New Gold shows strong footing in fourth quarter report

Staff

New Gold has released his fourth quarter earnings, showing the company ending on a high note, due to high gold prices, a higher grade of gold, and revenue from the sale of Blackwater gold stream.

The company showed an all-in sustaining cost of $1,281 per gold equivalent ounce, and an average realized gold price of $1,796 per ounce, according to the earnings release. The gold milled in the fourth quarter was 1.03 grams per tonne, compared to .80 g/t in the first quarter, meaning for every tonne of ore processed, the mine was able to extract 1.03 grams.

“While we had to navigate challenges throughout 2021, I am extremely proud of our resilient team and the way we ended the year,” stated Renaud Adams, President & CEO. “The fourth quarter delivered our strongest production quarter of the year, allowing us to meet our updated guidance. It was also our lowest quarter from a cost perspective, leading to our highest free cash flow quarter of the year. Adding to that, we exited the year on a strong note with the sale of the Blackwater gold stream. The value we have been able to crystallize through multiple Blackwater-related transactions since August 2020 has positioned our Company with a peer-leading balance sheet and the financial strength to execute on our strategy.”

The company is optimistic, looking ahead to the next year, according to the release.

“Looking to 2022, our strategy remains focused on operational excellence and optimization at both assets. At Rainy River, we converted meaningful underground Mineral Resources to Mineral Reserves resulting in a net increase to total gold reserves for New Gold. We continue to seek ways to further optimize the operation and reduce costs while we advance the development of the Intrepid underground zone, targeting initial production in the second half of the year. At New Afton, our priorities remain on advancing the B3 ramp-up and C-Zone development, exhausting the Lift 1 cave, including the recovery level zone, and completing commissioning of the in-pit tailings,” added Adams.