(Kitco News) - New Gold is poised for growth after turning a corner at its Rainy River operations, President and CEO Patrick Godin said at the 2025 BMO Global Metals, Mining & Critical Minerals Conference in Hollywood, Florida.
The underground project at Rainy River is expected to be a major driver of future production and profitability, Godin told Kitco Mining.
“We delivered our projects on time and, in some cases, under budget,” Godin said, noting that the company successfully reached ore as planned in its Rainy River underground operations. “At the end of 2024, we were well-positioned to face the future for the development of the underground mine that will be a significant gold contributor to the Rainy River production.”
The company’s 2024 results underscore its recent momentum. Despite a 7% drop in annual production to 392,000 ounces, New Gold reported a 13% decrease in all-in-sustaining costs (AISC) to $1,239 per ounce. By the fourth quarter, AISC dropped to $1,018 per ounce, yielding a 62% AISC margin.
Godin attributed the improvements to disciplined project execution and successful cost management. “At New Afton, we reach the hydraulic radius. And also we delivered the crusher. That was the main milestone for us and the conveyor system eight weeks in advance on the schedule,” he said.
New Gold also saw a sharp increase in its share price, which climbed 137% year-on-year, far outpacing its peers. Goddin noted investor confidence in the company’s revamped technical models, enhanced operational efficiency, and robust exploration programs. New Gold’s exploration budget will rise from $25 million in 2024 to $30 million in 2025.
”We saw wind of change in the growth opportunity and the organic growth opportunities in our company,” Godin said.
As the company ramps up production, it expects to generate $300 million in free cash flow this year, part of a projected $1.7 billion to $2 billion over the next three years. With metals prices near record highs, New Gold is focused on strengthening its balance sheet and pursuing growth opportunities.
“ We have to see what is the best option to create value for our shareholders,” Godin said. That might mean increasing exploration, acquiring new assets, or potentially returning capital to shareholders.
Looking ahead, New Gold plans to ramp up its Rainy River underground operations and continue advancing its exploration efforts. “ We want to be bigger, to be better – be better in terms of reducing our cost of capital, to de-risk the operation,” Godin stated.
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