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

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.

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