New Gold(NGD) - 2024 Q1 - Quarterly Report

Condensed Interim Consolidated Income Statements 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] Condensed Interim Consolidated Statements of Comprehensive Income 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] Condensed Interim Consolidated Statements of Financial Position 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] - Cash and cash equivalents decreased to $156.7 million as of March 31, 2024, from $185.5 million at December 31, 2023[6] Condensed Interim Consolidated Statements of Changes in Equity 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] - 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] Condensed Interim Consolidated Statements of Cash Flow 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] - 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] Notes to the Unaudited Condensed Interim Consolidated Financial Statements This section provides detailed notes on the company's business, accounting policies, expenses, and financial instruments 1. Description of Business and Nature of Operations 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] - The company operates the Rainy River Mine in Ontario and the New Afton Mine in British Columbia, Canada[12] - The company's shares are listed on the Toronto Stock Exchange and the NYSE American under the symbol NGD[13] 2. Basis of Preparation and Material Accounting Policy Information 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] - Accounting policies are consistent with the audited consolidated financial statements for the year ended December 31, 2023[14][15] - 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][17][18] 3. Expenses Operating expenses decreased due to lower raw materials, while other losses increased from derivative financial liabilities 3.a Operating expenses by nature 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] 3.b Finance income and costs 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] 3.c Other (losses) and gains 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] 4. Trade and Other Receivables 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] 5. Investments 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 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] 7. Inventories 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] 8. Mining Interests 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] 9. Long-term Debt 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 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] - The notes bear interest at a rate of 7.50% per annum, payable semi-annually[35] - The notes are subject to a minimum interest coverage incurrence covenant of 2:1, with no maintenance covenants[36] 9.b Credit Facility 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] - No amounts were drawn under the Credit Facility for the three months ended March 31, 2024[39] 10. Non-current Derivative Financial Liabilities Non-current derivative financial liabilities increased due to fair value adjustments, notably for the New Afton obligation Rainy River Gold Stream Obligation 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] - 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] - 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] New Afton Free Cash Flow Interest Obligation 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] - 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] - 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][50] 11. Leases Right-of-use assets and non-current lease liabilities decreased, mainly due to asset transfers 11.a Right-of-use assets 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] 11.b Lease liabilities 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] - 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] 12. Derivative Instruments 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 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] 12.b Gold and copper swap contracts 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] 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 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] - As at March 31, 2024, the fair value of unrealized foreign exchange forward contract liabilities was $0.4 million[63] - 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] 12.d Diesel fuel hedge swap contracts 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] - As at March 31, 2024, the fair value of unrealized fuel hedge swap contract assets was $nil[66] - The company hedged an average of 0.7 million gallons per month for the first two quarters of 2024 and 0.2 million gallons per month for the third quarter of 2024[66] 13. Reclamation and Closure Cost Obligations Reclamation and closure cost obligations decreased due to foreign exchange movements and revised cash flow expectations Reclamation and Closure Cost Obligations | Metric | As at March 31, 2024 (Millions USD) | As at December 31, 2023 (Millions USD) | | :------------------------------------ | :---------------------------------- | :----------------------------------- | | Balance – end of period | 120.5 | 124.2 | | Non-current portion of closure costs | 119.6 | 123.4 | - The decrease in obligations was influenced by foreign exchange movements ($(2.9) million) and revisions to expected cash flows ($(1.5) million) during Q1 2024[67] 14. Share Capital 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 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] 14.b Share-based payment expenses 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] Stock options 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] Loss per share 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] - 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] 15. Income and Mining Taxes 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] 16. Supplemental Cash Flow Information 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] 17. Segmented Information 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 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][82] 17.b Segmented assets and liabilities 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] 18. Fair Value Measurement 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] - 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] - 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][94][96] 19. Commitments 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]