Exhibit 99.1
New Gold Reports Second Quarter Operational Results
Provides Notice of Release of Second Quarter Financial
Results
(All amounts are in U.S. dollars unless otherwise
indicated)
TORONTO, July 15, 2021 /CNW/ - New Gold Inc. ("New
Gold" or the "Company") (TSX: NGD) and (NYSE American: NGD) reports second quarter operational results for
the Company as of June 30, 2021. The Company is also providing notice that it will release its second quarter 2021 financial results before
market on Wednesday, August 11, 2021. A conference call and webcast will follow at 8:30 am Eastern Time (details are provided at the end
of this news release).
"Our operations continued to advance their
primary objectives during the quarter. Rainy River had another solid operational quarter and is positioned to have a stronger second half
of production. As we start the third quarter, the mine has now successfully transitioned from focusing on stripping, and we are now seeing
a marked improvement in grades through the first half of July. At New Afton, mining rates were up more than 30% over the first quarter
as underground operations returned to pre-incident levels. With the B3 permit now in hand, the focus shifts to a safe execution of the
extraction of the B3 zone during the second half of the year," stated Renaud Adams, President & CEO. "Lastly, I would like
to highlight the publication of our 2020 Sustainability Report in the quarter. Sustainability and our approach to pressing ESG issues
remain central to our success, and I am very proud of the work our team has done to deliver this report."
Second Quarter Highlights
- Total production was 105,705 gold equivalent1 ("gold
eq.") ounces (66,989 ounces of gold, 240,029 ounces of silver and 18.2 million pounds of copper)
- The Rainy River Mine produced 55,163 gold eq.1 ounces
(52,901 ounces of gold and 162,879 ounces of silver)
- The New Afton Mine produced 50,542 gold eq.1 ounces
(14,088 ounces of gold and 18.2 million pounds of copper)
- During the quarter, the Company announced that the Mines Act permit
enabling mining of the B3 zone was issued by the Ministry of Energy, Mines and Low Carbon innovation (refer to the Company's May 25,
2021 news release for further information)
- The Company's 2020 Sustainability Report was published on June
4, 2021, and can be found on the New Gold website
- At the end of the quarter, the Company had a cash position of
$138 million and a strong liquidity position of $464 million
Consolidated Operational Highlights
| |
Q2 2021 |
Q2 2020 |
H1 2021 |
H1 2020 |
| Gold eq. production (ounces)1 |
105,705 |
98,079 |
201,731 |
201,514 |
| Gold production (ounces) |
66,989 |
64,294 |
133,639 |
131,084 |
| Copper production (Mlbs) |
18.2 |
16.9 |
32.0 |
35.4 |
Rainy River Mine
Operational Highlights
| Rainy River Mine |
Q2 2021 |
Q2 2020 |
H1 2021 |
H1 2020 |
| Gold eq. production (ounces)1 |
55,163 |
49,633 |
111,676 |
100,739 |
| Gold eq. sold (ounces)1 |
57,304 |
47,873 |
110,881 |
101,411 |
| Gold production (ounces) |
52,901 |
48,800 |
107,557 |
99,181 |
| Gold sold (ounces) |
55,062 |
47,064 |
106,857 |
99,846 |
Operating Key Performance Indicators
| Rainy River Mine (Open Pit Mine only) |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
| Tonnes mined per day (ore and waste) |
126,512 |
145,701 |
158,638 |
150,767 |
158,556 |
| Ore tonnes mined per day |
23,101 |
36,515 |
42,918 |
35,681 |
36,256 |
| Operating waste tonnes per day |
72,575 |
62,818 |
73,921 |
65,643 |
71,124 |
| Capitalized waste tonnes per day |
30,836 |
46,368 |
41,799 |
49,442 |
51,176 |
| Total waste tonnes per day |
103,411 |
109,186 |
115,720 |
115,085 |
122,300 |
| Strip ratio (waste:ore) |
4.48 |
2.99 |
2.70 |
3.23 |
3.37 |
| Tonnes milled per calendar day |
23,880 |
26,998 |
26,999 |
26,301 |
25,349 |
| Gold grade milled (g/t) |
0.78 |
0.88 |
0.93 |
0.80 |
0.82 |
| Gold recovery (%) |
89 |
89 |
90 |
89 |
87 |
| Mill availability (%) |
90 |
90 |
94 |
89 |
88 |
| Gold production (ounces) |
48,800 |
63,004 |
66,734 |
54,656 |
52,901 |
| Gold eq. production (ounces)1 |
49,633 |
64,221 |
68,241 |
56,513 |
55,163 |
- Second quarter gold eq.1 production was 55,163 ounces
(52,901 ounces of gold and 162,879 ounces of silver). Lower gold grades were expected during the first half of the year as mining operations
were focused on stripping to bring pit walls to the final pit limit. During the second half of the year, grades are expected to increase
as the mine returns to higher-grade areas of the pit. The 11% increase compared to the prior-year period is due to higher tonnes processed
and higher gold grades.
- The open pit mine achieved 158,556 tonnes per day, a 5% increase
over the prior quarter, and exceeding the 2021 target of ~151,000 tonnes per day. Approximately 3.3 million ore tonnes and 11.1 million
waste tonnes (including 4.7 million capitalized waste tonnes) were mined from the open pit at an average strip ratio of 3.37:1. As planned,
during the second half of the year, the strip ratio is expected to decrease.
- The mill processed 25,349 tonnes per day for the quarter, lower
than the prior period due to unplanned maintenance activities performed at the mill during the quarter impacting mill availability and
operating time. The mill is expected to operate at 27,000 tonnes per day in the second half of the year. The mill continued to process
ore directly supplied by the open pit combined with ore from the medium grade stockpile and processed an average grade of 0.82 grams per
tonne at a gold recovery of 87%. Mill availability for the quarter averaged 88%.
- Rainy River is currently on-track to meet the low end of the production
guidance range.
- There are currently no active cases of COVID-19 at the Rainy River
Mine. Rainy River has implemented measures to mitigate and limit the spread of COVID-19 to protect the well-being of its employees, contractors,
their families, local communities, and other stakeholders. For more information see: http://newgold.com/covid-19/.
New Afton Mine
Operational Highlights
| New Afton Mine |
Q2 2021 |
Q2 2020 |
H1 2021 |
H1 2020 |
| Gold eq. production (ounces)1 |
50,542 |
48,446 |
90,055 |
100,775 |
| Gold eq. sold (ounces)1 |
46,917 |
43,517 |
85,157 |
93,915 |
| Gold production (ounces) |
14,088 |
15,494 |
26,082 |
31,903 |
| Gold sold (ounces) |
13,122 |
13,789 |
24,866 |
29,780 |
| Copper production (Mlbs) |
18.2 |
16.9 |
32.0 |
35.4 |
| Copper sold (Mlbs) |
16.9 |
15.3 |
30.2 |
33.0 |
Operating Key Performance Indicators
| New Afton Mine |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
| Tonnes mined per day (ore and waste) |
15,358 |
17,249 |
17,259 |
11,395 |
15,104 |
| Tonnes milled per calendar day |
14,240 |
15,483 |
15,358 |
13,564 |
13,795 |
| Gold grade milled (g/t) |
0.46 |
0.44 |
0.46 |
0.39 |
0.43 |
| Gold recovery (%) |
81 |
80 |
79 |
79 |
80 |
| Gold production (ounces) |
15,494 |
15,955 |
16,362 |
11,994 |
14,088 |
| Copper grade milled (%) |
0.72 |
0.71 |
0.73 |
0.64 |
0.79 |
| Copper recovery (%) |
83 |
82 |
81 |
80 |
83 |
| Copper production (Mlbs) |
16.9 |
18.2 |
18.5 |
13.8 |
18.2 |
| Mill availability (%) |
92 |
98 |
99 |
96 |
98 |
| Gold eq. production (ounces)1 |
48,446 |
51,315 |
52,326 |
39,512 |
50,542 |
- Second quarter gold eq.1 production was 50,542 ounces
(14,088 ounces of gold, and 18.2 million pounds of copper). The increase compared to the prior-year period is due to higher copper production
as a result of higher copper grades.
- The underground mine averaged 15,104 tonnes per day for the quarter,
higher than the previous quarter, as the mine initiated a safe and secure ramp up of Lift 1, including the West Cave, East Cave and Pillar,
to return to pre-incident mining rates.
- The mill averaged 13,795 tonnes per day, slightly below prior-year
period, but in-line with plan to optimize metal recoveries while processing higher grade supergene ore. The mill processed gold grades
of 0.43 grams per tonne and higher than expected copper grades of 0.79%, with gold and copper recoveries of 80% and 83%, respectively.
- B3 production commenced in June following receipt of the Mines
Act Permit on May 25, 2021 and will advance through the second half of the year. With the permit being received later than anticipated,
ore extraction transitioning from Lift 1 to B3, and with current metal prices significantly above reserve pricing, New Afton is looking
for ways to optimize its current mine plan.
- C-Zone development advanced by approximately 919 metres and the
project remains on track.
- There are currently no active cases of COVID-19 at the New Afton
Mine. New Afton has implemented measures to mitigate and limit the spread of COVID-19 to protect the well-being of its employees, contractors,
their families, local communities, and other stakeholders. For more information see: http://newgold.com/covid-19/.
Second Quarter 2021 Conference Call and Webcast
- The Company will release its second quarter 2021 financial results
before market on Wednesday, August 11, 2021. A conference call and webcast will follow at 8:30 am Eastern Time.
- Participants may listen to the webcast by registering on our website
at www.newgold.com or via the following link https://produceredition.webcasts.com/starthere.jsp?ei=1479944&tp_key=e9367fef15
- Participants may also listen to the conference call by calling
North American toll free 1-888-664-6383, or 1-416-764-8650 outside of the U.S. and Canada, passcode 26663480.
- A recorded playback of the conference call will be available until
September 11, 2021, by calling North American toll free 1-888-390-0541, or 1-416-764-8677 outside of the U.S. and Canada, passcode 663480.
An archived webcast will also be available at www.newgold.com.
About New Gold
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. The Company also holds an 8% gold stream on the Artemis Gold Blackwater project located
in Canada, a 6% equity stake in Artemis, and other Canadian-focused investments. The Company also owns the Cerro San Pedro Mine in Mexico
(in reclamation). New Gold's vision is to build a leading diversified intermediate gold company based in Canada that is committed to environment
and social responsibility. For further information on the Company, visit www.newgold.com.
Endnotes
1. Total gold eq. ounces include silver and copper produced/sold converted to a gold eq. based on a ratio of $1,800 per gold
ounce, $25.00 per silver ounce and $3.50 per copper pound used for 2021 guidance estimates. All copper is produced/sold by the New Afton
Mine. Gold eq. ounces for Rainy River in Q2 2021 includes production of 162,879 ounces of silver (161,472 ounces sold) converted to a
gold eq. based on a ratio of $1,800 per gold ounce and $25.00 per silver ounce used for 2021 guidance estimates. Gold eq. ounces for New
Afton in Q2 2021 includes 18.2 million pounds of copper produced (16.9 million pounds sold) and 77,150 ounces of silver produced (67,888
ounces of silver sold) converted to a gold eq. based on a ratio of $1,800 per gold ounce, 3.50 per copper pound and $25.00 per silver
ounce used for 2021 guidance estimates.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release, including any information relating to New Gold's future financial or operating
performance are "forward-looking". All statements in this news release, other than statements of historical fact, which address
events, results, outcomes or developments that New Gold expects to occur are "forward-looking statements". Forward-looking statements
are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such
as "plans", "expects", "is expected", "budget", "scheduled", "targeted", "estimates",
"forecasts", "intends", "anticipates", "projects", "potential", "believes"
or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would",
"should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation
of such terms. Forward-looking statements in this news release include, among others, statements with respect to: the Company's plans
regarding the release its second quarter 2021 financial results and the timing and details of its conference call and webcast relating
thereto; the Company's expectations in respect of stronger production and safe execution of the extraction of the B3 zone in the
second half of the year; the planned mining of higher-grade areas of the Rainy River mine pit and the expected increase in gold grades
during the second half of the year as a result thereof; the anticipated decrease in the strip ratio at Rainy River during the second half
of the year; the expected daily operating capacity of the mill in the second half of 2021; and the Company's planned development of the
C-Zone and advancement of B3 production through the second half of the year.
All forward-looking statements in this news release
are based on the opinions and estimates of management that, while considered reasonable as at the date of this press release in light
of management's experience and perception of current conditions and expected developments, are inherently subject to important risk factors
and uncertainties, many of which are beyond New Gold's ability to control or predict. Certain material assumptions regarding such forward-looking
statements are discussed in this news release, New Gold's latest annual management's discussion and analysis ("MD&A"), its
most recent annual information form and technical reports on the Rainy River Mine and New Afton Mine filed on SEDAR at www.sedar.com and
on EDGAR at www.sec.gov. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements
in this news release are also subject to the following assumptions: (1) there being no significant disruptions affecting New Gold's operations
other than as set out herein; (2) political and legal developments in jurisdictions where New Gold operates, or may in the future operate,
being consistent with New Gold's current expectations; (3) the accuracy of New Gold's current mineral reserve and mineral resource estimates;
(4) the exchange rate between the Canadian dollar and U.S. dollar, and to a lesser extent, the Mexican Peso, being approximately consistent
with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with
current levels; (6) equipment, labour and materials costs increasing on a basis consistent with New Gold's current expectations; (7) arrangements
with First Nations and other Aboriginal groups in respect of the New Afton Mine and Rainy River Mine being consistent with New Gold's
current expectations; (8) all required permits, licenses and authorizations being obtained from the relevant governments and other relevant
stakeholders within the expected timelines; (9) there being no significant disruptions to the Company's workforce at either the Rainy
River or New Afton Mine due to cases of COVID-19 or any required self-isolation requirements (due, among other things, to cross-border
travel to the United States or any other country); (10) the responses of the relevant governments to the COVID-19 outbreak being sufficient
to contain the impact of the COVID-19 outbreak; (11) there being no material disruption to the Company's supply chains and workforce that
would interfere with the Company's anticipated course of action at the Rainy River Mine and the systematic ramp-up of operations; and
(12) the long-term economic effects of the COVID-19 outbreak not having a material adverse impact on the Company's operations or liquidity
position.
Forward-looking statements are necessarily based on
estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual
results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking
statements. Such factors include, without limitation: significant capital requirements and the availability and management of capital
resources; additional funding requirements; price volatility in the spot and forward markets for metals and other commodities; fluctuations
in the international currency markets and in the rates of exchange of the currencies of Canada, the United States and, to a lesser extent,
Mexico; volatility in the market price of the Company's securities; hedging and investment related risks; dependence on the Rainy River
Mine and New Afton Mine; discrepancies between actual and estimated production, between actual and estimated mineral reserves and mineral
resources and between actual and estimated metallurgical recoveries; risks related to early production at the Rainy River Mine, including
failure of equipment, machinery, the process circuit or other processes to perform as designed or intended; risks related to construction,
including changing costs and timelines; adequate infrastructure; fluctuation in treatment and refining charges; changes in national and
local government legislation in Canada, the United States and, to a lesser extent, Mexico or any other country in which New Gold currently
or may in the future carry on business; global economic and financial conditions; risks relating to New Gold's debt and liquidity; the
adequacy of internal and disclosure controls; taxation; impairment; conflicts of interest; risks relating to climate change; controls,
regulations and political or economic developments in the countries in which New Gold does or may carry on business; the speculative nature
of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary
licenses and permits and complying with the permitting requirements of each jurisdiction in which New Gold operates; the lack of certainty
with respect to foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that
are inconsistent with the rule of law; the uncertainties inherent to current and future legal challenges New Gold is or may become a party
to; risks relating to proposed acquisitions and the integration thereof; information systems security threats; diminishing quantities
or grades of mineral reserves and mineral resources; competition; loss of, or inability to attract, key employees; rising costs of labour,
supplies, fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic
studies; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims
or property or contests over claims to mineral properties; unexpected delays and costs inherent to consulting and accommodating rights
of Indigenous groups; risks, uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits
and authorizations and complying with permitting requirements; disruptions to the Company's workforce at either the Rainy River Mine or
the New Afton Mine, or both, due to cases of COVID-19 or any required self-isolation (due to cross-border travel, exposure to a case of
COVID-19 or otherwise); the responses of the relevant governments to the COVID-19 outbreak not being sufficient to contain the impact
of the COVID-19 outbreak; disruptions to the Company's supply chain and workforce due to the COVID-19 outbreak; an economic recession
or downturn as a result of the COVID-19 outbreak that materially adversely affects the Company's operations or liquidity position; there
being further shutdowns at the Rainy River or New Afton Mines; the Company not being able to complete its construction projects at the
Rainy River Mine or the New Afton Mines on the anticipated timeline or at all; the Company not being able to complete the exploration
drilling program to be launched at the Rainy River Mine and Cherry Creek on the anticipated timeline or at all; Artemis Gold Inc. not
being able to make the remaining C$50 million cash payment due in connection with its acquisition of the Blackwater Project on August
24, 2021. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including
environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion
losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as "Risk Factors"
included in New Gold's most recent annual information form, MD&A and other disclosure documents filed on and available on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov. Forward looking statements are not guarantees of future performance, and actual results and
future events could materially differ from those anticipated in such statements. All forward-looking statements contained in this news
release are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities
laws.
Technical Information
The scientific and technical information contained in this news release has been reviewed and approved by Eric Vinet, Senior Vice
President, Operations of New Gold. Mr. Vinet is a Professional Engineer and member of the Ordre des ingénieurs du Québec.
He is a "Qualified Person" for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
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SOURCE New Gold Inc.
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%CIK: 0000800166
For further information: Ankit Shah, Vice President, Strategy &
Business Development, Direct: +1 (416) 324-6027, Email: ankit.shah@newgold.com; Brandon Throop, Director, Investor Relations, Direct:
+1 (647) 264-5027, Email: brandon.throop@newgold.com
CO: New Gold Inc.
CNW 17:00e 15-JUL-21