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New Gold reports 3Q18 results

Published by , Assistant Editor
Global Mining Review,

Yesterday, New Gold Inc. (New Gold) announced its 3Q18 results. Unless otherwise noted, all operating and financial results have been presented on a continuing basis and exclude the Mesquite mine and Peak mines, which have been classified as discontinued operations.

3Q18 highlights

  • New Gold appointed Renaud Adams as President and CEO effective 12 September 2018.
  • The company appointed James Gowans to the Board of Directors effective 8 July 2018.
  • Announced the sale of the Mesquite mine for gross proceeds of US$158 million, subject to closing adjustments, expected to close during 4Q18.
  • Gold production from total operations of 114 025 oz and copper production of 21.7 million lb.
  • Operating expense from continuing operations of US$644 per gold ounce and US$1.57 per copper pound.
  • All-in sustaining costs from total operations of US$966 per ounce, including total cash costs of US$424 per ounce. 
  • Revenues of US$147 million from continuing operations.
  • Operating cash flows of US$51 million, or US$0.09 per share.
  • Operating cash flows before changes in non-cash operating working capital of US$83 million, or US$0.14 per share.
  • Loss from continuing operations of US$2 million, or US$0.00 per share.
  • Net loss of US$166 million, or US$0.29 per share, including an impairment loss, net of tax of US$162 million, relating to the sale of the Mesquite mine.
  • As of 30 September, the total liquidity of the company was US$253 million, including cash and cash equivalents of US$129 million, prior to the receipt of Mesquite sale proceeds.

"The third quarter included many positive changes for New Gold that will help reposition the company as a leading, Canadian-focused intermediate gold producer. We strengthened the technical experience of the Board and senior executive team and announced the sale of the Mesquite mine, which improves our cash position, secures the liquidity to complete the ramp-up of Rainy River, and allows us to focus exclusively on our two producing assets, Rainy River and New Afton, and unlocking value for our Blackwater project," stated Renaud Adams, President and CEO.

"The fourth quarter will be a pivotal quarter for New Gold as we advance a short-term operational plan at Rainy River to reposition this core operation for long-term success. We are confident that additional productivity improvements will be realised during the fourth quarter. Our New Afton mine continues to deliver solid and consistent results, and we are currently evaluating alternative scenarios to advance the development of the C-zone beginning in early 2019.  We will launch exploration programmes at both assets as we seek to achieve organic growth opportunities by expanding our resource base."

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