the non-GAAP measures used by mining
industry analysts and other mining companies. Adjusted net
(loss)/earnings and adjusted net (loss)/earnings per share are
intended to provide additional information only and do not have any
standardized meaning under IFRS and may not be comparable to
similar measures presented by other companies. They should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The measures are not
necessarily indicative of operating profit or cash flows from
operations as determined under IFRS.
ADJUSTED NET (LOSS)/EARNINGS
RECONCILIATION
|
|
|
|
|
|
|
Three months ended March 31
|
(in millions of U.S. dollars, except where
noted)
|
2015
|
2014
|
|
|
|
Net (loss) earnings before taxes
|
(37.0)
|
5.5
|
|
Gain on disposal of assets
|
(0.1)
|
(0.3)
|
|
Realized and unrealized gain on non-hedged
derivatives
|
(4.5)
|
(2.3)
|
|
Loss on foreign exchange
|
36.0
|
18.8
|
|
Loss on hedge monetization over original term of
hedge
|
--
|
6.8
|
Adjusted net earnings (loss) before
tax
|
(5.6)
|
28.5
|
|
Income tax expense
|
(6.8)
|
(7.3)
|
|
Income tax adjustments
|
7.5
|
(3.0)
|
Adjusted income tax expense
|
0.7
|
(10.3)
|
Adjusted net earnings (loss)
|
(4.9)
|
18.2
|
Adjusted earnings (loss) per share
(basic)
|
(0.01)
|
0.04
|
Adjusted effective tax rate
|
13%
|
36%
|
(5) AVERAGE REALIZED PRICE
"Average realized price per ounce or pound sold" is a non-GAAP
financial measure with no standard meaning under IFRS. Management
uses this measure to better understand the price realized in each
reporting period for gold, silver, and copper sales. Average
realized price includes realized gains and losses from gold hedge
settlements up until May 15, 2013 but
excludes from revenues unrealized gains and losses on non-hedged
derivative contracts and the revenue reduction related to the
non-cash accounting charge as the loss incurred on the monetization
of the company's legacy hedge position is realized into income over
the original term of the hedge contract. Average realized price is
intended to provide additional information only and does not have
any standardized definition under IFRS; it should not be considered
in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. Other companies may calculate
this measure differently and this measure is unlikely to be
comparable to similar measures presented by other companies.
(6) OPERATING MARGIN
"Operating margin" is a non-GAAP financial measure with no standard
meaning under IFRS, which management uses to further evaluate the
company's results of operations in each reporting period. Operating
margin is calculated as revenue less operating expenses and
therefore does not include depreciation and depletion. Operating
margin is intended to provide additional information only and does
not have any standardized meaning under IFRS; it should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may
calculate this measure differently and this measure is unlikely to
be comparable to similar measures presented by other companies.
OPERATING MARGIN
RECONCILIATION
|
|
|
|
|
|
Three months ended March 31
|
(in millions of U.S. dollars, except where
noted)
|
2015
|
2014
|
|
|
|
Revenues
|
168.9
|
190.5
|
Less: Operating expenses
|
99.6
|
98.5
|
Operating margin
|
69.3
|
92.0
|
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
|
|
|
|
|
|
Three months ended March 31
|
(in millions of U.S. dollars, except per share
amounts)
|
2015
|
2014
|
Revenues
|
168.9
|
190.5
|
Operating expenses
|
99.6
|
98.5
|
Depreciation and depletion
|
55.1
|
51.6
|
Earnings from mine operations
|
14.2
|
40.4
|
Corporate administration
|
6.0
|
6.3
|
Share-based payment expenses
|
2.1
|
2.2
|
Exploration and business
development
|
1.1
|
3.1
|
(Loss) earning from operations
|
5.0
|
28.8
|
Finance income
|
0.2
|
0.3
|
Finance costs
|
(10.8)
|
(7.4)
|
Other (losses)
|
(31.4)
|
(16.2)
|
(Loss) earning before taxes
|
(37.0)
|
5.5
|
Income tax recovery (expense)
|
(6.8)
|
(7.3)
|
Net (loss)
|
(43.8)
|
(1.8)
|
(Loss) earnings per share
|
|
|
Basic
|
(0.09)
|
(0.00)
|
Diluted
|
(0.09)
|
(0.00)
|
Weighted average number of shares outstanding (in
millions)
|
|
|
Basic
|
508.6
|
503.5
|
Diluted
|
508.6
|
503.5
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION (unaudited)
|
|
|
|
|
As at March 31
|
(in millions of U.S.
dollars)
|
2015
|
2014
|
ASSETS
|
|
|
Current assets
|
|
|
Cash and cash equivalents
|
365.8
|
370.5
|
Trade and other receivables
|
28.9
|
34.8
|
Inventories
|
178.7
|
187.5
|
Current income tax receivable
|
24.6
|
31.1
|
Prepaid expenses and other
|
8.1
|
10.6
|
Total current assets
|
606.1
|
634.5
|
Non-current inventories
|
63.7
|
66.5
|
Mining interests
|
3,057.5
|
3,008.7
|
Deferred tax assets
|
175.3
|
168.3
|
Other
|
5.2
|
3.8
|
Total assets
|
3,907.8
|
3,881.8
|
LIABILITIES AND EQUITY
|
|
|
Current liabilities
|
|
|
Trade and other payables
|
102.5
|
97.0
|
Current income tax payable
|
6.9
|
7.9
|
Total current liabilities
|
109.4
|
104.9
|
Reclamation and closure cost
obligations
|
63.0
|
63.5
|
Provisions
|
9.5
|
9.4
|
Derivative liabilities
|
11.5
|
16.9
|
Long-term debt
|
876.9
|
874.3
|
Deferred tax liabilities
|
545.7
|
494.9
|
Deferred benefit
|
46.3
|
46.3
|
Other
|
0.4
|
0.4
|
Total liabilities
|
1,662.7
|
1,610.6
|
Equity
|
|
|
Common shares
|
2,839.9
|
2,820.9
|
Contributed surplus
|
98.9
|
96.7
|
Other reserves
|
(5.0)
|
(1.5)
|
Deficit
|
(688.7)
|
(644.9)
|
Total equity
|
2,245.1
|
2,271.2
|
Total liabilities and equity
|
3,907.8
|
3,881.8
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(unaudited)
|
|
|
|
|
|
Three months ended March 31
|
(in millions of U.S.
dollars)
|
2015
|
2014
|
OPERATING ACTIVITIES
|
|
|
Net loss
|
(43.8)
|
(1.8)
|
Adjustments for:
|
|
|
Realized losses on gold contracts
|
-
|
6.8
|
Realized and unrealized foreign exchange
losses
|
36.0
|
18.8
|
Reclamation and closure costs paid
|
(0.1)
|
(0.2)
|
Gain on disposal of assets
|
(0.1)
|
(0.3)
|
Depreciation and depletion
|
55.1
|
51.5
|
Other non-cash adjustments
|
(4.5)
|
1.0
|
Income tax (recovery) expense
|
6.8
|
7.3
|
Finance income
|
(0.2)
|
(0.3)
|
Finance costs
|
10.8
|
7.4
|
|
60.0
|
90.2
|
Change in non-cash operating working
capital
|
2.4
|
(8.7)
|
Income taxes refunded (paid)
|
7.4
|
(0.1)
|
Cash generated from operations
|
69.8
|
81.4
|
INVESTING ACTIVITIES
|
|
|
Mining interests
|
(69.2)
|
(56.6)
|
Proceeds from the sale of assets
|
0.2
|
0.3
|
Interest received
|
0.2
|
0.2
|
Cash used in investing activities
|
(68.8)
|
(56.1)
|
FINANCING ACTIVITY
|
|
|
Issuance of common shares on exercise of options and
warrants
|
0.1
|
0.6
|
Cash generated from financing
activities
|
0.1
|
0.6
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS
|
(5.8)
|
(2.2)
|
Change in cash and cash equivalents
|
(4.7)
|
23.7
|
Cash and cash equivalents, beginning of
period
|
370.5
|
414.4
|
Cash and cash equivalents, end of
period
|
365.8
|
438.1
|
Cash and cash equivalents are comprised
of:
|
|
|
Cash
|
247.4
|
298.1
|
Short-term money market instruments
|
118.4
|
140.0
|
|
365.8
|
438.1
|
SOURCE New Gold Inc.