New Gold (NGD) Q1 2025 earnings summary

Executive summary

• Achieved key operational and financial milestones in Q1 2025, including strong safety performance with a TRIFR of 0.55, a 40% year-over-year improvement, and progress on strategic objectives.

• Produced 52,200 ounces of gold and 13.6 million pounds of copper, with gold output slightly ahead of plan.

• Generated $107 million in operating cash flow and $25 million in free cash flow, with New Afton contributing $52 million.

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

• Enhanced financial flexibility through refinancing $400M senior notes, extending the revolving credit facility to 2029, and adding a $100M accordion feature.

Financial highlights

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

• Net loss narrowed to $16.7M from $43.5M year-over-year; adjusted net earnings were $12.0M ($0.02/share), in line with prior year.

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

• Capital expenditures totaled $75.2M ($42M sustaining, $33M growth), up from $61.1M year-over-year.

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

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%.

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

• Production and unit costs expected to improve through the year as Rainy River ramps up and New Afton transitions to C-Zone.

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