Exhibit 99.1
New Gold Reports 2023 Second Quarter Results
On-Track to Achieve 2023 Production and Cost Guidance;
Rainy River Underground and New Afton C-Zone Continue to Advance
(All amounts are in U.S. dollars unless otherwise
indicated)
TORONTO, July 26, 2023 /CNW/ - New Gold Inc. ("New
Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) reports second quarter results for the Company as of June
30, 2023. The Company will host a conference call and webcast tomorrow, July 27, 2023 at 8:30 am Eastern Time to discuss the second quarter
consolidated results (details are provided at the end of this news release). For detailed information, please refer to the Company's Management's
Discussion and Analysis ("MD&A") and financial statements for the quarter ended June 30, 2023 that are available on the
Company's website at www.newgold.com and on SEDAR at www.sedar.com. The Company uses certain non-GAAP financial performance measures throughout
this news release. Please refer to the "Non-GAAP Financial Performance Measures" section of this news release and the MD&A
for more information. Numbered note references throughout this news release are to endnotes which can be found at the end of this news
release.
Consolidated Second Quarter Highlights
- Gold equivalent1 ("gold eq.") production
for the quarter of 102,374 ounces (76,527 ounces of gold, 12.0 million pounds of copper and 152,208 ounces of silver)
- Operating expenses of $1,090 per gold eq. ounce
- All-in sustaining costs2 of $1,657 per gold eq. ounce,
including total cash costs2 of $1,129 per gold eq. ounce
- Average realized gold price2 of $1,970 per ounce and
average realized copper price2 of $3.82 per pound
- Cash generated from operations of $56 million, or $0.08 per share
- Cash generated from operations, before changes in non-cash operating
working capital2 of $65 million, or $0.10 per share
- Net loss of $3 million, or $0.00 per share
- Adjusted net earnings2 of $12 million, or $0.02 per
share
- Cash and cash equivalents of $174 million as at June 30, 2023
- During the quarter, the Company published its 2022 Environmental,
Social and Governance Report (refer to the Company's June 19, 2023 news release for further information)
"New Gold carried the momentum from a strong
start to the year and delivered another excellent quarter," stated Patrick Godin, President & CEO. "We delivered a 45% increase
in gold equivalent production with lower all-in sustaining costs, significantly increasing our margins over the prior-year period, accomplishing
our goals safely. I am also proud that during the second quarter, the New Afton Mine received the J.T Ryan Safety Award for British Columbia
and Yukon and British Columbia's Safest Large Underground Mine Award. We will continue to build on these positive results as we look to
the second half of the year, and we remain well positioned to meet our guidance ranges set out earlier in the year."
"Looking beyond 2023, we continued to make
progress advancing our growth initiatives. During the quarter, underground development at Rainy River continued, with development of the
ramp access to the underground Main Zone advancing 98 metres. Following detailed internal optimization studies, I am excited to share
that access to the underground Main Zone commenced from the Intrepid Zone, providing the mine with a number of efficiencies over the previous
plan. C-Zone development at New Afton continued well in the quarter, advancing 1,415 metres. Our development rate increased substantially
over the first quarter, and I remain confident in our ability to achieve first production ore during the fourth quarter, with commercial
production planned for the second half of 2024," added Mr. Godin.
Consolidated Financial Highlights
| |
Q2 2023 |
Q2 2022 |
H1 2023 |
H1 2022 |
| Revenue ($M) |
184.4 |
115.7 |
386.0 |
290.4 |
| Operating expenses ($M) |
104.9 |
79.8 |
222.1 |
175.0 |
| Net (loss) earnings ($M) |
(2.6) |
(37.9) |
(34.4) |
(45.7) |
| Net (loss) earnings, per share ($) |
(0.00) |
(0.06) |
(0.05) |
(0.07) |
| Adj. net earnings ($M)2 |
11.6 |
(16.7) |
30.0 |
(6.4) |
| Adj. net earnings, per share ($)2 |
0.02 |
(0.02) |
0.04 |
(0.01) |
| Cash generated from operations ($M) |
56.4 |
37.4 |
117.0 |
105.2 |
| Cash generated from operations, per share ($) |
0.08 |
0.05 |
0.17 |
0.15 |
Cash generated from operations, before changes in
non-cash operating working capital ($M)2 |
65.2 |
27.4 |
140.9 |
93.8 |
Cash generated from operations, before changes in
non-cash operating working capital, per share ($)2 |
0.10 |
0.04 |
0.21 |
0.14 |
- Revenue increased over the prior-year periods due to higher gold
prices and higher gold and copper sales volumes, partially offset by lower copper prices.
- Operating expenses increased over the prior-year periods primarily
due to higher production and sales at both sites.
- Net loss decreased over the prior-year periods primarily due to
higher revenues, lower finance costs, and a smaller loss on the revaluation of investments, partially offset by higher operating expenses,
and depreciation and depletion.
- Adjusted net earnings2 increased over the prior-year
periods due to higher revenues and lower finance costs, partially offset by higher operating expenses, and depreciation and depletion.
- Cash generated from operations increased over the prior-year periods
due to higher revenue, partially offset by negative working capital movements.
Consolidated Operational Highlights
| |
Q2 2023 |
Q2 2022 |
H1 2023 |
H1 2022 |
| Gold eq. production (ounces)1 |
102,374 |
70,514 |
207,231 |
158,210 |
| Gold eq. sold (ounces)1 |
96,184 |
62,509 |
204,116 |
155,045 |
| Gold production (ounces) |
76,527 |
52,431 |
159,004 |
120,532 |
| Gold sold (ounces) |
74,219 |
51,263 |
161,426 |
121,825 |
| Copper production (Mlbs) |
12.0 |
7.4 |
22.3 |
15.6 |
| Copper sold (MIbs) |
10.1 |
4.4 |
19.5 |
13.6 |
| Gold revenue, per ounce ($) |
1,948 |
1,870 |
1,903 |
1,876 |
| Copper revenue, per pound ($) |
3.61 |
3.97 |
3.70 |
4.17 |
| Average realized gold price, per ounce ($)2 |
1,970 |
1,879 |
1,927 |
1,889 |
| Average realized copper price, per pound ($)2 |
3.82 |
4.14 |
3.96 |
4.41 |
| Operating expenses, per gold eq. ounce ($) |
1,090 |
1,277 |
1,088 |
1,129 |
| Total cash costs, per gold eq. ounce ($)2 |
1,129 |
1,296 |
1,132 |
1,161 |
| Depreciation and depletion, per gold eq. ounce ($) |
566 |
628 |
538 |
569 |
| All-in sustaining costs, per gold eq. ounce ($)2 |
1,657 |
2,373 |
1,566 |
2,018 |
| Sustaining capital ($M)2 |
35.6 |
57.2 |
61.9 |
109.8 |
| Growth capital ($M)2 |
36.0 |
18.9 |
72.8 |
41.8 |
| Total capital ($M) |
71.6 |
76.1 |
134.7 |
151.6 |
Rainy River Mine
Operational Highlights
| Rainy River Mine |
Q2 2023 |
Q2 2022 |
H1 2023 |
H1 2022 |
| Gold eq. production (ounces)1 |
61,419 |
43,759 |
129,015 |
103,654 |
| Gold eq. sold (ounces)1 |
61,045 |
46,781 |
134,457 |
108,464 |
| Gold production (ounces) |
59,882 |
42,516 |
126,083 |
101,349 |
| Gold sold (ounces) |
59,529 |
45,517 |
131,420 |
106,152 |
| Gold revenue, per ounce ($) |
1,965 |
1,879 |
1,920 |
1,886 |
| Average realized gold price, per ounce ($)2 |
1,965 |
1,879 |
1,920 |
1,886 |
| Operating expenses, per gold eq. ounce ($) |
1,110 |
1,029 |
1,057 |
983 |
| Total cash costs, per gold eq. ounce ($)2 |
1,110 |
1,029 |
1,057 |
983 |
| Depreciation and depletion, per gold eq. ounce ($) |
640 |
687 |
586 |
653 |
| All-in sustaining costs, per gold eq. ounce ($)2 |
1,725 |
1,972 |
1,538 |
1,756 |
| Sustaining capital ($M)2 |
31.6 |
40.1 |
53.9 |
75.0 |
| Growth capital ($M)2 |
4.5 |
2.6 |
10.3 |
7.5 |
| Total capital ($M) |
36.1 |
42.7 |
64.1 |
82.5 |
Operating Key Performance Indicators
| Rainy River Mine |
Q2 2023 |
Q2 2022 |
H1 2023 |
H1 2022 |
| Open Pit Only |
|
|
|
|
| Tonnes mined per day (ore and waste) |
130,488 |
110,153 |
124,517 |
114,381 |
| Ore tonnes mined per day |
34,146 |
12,295 |
35,257 |
16,136 |
| Operating waste tonnes per day |
61,796 |
19,560 |
61,082 |
27,337 |
| Capitalized waste tonnes per day |
34,545 |
78,298 |
28,178 |
70,909 |
| Total waste tonnes per day |
96,342 |
97,858 |
89,260 |
98,246 |
| Strip ratio (waste:ore) |
2.82 |
7.96 |
2.53 |
6.09 |
| Open Pit and Underground |
|
|
|
|
| Tonnes milled per calendar day |
23,252 |
23,302 |
22,828 |
23,807 |
| Gold grade milled (g/t) |
0.97 |
0.69 |
1.04 |
0.80 |
| Gold recovery (%) |
91 |
90 |
91 |
92 |
- Second quarter gold eq.1 production was 61,419 ounces
(59,882 ounces of gold and 122,211 ounces of silver). For the six months ended June 30, 2023, gold eq.1 production was 129,015
ounces (126,083 ounces of gold and 233,187 ounces of silver). The increase over the prior-year periods is due to higher gold grades. Underground
production rates continue to ramp-up with grades reconciling well relative to plan.
- During the second quarter, Rainy River's open pit mining sequence
was optimized to maintain a consistent production profile throughout the year, leading to ounces being mined ahead of schedule. Rainy
River remains well positioned to meet annual production and cost guidance metrics.
- Operating expense per gold eq. ounce increased over the prior-year
periods due to lower capitalized tonnes than the prior periods and increased costs associated with mill maintenance performed in the quarter,
partially offset by higher sales volume.
- All-in sustaining costs2 per gold eq. ounce decreased
over the prior-year periods due to lower sustaining capital spend and higher sales volume.
- Total capital decreased over the prior-year periods due to lower
sustaining capital, partially offset by higher growth capital. Sustaining capital2 primarily related to capitalized waste,
as well as capital maintenance, and the commencement of the annual tailings dam raise. Growth capital2 related to the development
of the Intrepid underground and underground Main Zones, which advanced 524 metres during the quarter.
- Free cash flow2 for the quarter and six months ended
June 30, 2023, was $2 and $17 million (net of $7 and $15 million stream payments, respectively), which is consistent with the prior-year
periods as the impact of higher revenue was offset by higher working capital movement in the prior-year periods.
- Development of the underground Main Zone commenced during the
quarter as planned. Following internal evaluations through the first half of the year, the underground Main Zone will initially be reached
via the underground Intrepid Zone. Deferral of the in-pit portal for the Main Zone will allow for a number of efficiencies and further
optimization of the existing open pit for its remaining mine life. During the quarter development of the underground Main Zone advanced
98 metres.
New Afton Mine
Operational Highlights
| New Afton Mine |
Q2 2023 |
Q2 2022 |
H1 2023 |
H1 2022 |
| Gold eq. production (ounces)1 |
40,955 |
26,755 |
78,216 |
54,556 |
| Gold eq. sold (ounces)1 |
35,139 |
15,729 |
69,658 |
46,580 |
| Gold production (ounces) |
16,645 |
9,916 |
32,921 |
19,183 |
| Gold sold (ounces) |
14,690 |
5,746 |
30,006 |
15,673 |
| Copper production (Mlbs) |
12.0 |
7.4 |
22.3 |
15.6 |
| Copper sold (Mlbs) |
10.1 |
4.4 |
19.5 |
13.6 |
| Gold revenue, per ounce ($) |
1,878 |
1,800 |
1,829 |
1,810 |
| Copper revenue, per ounce ($) |
3.61 |
3.97 |
3.70 |
4.17 |
| Average realized gold price, per ounce ($)2 |
1,988 |
1,879 |
1,957 |
1,914 |
| Average realized copper price, per pound ($)2 |
3.82 |
4.14 |
3.96 |
4.41 |
| Operating expenses, per gold eq. ounce ($) |
1,055 |
2,012 |
1,147 |
1,469 |
| Total cash costs, per gold eq. ounce ($)2 |
1,163 |
2,090 |
1,276 |
1,575 |
| Depreciation and depletion, per gold eq. ounce ($) |
431 |
441 |
440 |
364 |
| All-in sustaining costs, per gold eq. ounce ($)2 |
1,299 |
3,222 |
1,412 |
2,355 |
| Sustaining capital ($M)2 |
4.1 |
17.1 |
8.1 |
34.8 |
| Growth capital ($M)2 |
31.4 |
16.3 |
62.6 |
34.3 |
| Total capital ($M) |
35.5 |
33.4 |
70.6 |
69.1 |
Operating Key Performance Indicators
| New Afton Mine |
Q2 2023 |
Q2 2022 |
H1 2023 |
H1 2022 |
| New Afton Mine Only |
|
|
|
|
| Tonnes mined per day (ore and waste) |
10,165 |
6,477 |
9,678 |
6,751 |
| Tonnes milled per calendar day |
8,307 |
11,4723 |
8,161 |
10,8893 |
| Gold grade milled (g/t) |
0.72 |
0.373 |
0.70 |
0.373 |
| Gold recovery (%) |
89 |
803 |
89 |
813 |
| Copper grade milled (%) |
0.78 |
0.42 |
0.74 |
0.45 |
| Copper recovery (%) |
91 |
78 |
91 |
79 |
| Gold eq. production (ounces)1 |
40,014 |
25,659 |
74,724 |
52,919 |
| Gold production (ounces) |
15,704 |
8,820 |
29,429 |
17,546 |
| Copper production (Mlbs) |
12.0 |
7.4 |
22.3 |
15.6 |
| Ore Purchase Agreements |
|
|
|
|
| Gold production (ounces) |
941 |
1,096 |
3,492 |
1,637 |
- Second quarter gold eq.1 production was 40,955 ounces
(16,645 ounces of gold and 12.0 million pounds of copper). For the six months ended June 30, 2023, gold eq.1 production was
78,216 ounces (32,921 ounces of gold and 22.3 million pounds of copper). The increase over the prior-year periods is due to higher gold
and copper grades and recovery, partially offset by lower tonnes processed. New Afton remains well positioned to meet annual production
and cost guidance metrics.
- Operating expense per gold eq. ounce decreased over the prior-year
periods primarily due to a higher sales volume.
- All-in sustaining costs2 per gold eq. ounce decreased
over the prior-year periods due to lower sustaining capital spend and higher sales volume.
- Total capital increased over the prior-year periods, primarily
due to higher growth capital spend partially offset by lower sustaining capital spend. Sustaining capital2 primarily related
to tailings management and stabilization activities. Growth capital2 primarily related to C-Zone development.
- Free cash flow2 for the quarter and six months ended
June 30, 2023, was a net outflow of $19 and $38 million, respectively, an increase over the prior-year periods primarily due to an increase
in cash generated from operations partially offset by an increase in growth capital.
- During the quarter C-Zone advanced 1,415 metres, up from 1,172
metres in the first quarter. Completion of the ventilation raise in the second quarter contributed to increased development rates. Development
on the extraction level to achieve first drawbell was completed in the quarter, positioning the Company well for first production ore
in the fourth quarter, with commercial production planned for the second half of 2024.
- During the quarter, the Company completed 5,586 metres of diamond
drilling in 18 drill holes from underground. Exploration efforts prioritized potential mineralization on the Artificial Intelligence North
target area and K-Zone, as well as confirming the true width and continuity of mineralization defined on the D-Zone target area.
- A strike by the International Longshore and Warehouse Union Canada
closed DP World Fraser Surrey Port from July 1st to July 13th. To mitigate the impact of the strike, New Afton has increased shipments
of concentrate by rail to eastern Canada and has not been materially affected to date.
Second Quarter 2023 Conference Call and Webcast
The Company will host a webcast and conference call
tomorrow, July 27, 2023 at 8:30 am Eastern Time to discuss the Company's second quarter consolidated results.
- Participants may listen to the webcast by registering on our website
at www.newgold.com or via the following link https://app.webinar.net/9LrQ1zOndev
- 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 482413
- To join the conference call without operator assistance, you may
register and enter your phone number at https://emportal.ink/3qbFfHx to receive an instant automated call back
- A recorded playback of the conference call will be available until
August 27, 2023 by calling North American toll free 1-888-390-0541, or 1-416-764-8677 outside of the U.S. and Canada, passcode 482413.
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 other Canadian-focused investments. New Gold's vision is to build a leading diversified intermediate gold company based in
Canada that is committed to the 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 equivalent. All copper is produced/sold by the New Afton Mine. Gold eq. ounces for Rainy River in Q2 2023 includes production of 122,211 ounces of silver (120,579 ounces sold) converted to a gold eq. based on a ratio of $1,750 per gold ounce and $22.00 per silver ounce used for 2023 guidance estimates. Gold eq. ounces for New Afton in Q2 2023 includes 12.0 million pounds of copper produced (10.1 million pounds sold) and 29,997 ounces of silver produced (22,805 ounces of silver sold) converted to a gold eq. based on a ratio of $1,750 per gold ounce, $3.50 per copper pound and $22.00 per silver ounce used for 2023 guidance estimates. |
| 2. |
"Total cash costs", "all-in sustaining costs", "adjusted net earnings/(loss)", "adjusted tax expense", "sustaining capital and sustaining leases", "growth capital", "cash generated from operations before changes in non-cash operating working capital", "free cash flow", and "average realized gold/copper price per ounce/pound" are all non-GAAP financial performance measures that are used in this news release. These measures do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For more information about these measures, why they are used by the Company, and a reconciliation to the most directly comparable measure under IFRS, see the "Non-GAAP Financial Performance Measures" section of this news release. |
| 3. |
Key performance indicator data is inclusive of ounces from ore purchase agreements for New Afton. The New Afton Mine purchases small amounts of ore from local operations, subject to certain grade and other criteria. These ounces represented approximately 6% of total ounces produced at New Afton during the quarter, and 11% for the six months ended June 30, 2023, using New Afton's excess mill capacity. All other ounces are mined and produced at New Afton. |
Non-GAAP Financial Performance Measures
Total Cash Costs per Gold eq. Ounce
"Total cash costs per gold equivalent ounce"
is a non-GAAP financial performance measure that is a common financial performance measure in the gold mining industry but does not have
any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. New Gold reports
total cash costs on a sales basis and not on a production basis. The Company believes that, in addition to conventional measures prepared
in accordance with IFRS, this measure, along with sales, is a key indicator of the Company's ability to generate operating earnings and
cash flow from its mining operations. This measure allows investors to better evaluate corporate performance and the Company's ability
to generate liquidity through operating cash flow to fund future capital exploration and working capital needs.
This measure is intended to provide additional information
only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. This measure
is not necessarily indicative of cash generated from operations under IFRS or operating costs presented under IFRS.
Total cash cost figures are calculated in accordance
with a standard developed by The Gold Institute, a worldwide association of suppliers of gold and gold products that ceased operations
in 2002. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures
of other companies. Total cash costs include mine site operating costs such as mining, processing and administration costs, royalties,
and production taxes, but are exclusive of amortization, reclamation, capital and exploration costs. Total cash costs are then divided
by gold equivalent ounces sold to arrive at the total cash costs per equivalent ounce sold.
In addition to gold, the Company produces copper and
silver. Gold equivalent ounces of copper and silver produced or sold in a quarter are computed using a consistent ratio of copper and
silver prices to the gold price and multiplying this ratio by the pounds of copper and silver ounces produced or sold during that quarter.
Notwithstanding the impact of copper and silver sales,
as the Company is focused on gold production, New Gold aims to assess the economic results of its operations in relation to gold, which
is the primary driver of New Gold's business. New Gold believes this metric is of interest to its investors, who invest in the Company
primarily as a gold mining business. To determine the relevant costs associated with gold equivalent ounces, New Gold believes it is appropriate
to reflect all operating costs incurred in its operations.
All-In Sustaining Costs per Gold eq. Ounce
"All-in sustaining costs per gold equivalent
ounce" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be
comparable to similar measures presented by other issuers. New Gold calculates "all-in sustaining costs per gold equivalent ounce"
based on guidance announced by the World Gold Council ("WGC") in September 2013. The WGC is a non-profit association of the
world's leading gold mining companies established in 1987 to promote the use of gold to industry, consumers and investors. The WGC is
not a regulatory body and does not have the authority to develop accounting standards or disclosure requirements. The WGC has worked
with its member companies to develop a measure that expands on IFRS measures to provide visibility into the economics of a gold mining
company. Current IFRS measures used in the gold industry, such as operating expenses, do not capture all of the expenditures incurred
to discover, develop and sustain gold production. New Gold believes that "all-in sustaining costs per gold equivalent ounce"
provides further transparency into costs associated with producing gold and will assist analysts, investors, and other stakeholders of
the Company in assessing its operating performance, its ability to generate free cash flow from current operations and its overall value.
In addition, the Human Resources and Compensation Committee of the Board of Directors uses "all-in sustaining costs", together
with other measures, in its Company scorecard to set incentive compensation goals and assess performance.
"All-in sustaining costs per gold equivalent
ounce" is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable
to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs
presented under IFRS.
New Gold defines "all-in sustaining costs per
gold equivalent ounce" as the sum of total cash costs, capital expenditures that are sustaining in nature, corporate general and
administrative costs, capitalized and expensed exploration that is sustaining in nature, lease payments that are sustaining in nature,
and environmental reclamation costs, all divided by the total gold equivalent ounces sold to arrive at a per ounce figure. The "Sustaining
Capital Expenditure Reconciliation" table below reconciles New Gold's sustaining capital to its cash flow statement. The definition
of sustaining versus non-sustaining is similarly applied to capitalized and expensed exploration costs and lease payments. Exploration
costs and lease payments to develop new operations or that relate to major projects at existing operations where these projects are expected
to materially increase production are classified as non-sustaining and are excluded. Gold equivalent ounces of copper and silver produced
or sold in a quarter are computed using a consistent ratio of copper and silver prices to the gold price and multiplying this ratio by
the pounds of copper and silver ounces produced or sold during that quarter.
Costs excluded from all-in sustaining costs are non-sustaining
capital expenditures, non-sustaining lease payments and exploration costs, financing costs, tax expense, and transaction costs associated
with mergers, acquisitions and divestitures, and any items that are deducted for the purposes of adjusted earnings.
Sustaining Capital and Sustaining Leases
"Sustaining capital" and "sustaining
lease" are non-GAAP financial performance measures that do not have any standardized meaning under IFRS and therefore may not be
comparable to similar measures presented by other issuers. New Gold defines "sustaining capital" as net capital expenditures
that are intended to maintain operation of its gold producing assets. Similarly, a "sustaining lease" is a lease payment that
is sustaining in nature. To determine "sustaining capital" expenditures, New Gold uses cash flow related to mining interests
from its consolidated statement of cash flows and deducts any expenditures that are capital expenditures to develop new operations or
capital expenditures related to major projects at existing operations where these projects will materially increase production. Management
uses "sustaining capital" and "sustaining lease" to understand the aggregate net result of the drivers of all-in sustaining
costs other than total cash costs. These measures are intended to provide additional information only and should not be considered in
isolation or as substitutes for measures of performance prepared in accordance with IFRS.
Growth Capital
"Growth capital" is a non-GAAP financial
performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented
by other issuers. New Gold considers non-sustaining capital costs to be "growth capital", which are capital expenditures to
develop new operations or capital expenditures related to major projects at existing operations where these projects will materially increase
production. To determine "growth capital" expenditures, New Gold uses cash flow related to mining interests from its consolidated
statement of cash flows and deducts any expenditures that are capital expenditures that are intended to maintain operation of its gold
producing assets. Management uses "growth capital" to understand the cost to develop new operations or related to major projects
at existing operations where these projects will materially increase production. This measure is intended to provide additional information
only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
The following tables reconcile the above non-GAAP
measures to the most directly comparable IFRS measure on an aggregate basis.
Consolidated OPEX, Cash Cost and All-in Sustaining
Costs Reconciliation
| |
Three months ended June 30 |
Six months ended June 30 |
| (in millions of U.S. dollars, except where noted) |
2023 |
2022 |
2023 |
2022 |
CONSOLIDATED OPEX, CASH COST AND ALL-IN
SUSTAINING COSTS RECONCILIATION |
|
|
|
|
| Operating expenses |
104.9 |
79.8 |
222.1 |
175.0 |
| Gold equivalent ounces sold1 |
96,184 |
62,509 |
204,116 |
155,045 |
Operating expenses per gold equivalent ounce sold
($/ounce) |
1,090 |
1,277 |
1,088 |
1,129 |
| Operating expenses |
104.9 |
79.8 |
222.1 |
175.0 |
| Treatment and refining charges on concentrate sales |
3.8 |
1.2 |
9.0 |
5.0 |
| Total cash costs |
108.6 |
81.0 |
231.1 |
180.0 |
| Gold equivalent ounces sold1 |
96,184 |
62,509 |
204,116 |
155,045 |
Total cash costs per gold equivalent ounce sold
($/ounce) |
1,129 |
1,296 |
1,132 |
1,161 |
| Sustaining capital expenditures |
35.6 |
56.9 |
61.9 |
109.5 |
| Sustaining exploration - expensed |
0.2 |
0.2 |
0.4 |
0.4 |
| Sustaining leases |
3.8 |
2.6 |
6.3 |
5.2 |
| Corporate G&A including share-based compensation |
8.1 |
5.2 |
13.9 |
12.1 |
| Reclamation expenses |
2.9 |
2.4 |
6.2 |
5.7 |
| Total all-in sustaining costs |
159.4 |
148.3 |
319.7 |
312.9 |
| Gold equivalent ounces sold1 |
96,184 |
62,509 |
204,116 |
155,045 |
All-in sustaining costs per gold equivalent ounce sold
($/ounce) |
1,657 |
2,373 |
1,566 |
2,018 |
| |
Three months ended June 30 |
Six months ended June 30 |
| (in millions of U.S. dollars, except where noted) |
2023 |
2022 |
2023 |
2022 |
RAINY RIVER OPEX, CASH COSTS AND AISC
RECONCILIATION |
|
|
|
|
| Operating expenses |
67.8 |
48.2 |
142.2 |
106.6 |
| Gold equivalent ounces sold1 |
61,045 |
46,781 |
134,457 |
108,464 |
| Operating expenses per unit of gold sold ($/ounce) |
1,110 |
1,029 |
1,057 |
983 |
| Operating expenses |
67.8 |
48.2 |
142.2 |
106.6 |
| Total cash costs |
67.8 |
48.2 |
142.2 |
106.6 |
| Gold equivalent ounces sold1 |
61,045 |
46,781 |
134,457 |
108,464 |
| Total cash costs per gold equivalent ounce sold ($/ounce) |
1,110 |
1,029 |
1,057 |
983 |
| Sustaining capital expenditures |
31.6 |
39.9 |
53.9 |
74.8 |
| Sustaining leases |
3.6 |
2.3 |
5.9 |
4.6 |
| Reclamation expenses |
2.3 |
1.9 |
4.9 |
4.5 |
| Total all-in sustaining costs |
105.3 |
92.4 |
206.8 |
190.4 |
| Gold equivalent ounces sold1 |
61,045 |
46,781 |
134,457 |
108,464 |
All-in sustaining costs per gold equivalent ounce sold
($/ounce) |
1,725 |
1,972 |
1,538 |
1,756 |
| |
Three months ended June 30 |
Six months ended June 30 |
| (in millions of U.S. dollars, except where noted) |
2023 |
2022 |
2023 |
2022 |
NEW AFTON OPEX, CASH COSTS AND AISC
RECONCILIATION |
|
|
|
|
| Operating expenses |
37.1 |
31.6 |
79.9 |
68.4 |
| Gold equivalent ounces sold1 |
35,139 |
15,729 |
69,658 |
46,580 |
| Operating expenses per unit of gold sold ($/ounce) |
1,055 |
2,012 |
1,147 |
1,469 |
| Operating expenses |
37.1 |
31.6 |
79.9 |
68.4 |
| Treatment and refining charges on concentrate sales |
3.8 |
1.2 |
9.0 |
5.0 |
| Total cash costs |
40.9 |
32.8 |
88.9 |
73.4 |
| Gold equivalent ounces sold1 |
35,139 |
15,729 |
69,658 |
46,580 |
| Total cash costs per gold equivalent ounce sold ($/ounce) |
1,163 |
2,090 |
1,276 |
1,575 |
| Sustaining capital expenditures |
4.1 |
17.1 |
8.1 |
34.8 |
| Sustaining leases |
— |
0.1 |
0.1 |
0.3 |
| Reclamation expenses |
0.6 |
0.6 |
1.3 |
1.3 |
| Total all-in sustaining costs |
45.6 |
50.6 |
98.3 |
109.7 |
| Gold equivalent ounces sold1 |
35,139 |
15,729 |
69,658 |
46,580 |
All-in sustaining costs per gold equivalent ounce sold
($/ounce) |
1,299 |
3,222 |
1,412 |
2,355 |
Sustaining Capital Expenditures Reconciliation Table
| |
Three months ended June 30 |
Six months ended June 30 |
| (in millions of U.S. dollars) |
2023 |
2022 |
2023 |
2022 |
| TOTAL SUSTAINING CAPITAL EXPENDITURES |
|
|
|
|
| Mining interests per consolidated statement of cash flows |
71.6 |
76.1 |
134.7 |
151.7 |
| New Afton growth capital expenditures |
(31.4) |
(16.3) |
(62.6) |
(34.3) |
| Rainy River growth capital expenditures |
(4.5) |
(2.6) |
(10.2) |
(7.5) |
| Sustaining capital expenditures |
35.6 |
57.2 |
61.9 |
109.9 |
Adjusted Net Earnings/(Loss) and Adjusted Net Earnings
per Share
"Adjusted net earnings" and "adjusted
net earnings per share" are non-GAAP financial performance measures that do not have any standardized meaning under IFRS and therefore
may not be comparable to similar measures presented by other issuers. "Adjusted net earnings" and "adjusted net earnings
per share" exclude "other gains and losses" as per Note 3 of the Company's consolidated financial statements; and loss
on redemption of long-term debt. Net earnings have been adjusted, including the associated tax impact, for the group of costs in "Other
gains and losses" on the condensed consolidated income statements. Key entries in this grouping are: fair value changes for
the gold stream obligation, fair value changes for the free cash flow interest obligation, foreign exchange gains/loss and fair value
changes in investments. The income tax adjustments reflect the tax impact of the above adjustments and is referred to as "adjusted
tax expense".
The Company uses "adjusted net earnings"
for its own internal purposes. Management's internal budgets and forecasts and public guidance do not reflect the items which have been
excluded from the determination of "adjusted net earnings". Consequently, the presentation of "adjusted net earnings"
enables investors to better understand the underlying operating performance of the Company's core mining business through the eyes of
management. Management periodically evaluates the components of "adjusted net earnings" based on an internal assessment of performance
measures that are useful for evaluating the operating performance of New Gold's business and a review of the non-GAAP financial performance
measures used by mining industry analysts and other mining companies. "Adjusted net earnings" and "adjusted net earnings
per share" are intended to provide additional information only and should not be considered in isolation or as substitutes for measures
of performance prepared in accordance with IFRS. These measures are not necessarily indicative of operating profit or cash flows from
operations as determined under IFRS. The following table reconciles these non-GAAP financial performance measures to the most directly
comparable IFRS measure.
| |
Three months ended June 30 |
Six months ended June 30 |
| (in millions of U.S. dollars, except where noted) |
2023 |
2022 |
2023 |
2022 |
| ADJUSTED NET EARNINGS (LOSS) RECONCILIATION |
|
|
|
|
| (Loss) earnings before taxes |
(1.8) |
(36.5) |
(33.3) |
(43.8) |
| Other (gains) losses |
14.3 |
13.7 |
64.3 |
32.0 |
| Loss on repayment of long-term debt |
— |
4.3 |
— |
4.3 |
| Adjusted net earnings before taxes |
12.5 |
(18.5) |
31.0 |
(7.5) |
| Income tax expense |
(0.8) |
(1.4) |
(1.1) |
(1.9) |
| Income tax adjustments |
(0.1) |
3.2 |
0.1 |
3.0 |
| Adjusted income tax expense |
(0.9) |
1.8 |
(1.0) |
1.1 |
| Adjusted net earnings |
11.6 |
(16.7) |
30.0 |
(6.4) |
| Adjusted earnings per share (basic and diluted) |
0.02 |
(0.02) |
0.04 |
(0.01) |
Cash Generated from Operations, before Changes
in Non-Cash Operating Working Capital
"Cash generated from operations, before changes
in non-cash operating working capital" is a non-GAAP financial performance measure that does not have any standardized meaning under
IFRS and therefore may not be comparable to similar measures presented by other issuers. Other companies may calculate this measure differently
and this measure is unlikely to be comparable to similar measures presented by other companies. "Cash generated from operations,
before changes in non-cash operating working capital" excludes changes in non-cash operating working capital. New Gold believes this
non-GAAP financial measure provides further transparency and assists analysts, investors and other stakeholders of the Company in assessing
the Company's ability to generate cash from its operations before temporary working capital changes.
Cash generated from operations, before non-cash changes
in working capital is intended to provide additional information only and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. This measure is not necessarily indicative of operating profit or cash flows
from operations as determined under IFRS. The following table reconciles this non-GAAP financial performance measure to the most directly
comparable IFRS measure.
| |
Three months ended June 30 |
Six months ended June 30 |
| (in millions of U.S. dollars) |
2023 |
2022 |
2023 |
2022 |
| CASH RECONCILIATION |
|
|
|
|
| Cash generated from operations |
56.4 |
37.4 |
117.0 |
105.2 |
| Change in non-cash operating working capital |
8.8 |
(10.0) |
23.9 |
(11.4) |
Cash generated from operations, before changes in non-
cash operating working capital |
65.2 |
27.4 |
140.9 |
93.8 |
Free Cash Flow
"Free cash flow" is a non-GAAP financial
performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented
by other issuers. New Gold defines "free cash flow" as cash generated from operations and proceeds of sale of other assets less
capital expenditures on mining interests, lease payments, and settlement of non-current derivative financial liabilities which include
the gold stream obligation and the Ontario Teachers' Pension Plan free cash flow interest. New Gold believes this non-GAAP financial performance
measure provides further transparency and assists analysts, investors and other stakeholders of the Company in assessing the Company's
ability to generate cash flow from current operations. "Free cash flow" is intended to provide additional information only and
should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. This measure is
not necessarily indicative of operating profit or cash flows from operations as determined under IFRS. The following tables reconcile
this non-GAAP financial performance measure to the most directly comparable IFRS measure on an aggregate and mine-by-mine basis.
| |
Three months ended June 30, 2023 |
| (in millions of U.S. dollars) |
Rainy River |
New Afton |
Other |
Total |
| FREE CASH FLOW RECONCILIATION |
|
|
|
|
| Cash generated from operations |
48.6 |
16.5 |
(8.8) |
56.3 |
| Less Mining interest capital expenditures |
(36.1) |
(35.5) |
— |
(71.6) |
| Add Proceeds of sale from other assets |
0.1 |
— |
— |
0.1 |
| Less Lease payments |
(3.6) |
(0.1) |
(0.1) |
(3.9) |
| Less Cash settlement of non-current derivative financial liabilities |
(7.0) |
— |
— |
(7.0) |
| Free Cash Flow |
2.0 |
(19.1) |
(8.9) |
(26.1) |
| |
Three months ended June 30, 2022 |
| (in millions of U.S. dollars) |
Rainy River |
New Afton |
Other |
Total |
| FREE CASH FLOW RECONCILIATION |
|
|
|
|
| Cash generated from operations |
51.8 |
(9.6) |
(4.8) |
37.4 |
| Less Mining interest capital expenditures |
(42.7) |
(33.4) |
— |
(76.1) |
| Add Proceeds of sale from other assets |
0.1 |
— |
0.2 |
0.3 |
| Less Lease payments |
(2.3) |
(0.1) |
(0.2) |
(2.6) |
| Less Cash settlement of non-current derivative financial liabilities |
(6.7) |
— |
— |
(6.7) |
| Free Cash Flow |
0.2 |
(43.1) |
(4.8) |
(47.7) |
| |
Six months ended June 30, 2023 |
| (in millions of U.S. dollars) |
Rainy River |
New Afton |
Other |
Total |
| FREE CASH FLOW RECONCILIATION |
|
|
|
|
| Cash generated from operations |
101.3 |
32.5 |
(16.8) |
117.0 |
| Less Mining interest capital expenditures |
(64.1) |
(70.6) |
— |
(134.7) |
| Add Proceeds of sale from other assets |
0.1 |
— |
— |
0.1 |
| Less Lease payments |
(5.9) |
(0.1) |
(0.3) |
(6.3) |
| Less Cash settlement of non-current derivative financial liabilities |
(14.8) |
— |
— |
(14.8) |
| Free Cash Flow |
16.6 |
(38.2) |
(17.1) |
(38.7) |
| |
Six months ended June 30, 2022 |
| (in millions of U.S. dollars) |
Rainy River |
New Afton |
Other |
Total |
| FREE CASH FLOW RECONCILIATION |
|
|
|
|
| Cash generated from operations |
114.7 |
5.6 |
(15.1) |
105.2 |
| Less Mining interest capital expenditures |
(82.5) |
(69.1) |
(0.1) |
(151.7) |
| Add Proceeds of sale from other assets |
0.2 |
— |
0.2 |
0.4 |
| Less Lease payments |
(4.6) |
(0.3) |
(0.2) |
(5.1) |
| Less Cash settlement of non-current derivative financial liabilities |
(13.0) |
(12.4) |
— |
(25.3) |
| Free Cash Flow |
14.7 |
(76.2) |
(15.2) |
(76.5) |
Average Realized Price
"Average realized price per ounce of gold sold"
is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. Other companies may calculate this measure differently and this measure is unlikely to
be comparable to similar measures presented by other companies. Management uses this measure to better understand the price realized for
gold sales in each reporting period. "Average realized price per ounce of gold sold" is intended to provide additional information
only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following
tables reconcile this non-GAAP financial performance measure to the most directly comparable IFRS measure on an aggregate and mine-by-mine
basis.
| |
Three months ended June 30 |
Six months ended June 30 |
| (in millions of U.S. dollars, except where noted) |
2023 |
2022 |
2023 |
2022 |
| TOTAL AVERAGE REALIZED PRICE |
|
|
|
|
| Revenue from gold sales |
144.6 |
95.8 |
307.2 |
228.6 |
| Treatment and refining charges on gold concentrate sales |
1.6 |
0.5 |
3.9 |
1.6 |
| Gross revenue from gold sales |
146.2 |
96.3 |
311.0 |
230.2 |
| Gold ounces sold |
74,219 |
51,263 |
161,425 |
121,825 |
| Total average realized price per gold ounce sold ($/ounce) |
1,970 |
1,879 |
1,927 |
1,889 |
| |
Three months ended June 30 |
Six months ended June 30 |
| (in millions of U.S. dollars, except where noted) |
2023 |
2022 |
2023 |
2022 |
| RAINY RIVER AVERAGE REALIZED PRICE |
|
|
|
|
| Revenue from gold sales |
117.0 |
85.5 |
252.3 |
200.2 |
| Gold ounces sold |
59,529 |
45,517 |
131,420 |
106,152 |
Rainy River average realized price per gold ounce sold
($/ounce) |
1,965 |
1,879 |
1,920 |
1,886 |
| |
Three months ended June 30 |
Six months ended June 30 |
| (in millions of U.S. dollars, except where noted) |
2023 |
2022 |
2023 |
2022 |
| NEW AFTON AVERAGE REALIZED PRICE |
|
|
|
|
| Revenue from gold sales |
27.6 |
10.3 |
54.9 |
28.4 |
| Treatment and refining charges on gold concentrate sales |
1.6 |
0.5 |
3.9 |
1.6 |
| Gross revenue from gold sales |
29.2 |
10.8 |
58.7 |
30.0 |
| Gold ounces sold |
14,690 |
5,746 |
30,006 |
15,673 |
New Afton average realized price per gold ounce sold
($/ounce) |
1,988 |
1,879 |
1,957 |
1,914 |
For additional information with respect to the non-GAAP measures used by the Company, refer to the detailed "Non-GAAP Financial Performance
Measure" section disclosure starting on page 25 in the MD&A for the three and six months ended June 30, 2023, which is incorporated
by reference herein and which is filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
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: expectations about being
well positioned to meet all annual production and cost guidance metrics; the continued advancement of underground development at Rainy
River; anticipated benefits and other efficiencies resulting from the revised approach to access the underground Main Zone at Rainy River;
expectations about achieving first production ore during the fourth quarter and commercial production in the second half of 2024 from
the C-Zone; the Company's continued progress advancing its growth initiatives; and continued ramp-up of underground production rates at
Rainy River.
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 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 and the grade of gold, silver and copper expected
to be mined and the grade of gold, copper and silver expected to be mined; (4) the exchange rate between the Canadian dollar and U.S.
dollar, and to a lesser extent, the Mexican Peso, and commodity prices being approximately consistent with current levels and expectations
for the purposes of 2023 guidance and otherwise; (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 Indigenous 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 and the absence of material negative comments or
obstacles during any applicable regulatory processes; (9) the results of the life of mine plans for the Rainy River Mine and the New Afton
Mine being realized; and (10) there being no material disruption to the Company's supply chains and workforce at either the New Afton
Mine or Rainy River Mine due to cases of COVID-19 or otherwise that would interfere with the Company's anticipated course of action at
its operations.
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: price volatility in the spot and forward markets for metals and other commodities;
discrepancies between actual and estimated production, between actual and estimated costs, between actual and estimated Mineral Reserves
and Mineral Resources and between actual and estimated metallurgical recoveries; equipment malfunction, failure or unavailability; accidents;
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; 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, including, but not limited to: uncertainties and unanticipated delays associated with obtaining
and maintaining necessary licenses, permits and authorizations and complying with permitting requirements; changes in project parameters
as plans continue to be refined; changing costs, timelines and development schedules as it relates to construction; the Company not being
able to complete its construction projects at the Rainy River Mine or the New Afton Mine on the anticipated timeline or at all; volatility
in the market price of the Company's securities; changes in national and local government legislation in the countries in which New Gold
does or may in the future carry on business; compliance with public company disclosure obligations; controls, regulations and political
or economic developments in the countries in which New Gold does or may in the future carry on business; the Company's dependence on the
Rainy River Mine and New Afton Mine; the Company not being able to complete its exploration drilling programs on the anticipated timeline
or at all; inadequate water management and stewardship; 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 otherwise; the responses of the relevant governments to any disease, epidemic or pandemic
outbreak, including the COVID-19 outbreak, not being sufficient to contain the impact of such outbreak; disruptions to the Company's supply
chain and workforce due to any disease, epidemic or pandemic outbreak, including the COVID-19 outbreak; an economic recession or downturn
as a result of any disease, epidemic or pandemic outbreak, including the COVID-19 outbreak, that materially adversely affects the Company's
operations or liquidity position; there being further shutdowns at the Rainy River Mine or New Afton Mine; significant capital requirements
and the availability and management of capital resources; additional funding requirements; diminishing quantities or grades of Mineral
Reserves and Mineral Resources; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic
studies including the Technical Reports for the Rainy River Mine and New Afton Mine; impairment; unexpected delays and costs inherent
to consulting and accommodating rights of First Nations and other Indigenous groups; climate change, environmental risks and hazards and
the Company's response thereto; tailings dam and structure failures; ability to obtain and maintain sufficient insurance; actual results
of current exploration or reclamation activities; 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; global economic and financial conditions and any global or local
natural events that may impede the economy or New Gold's ability to carry on business in the normal course; inflation; compliance with
debt obligations and maintaining sufficient liquidity; taxation; fluctuation in treatment and refining charges; transportation and processing
of unrefined products; rising costs or availability of labour, supplies, fuel and equipment; adequate infrastructure; relationships with
communities, governments and other stakeholders; geotechnical instability and conditions; labour disputes; the uncertainties inherent
in current and future legal challenges to which New Gold is or may become a party; defective title to mineral claims or property or contests
over claims to mineral properties; competition; loss of, or inability to attract, key employees; use of derivative products and hedging
transactions; reliance on third-party contractors; counterparty risk and the performance of third party service providers; investment
risks and uncertainty relating to the value of equity investments in public companies held by the Company from time to time; the adequacy
of internal and disclosure controls; conflicts of interest; the lack of certainty with respect to foreign operations and 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 successful acquisitions and integration of business arrangements and realizing the intended benefits therefrom; and information systems
security threats. 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 Yohann Bouchard, Executive
Vice President and Chief Operating Officer for the Company. Mr Bouchard is a Professional Engineer and a member of the Professional Engineers
of Ontario. Mr. Bouchard is a "Qualified Person" for the purposes of National Instrument 43-101 – Standards of Disclosure
for Mineral Projects.
View original content to download multimedia:https://www.prnewswire.com/news-releases/new-gold-reports-2023-second-quarter-results-301886811.html
SOURCE New Gold Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2023/26/c0914.html
%CIK: 0000800166
For further information: Ankit Shah, Executive 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 18:01e 26-JUL-23