New Gold (NGD) Q4 2024 earnings summary

Executive summary

• Achieved key 2024 objectives, including a free cash flow inflection point ahead of schedule, with $85M generated and strong cost discipline, prioritizing health and safety with improved TRIFR.

• Produced 298,303oz gold and 54M lbs copper at an AISC of $1,239/oz, meeting or beating guidance.

• Delivered project milestones at New Afton (C-Zone commercial production, crusher commissioning) and Rainy River (first underground ore), both on budget and ahead of schedule.

• Increased ownership at New Afton to over 80% by reducing Ontario Teachers' interest.

• Positive exploration and technical studies extended mine life and outlined strong free cash flow for the next three years.

Financial highlights

• FY 2024 revenue was $924.5M, up from $786.5M in FY 2023, with Q4 revenue at a record $262.2M, driven by higher metal prices and copper sales.

• Net earnings for FY 2024 were $102.6M, up from a loss of $64.5M in FY 2023; Q4 net earnings were $55.1M.

• Adjusted net earnings for FY 2024 were $153.4M, up from $48.4M; Q4 adjusted net earnings $59.1M.

• Free cash flow for FY 2024 was $84.9M, up from $16.6M; Q4 free cash flow $22.1M.

• Ended Q4 with $105M cash and $482M liquidity; repaid $100M credit facility in H2 2024.

Outlook and guidance

• Gold production expected to rise from 300,000oz in 2024 to over 400,000oz annually by 2027, a 38% increase.

• Copper production forecasted to grow from 54M lbs in 2024 to nearly double by 2027.

• AISC projected to fall 64% over three years, with margins expanding 156%.

• Free cash flow over the next three years expected to exceed $1.7B at consensus prices, with average annual FCF yield above 25%.

• 2025 guidance: Rainy River gold 265,000–285,000oz; New Afton gold 60,000–70,000oz, copper 50M–60M lbs.