New Gold delivers best quarterly production of 2021 at 111,574 oz. AuEq

New Gold (TSX: NGD) enjoyed its best quarterly production in 2021 from three-month period ended Dec. 31, with a total of 111,574 gold-equivalent (AuEq) ounces (81,072 oz. gold, 214,030 oz. silver and 14.2 million lb. copper).

For the year, production came to 418,933 oz. AuEq (286,921 oz. gold, 867,961 oz. silver and 61.7 million lb. copper), helping the company achieve its updated consolidated gold equivalent guidance range.

All-in sustaining costs (AISC) for the quarter were US$1,355 per oz. AuEq and US$1,463 per oz. AuEq for the year, achieving the updated annual guidance range of US$1,415 to US$1,495.

The average realized gold price for the quarter was US$1,798 per oz., while the average realized copper price was US$4.37 per lb. For the year, average realized gold price was US$1,798 per oz. and average realized copper price was US$4.24 per lb.

These allowed New Gold to generate US$106 million of cash from operations during Q4 2021, and US$324 million for the year.  Net earnings were US$151 million for the quarter and US$141 million for the year. Adjusted net earnings were US$25 million for the quarter and US$83 million for the year.

"The fourth quarter delivered our strongest production quarter of the year, allowing us to meet our updated guidance. It was also our lowest quarter from a cost perspective, leading to our highest free cash flow quarter of the year,” Renaud Adams, president and CEO of New Gold, stated.

During the quarter, New Gold closed the previously announced sale of the Blackwater gold stream to Wheaton Precious Metals (NYSE: WPM; TSX: WPM) for US$300 million to strengthen its balance sheet. At quarter-end, the company had a cash position of US$482 million and a liquidity position of US$857 million.

"Looking to 2022, our strategy remains focused on operational excellence and optimization at both assets. At Rainy River, we converted meaningful underground mineral resources to mineral reserves resulting in a net increase to total gold reserves for New Gold. We continue to seek ways to further optimize the operation and reduce costs while we advance the development of the Intrepid underground zone, targeting initial production in the second half of the year,” Adams continued. By year-end, New Gold’s total mineral reserves stood at 3.7 million oz. gold.

“At New Afton, our priorities remain on advancing the B3 ramp-up and C-zone development, exhausting the Lift 1 cave, including the recovery level zone, and completing commissioning of the in-pit tailings."

More information can be found at www.newgold.com