New Gold (NGD) Q2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q2 2024, maintaining a robust safety culture despite a fatality at Rainy River and earning safety awards at New Afton.

• Entered a sustained period of free cash flow generation, with $100.4M cash from operations and $20.4M free cash flow in Q2.

• Increased free cash flow interest in New Afton to 80.1% through a $255M transaction funded by equity and credit facility.

• Growth projects at Rainy River Underground Main and New Afton C-Zone are on track for H2 2024 completion, expected to drive significant production growth.

• Exploration programs expanded, with ~20,000 metres drilled at Rainy River and ongoing drilling at New Afton.

Financial highlights

• Q2 2024 revenue was $218.2M, up from $184.4M in Q2 2023; H1 2024 revenue reached $410.3M.

• Net earnings for Q2 2024 were $53.1M ($0.07/share), including a $42M gain from derecognition of a financial obligation; adjusted net earnings were $17M ($0.02/share).

• Cash generated from operations in Q2 2024 was $100.4M ($0.14/share), with free cash flow of $20.4M.

• Consolidated all-in sustaining costs (AISC) were $1,381/oz gold (by-product basis), down from $1,582/oz in Q2 2023.

• Cash on hand at quarter-end was $184M, with total liquidity of $461M.

Outlook and guidance

• On track to meet 2024 consolidated production guidance: 310,000–350,000 oz gold and 50–60M lbs copper at AISC of $1,240–$1,340/oz.

• ~60% of annual production expected in H2 2024, with costs expected to trend lower as production increases and strip ratio declines.

• Major project milestones at Rainy River Underground Main and New Afton C-Zone on track for H2 completion and commercial production.

• Free cash flow generation expected to continue, with credit facility repayment anticipated in H2 2024.

• Unit costs expected to reduce through the year, supporting margin expansion and free cash flow growth.