Strong Results Generate Positive Free Cash Flow, Consolidated 2023 Production Tracking to the Top End of Guidance with All-In Sustaining Cost Tracking to the Low End of Guidance
(All amounts are in
Strong Operational Performance Positions New Gold to Achieve Top End of 2023 Production Guidance and Low End of Cost Guidance
- Third quarter consolidated gold eq.1 production of 111,204 ounces (82,986 ounces of gold, 13.2 million pounds of copper and 145,452 ounces of silver), the highest quarterly production since 2021 and a 22% increase over the prior-year period
- All-in sustaining costs2 of
$1,477 per gold eq. ounce, including total cash costs2 of$1,044 per gold eq. ounce - Standout quarter from New Afton, exceeding planned copper and gold production, mostly as a result of higher tonnes processed. B3 extraction rates continue to exceed plan. Production is tracking to the top end of 2023 guidance
Rainy River continues to deliver stable production quarter-over-quarter. Both the open pit and underground mines are well positioned to deliver fourth quarter mill feed and the processing plant is running well. Production is tracking to the top end of 2023 guidance- The Company is currently tracking to the top end of consolidated production guidance for gold, copper, and gold eq.1 production and all-in sustaining costs2 are tracking to the low end of the guidance range
Positive Free Cash Flow Achieved in the Quarter, Underscoring the Near-term Cash Generation Profile as Both Operations Execute on Growth Projects
- Cash and cash equivalents of
$179 million as atSeptember 30, 2023 , an increase of$5 million from the second quarter driven by free cash flow2 generated at bothRainy River and New Afton - Cash generated from operations of
$100 million , or$0.15 per share, in the third quarter and cash generated from operations, before changes in non-cash operating working capital2, of$88 million , or$0.13 per share - Free cash flow2 of
$22 million despite the Company currently being in an intensive capital spending period, including the New Afton C-Zone project and establishment of theRainy River underground mine - Net loss of
$3 million , or$0.00 per share and adjusted net earnings2 of$23 million , or$0.03 per share - Capital spending is expected to taper off significantly over the next few years upon completion of growth projects and a significant reduction in open pit waste stripping at
Rainy River after 2024. Together with increasing production profiles at both operations and decreasing unit operating costs per tonne at New Afton with the return to higher throughput rates, free cash flow is expected to increase significantly - Subsequent to quarter end, the Company announced the achievement of two key milestones with the completion of the first draw bell at New Afton's C-Zone and the commissioning of the final two of 29 dewatering wells at the New Afton Tailings Storage Facility (NATSF), as planned (refer to the Company's
October 2, 2023 news release for further information). Commercial production from C-Zone is on track for the second half of 2024. AtRainy River , development of the connection ramp from Intrepid to undergroundMain Zone is on track for first ore production from undergroundMain Zone in the second half of 2024
Strategic Pipeline to Extend New Afton Mine Life Beyond 2030 with
- Subsequent to quarter end, the Company provided an update on promising opportunities to extend the mine life at New Afton beyond 2030, and reported encouraging drill results and future exploration plans at the
New Afton Mine (refer to the Company'sOctober 10, 2023 news release for further information) - As a priority,
New Gold is looking to convert a portion of the existing underground mineral resource base to mineral reserves, including C-Zone Extension, East Extension, and D-Zone. Additionally, initial drilling results from K-Zone and AI-Southeast are encouraging - The Company will continue to employ a disciplined approach to capital allocation to sustain New Afton's significant cash flow profile throughout the C-Zone period, from the second half of 2024 to 2030, by leveraging existing underground infrastructure and New Afton's mill and tailings facilities
"The third quarter was an impressive one for
"We are entering a growth period and the third quarter saw our Company make big strides towards derisking and securing the future production at our operations. I want to reemphasize the two key milestones achieved at New Afton with the completion of the first draw bell at C-Zone and the final commissioning of all 29 dewatering wells at the NATSF. This is a pivotal moment for the New Afton mine with production growth and declining costs expected in the near term, and all major capital expenditures for the tailings stabilization completed.
2023 Operational Outlook Update
Operational Estimates | 2023 Consolidated Guidance | ||
Gold eq. production (ounces)1 | 235,000 - 265,000 | 130,000 - 160,000 | 365,000 - 425,000 |
Gold production (ounces) | 230,000 - 260,000 | 50,000 - 60,000 | 280,000 - 320,000 |
Copper production (Mlbs) | - | 38 - 48 | 38 - 48 |
Operating expenses, per gold eq. ounce | |||
All-in sustaining costs, per gold eq. ounce2 | |||
2023 Consolidated Guidance | |||
Total capital ($M) | |||
Sustaining capital ($M)2 | |||
Growth capital ($M)2 |
Through the first nine months of the year, both operations delivered solid production and cost performance. The Company is currently tracking to the top end of consolidated production guidance for gold, copper, and gold eq.1 production and all-in sustaining costs are tracking to the lower end of the guidance range.
At New Afton, copper, gold, and gold eq.1 production are tracking towards the top end of their respective production guidance ranges, with operating expenses per gold eq. ounce and all-in sustaining costs now tracking towards the low end of their respective cost guidance ranges. Sustaining and growth capital are both expected to be within their respective guidance ranges.
Consolidated Financial Highlights
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |
Revenue ($M) | 201.3 | 151.2 | 587.3 | 441.6 |
Operating expenses ($M) | 107.5 | 99.2 | 329.6 | 274.2 |
Net loss ($M) | (2.7) | (4.2) | (37.1) | (49.9) |
Net loss, per share ($) | (0.00) | (0.01) | (0.05) | (0.07) |
Adj. net earnings (loss) ($M)2 | 23.1 | (13.4) | 53.1 | (19.8) |
Adj. net earnings (loss), per share ($)2 | 0.03 | (0.02) | 0.08 | (0.03) |
Cash generated from operations ($M) | 100.1 | 53.7 | 217.0 | 158.9 |
Cash generated from operations, per share ($) | 0.15 | 0.08 | 0.32 | 0.23 |
Cash generated from operations, before changes in non-cash operating working capital ($M)2 | 87.7 | 43.6 | 228.5 | 137.4 |
Cash generated from operations, before changes in non-cash operating working capital, per share ($)2 | 0.13 | 0.06 | 0.33 | 0.20 |
- Revenue increased over the prior-year periods due to higher gold prices and higher gold and copper sales volumes.
- 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 an increase in revenues resulting from higher gold prices and higher gold and copper sales, partially offset by higher operating costs and higher unrealized losses on the revaluation of the
Rainy River gold stream obligation and the New Afton free cash flow interest obligation. - 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 primarily due to higher revenue.
Consolidated Operational Highlights
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |
Gold eq. production (ounces)1 | 111,204 | 91,021 | 318,435 | 249,230 |
Gold eq. sold (ounces)1 | 107,562 | 92,634 | 311,677 | 247,678 |
Gold production (ounces) | 82,986 | 70,147 | 241,991 | 190,679 |
Gold sold (ounces) | 79,821 | 68,816 | 241,247 | 190,641 |
Copper production (Mlbs) | 13.2 | 8.5 | 35.5 | 24.1 |
Copper sold (MIbs) | 13.0 | 9.9 | 32.5 | 23.5 |
Gold revenue, per ounce ($) | 1,900 | 1,703 | 1,902 | 1,814 |
Copper revenue, per pound ($) | 3.57 | 3.17 | 3.65 | 3.75 |
Average realized gold price, per ounce ($)2 | 1,924 | 1,727 | 1,926 | 1,831 |
Average realized copper price, per pound ($)2 | 3.78 | 3.42 | 3.89 | 3.99 |
Operating expenses, per gold eq. ounce ($) | 1,000 | 1,069 | 1,058 | 1,106 |
Total cash costs, per gold eq. ounce ($)2 | 1,044 | 1,114 | 1,102 | 1,143 |
Depreciation and depletion, per gold eq. ounce ($) | 548 | 599 | 541 | 580 |
All-in sustaining costs, per gold eq. ounce ($)2 | 1,477 | 1,637 | 1,535 | 1,875 |
Sustaining capital ($M)2 | 35.6 | 39.6 | 97.5 | 149.5 |
Growth capital ($M)2 | 35.0 | 30.3 | 107.8 | 72.1 |
Total capital ($M) | 70.6 | 69.9 | 205.3 | 221.6 |
Operational Highlights
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |
Gold eq. production (ounces)1 | 66,374 | 60,319 | 195,389 | 163,973 |
Gold eq. sold (ounces)1 | 63,790 | 56,932 | 198,247 | 165,396 |
Gold production (ounces) | 64,970 | 58,719 | 191,053 | 160,069 |
Gold sold (ounces) | 62,426 | 55,421 | 193,846 | 161,573 |
Gold revenue, per ounce ($) | 1,921 | 1,729 | 1,920 | 1,832 |
Average realized gold price, per ounce ($)2 | 1,921 | 1,729 | 1,920 | 1,832 |
Operating expenses, per gold eq. ounce ($) | 1,034 | 955 | 1,050 | 973 |
Total cash costs, per gold eq. ounce ($)2 | 1,034 | 955 | 1,050 | 973 |
Depreciation and depletion, per gold eq. ounce ($) | 628 | 687 | 600 | 665 |
All-in sustaining costs, per gold eq. ounce ($)2 | 1,542 | 1,483 | 1,539 | 1,662 |
Sustaining capital ($M)2 | 28.7 | 25.9 | 82.6 | 100.9 |
Growth capital ($M)2 | 3.3 | 6.0 | 13.5 | 13.5 |
Total capital ($M) | 32.0 | 31.9 | 96.1 | 114.4 |
Operating Key Performance Indicators
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |
Open Pit Only | ||||
Tonnes mined per day (ore and waste) | 121,011 | 112,055 | 123,336 | 113,597 |
Ore tonnes mined per day | 36,177 | 24,701 | 35,567 | 19,022 |
Operating waste tonnes per day | 44,393 | 44,469 | 55,458 | 33,110 |
Capitalized waste tonnes per day | 40,442 | 42,885 | 32,311 | 61,465 |
Total waste tonnes per day | 84,835 | 87,354 | 87,769 | 94,575 |
Strip ratio (waste:ore) | 2.35 | 3.54 | 2.47 | 4.97 |
Tonnes milled per calendar day | 25,308 | 24,439 | 23,664 | 24,020 |
Gold grade milled (g/t) | 0.97 | 0.89 | 1.01 | 0.83 |
Gold recovery (%) | 90 | 91 | 91 | 91 |
- Third quarter gold eq.1 production was 66,374 ounces (64,970 ounces of gold and 111,694 ounces of silver). For the nine months ended
September 30, 2023 , gold eq.1 production was 195,389 ounces (191,053 ounces of gold and 344,880 ounces of silver). The increase over the prior-year periods is primarily due to higher gold grade. - Operating expense per gold eq. ounce increased over the prior-year periods due to lower capitalized tonnes, increased costs associated with mill maintenance, partially offset by higher sales volume.
- All-in sustaining costs2 per gold eq. ounce increased over the prior-year period due to higher sustaining capital spend and operating expenses partially offset by higher sales volume. For the nine months ended
September 30, 2023 , all-in sustaining costs per gold eq. ounce decreased over the prior-year period due to lower sustaining capital spend and higher sales volume. - Total capital increased over the prior-year period due to higher sustaining capital, partially offset by lower growth capital. For the nine months ended
September 30, 2023 , total capital decreased over the prior-year period due to lower sustaining capital. Sustaining capital2 related primarily to the tailings dam raise, capitalized waste and capital maintenance. Growth capital2 related to the development of the Intrepid underground and underground Main Zones, which advanced 565 metres during the quarter. - Free cash flow2 for the quarter and nine months ended
September 30, 2023 , was$15 million and$31 million (net of$7 million and$21 million stream payments, respectively), an improvement over the prior-year periods primarily due to an increase in revenues.
Operational Highlights
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |
Gold eq. production (ounces)1 | 44,830 | 30,701 | 123,046 | 85,257 |
Gold eq. sold (ounces)1 | 43,772 | 35,702 | 113,430 | 82,282 |
Gold production (ounces)3 | 18,016 | 11,427 | 50,937 | 30,610 |
Gold sold (ounces) | 17,395 | 13,395 | 47,401 | 29,068 |
Copper production (Mlbs) | 13.2 | 8.5 | 35.5 | 24.1 |
Copper sold (Mlbs) | 13.0 | 9.9 | 32.5 | 23.5 |
Gold revenue, per ounce ($) | 1,823 | 1,595 | 1,827 | 1,712 |
Copper revenue, per ounce ($) | 3.57 | 3.17 | 3.65 | 3.75 |
Average realized gold price, per ounce ($)2 | 1,932 | 1,721 | 1,948 | 1,825 |
Average realized copper price, per pound ($)2 | 3.78 | 3.42 | 3.89 | 3.99 |
Operating expenses, per gold eq. ounce ($) | 951 | 1,250 | 1,071 | 1,374 |
Total cash costs, per gold eq. ounce ($)2 | 1,058 | 1,367 | 1,192 | 1,485 |
Depreciation and depletion, per gold eq. ounce ($) | 428 | 455 | 436 | 403 |
All-in sustaining costs, per gold eq. ounce ($)2 | 1,229 | 1,769 | 1,341 | 2,101 |
Sustaining capital ($M)2 | 6.7 | 13.8 | 14.8 | 48.6 |
Growth capital ($M)2 | 31.7 | 24.3 | 94.3 | 58.6 |
Total capital ($M) | 38.4 | 38.1 | 109.1 | 107.2 |
Operating Key Performance Indicators
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |
New Afton Mine Only | ||||
Tonnes mined per day (ore and waste) | 9,790 | 6,523 | 9,716 | 6,674 |
Tonnes milled per calendar day | 8,651 | 7,7643 | 8,326 | 9,8363 |
Gold grade milled (g/t) | 0.72 | 0.593 | 0.69 | 0.433 |
Gold recovery (%) | 90 | 853 | 89 | 833 |
Copper grade milled (%) | 0.80 | 0.64 | 0.77 | 0.50 |
Copper recovery (%) | 91 | 85 | 91 | 81 |
Gold eq. production (ounces)1 | 44,069 | 30,158 | 118,803 | 83,077 |
Gold production (ounces) | 17,255 | 10,884 | 46,694 | 28,430 |
Copper production (Mlbs) | 13.2 | 8.5 | 35.5 | 24.1 |
Ore Purchase Agreements3 | ||||
Gold production (ounces) | 761 | 543 | 4,243 | 2,180 |
- Third quarter gold eq.1 production was 44,830 ounces (18,016 ounces of gold and 13.2 million pounds of copper). For the nine months ended
September 30, 2023 , gold eq.1 production was 123,046 ounces (50,937 ounces of gold and 35.5 million pounds of copper). The increase over the prior-year periods is due to higher grades and recovery. - Operating expense per gold eq. ounce decreased over the prior-year periods primarily due to 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 nine months ended
September 30, 2023 , was a net inflow of$5 million and a net outflow of$33 million , respectively, an improvement over the prior-year periods primarily due to higher revenue partially offset by an increase in growth capital. - During the quarter, C-Zone advanced 1,193 metres. The first draw bell at C-Zone was completed in the quarter, and the Company completed the commissioning of the final two of 29 dewatering wells at the NATSF. C-Zone has now transitioned to the production ramp-up phase and remains on-track to achieve commercial production in the second half of 2024.
- During the quarter, the Company continued to advance three of the most promising resource zones for potential conversion to Mineral Reserves and advance exploration initiatives in South-Central British Columbia, with a plan to strategically leverage New Afton's mill and tailings facilities to further extend the mine life. The Company completed 2,392 metres of diamond drilling in eight drill holes from underground. Of these, 1,121 metres were completed in three holes to explore for potential mineralization on the K-Zone target area, and the remaining 1,271 metres were completed in five drill holes to assess the true width and continuity of mineralization defined on the D-Zone target area. Drilling was also conducted from surface, where 1,433 metres in three drill holes targeted geophysical anomalies within the Mine Lease.
Third Quarter 2023 Conference Call and Webcast
The Company will host a webcast and conference call tomorrow,
- Participants may listen to the webcast by registering on our website at www.newgold.com or via the following link https://app.webinar.net/PowdYQg251V
- 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. andCanada , passcode 21119260 - To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3P5WEdr to receive an instant automated call back
- A recorded playback of the conference call will be available until
November 26, 2023 by calling North American toll free 1-888-390-0541, or 1-416-764-8677 outside of theU.S. andCanada , passcode 119260. An archived webcast will also be available at www.newgold.com
About
Endnotes | |
1. | Total gold eq. ounces include silver and copper produced/sold converted to a gold equivalent. All copper is produced/sold by the |
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. |
4. | Figures in some tables may not add due to rounding. |
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 used 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.
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
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,
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.
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.
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.
"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.
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.
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 | Nine months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
CONSOLIDATED OPEX, CASH COST AND ALL-IN SUSTAINING COSTS RECONCILIATION | ||||
Operating expenses | 107.5 | 99.2 | 329.6 | 274.2 |
Gold equivalent ounces sold1 | 107,562 | 92,634 | 311,677 | 247,678 |
Operating expenses per gold equivalent ounce sold ($/ounce) | 1,000 | 1,069 | 1,058 | 1,106 |
Operating expenses | 107.5 | 99.2 | 329.6 | 274.2 |
Treatment and refining charges on concentrate sales | 4.7 | 4.2 | 13.7 | 9.2 |
Total cash costs | 112.2 | 103.4 | 343.3 | 283.2 |
Gold equivalent ounces sold1 | 107,562 | 92,634 | 311,677 | 247,678 |
Total cash costs per gold equivalent ounce sold ($/ounce)2 | 1,044 | 1,114 | 1,102 | 1,143 |
Sustaining capital expenditures2 | 35.6 | 39.2 | 97.5 | 148.7 |
Sustaining exploration - expensed | 0.3 | 0.1 | 0.7 | 0.5 |
Sustaining leases2 | 1.5 | 2.7 | 7.7 | 7.8 |
Corporate G&A including share-based compensation | 6.2 | 3.6 | 20.1 | 15.7 |
Reclamation expenses | 3.1 | 2.8 | 9.3 | 8.5 |
Total all-in sustaining costs | 158.8 | 151.8 | 478.6 | 464.5 |
Gold equivalent ounces sold1 | 107,562 | 92,634 | 311,677 | 247,678 |
All-in sustaining costs per gold equivalent ounce sold ($/ounce)2 | 1,477 | 1,637 | 1,535 | 1,875 |
Three months ended | Nine months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
Operating expenses | 65.9 | 54.4 | 208.1 | 161.0 |
Gold equivalent ounces sold1 | 63,790 | 56,932 | 198,247 | 165,396 |
Operating expenses per unit of gold sold ($/ounce) | 1,034 | 955 | 1,050 | 973 |
Operating expenses | 65.9 | 54.4 | 208.1 | 161.0 |
Total cash costs | 65.9 | 54.4 | 208.1 | 161.0 |
Gold equivalent ounces sold1 | 63,790 | 56,932 | 198,247 | 165,396 |
Total cash costs per gold equivalent ounce sold ($/ounce)2 | 1,034 | 955 | 1,050 | 973 |
Sustaining capital expenditures2 | 28.7 | 25.3 | 82.6 | 100.0 |
Sustaining leases2 | 1.3 | 2.5 | 7.2 | 7.1 |
Reclamation expenses | 2.4 | 2.2 | 7.3 | 6.7 |
Total all-in sustaining costs | 98.3 | 84.5 | 305.2 | 274.9 |
Gold equivalent ounces sold1 | 63,790 | 56,932 | 198,247 | 165,396 |
All-in sustaining costs per gold equivalent ounce sold ($/ounce)2 | 1,542 | 1,483 | 1,539 | 1,662 |
Three months ended | Nine months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
NEW AFTON OPEX, CASH COSTS AND AISC RECONCILIATION | ||||
Operating expenses | 41.6 | 44.8 | 121.5 | 113.0 |
Gold equivalent ounces sold1 | 43,772 | 35,702 | 113,430 | 82,282 |
Operating expenses per unit of gold sold ($/ounce) | 951 | 1,250 | 1,071 | 1,374 |
Operating expenses | 41.6 | 44.8 | 121.5 | 113.0 |
Treatment and refining charges on concentrate sales | 4.7 | 4.2 | 13.7 | 9.2 |
Total cash costs | 46.3 | 49.0 | 135.2 | 122.2 |
Gold equivalent ounces sold1 | 43,772 | 35,702 | 113,430 | 82,282 |
Total cash costs per gold equivalent ounce sold ($/ounce)2 | 1,058 | 1,367 | 1,192 | 1,485 |
Sustaining capital expenditures2 | 6.7 | 13.7 | 14.8 | 48.5 |
Sustaining leases2 | 0.1 | — | 0.1 | 0.3 |
Reclamation expenses | 0.7 | 0.6 | 2.0 | 1.8 |
Total all-in sustaining costs | 53.8 | 63.3 | 152.1 | 172.8 |
Gold equivalent ounces sold1 | 43,772 | 35,702 | 113,430 | 82,282 |
All-in sustaining costs per gold equivalent ounce sold ($/ounce) | 1,229 | 1,769 | 1,341 | 2,101 |
Sustaining Capital Expenditures Reconciliation Table
Three months ended | Nine months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
TOTAL SUSTAINING CAPITAL EXPENDITURES | ||||
Mining interests per consolidated statement of cash flows | 70.6 | 69.9 | 205.3 | 221.6 |
New Afton growth capital expenditures2 | (31.7) | (24.3) | (94.3) | (58.6) |
(3.3) | (6.0) | (13.5) | (13.5) | |
Sustaining capital expenditures2 | 35.6 | 39.6 | 97.5 | 149.5 |
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
Three months ended | Nine months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
ADJUSTED NET EARNINGS (LOSS) RECONCILIATION | ||||
Income (loss) before taxes | 4.9 | (15.9) | (28.4) | (59.7) |
Other losses | 20.3 | 1.0 | 84.6 | 33.0 |
Loss on repayment of long-term debt | — | — | — | 4.3 |
Adjusted net earnings (loss) before taxes | 25.2 | (14.9) | 56.2 | (22.4) |
Income tax (expense) recovery | (7.6) | 11.7 | (8.7) | 9.8 |
Income tax adjustments | 5.5 | (10.2) | 5.6 | (7.2) |
Adjusted income tax (expense) recovery2 | (2.1) | 1.5 | (3.1) | 2.6 |
Adjusted net earnings (loss)2 | 23.1 | (13.4) | 53.1 | (19.8) |
Adjusted net earnings per share (basic and diluted)2 | 0.03 | (0.02) | 0.08 | (0.03) |
Cash Generated from Operations, before Changes in
"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.
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 | Nine months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
CASH RECONCILIATION | ||||
Cash generated from operations | 100.1 | 53.7 | 217.0 | 158.9 |
Change in non-cash operating working capital | (12.4) | (10.1) | 11.5 | (21.5) |
Cash generated from operations, before changes in non-cash operating working capital2 | 87.7 | 43.6 | 228.5 | 137.4 |
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.
Three months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 54.7 | 43.5 | 1.8 | 100.1 |
Less Mining interest capital expenditures | (32.0) | (38.4) | (0.1) | (70.5) |
Add Proceeds of sale from other assets | — | — | — | — |
Less Lease payments | (1.3) | — | (0.1) | (1.4) |
Less Cash settlement of non-current derivative financial liabilities | (6.6) | — | — | (6.6) |
Free Cash Flow2 | 14.8 | 5.1 | 1.6 | 21.6 |
Three months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 38.5 | 17.8 | (2.6) | 53.7 |
Less Mining interest capital expenditures | (31.8) | (38.1) | — | (69.9) |
Add Proceeds of sale from other assets | 0.6 | — | — | 0.6 |
Less Lease payments | (2.5) | — | (0.1) | (2.6) |
Less Cash settlement of non-current derivative financial liabilities | (5.4) | — | — | (5.4) |
Free Cash Flow2 | (0.7) | (20.3) | (2.7) | (23.6) |
Nine months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 156.0 | 76.0 | (15.0) | 217.0 |
Less Mining interest capital expenditures | (96.1) | (109.1) | (0.1) | (205.3) |
Add Proceeds of sale from other assets | 0.1 | — | — | 0.1 |
Less Lease payments | (7.2) | (0.1) | (0.4) | (7.7) |
Less Cash settlement of non-current derivative financial liabilities | (21.4) | — | — | (21.4) |
Free Cash Flow2 | 31.4 | (33.2) | (15.5) | (17.3) |
Nine months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 153.2 | 23.3 | (17.6) | 158.9 |
Less Mining interest capital expenditures | (114.4) | (107.1) | (0.1) | (221.6) |
Add Proceeds of sale from other assets | 0.8 | 0.1 | — | 0.9 |
Less Lease payments | (7.1) | (0.3) | (0.3) | (7.7) |
Less Cash settlement of non-current derivative financial liabilities | (18.4) | (12.4) | — | (30.7) |
Free Cash Flow2 | 14.1 | (96.4) | (18.0) | (100.2) |
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 | Nine months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
TOTAL AVERAGE REALIZED PRICE | ||||
Revenue from gold sales | 151.7 | 117.2 | 458.9 | 345.8 |
Treatment and refining charges on gold concentrate sales | 1.9 | 1.7 | 5.8 | 3.3 |
Gross revenue from gold sales | 153.6 | 118.9 | 464.7 | 349.1 |
Gold ounces sold | 79,821 | 68,816 | 241,247 | 190,641 |
Total average realized price per gold ounce sold ($/ounce)2 | 1,924 | 1,727 | 1,926 | 1,831 |
Three months ended | Nine months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
Revenue from gold sales | 120.0 | 95.8 | 372.3 | 296.0 |
Gold ounces sold | 62,426 | 55,421 | 193,846 | 161,573 |
1,921 | 1,729 | 1,920 | 1,832 |
Three months ended | Nine months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
NEW AFTON AVERAGE REALIZED PRICE | ||||
Revenue from gold sales | 31.7 | 21.4 | 86.6 | 49.8 |
Treatment and refining charges on gold concentrate sales | 1.9 | 1.7 | 5.7 | 3.3 |
Gross revenue from gold sales | 33.6 | 23.1 | 92.3 | 53.1 |
Gold ounces sold | 17,395 | 13,395 | 47,401 | 29,068 |
New Afton average realized price per gold ounce sold ($/ounce)2 | 1,932 | 1,721 | 1,948 | 1,825 |
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 27 in the MD&A for the three and nine months ended
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release, including any information relating to
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
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
Technical Information
The scientific and technical information contained in this news release has been reviewed and approved by
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