New Gold reports adjusted net earnings of $23M in Q3 as gold equivalent production up 22%
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(Kitco News) - New Gold (TSX: NGD) (NYSE: NGD) announced Wednesday that the company produced 111,204 gold equivalent ounces in Q3 2023, up 22% from the prior year period.
In a press release, the company said its Rainy River mine delivered on plan with a “continued focus on operational discipline, cost control, and cost saving initiatives,” adding that the New Afton mine delivered above plan as mining from B3 continues to perform above expectations.
New Gold noted that due to the "strong operational performance" over the first nine months of the year, its consolidated 2023 production is tracking to the top end of guidance and all-in sustaining costs are tracking to the low end of the guidance range.
New Gold also reported Q3 2023 free cash flow of $22 million (Q3 2022: cash outflow of $24 million) despite the company currently being in an intensive capital spending period, including the New Afton C-Zone project and establishment of the Rainy River underground mine.
The company’s net loss decreased from $4.2 million in Q3 2022 to $2.7 million in Q3 2023, primarily due to an increase in revenues resulting from higher gold prices and higher gold and copper sales, partially offset by higher operating costs and higher unrealized losses on the revaluation of the Rainy River gold stream obligation and the New Afton free cash flow interest obligation.
Importantly, the company’s adjusted net earnings amounted to $23.1 million in Q3 2023, an increase from adjusted net loss of $13.4 million in Q3 2022 due to higher revenues and lower finance costs, partially offset by higher operating expenses, and depreciation and depletion.
“Solid production and low costs in the third quarter resulted in strong cash flow from operations of $100 million and free cash flow of $22 million, highlighting the cash generation profile as growth projects are completed in the coming years, which is expected to lead to production growth and tapering capital costs,” the company said in a press release.
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.
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