New Gold (NGD) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 free cash flow of $57 million and revenue of $252 million, driven by higher metal prices, gold sales, and strong cost performance.

• Production increased over Q2, with consolidated gold output of 78,369 oz and copper production of 12.6M lbs at AISC of $1,195/oz.

• Key growth milestones met ahead of schedule: New Afton C-Zone and crusher commissioned early; Rainy River achieved first underground ore development.

• Positive exploration results at both operations, supporting future resource growth and potential mine life extension.

• Rainy River production impacted by a temporary suspension after a fatality, but costs improved significantly.

Financial highlights

• Q3 2024 revenue reached $252 million, a quarterly record, up from $201.3 million in Q3 2023, driven by higher metal prices and gold sales.

• Net earnings were $37.9 million, with adjusted net earnings of $64.3 million, both up from Q3 2023.

• Free cash flow was $57 million, a record, supported by higher revenue and lower capital expenditures.

• Cash and cash equivalents at quarter-end were $133 million, with total liquidity of $459 million.

• Cash generated from operations reached $127.9 million in Q3 2024.

Outlook and guidance

• 2024 gold production expected at 300,000–310,000 oz, slightly below initial guidance; New Afton at top end, Rainy River below range.

• Copper production forecast at midpoint of 50–60M lbs; consolidated AISC expected at the low end of $1,240–$1,340/oz guidance.

• Sustaining and growth capital both tracking to the lower end of guidance, with some deferrals into 2025.

• Q4 anticipated to be the lowest cost quarter; 2025–2026 outlooks reaffirmed; updated technical reports and 3-year outlook in Q1 2025.