New Gold posts net earnings of $141M in 2021 on higher revenue and gain on Blackwater gold stream sale
(Kitco News) - New Gold (TSX: NGD) said today that in 2021, the company produced 418,933 gold equivalent ounces, down 4% compared to 2020 (437,617 ounces) and within the updated consolidated gold equivalent guidance range.
The company’s all-in sustaining costs for the year were $1,463 per gold equivalent ounce, achieving the updated annual guidance range of $1,415 to $1,495 per gold equivalent ounce.
Net earnings for the year ended December 31, 2021, were $141 million ($0.21 per share) compared to a net loss for the prior year of $79 million ($0.12 per share).
The company explained that increase in net earnings compared to the prior-year period was primarily due to higher revenue, the gain on the sale of the Blackwater gold stream to Wheaton Precious Metals, and lower finance costs.
New Gold’s consolidated gold mineral reserves increased by approximately 126,000 gold ounces in 2021 compared to the prior year.
The company’s consolidated measured and indicated mineral resources decreased by approximately 470,000 gold ounces, while consolidated inferred mineral resources decreased by approximately 25,000 gold ounces to 387,000 gold ounces.
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New Gold added that its gold equivalent production is expected to be between 380,000 to 440,000 ounces in 2022, in-line with the prior year. Production is expected to strengthen in the second half of the year, with the second half of 2022 expected to represent approximately 55% of annual production.
New Gold is a Canadian-focused intermediate mining company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine. The company also holds a 5% equity stake in Artemis Gold Inc., and other Canadian-focused investments.