TORONTO, Oct. 25, 2017 /CNW/ – New Gold Inc. (“New Gold”) (TSX:NGD) (NYSE American:NGD) today announces its 2017 third quarter results and provides an update on the start-up of the company’s Rainy River Mine.
As the company began a process for the sale of its Peak Mines located in Australia, and expects a sale of the asset within the next few months, Peak Mines has been classified as a discontinued operation. The below operational and financial results are disclosed on a continuing basis and thus exclude Peak Mines (unless otherwise noted).
2017 Third Quarter Highlights
- Rainy River successfully achieved start-up on September 14, 2017 with the first gold pour announced on October 6, 2017
- Commercial production successfully achieved in mid-October, ahead of plan
- Amendment to Schedule 2 of the Metal Mining Effluent Regulations required to close two small creeks and deposit tailings, became effective on September 27, 2017
- Gold production of 82,027 ounces and copper production of 26.0 million pounds (includes Peak Mines)
- Operating expense from continuing operations of $601 per gold ounce and $1.30 per copper pound
- All-in sustaining costs(1) of $792 per ounce, including total cash costs(2) of $339 per ounce
- Cash generated from operations of $66 million, or $0.11 per share
- Cash generated from operations before changes in non-cash operating working capital(3) of $61 million
- Net earnings of $27 million, or $0.05 per share
- Adjusted net earnings(4) of $4 million, or $0.01 per share
- September 30, 2017 cash and cash equivalents of $207 million
- Entered into copper price option contracts covering approximately 60 million pounds of 2018 production ensuring a guaranteed floor price of $3.00 per pound while providing continued exposure to increases in the copper price up to $3.37 per pound