New Gold(US:NGD)2025-02-20 16:30Financial Data and Key Metrics Changes - The company produced just under 300,000 ounces of gold and 54 million pounds of copper in 2024, with an all-in sustaining cost of $1,239 per ounce, beating the low end of guidance [8] - Fourth quarter revenue reached a record $262 million, driven by higher metal prices and copper sales, despite lower gold sales [21] - Net earnings for Q4 were approximately $55 million, a significant increase from an adjusted net loss of $5 million in Q4 2023 [22] Business Line Data and Key Metrics Changes - Q4 gold production totaled approximately 80,400 ounces, with copper production at 14.5 million pounds, driven by higher feed grades [12] - New Afton achieved an all-in sustaining cost of negative $540 per ounce after considering copper credits, while Rainy River's all-in sustaining costs were $1,327 per ounce [13][17] - Free cash flow generated from Rainy River was $90 million in 2024, while New Afton generated $24 million in free cash flow [17][20] Market Data and Key Metrics Changes - The company expects gold production to increase from 300,000 ounces in 2024 to a midpoint of 410,000 ounces in 2027, representing a 30% increase [26] - Copper production is projected to rise from 54 million pounds in 2024 to 405 million pounds by 2027, a 90% increase [26] Company Strategy and Development Direction - The company aims to maintain momentum in exploration efforts to unlock additional long-term value and has increased its exposure at New Afton to over 80% [10] - The strategic focus includes delivering on production and cost guidance while enhancing health and safety performance through the Courage to Care program [35] - The company is positioned to generate significant free cash flow, with expectations of over $1.7 billion in free cash flow over the next three years at current consensus commodity prices [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial position and operational excellence, highlighting strong cost discipline and cash flow generation [24] - The outlook for 2025 includes expectations for increased production and reduced costs, with a focus on ramping up operations at both New Afton and Rainy River [30][34] - The company views the current market cycle as robust, with a compelling investment opportunity in gold and copper [36] Other Important Information - The company achieved commercial production at C-Zone and commissioned the crusher and conveyor systems at New Afton [9] - Total capital expenditures for Q4 were approximately $75 million, with $10 million on sustaining capital and $65 million on growth capital [14] Q&A Session Summary Question: Follow-up on Rainy River and additional pit push-backs - Management discussed ongoing drilling to extend the mine life and the need to confirm tailings storage capacity before making decisions on pit push-backs [40][42] Question: Comments on costs and all-in sustaining costs for early 2025 - Management indicated that costs are expected to decrease towards the end of 2025 as production increases, aligning with the stronger production profile anticipated in the second half of the year [44]