New Gold increases gold equivalent production by 20% in first quarter
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(Kitco News) - On Wednesday, New Gold (TSX: NGD) announced Q1 2023 gold equivalent production of 104,857 ounces (82,477 ounces of gold, 10.3 million pounds of copper and 137,698 ounces of silver), up 20% compared to Q1 2022.
The company also reported that its Q1 2023 revenue of $201.6 million increased over the prior-year period (Q1 2022: $174.7 million) due to higher gold and copper sales volume, partially offset by lower gold and copper prices.
Operating expenses of $117.2 million increased over the prior-year period (Q1 2022: $95.2 million) primarily due to higher operating tonnes mined at both sites. All-in sustaining costs were $1,486 per gold eq. ounce in Q1 2023, down 16% compared to Q1 2022 ($1,778 per ounce).
New Gold said that Q1 2023 net loss of $31.8 million increased over the prior-year period (Q1 2022: net loss of $7.8 million) primarily due to an unrealized loss on the revaluation of the Rainy River gold stream obligation and the New Afton free cash flow interest obligation.
The company's adjusted net earnings of $18.4 million increased over the prior-year period (Q1 2022: $10.3 million) due to higher revenue and lower exploration and business development costs, partially offset by higher operating expenses, and depreciation and depletion.
Cash generated from operations of $60.6 million decreased over the prior-year period (Q1 2022: $67.8 million) due to negative working capital movements, partially offset by higher revenue.
Importantly, New Gold pointed out that the company is "well positioned" to meet its guidance ranges set out earlier in the year.
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 other Canadian-focused investments.
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