Production and Development - i-80 Gold aims to become a multi-asset mid-tier gold producer, targeting average annual gold production of 300,000 - 400,000 ounces in Phase 1, 150,000 - 200,000 ounces in Phase 2, and over 600,000 ounces in Phase 3[20] - Granite Creek underground ramp-up is continuing in H2 2025, with a focus on reclassifying inferred mineral resources through a 2025 drill program involving >40 holes and ~46,000 feet of drilling[25,30] - Archimedes underground surface infrastructure is complete, with underground exploration drift development planned to commence in Q3, involving >175 holes and 197,000 feet of drilling[31,33] - Cove underground expects an updated mineral resource estimate in Q3, following a completed 144,000-foot infill drill campaign in Q1 2025[34,36] - The Lone Tree processing facility is undergoing a Class 3 engineering study for autoclave refurbishment in Q4 2025, aiming to increase payability on refractory material from 55%-60% to ~92% recovery[37,41] - Mineral Point open pit has commenced infill drilling of ~5,800 feet to initiate permitting and next-stage technical studies[42,44] Financial Performance and Recapitalization - Q2 2025 revenue was $27.836 million, compared to $7.184 million in Q2 2024, driven by higher ounces sold and a higher average realized gold price of $3,301 per ounce[45,46] - The company reported a net loss of $30.215 million in Q2 2025, and a cash balance of ~$134 million due to proceeds from equity financing[45,46] - Approximately $200 million was raised through bought-deal and private placements in 2025, with ~$92 million expected to be allocated to fund construction, drilling, permitting, and technical studies across five gold projects[47] - The company is targeting $350 million - $400 million in debt financing to repay upcoming convertible debt and eliminate gold and silver prepayment obligations[48]

Financial Performance - The company generated a record quarterly free cash flow of $63 million in Q2 2025 [10] - Revenue increased to $308.4 million in Q2 2025 from $218.2 million in Q2 2024 [29], representing a 41% increase - Net earnings increased to $68.3 million in Q2 2025 from $53.1 million in Q2 2024 [29], representing a 28.6% increase - Adjusted net earnings increased significantly to $89.8 million in Q2 2025 from $17.0 million in Q2 2024 [29] - The company has a strong liquidity position with $226 million in cash and cash equivalents as of June 30, 2025 [30] Operational Performance - Consolidated gold production was 78,595 ounces in Q2 2025 compared to 68,598 ounces in Q2 2024 [17], representing a 14.6% increase - Rainy River achieved record monthly production and generated a record $45 million in free cash flow during the quarter [10] - New Afton's C-Zone cave construction is approximately 65% complete [10], with the undercut level completed in May [10] - Rainy River underground development achieved pit portal breakthrough in early April [10], with fresh air commissioning and ventilation loop completion in June [10] Outlook - The company anticipates generating approximately $2.2 billion in cumulative free cash flow from 2025-2027, averaging around $720 million per year, assuming gold at $3,000/oz and copper at $4.00/lb [41, 42]

Core Viewpoint - New Gold Inc. reported strong financial and operational results for Q2 2025, achieving record free cash flow and production growth, positioning the company to meet its annual guidance for gold and copper production [1][2][10]. Financial Highlights - Q2 2025 revenue reached $308.4 million, up from $218.2 million in Q2 2024, driven by higher gold prices and sales volume [9][14]. - Operating expenses for Q2 2025 were $111 million, slightly higher than $109.5 million in Q2 2024 [9][14]. - Net earnings for Q2 2025 were $68.6 million, compared to $53.1 million in Q2 2024, with adjusted net earnings of $89.8 million [9][14]. - Free cash flow for Q2 2025 was $63 million, significantly up from $20.4 million in Q2 2024 [11][14]. Operational Performance - Total gold production in Q2 2025 was 78,595 ounces, with copper production at 13.5 million pounds [5][12]. - New Afton Mine produced 16,991 ounces of gold and 13.5 million pounds of copper, while Rainy River Mine produced 61,604 ounces of gold [12][16]. - All-in sustaining costs for gold sold were $1,393 per ounce, reflecting a decrease from previous periods [12][14]. Production Growth and Guidance - The company is on track to meet its annual production guidance of 325,000 to 365,000 ounces of gold and 50 to 60 million pounds of copper [10][12]. - Rainy River achieved a record production month in June 2025, producing 37,341 ounces of gold at an average grade of 1.44 g/t [5][10]. - New Afton’s B3 cave is expected to exhaust later than planned, contributing to higher production levels [3][10]. Exploration and Development - Exploration efforts are ongoing at both New Afton and Rainy River, with a focus on increasing underground ore inventory and testing open pit extensions [4][10]. - New Afton’s exploration program is at an all-time high, with significant drilling activities aimed at expanding the K-Zone [10][12]. - Rainy River is advancing both open pit and underground exploration, with plans for further drilling in the third quarter [10][12]. Capital Expenditures - Total capital expenditures for Q2 2025 were $92 million, with $34 million allocated to sustaining capital and $58 million to growth capital [12][18]. - The company invested approximately $58 million in growth projects during the quarter, contributing to its strong cash flow generation [10][14].