New Gold(US:NGD)2023-02-16 14:37Financial Data and Key Metrics Changes - In Q4 2022, the company reported a revenue of $162.8 million, driven by sales of 78,500 gold ounces at an average realized price of $1,751 per ounce and 6.8 million pounds of copper [7][8] - The net loss for Q4 was $6.3 million or $0.01 per share, compared to net earnings of $0.04 per share in Q4 2021, primarily due to lower revenues [8][25] - Cash on hand at year-end was $201 million, with total liquidity of $597 million, reflecting a decrease in cash from the prior year due to continued capital investments [9] Business Line Data and Key Metrics Changes - Gold equivalent production in Q4 was 97,800 ounces, consisting of 69,700 ounces from Rainy River and 10,900 ounces from New Afton, with a decrease attributed to lower tons mined and processed at New Afton [6] - For 2023, gold equivalent production is expected to increase by over 30% to between 365,000 and 425,000 ounces, with a significant portion of production weighted towards the second half of the year [10] Market Data and Key Metrics Changes - The company experienced lower copper sales volumes and prices, impacting overall revenue for Q4 [25] - The all-in sustaining costs for Q4 were $1,668 per equivalent ounce, higher than the prior year due to lower production and higher sustaining capital spend [24] Company Strategy and Development Direction - The company plans to focus on increasing production at both Rainy River and New Afton, with specific targets for gold equivalent production and cost reductions in 2023 [10][11][12] - Sustaining capital expenditures are expected to decrease compared to the previous year, primarily due to the completion of B3 development at New Afton [28] Management's Comments on Operating Environment and Future Outlook - Management indicated that inflationary impacts have been incorporated into the 2023 guidance, particularly related to diesel and grinding media, while efforts are being made to mitigate these pressures through hedging [17] - The health and safety of employees remain a top priority, with a significant reduction in the total recordable injury frequency rate in 2022 [31] Other Important Information - The company recorded a total CAPEX and leases of $74.3 million for Q4, with $37.2 million on sustaining capital and $37.1 million on growth capital [26] - The total mineral reserve decreased by approximately 285,000 ounces compared to the previous year, primarily due to annual mine depletion [13] Q&A Session Summary Question: Is there any expected seasonality in the production profile for 2023? - Management confirmed that the production profile is slanted more towards the second half of the year, with approximately 55% of production expected in that period [16] Question: What inflationary impacts have been incorporated into the cost profile for 2023? - Management acknowledged incorporating inflationary impacts primarily related to diesel and grinding media, while also hedging CAD exposure and fuel to mitigate inflationary pressures [17]