(Kitco News) - New Gold (TSX: NGD) informed yesterday that in Q2 2022, the company produced 70,514 gold equivalent ounces (GEO), which is a decrease of 33% over Q2 2021 (105,705 GEO).
The company said that during the second quarter, operations at the Rainy River mine were adversely impacted by heavy rainfall and flooding around the Fort Frances area in northwestern Ontario.
As a result, Rainy River's gold equivalent production for 2022 is now expected to be between 230,000 to 250,000 ounces (previously 265,000 to 295,000 ounces).
The company added that primarily due to lower gold production, as well as current inflationary cost pressures, all-in sustaining costs at the mine are now expected to be between $1,620 and $1,720 per GEO (previously between $1,270 and $1,370 per GEO).
New Gold also noted that during the second quarter, New Afton focused on B3 and C-Zone development and closed the low grade-higher cost recovery level zone earlier than planned.
As a result of the early shutdown, tonnes mined were lower than expected. To maintain mill feed, the operation utilized the low-grade stockpile during the quarter, resulting in lower grades and recoveries, and ultimately, lower production.
The company added that copper production guidance for 2022 is now expected to be between 25 and 35 million pounds (previously between 35 and 45 million pounds). Gold production is expected to be at the low end of the annual production guidance range of 35,000 to 45,000 ounces.
Importantly, New Gold said that due to the revisions at both Rainy River and New Afton, its consolidated gold equivalent production for 2022 is now expected to be between 325,000 and 365,000 ounces (previously 380,000 to 440,000 ounces).
New Gold also expects its consolidated 2022 all-in sustaining costs to be between $1,875 and $1,975 per GEO (previously between $1,470 and $1,570 per GEO).
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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