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New Gold Lists 4Q Adjusted Profit, Record Gold Output

Kitco News

New Gold Inc. (TSX: NGD; NYSE American: NGD) reports an adjusted profit in the fourth quarter as the company had record gold production. New Gold lists a fourth-quarter net loss of $195.6 million, or 34 cents per share, compared to a loss of $22.3 million, or 4 cents, in the same period of 2016. The company lists a number of special charges, including an impairment charge for Rainy River and a loss from the sale of Peak Mines. Excluding special items, the company lists an adjusted profit of $32.5 million, or 6 cents per share, compared to a year-ago adjusted loss of $4.9 million, or a penny. New Gold reports record quarterly gold production of 154,530 ounces, to go with 28 million pounds of copper, with all-in sustaining costs of $771 per gold ounce. For full-year 2017, the company lists a net loss of $108 million, or 19 cents per share, compared to a 2016 loss of $7 million, or a penny. Adjusted 2017 net earnings were of $49.3 million, or 9 cents, compared to $14.6 million or 3 cents, in 2016. “With production at the high end of guidance and costs below guidance, New Gold generated the highest annual cash flow in our company’s history,” says Hannes Portmann, president and chief executive officer. Full-year gold production of 430,949 ounces was at the high end of the guidance range of 380,000 to 430,000 ounces, while copper production of 104 million pounds met guidance of 100 million to 110 million. All-in sustaining costs of $727 per gold ounce were below previously lowered guidance of $760 to $800 per ounce. Rainy River achieved commercial production in mid-October, ahead of plan New Gold lists year-end mineral reserves of 14.8 million ounces of gold, 0.9 billion pounds of copper and 77 million ounces of silver, excluding Peak Mines, which was classified as a “discontinued operation” since the sale is expected to close in the first quarter.

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