Make Kitco Your Homepage

Mining News

New Gold reports net loss of $66.8 million in 2022 as gold equivalent production down 17%

Vladimir Basov

Kitco News

(Kitco News) - New Gold (TSX: NGD) (NYSE: NGD) reported Thursday that in 2022, its production was 347,054 gold eq. ounces (271,373 ounces of gold, 497,647 ounces of silver and 31.1 million pounds of copper), down 17% from 2021 (418,933 ounces) and within the updated annual guidance for all metals.

The company said that all-in sustaining costs were $1,818 per gold eq. ounce for the year, up 24% compared to 2021 ($1,463 per ounce) and below the updated annual guidance range of $1,875 to $1,975 per gold eq. ounce.

New Gold noted that operating expenses were higher than the prior-year period due to higher operating expenses at New Afton, as production from B3 continued to ramp-up, and inflation-driven price increases.

The company’s 2022 revenue of $604.4 million was lower than its 2021 revenue of $745.5 million due to lower gold and copper sales volume and lower copper average realized prices.

New Gold also reported net loss of $66.8 million ($0.10 per share) for the year, compared to net earnings of $140.6 million in 2021. Adjusted net loss for the year was $26.1 million ($0.04 per share), compared to adjusted net earnings of $82.9 million in 2021.

The company explained that net earnings decreased over the prior-year period primarily due to lower revenue, higher operating expenses, and the gain on the sale of the Blackwater gold stream in the prior-year period.

"Looking ahead to 2023, our core strategy and objectives remain unchanged. Achieving these objectives is expected to lead to a 10% increase in production with lower costs compared to 2022 and secure strong future production at both assets," the company said in a statement.

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 Canadian-focused investments.

 Piedmont Lithium inks equity investment and binding offtake agreements with LG Chem
By Vladimir Basov

For Kitco News

Contact vbasov@kitco.com
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.