New Gold Announces 2015 Financial Results with Record Gold Production Leading to Strong Cash Flow

New Gold Announces 2015 Financial Results with Record Gold Production Leading to Strong Cash Flow

by ahnationtalk on February 18, 2016284 Views

(All dollar figures are in US dollars unless otherwise indicated)

TORONTO, Feb. 17, 2016  – New Gold Inc. (“New Gold”) (TSX:NGD) (NYSE MKT:NGD) today announces its 2015 fourth quarter and full-year financial results, provides an update on its portfolio of development projects, including Rainy River and the results of the New Afton C-zone feasibility study, and updates its year-end mineral reserve and resource estimates. The company previously announced its preliminary 2015 operational results and 2016 guidance on January 20, 2016.

2015 FULL-YEAR HIGHLIGHTS

  • Record full-year gold production of 435,718 ounces, exceeded the guidance range of 390,000 to 430,000 ounces and delivered a 15% increase in production over 2014
  • All-in sustaining costs(1) of $809 per ounce, including total cash costs(2) of $443 per ounce
  • Cash generated from operations of $263 million relative to $269 million in 2014
  • Cash generated from operations before changes in non-cash operating working capital(3) of $265 million compared to $310 million in the prior year
  • Adjusted net loss(4) of $11 million, or $0.02 per share
  • Net loss of $201 million, or $0.40 per share, including a $99 million non-cash, after-tax loss associated with the company’s sale of its 30% interest in the El Morro project
  • Year-end cash balance of $336 million

2015 FOURTH QUARTER HIGHLIGHTS

  • Record quarterly production with 131,719 ounces of gold and 29 million pounds of copper
  • Record low all-in sustaining costs(1) of $613 per ounce, including total cash costs(2) of $389 per ounce
  • Cash generated from operations increased by 21% to $85 million compared to $70 million in the fourth quarter of 2014
  • Cash generated from operations before changes in non-cash operating working capital(3) of $77 million relative to $70 million in the fourth quarter of 2014
  • Adjusted net earnings(4) of $3 million, or $0.01 per share
  • Net loss of $10 million, or $0.02 per share

DEVELOPMENT PROJECTS

  • Rainy River remains on schedule for mid-2017 production start with total estimated development capital of $877 million at the company’s updated 2016 guidance exchange rate assumption of C$1.40/US$
  • New Afton C-zone feasibility study completed, which demonstrates the potential to extend the mine’s life by over five years

MINERAL RESERVES AND RESOURCES

  • 2015 year-end mineral reserves of 15.0 million ounces of gold, 1.2 billion pounds of copper and 76 million ounces of silver
  • New Afton’s gold and copper mineral reserve estimates increased by 62% and 42%, respectively, with the addition of the C-zone to the mine’s reserves

“Our solid operating performance in 2015, and particularly our record-setting fourth quarter, enabled us to generate cash flow similar to last year, despite the decrease in metal prices,” stated Randall Oliphant, Executive Chairman.

“Our robust cash flow, coupled with the additional liquidity generated from the Rainy River stream sale and El Morro transaction that we completed in 2015, provides us the opportunity to continue to invest in the future of our business. Rainy River, which is now less than a year and a half from starting production, provides New Gold with the potential to increase production, reduce costs and increase average mine life. Thereafter, we will look to the New Afton C-zone and Blackwater as future opportunities for long-term value creation,” added Mr. Oliphant.

Read More: http://www.newgold.com/investors/NewGoldNews/PressReleaseDetail/2016/New-Gold-Announces-2015-Financial-Results-with-Record-Gold-Production-Leading-to-Strong-Cash-Flow/default.aspx

NT3

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