New Gold(NGD)

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NEW GOLD ANNOUNCES RESULTS OF VOTE FOR ELECTION OF BOARD OF DIRECTORS
Prnewswire· 2024-05-15 21:00
Election of Directors - New Gold Inc. held its Annual General Meeting of Shareholders on May 14, 2024, where the voting results for the election of its Board of Directors were announced [1] - Patrick Godin received 99.53% of votes in favor, while Nicholas Chirekos received 79.95% [2] - Other directors such as Gillian Davidson and Thomas McCulley received 94.06% and 99.52% of votes in favor, respectively [2] Appointment of Auditor - The appointment of the auditor received 84.52% of votes in favor, with 15.48% against [3] - The "Say on Pay" advisory vote had a strong approval rate of 98.84% [3] Company Overview - New Gold is a Canadian-focused intermediate mining company with two core producing assets: the Rainy River gold mine and the New Afton copper-gold mine [4] - The company aims to build a leading diversified intermediate gold company in Canada, emphasizing environmental and social responsibility [4]
New Gold (NGD) Is Up 7.73% in One Week: What You Should Know
Zacks Investment Research· 2024-05-15 17:01
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...
New Gold Increases Exposure in New Afton Copper/Gold Mine to 80% and Launches US$150 Million Bought Deal Financing
Newsfilter· 2024-05-13 20:14
Core Viewpoint - New Gold Inc. has entered into a strategic partnership agreement with Ontario Teachers' Pension Plan to increase its effective free cash flow interest in the New Afton Mine to 80.1% through a cash payment of $255 million, funded by cash on hand, borrowings, and equity financing [1][2]. Group 1: Transaction Details - Upon closing, Ontario Teachers' free cash flow interest in New Afton will decrease from 46.0% to 19.9% [2]. - New Gold will fund the cash payment through existing resources and a bought deal equity financing of approximately $150 million [2][5]. - The closing of the transaction is expected by the end of May 2024, following the completion of the equity offering [13]. Group 2: Anticipated Benefits - The transaction is expected to enhance New Gold's free cash flow exposure in a copper and gold asset already owned and operated by the company [4]. - New Afton is projected to experience significant production growth and cost improvements, leading to increased free cash flow generation [4][9]. - The transaction is described as accretive and disciplined, aiming to deliver a meaningful increase in attributable life-of-mine cash flow while maintaining financial strength [9]. Group 3: Equity Financing - New Gold has agreed to sell 87,300,000 Common Shares at a price of $1.72 per share, generating gross proceeds of approximately $150 million [5]. - An over-allotment option has been granted to underwriters to purchase an additional 15% of the shares issued [6]. - The net proceeds from the offering will be used to fund part of the cash payment for the transaction [6]. Group 4: Operational Insights - The C-Zone project at New Afton is on track to achieve commercial production in the second half of 2024, contributing to free cash flow growth [9]. - New Gold has developed extensive technical and operational expertise at New Afton, allowing for growth without increasing general and administrative expenses [9]. - The renewed focus on exploration activities is expected to enhance the production profile and extend the mine's life [9][14].
New Gold(NGD) - 2024 Q1 - Earnings Call Presentation
2024-05-01 12:24
newgeld" All amounts in U.S. Dollars unless otherwise stated Certain information contained in this presentation, including any information relating to New Gold's future financial or operating performance are "forward-looking". All statements in this presentation, 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 gener ...
New Gold(NGD) - 2024 Q1 - Quarterly Report
2024-04-30 21:20
[Condensed Interim Consolidated Income Statements](index=4&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20INCOME%20STATEMENTS) The company reported an increased net loss in Q1 2024, primarily due to lower revenues and higher other losses Income Statement Summary | Metric | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :----------------------- | :--------------------------------------------- | :--------------------------------------------- | | Revenues | 192.1 | 201.6 | | Operating expenses | 106.8 | 117.2 | | Depreciation and depletion | 62.7 | 55.1 | | Revenue less cost of goods sold | 22.6 | 29.3 | | Income from operations | 15.1 | 21.0 | | Other losses | (55.1) | (50.0) | | Loss before taxes | (40.5) | (31.5) | | Net loss | (43.5) | (31.8) | | Basic Net loss per share | (0.06) | (0.05) | | Diluted Net loss per share | (0.06) | (0.05) | - The company reported a net loss of **$43.5 million** for Q1 2024, an increase from **$31.8 million** in Q1 2023, primarily due to lower revenues and higher other losses[2](index=2&type=chunk) [Condensed Interim Consolidated Statements of Comprehensive Income](index=5&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Total comprehensive loss decreased in Q1 2024, mainly due to a smaller loss on derivative financial liabilities revaluation Comprehensive Income Statement Summary | Metric | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net loss | (43.5) | (31.8) | | Loss on revaluation of non-current derivative financial liabilities | (13.5) | (50.4) | | Total other comprehensive loss | (13.5) | (50.4) | | Total comprehensive loss | (57.0) | (82.2) | - Total comprehensive loss decreased to **$57.0 million** in Q1 2024 from **$82.2 million** in Q1 2023, primarily due to a smaller loss on revaluation of non-current derivative financial liabilities[4](index=4&type=chunk) [Condensed Interim Consolidated Statements of Financial Position](index=6&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION) Total assets slightly decreased while liabilities increased, leading to a decline in total equity and cash equivalents Financial Position Summary | Metric | As at March 31, 2024 (Millions USD) | As at December 31, 2023 (Millions USD) | | :-------------------------- | :---------------------------------- | :----------------------------------- | | Total current assets | 319.6 | 351.8 | | Total assets | 2,258.1 | 2,286.0 | | Total current liabilities | 211.9 | 229.0 | | Total liabilities | 1,521.7 | 1,496.8 | | Total equity | 736.4 | 789.2 | - Total assets decreased slightly to **$2,258.1 million** as of March 31, 2024, from **$2,286.0 million** at December 31, 2023, while total liabilities increased to **$1,521.7 million** from **$1,496.8 million**, leading to a decrease in total equity[6](index=6&type=chunk) - Cash and cash equivalents decreased to **$156.7 million** as of March 31, 2024, from **$185.5 million** at December 31, 2023[6](index=6&type=chunk) [Condensed Interim Consolidated Statements of Changes in Equity](index=7&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20EQUITY) Total equity decreased due to the net loss and increased other reserves, leading to a higher deficit Changes in Equity Summary | Metric | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Common shares, end of period | 3,168.1 | 3,157.6 | | Contributed surplus, end of period | 106.5 | 107.8 | | Other reserves, end of period | (149.4) | (75.0) | | Deficit, end of period | (2,388.8) | (2,312.6) | | Total equity, end of period | 736.4 | 877.8 | - Total equity decreased to **$736.4 million** as of March 31, 2024, from **$877.8 million** in the prior year, primarily due to the net loss for the period and increased other reserves[8](index=8&type=chunk) - The deficit increased to **$(2,388.8) million** as of March 31, 2024, from **$(2,345.3) million** at the beginning of the period, reflecting the net loss of **$(43.5) million**[8](index=8&type=chunk) [Condensed Interim Consolidated Statements of Cash Flow](index=8&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOW) Operating cash flow decreased, while cash used in investing activities significantly increased in Q1 2024 Cash Flow Summary | Metric | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Cash generated from operations | 54.7 | 60.6 | | Cash used by investing activities | (59.0) | (37.9) | | Cash used by financing activities | (24.1) | (25.9) | | Change in cash and cash equivalents | (28.8) | (3.5) | | Cash and cash equivalents, end of period | 156.7 | 197.3 | - Cash generated from operations decreased to **$54.7 million** in Q1 2024 from **$60.6 million** in Q1 2023[10](index=10&type=chunk) - Cash used by investing activities increased significantly to **$59.0 million** from **$37.9 million**, mainly due to the absence of proceeds from the sale of equity investments seen in the prior year (**$23.4 million** in Q1 2023)[10](index=10&type=chunk) [Notes to the Unaudited Condensed Interim Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20THE%20UNAUDITED%20CONDENSED%20INTERIM%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed notes on the company's business, accounting policies, expenses, and financial instruments [1. Description of Business and Nature of Operations](index=9&type=section&id=1.%20Description%20of%20business%20and%20nature%20of%20operations) New Gold Inc. is an intermediate gold mining company operating mines in Ontario and British Columbia, Canada - **New Gold Inc.** is an intermediate gold mining company[12](index=12&type=chunk) - The company operates the **Rainy River Mine** in Ontario and the **New Afton Mine** in British Columbia, Canada[12](index=12&type=chunk) - The company's shares are listed on the **Toronto Stock Exchange** and the **NYSE American** under the symbol **NGD**[13](index=13&type=chunk) [2. Basis of Preparation and Material Accounting Policy Information](index=9&type=section&id=2.%20Basis%20of%20preparation%20and%20material%20accounting%20policy%20information) Interim financial statements are prepared under IAS 34, consistent with 2023 policies, with no material impact from IAS 1 amendments - Financial statements prepared in accordance with **IAS 34**, Interim Financial Reporting[14](index=14&type=chunk) - Accounting policies are consistent with the audited consolidated financial statements for the year ended **December 31, 2023**[14](index=14&type=chunk)[15](index=15&type=chunk) - Amendments to **IAS 1** regarding the classification of liabilities as current or non-current were adopted for annual periods beginning **January 1, 2024**, with no material impact[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [3. Expenses](index=11&type=section&id=3.%20Expenses) Operating expenses decreased due to lower raw materials, while other losses increased from derivative financial liabilities [3.a Operating expenses by nature](index=11&type=section&id=3.a%20Operating%20expenses%20by%20nature) Operating expenses decreased in Q1 2024, driven by lower raw materials and increased capitalized production expenses Operating Expenses by Nature | Expense Category | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :----------------------- | :--------------------------------------------- | :--------------------------------------------- | | Raw materials and consumables | 43.3 | 48.6 | | Salaries and employee benefits | 45.2 | 35.2 | | Total production expenses | 146.7 | 142.7 | | Less: Production expenses capitalized | (31.6) | (21.3) | | Total operating expenses | 106.8 | 117.2 | - Total operating expenses decreased by **$10.4 million**, from **$117.2 million** in Q1 2023 to **$106.8 million** in Q1 2024, mainly due to lower raw materials and increased capitalized production expenses[20](index=20&type=chunk) [3.b Finance income and costs](index=11&type=section&id=3.b%20Finance%20income%20and%20costs) Net finance costs decreased in Q1 2024 due to higher capitalization of finance costs Finance Income and Costs | Metric | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :----------------------- | :--------------------------------------------- | :--------------------------------------------- | | Interest income | 2.1 | 1.8 | | Total finance costs | 10.3 | 10.3 | | Less: amounts included in cost of qualifying assets | (7.7) | (6.0) | | Total finance costs (net) | 2.6 | 4.3 | - Total finance costs (net) decreased to **$2.6 million** in Q1 2024 from **$4.3 million** in Q1 2023, primarily due to a higher amount of finance costs included in the cost of qualifying assets[21](index=21&type=chunk) [3.c Other (losses) and gains](index=12&type=section&id=3.c%20Other%20(losses)%20and%20gains) Total other losses increased in Q1 2024, primarily due to higher unrealized losses on derivative financial liabilities Other Losses and Gains | Metric | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Gain on foreign exchange | 4.0 | 0.6 | | Unrealized loss on revaluation of non-current derivative financial liabilities | (57.9) | (47.5) | | Total other losses | (55.1) | (50.0) | - Total other losses increased to **$55.1 million** in Q1 2024 from **$50.0 million** in Q1 2023, driven by a higher unrealized loss on revaluation of non-current derivative financial liabilities[22](index=22&type=chunk) [4. Trade and Other Receivables](index=12&type=section&id=4.%20Trade%20and%20other%20receivables) Trade and other receivables decreased due to lower trade receivables and sales tax receivable Trade and Other Receivables | Metric | As at March 31, 2024 (Millions USD) | As at December 31, 2023 (Millions USD) | | :-------------------------- | :---------------------------------- | :----------------------------------- | | Trade receivables | 7.8 | 10.2 | | Sales tax receivable | 3.0 | 5.8 | | Total trade and other receivables | 11.7 | 16.3 | - Trade receivables decreased by **$2.4 million**, and sales tax receivable decreased by **$2.8 million** from December 31, 2023, to March 31, 2024[23](index=23&type=chunk) [5. Investments](index=12&type=section&id=5.%20Investments) Total investments slightly increased, driven by an increase in equity securities Investments Summary | Metric | As at March 31, 2024 (Millions USD) | As at December 31, 2023 (Millions USD) | | :-------------------------- | :---------------------------------- | :----------------------------------- | | Equity securities | 7.6 | 7.0 | | Other investments | — | 0.1 | | Total investments | 7.6 | 7.1 | [6. Trade and Other Payables](index=13&type=section&id=6.%20Trade%20and%20other%20payables) Trade and other payables decreased, offset by an increase in the New Afton free cash flow interest obligation Trade and Other Payables | Metric | As at March 31, 2024 (Millions USD) | As at December 31, 2023 (Millions USD) | | :------------------------------------------------ | :---------------------------------- | :----------------------------------- | | Trade payables | 41.5 | 61.5 | | Interest payable | 6.5 | 14.1 | | Accruals | 64.7 | 73.1 | | Current portion of New Afton free cash flow interest obligation | 61.1 | 42.7 | | Total trade and other payables | 211.9 | 229.0 | - The current portion of the New Afton free cash flow interest obligation increased by **$18.4 million** from December 31, 2023, to March 31, 2024[25](index=25&type=chunk) [7. Inventories](index=13&type=section&id=7.%20Inventories) Total inventories increased, driven by higher stockpile ore and a $14.6 million write-up due to gold prices Inventories Summary | Metric | As at March 31, 2024 (Millions USD) | As at December 31, 2023 (Millions USD) | | :-------------------------- | :---------------------------------- | :----------------------------------- | | Stockpile ore | 38.9 | 34.1 | | Work-in-process | 11.0 | 5.3 | | Finished goods | 21.7 | 16.8 | | Total current inventories | 142.9 | 126.7 | | Total inventories | 130.5 | 126.7 | - The company recognized a **$14.6 million** net realizable value write-up adjustment due to increased gold prices, primarily for low-grade stockpile inventory at Rainy River[27](index=27&type=chunk) [8. Mining Interests](index=14&type=section&id=8.%20Mining%20interests) Mining interests slightly decreased, with New Afton representing a larger portion of the carrying amount Mining Interests Carrying Amount | Metric | As at March 31, 2024 (Millions USD) | As at December 31, 2023 (Millions USD) | | :-------------------------- | :---------------------------------- | :----------------------------------- | | Carrying amount | 1,919.5 | 1,927.2 | Mining Interests by Site | Mining Interest by Site | Carrying amount as at March 31, 2024 (Millions USD) | | :---------------------- | :-------------------------------------------------- | | New Afton | 1,046.4 | | Rainy River | 868.9 | - Additions to mining interests cost for the three months ended March 31, 2024, totaled **$64.5 million**[29](index=29&type=chunk) [9. Long-term Debt](index=15&type=section&id=9.%20Long-term%20debt) Long-term debt remained stable, consisting of Senior Unsecured Notes, with a $400 million credit facility available [9.a Senior Unsecured Notes - due July 15, 2027](index=15&type=section&id=9.a%20Senior%20Unsecured%20Notes%20-%20due%20July%2015,%202027) The company has $400 million senior unsecured notes outstanding, maturing in 2027, with a 7.50% interest rate - The company has **$400.0 million** of senior unsecured notes outstanding, maturing on **July 15, 2027**[35](index=35&type=chunk) - The notes bear interest at a rate of **7.50%** per annum, payable semi-annually[35](index=35&type=chunk) - The notes are subject to a minimum interest coverage incurrence covenant of **2:1**, with no maintenance covenants[36](index=36&type=chunk) [9.b Credit Facility](index=16&type=section&id=9.b%20Credit%20Facility) The company maintains a $400 million revolving credit facility with no amounts drawn and all covenants met Financial Covenants | Financial Covenant | Requirement | Twelve months ended March 31, 2024 | Twelve months ended December 31, 2023 | | :------------------------------------------ | :---------- | :--------------------------------- | :------------------------------------ | | Minimum interest coverage ratio | >3.0:1.0 | 7.9 : 1 | 8.1 : 1 | | Maximum leverage ratio (net debt to Adjusted EBITDA) | <4.5:1.0 | 1.5 : 1 | 1.4 : 1 | | Maximum secured leverage ratio (secured debt to Adjusted EBITDA) | <2.0:1.0 | 0.1 : 1 | 0.1 : 1 | - The company holds a revolving credit facility with a borrowing limit of **$400.0 million** and a maturity date of **December 2026**[38](index=38&type=chunk) - No amounts were drawn under the Credit Facility for the three months ended March 31, 2024[39](index=39&type=chunk) [10. Non-current Derivative Financial Liabilities](index=17&type=section&id=10.%20Non-current%20derivative%20financial%20liabilities) Non-current derivative financial liabilities increased due to fair value adjustments, notably for the New Afton obligation [Rainy River Gold Stream Obligation](index=17&type=section&id=Rainy%20River%20Gold%20Stream%20Obligation) The company has a gold and silver stream obligation at Rainy River, valued at fair value through profit and loss - The company is obligated to deliver **6.5%** of gold production (up to **230,000 ounces**) and **3.25%** thereafter, and **60%** of silver production (up to **3.1 million ounces**) and **30%** thereafter to **Royal Gold**[43](index=43&type=chunk) - The obligation is designated as a fair value through profit and loss (**FVTPL**) under **IFRS 9**, with changes in fair value reflected in the income statements and comprehensive income[45](index=45&type=chunk) - Fair value adjustments consider accretion expense, changes in risk-free interest rates, company-specific credit spread, expected ounces to be delivered, and future metal prices[50](index=50&type=chunk) [New Afton Free Cash Flow Interest Obligation](index=18&type=section&id=New%20Afton%20Free%20Cash%20Flow%20Interest%20Obligation) Ontario Teachers' Pension Plan holds a 46% free cash flow interest in New Afton, with a conversion option - **Ontario Teachers' Pension Plan** acquired a **46%** free cash flow interest in the New Afton mine for **$300 million**[48](index=48&type=chunk) - Ontario Teachers' has an option from **April 1, 2024**, to **May 30, 2024**, to convert to a **46%** joint venture interest or have their free cash flow interest remain at a reduced rate of **42.5%**[48](index=48&type=chunk) - The obligation is designated as **FVTPL**, with fair value adjustments considering accretion expense, changes in risk-free interest rates, company-specific credit spread, expected ounces to be delivered, future metal prices, and production profile/costs at New Afton[49](index=49&type=chunk)[50](index=50&type=chunk) [11. Leases](index=19&type=section&id=11.%20Leases) Right-of-use assets and non-current lease liabilities decreased, mainly due to asset transfers [11.a Right-of-use assets](index=19&type=section&id=11.a%20Right-of-use%20assets) Right-of-use assets significantly decreased in Q1 2024 due to transfers from leased to owned assets Right-of-Use Assets | Metric | As at March 31, 2024 (Millions USD) | As at December 31, 2023 (Millions USD) | | :-------------------------- | :---------------------------------- | :----------------------------------- | | Opening balance | 17.9 | 21.4 | | Transfers | (10.1) | — | | Total right-of-use-assets | 5.5 | 17.9 | - Right-of-use assets decreased significantly due to **$10.1 million** in transfers from leased to owned assets during Q1 2024[53](index=53&type=chunk) [11.b Lease liabilities](index=19&type=section&id=11.b%20Lease%20liabilities) Non-current lease liabilities decreased, while short-term lease expenses significantly increased in Q1 2024 Lease Liabilities | Metric | As at March 31, 2024 (Millions USD) | As at December 31, 2023 (Millions USD) | | :-------------------------- | :---------------------------------- | :----------------------------------- | | Total undiscounted lease payments | 4.7 | 5.8 | | Carrying value of lease liabilities | 3.7 | 5.2 | | Non-current portion of lease liabilities | 2.3 | 2.6 | - Non-current lease liabilities decreased to **$2.3 million** as of March 31, 2024, from **$2.6 million** at December 31, 2023[54](index=54&type=chunk) - The company expensed **$3.8 million** related to short-term leases in Q1 2024, a significant increase from **$0.5 million** in Q1 2023[55](index=55&type=chunk) [12. Derivative Instruments](index=20&type=section&id=12.%20Derivative%20instruments) The company uses various derivative instruments to manage commodity and currency risks, recording net losses on swaps and gains on provisional sales [12.a Provisionally priced contracts](index=20&type=section&id=12.a%20Provisionally%20priced%20contracts) Total gain on provisionally priced concentrate sales decreased in Q1 2024 Provisionally Priced Contracts Gains | Metric | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Realized gain on provisional pricing | 1.0 | 4.2 | | Unrealized gain on provisional pricing | 2.5 | 1.7 | | Total gain on provisional pricing of concentrate sales | 3.5 | 5.9 | - Total gain on provisionally priced concentrate sales decreased to **$3.5 million** in Q1 2024 from **$5.9 million** in Q1 2023[60](index=60&type=chunk) [12.b Gold and copper swap contracts](index=21&type=section&id=12.b%20Gold%20and%20copper%20swap%20contracts) Total loss on gold and copper swap contracts improved in Q1 2024 Gold and Copper Swap Contracts Losses | Metric | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :----------------------- | :--------------------------------------------- | :--------------------------------------------- | | Realized loss | (0.1) | (3.9) | | Unrealized loss | (3.5) | (1.2) | | Total loss on swap contracts | (3.5) | (5.1) | - Total loss on gold and copper swap contracts improved to **$3.5 million** in Q1 2024 from **$5.1 million** in Q1 2023[61](index=61&type=chunk) Volumes Subject to Final Pricing | Volumes Subject to Final Pricing Net of Outstanding Swaps | As at March 31, 2024 | As at December 31, 2023 | | :-------------------------------------------------------- | :------------------- | :---------------------- | | Gold ounces (000s) | 1.5 | — | | Copper pounds (millions) | 0.4 | — | [12.c Foreign exchange forward contracts](index=21&type=section&id=12.c%20Foreign%20exchange%20forward%20contracts) The company uses foreign exchange forward contracts to hedge operating costs, with $0.4 million in liabilities - The company uses foreign exchange forward contracts to hedge operating costs at the New Afton and Rainy River mines[62](index=62&type=chunk) - As at March 31, 2024, the fair value of unrealized foreign exchange forward contract liabilities was **$0.4 million**[63](index=63&type=chunk) - The company hedged an average of **C$41.0 million** per month for **Q2 2024** and **C$15.0 million** per month for **Q3 2024**[63](index=63&type=chunk) [12.d Diesel fuel hedge swap contracts](index=21&type=section&id=12.d%20Diesel%20fuel%20hedge%20swap%20contracts) Diesel fuel hedge swap contracts are used for Rainy River to mitigate volatile fuel prices - The company entered into diesel fuel hedge swap contracts for the **Rainy River Mine** to reduce exposure to volatile fuel prices[64](index=64&type=chunk) - As at March 31, 2024, the fair value of unrealized fuel hedge swap contract assets was **$nil**[66](index=66&type=chunk) - The company hedged an average of **0.7 million gallons** per month for the first two quarters of 2024 and **0.2 million gallons** per month for the third quarter of 2024[66](index=66&type=chunk) [13. Reclamation and Closure Cost Obligations](index=22&type=section&id=13.%20Reclamation%20and%20closure%20cost%20obligations) Reclamation and closure cost obligations decreased due to foreign exchange movements and revised cash flow expectations Reclamation and Closure Cost Obligations | Metric | As at March 31, 2024 (Millions USD) | As at December 31, 2023 (Millions USD) | | :------------------------------------ | :---------------------------------- | :----------------------------------- | | Balance – end of period | 120.5 | 124.2 | | Non-current portion of closure costs | 119.6 | 123.4 | - The decrease in obligations was influenced by foreign exchange movements (**$(2.9) million**) and revisions to expected cash flows (**$(1.5) million**) during Q1 2024[67](index=67&type=chunk) [14. Share Capital](index=23&type=section&id=14.%20Share%20capital) Common shares outstanding increased, share-based payment expenses more than doubled, and loss per share remained at $(0.06) [14.a No par value common shares issued](index=23&type=section&id=14.a%20No%20par%20value%20common%20shares%20issued) Common shares outstanding increased by 2.8 million shares due to First Nations agreements and option exercises Common Shares Issued and Outstanding | Metric | As at March 31, 2024 (000s) | As at December 31, 2023 (000s) | | :------------------------------------------ | :-------------------------- | :----------------------------- | | Balance of common shares issued and outstanding | 689,829 | 687,006 | - The number of common shares issued and outstanding increased by **2.8 million shares** during Q1 2024, primarily due to issuances under First Nations agreements (**2.4 million shares**) and exercise of options (**0.4 million shares**)[70](index=70&type=chunk) [14.b Share-based payment expenses](index=23&type=section&id=14.b%20Share-based%20payment%20expenses) Total share-based payment expenses more than doubled in Q1 2024, driven by restricted share unit expenses Share-Based Payment Expenses | Expense Category | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :----------------------- | :--------------------------------------------- | :--------------------------------------------- | | Stock option expense | 0.1 | 0.2 | | Performance share unit expense | 0.2 | 0.3 | | Restricted share unit expense | 1.4 | 0.3 | | Total share-based payment expenses | 1.9 | 0.8 | - Total share-based payment expenses more than doubled to **$1.9 million** in Q1 2024 from **$0.8 million** in Q1 2023, primarily driven by a significant increase in restricted share unit expense[71](index=71&type=chunk) [Stock options](index=24&type=section&id=Stock%20options) The number of stock options outstanding decreased due to exercises, forfeitures, and expirations Stock Options Activity | Metric | As at March 31, 2024 (000s) | As at December 31, 2023 (000s) | | :----------------------- | :-------------------------- | :----------------------------- | | Balance of options | 1,268 | 1,730 | | Exercised | (229) | (2,401) | | Forfeited | (203) | (158) | | Expired | (30) | (562) | - The number of stock options outstanding decreased by **462,000** during Q1 2024 due to exercises, forfeitures, and expirations[73](index=73&type=chunk) [Loss per share](index=24&type=section&id=Loss%20per%20share) Basic and diluted loss per share remained at $(0.06) in Q1 2024, reflecting the increased net loss Loss Per Share Details | Metric | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :----------------------- | :-------------------------------- | :-------------------------------- | | Net loss | (43.5) | (31.8) | | Basic Net loss per share | (0.06) | (0.05) | | Diluted Net loss per share | (0.06) | (0.05) | - Basic and diluted loss per share remained at **$(0.06)** for Q1 2024, compared to **$(0.05)** in Q1 2023, reflecting the increased net loss[74](index=74&type=chunk) - All stock options, deferred share units, and performance share units are excluded from the calculation of diluted loss per share when the company is in a net loss position[75](index=75&type=chunk) [15. Income and Mining Taxes](index=25&type=section&id=15.%20Income%20and%20mining%20taxes) Total income tax expense significantly increased due to higher deferred income and mining tax expense in Canada Income and Mining Taxes | Tax Type | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Current income and mining tax expense (Canada) | 0.5 | 0.5 | | Deferred income and mining tax expense (Canada) | 2.5 | (0.2) | | Total income tax expense | 3.0 | 0.3 | - Deferred income and mining tax expense in Canada increased from a recovery of **$0.2 million** in Q1 2023 to an expense of **$2.5 million** in Q1 2024[76](index=76&type=chunk) [16. Supplemental Cash Flow Information](index=25&type=section&id=16.%20Supplemental%20cash%20flow%20information) Non-cash operating working capital resulted in a cash outflow, and other non-cash adjustments increased due to derivative losses Supplemental Cash Flow Details | Metric | Three months ended March 31, 2024 (Millions USD) | Three months ended March 31, 2023 (Millions USD) | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Change in non-cash operating working capital | (17.8) | (15.1) | | Other non-cash adjustments | 55.1 | 50.0 | - Unrealized loss on revaluation of non-current derivative financial instruments increased to **$57.9 million** in Q1 2024 from **$47.5 million** in Q1 2023, contributing to the increase in other non-cash adjustments[77](index=77&type=chunk) [17. Segmented Information](index=26&type=section&id=17.%20Segmented%20information) The company's two segments, Rainy River and New Afton, saw decreased total revenues and slightly lower capital expenditures [17.a Segment revenues and results](index=26&type=section&id=17.a%20Segment%20revenues%20and%20results) Rainy River's income from operations significantly declined, while New Afton's improved in Q1 2024 Segment Revenues and Results | Metric | Rainy River (2024) | New Afton (2024) | Total (2024) | Rainy River (2023) | New Afton (2023) | Total (2023) | | :----------------------- | :----------------- | :--------------- | :----------- | :----------------- | :--------------- | :----------- | | Gold revenues | 110.7 | 33.8 | 144.5 | 135.3 | 27.3 | 162.6 | | Copper revenues | — | 43.9 | 43.9 | — | 35.8 | 35.8 | | Silver revenues | 3.0 | 0.7 | 3.7 | 2.7 | 0.5 | 3.2 | | Total revenues | 113.7 | 78.4 | 192.1 | 138.0 | 63.6 | 201.6 | | Income (loss) from operations | 6.6 | 12.5 | 15.1 | 23.9 | 3.2 | 21.0 | - Rainy River's income from operations decreased significantly from **$23.9 million** in Q1 2023 to **$6.6 million** in Q1 2024, while New Afton's income from operations increased from **$3.2 million** to **$12.5 million**[78](index=78&type=chunk)[82](index=82&type=chunk) [17.b Segmented assets and liabilities](index=28&type=section&id=17.b%20Segmented%20assets%20and%20liabilities) Total capital expenditures for Q1 2024 were $61.1 million, a slight decrease from the prior year Segmented Assets, Liabilities, and Capital Expenditures | Metric | Rainy River (Mar 31, 2024) | New Afton (Mar 31, 2024) | Corporate (Mar 31, 2024) | Total (Mar 31, 2024) | | :----------------------- | :------------------------- | :----------------------- | :----------------------- | :------------------- | | Total assets | 993.2 | 1,107.5 | 157.4 | 2,258.1 | | Total liabilities | 351.7 | 752.5 | 417.5 | 1,521.7 | | Capital expenditures (Q1 2024) | 29.6 | 31.5 | — | 61.1 | - Total capital expenditures for Q1 2024 were **$61.1 million**, a slight decrease from **$63.1 million** in Q1 2023[84](index=84&type=chunk) [18. Fair Value Measurement](index=28&type=section&id=18.%20Fair%20value%20measurement) Financial assets and liabilities are measured at fair value using a three-level hierarchy, with no transfers between levels - The fair value hierarchy classifies inputs into three levels: **Level 1** (quoted prices in active markets), **Level 2** (observable inputs other than quoted prices), and **Level 3** (unobservable inputs)[88](index=88&type=chunk) - There were no transfers among Levels 1, 2, and 3 during the three months ended March 31, 2024, or the year ended December 31, 2023[88](index=88&type=chunk) - **Rainy River gold stream obligation** and **New Afton free cash flow interest obligation** are classified as **Level 3** financial liabilities, with their fair values calculated using risk-free interest rates, forward/consensus metal prices, company-specific credit spreads, and expected production/delivery profiles[93](index=93&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk) [19. Commitments](index=31&type=section&id=19.%20Commitments) Total contractual commitments for capital items increased to $130.6 million, primarily due within 12 months Contractual Commitments | Metric | As at March 31, 2024 (Millions USD) | As at December 31, 2023 (Millions USD) | | :------------------------------------ | :---------------------------------- | :----------------------------------- | | Total contractual commitments | 130.6 | 96.7 | - These commitments are primarily for capital items relating to operations and development and are expected to become due over the next **12 months**[101](index=101&type=chunk)
New Gold(NGD) - 2023 Q4 - Annual Report
2024-02-13 22:17
newgald" 2 WWW.NEWGOLD.COM TSX:NGD NYSE American:NGD Management's Discussion and Analysis MANAGEMENT'S DISCUSSION AND ANALYSIS For the year ended December 31, 2023 Contents | OUR BUSINESS | 3 | | --- | --- | | USE OF NON-GAAP FINANCIAL PERFORMANCE METRICS | 3 | | OPERATING AND FINANCIAL HIGHLIGHTS | 4 | | SUSTAINABILITY AND ESG | 6 | | CORPORATE DEVELOPMENTS | 7 | | OUTLOOK | 8 | | MINERAL RESERVES AND MINERAL RESOURCES UPDATE | 13 | | KEY PERFORMANCE DRIVERS | 14 | | FINANCIAL RESULTS | 16 | | REVIEW OF OP ...
New Gold(NGD) - 2023 Q3 - Quarterly Report
2023-10-25 21:17
Contents | CONDENSED CONSOLIDATED INCOME STATEMENTS | 2 | | --- | --- | | CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 3 | | CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | 4 | | CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | 5 | | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | 6 | | NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 7 | | 1. Description of business and nature of operations | 7 | | 2. Basis of preparation and material accounting policies | 7 | | ...
New Gold(NGD) - 2023 Q2 - Earnings Call Presentation
2023-07-27 13:52
• C-Zone production remains on-track for first production ore in Q4 2023; commercial production in H2/2024 • Well positioned to meet annual production and cost guidance 3. Deliver on Guidance Safely newg୍ାld" newg୍ାld" Disclosure regarding Mineral Reserve and Mineral Resource estimates included in this presentation was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators that establishe ...
New Gold(NGD) - 2023 Q2 - Quarterly Report
2023-07-26 22:36
Contents | CONDENSED CONSOLIDATED INCOME STATEMENTS | 2 | | --- | --- | | CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 3 | | CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | 4 | | CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | 5 | | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | 6 | | NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 7 | | 1. Description of business and nature of operations | 7 | | 2. Basis of preparation and material accounting policies | 7 | | ...
New Gold(NGD) - 2023 Q1 - Earnings Call Presentation
2023-04-27 20:19
April 27, 2023 Cautionary Notes Cautionary note regarding forward-looking statements 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 presentation 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 developmen ...