New Gold (NGD) Q1 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q1 2025, with consolidated production of 52,200 oz gold and 13.6M lbs copper, and all-in sustaining costs (AISC) of $1,727/oz gold sold.

• Safety performance improved, with a 40% reduction in total recordable injury frequency rate (TRIFR 0.55) year-over-year.

• Completed the acquisition of the remaining 19.9% free cash flow interest in New Afton, consolidating 100% ownership.

• Enhanced financial flexibility through refinancing $400M in senior notes and extending the credit facility to 2029 at lower rates.

• Achieved key milestones at New Afton (over 50% C-Zone cave construction) and Rainy River (pit portal breakthrough, major progress underground).

Financial highlights

• Q1 2025 revenue was $209.1M, up from $192.1M year-over-year, driven by higher metal prices and copper sales.

• Cash flow from operations was $107.5M, with $25M in free cash flow, both significantly improved year-over-year.

• Net loss narrowed to $16.7M ($0.02/share), with adjusted net earnings of $12M ($0.02/share) after certain charges.

• All-in sustaining cost (AISC) averaged $1,727/oz gold; New Afton AISC was negative $687/oz due to copper credits.

• Total capital expenditures were $75.2M in Q1, up from $61.1M year-over-year.

Outlook and guidance

• On track to meet 2025 consolidated production guidance of 325,000–365,000 oz gold and 50–60M lbs copper at AISC of $1,025–$1,125/oz gold sold.

• Three-year outlook projects 38% gold and 94% copper production growth, with a 64% reduction in AISC and margin expansion of 156%.

• Cumulative free cash flow of ~$1.86B and average annual FCF yield of ~23% expected from 2025–2027.

• Rainy River and New Afton both expected to ramp up production and lower costs in upcoming quarters.

• Exploration at New Afton K-Zone and Rainy River NW Trend to intensify, with updates expected in coming quarters.