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New Gold Reports Adjusted Net-Loss Of $7 Million In Q2

Kitco News

(Kitco News) - Junior gold producer New Gold (NYSE: NGD, TSX: NGD) is on track to hit its year-end target after reporting second quarter production of 132,556 gold equivalent ounces.

In its second quarter earnings report Thursday the company said that it produced 85,216 ounces of gold, 151,305 ounces of silver and 21.6 million pounds of copper between April and June.

However, New Gold said that adjusted net loss from continuing operations for the quarter, which excludes other gains and losses, totaled $7 million or $0.01 per share.

The company said that it expects to see higher capital costs as it moves forward with its development plans of its Rainy River and New Afton projects.
“We are excited with the significant progress to date at Rainy River as we reach the mid-point of this pivotal and transformational year for the operation, as well as another quarter of solid performance from New Afton. The Rainy River and New Afton teams have made significant progress and we look forward to building on that success over the coming quarters,” said New Gold CEO Renaud Adams in a press release. “During the second half of the year, capital requirements are expected to increase as we plan to substantially complete all remaining construction projects at Rainy River.”

The company reported all-in sustaining costs (AISC) of $1,087 per gold equivalent ounces in the second quarter. Meanwhile, revenues for the quarter came in at $155 million.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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