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New Gold achieves revised production and cost guidance

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(Kitco News) - New Gold (TSX: NGD; NYSE American: NGD) reported yesterday that the company achieved the mid-range of the revised annual production and cash cost guidance in 2020, with all-in sustaining costs ("AISC") below revised annual guidance.

The company stated that its total production for the fourth quarter was 120,567 gold equivalent ounces (83,096 ounces of gold, 199,428 ounces of silver and 18.5 million pounds of copper). For the year, production was 437,617 gold eq. ounces (293,139 ounces of gold, 636,952 ounces of silver and 72.1 million pounds of copper), achieving mid-range of the revised annual production guidance.

New Gold’s revenues for the quarter were $199 million and $643 million for the year. Operating expense for the quarter was $799 per gold eq. ounce and $794 per gold eq. ounce for the year.

AISC for the quarter were $1,491 per gold eq. ounce and $1,389 per gold eq. ounce for the year, below the revised annual production guidance due to lower cash costs and sustaining capital spend.

Net loss for the quarter was $21 million ($0.03 per share) and $79 million ($0.12 per share) for the year. Adjusted net earnings for the quarter were $28 million ($0.04 per share) and adjusted net earnings of $19 million ($0.03 per share) for the year.

New Gold added that the company ended the year repositioned for long-term success and is expected to transition to positive free cash flow in 2021.

New Gold is a Canadian-focused intermediate gold mining company with a portfolio of two core producing assets in Canada, the Rainy River and New Afton mines. The company also holds an 8% gold stream on the Artemis Gold Blackwater project located in British Columbia and a 6% equity stake in Artemis. New Gold's vision is to build a leading diversified intermediate gold company based in Canada.

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