New Gold (NGD) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 performance with 52,200 oz gold and 13.6M lbs copper produced, free cash flow of $25M, and key milestones in safety and project advancement.

• Consolidated 100% interest in New Afton, completed $400M senior notes refinancing, and extended credit facility to 2029, enhancing financial flexibility.

• Filed new Technical Reports for both mines, outlining strong production profiles, declining costs, and increasing net asset value.

• Achieved over 50% completion of New Afton C-Zone cave construction and major progress at Rainy River, including pit portal breakthrough.

• Safety performance improved with TRIFR of 0.55, a 40% year-over-year improvement.

Financial highlights

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

• Net loss narrowed to $16.7M ($0.02/share), with adjusted net earnings of $12.0M ($0.02/share) after one-time items.

• Cash generated from operations rose to $107.5M, and free cash flow improved to $24.9M.

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

• Ended Q1 with $213M cash and $590M liquidity, credit facility undrawn.

Outlook and guidance

• On track to meet 2025 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, 64% AISC reduction, and margin expansion of 156%.

• Free cash flow forecasted at $1.86B (consensus prices) to $2.5B (spot prices) over three years, with average annual FCF yield of ~23%.

• Rainy River and New Afton expected to ramp up production in H2 2025; exploration to intensify at both sites.

• Strategic goals include advancing Rainy River underground and open pit, ramping up New Afton C-Zone, and increasing exploration.