New Gold Reports Impressive Fourth Quarter Results for 2024 with Strong Cash Flow Generation

New Gold Reports Fourth Quarter and Full Year 2024 Results



New Gold Inc., a significant player in the mining sector, has released its financial results for the fourth quarter and full year of 2024. The company reported a total production of 298,303 ounces of gold at an impressive all-in sustaining cost of $1,239 per ounce. This diligent performance underscores the effectiveness of New Gold's operational strategies and cost management disciplines.

Throughout 2024, New Gold demonstrated consistent financial growth with a strong cash flow from operations amounting to $110 million and a free cash flow of $22 million in the fourth quarter alone. The cost performance was exemplary, with the company managing all-in sustaining costs below the lower end of its projected guidance range.

Patrick Godin, the President and CEO of New Gold, expressed pride in the company’s ability to maintain operational discipline and capital management. He highlighted the challenges faced late in the year but emphasized that the managerial efforts led to three consecutive quarters of solid free cash flow generation and a commitment to investments in exploration and growth projects.

Fourth Quarter Highlights


In the fourth quarter, New Gold reported consolidated production of 80,438 ounces of gold and 14.5 million pounds of copper, with all-in sustaining costs recorded at $1,018 per ounce (by-product). This marked a 2% increase in gold production and a noteworthy 21% increase in copper production compared to the previous year, all while achieving cost reductions of 31%.

Financial Performance


The fourth quarter showcased remarkable financial metrics:
  • - Revenue: $262.2 million
  • - Operating expenses: $112.4 million
  • - Net earnings: $55.1 million
  • - Free cash flow: $22 million

The total revenue for the full year reached $924.5 million, an increase driven primarily by higher gold and copper prices, notwithstanding a decrease in gold sales volume due to lower production from the Rainy River Mine.

In terms of balance sheet management, New Gold reported cash and cash equivalents of $105 million at the year's end, following the repayment of $50 million on its credit facility. This strategic financing move came after repurchasing a significant interest from the Ontario Teachers' Pension Plan (OTPP), raising New Gold's stake in the New Afton operations to 80.1%.

Operational Insights


Examining operational performance, the company announced substantial achievements:
  • - New Afton Mine: Recorded 19,652 ounces of gold and 14.5 million pounds of copper in Q4 2024. The average realized gold price per ounce sold was $2,539, against $2,001 in the previous year.
  • - Rainy River Mine: Produced 60,786 ounces of gold in Q4 2024, facing challenges such as unexpected mechanical downtime that affected the total output.

New Gold’s operational metrics showed lower costs per ounce sold for both gold and copper, resulting from improved efficiencies and a reduction in operating expenses. The full-year operating expenses for gold were largely within guidance, despite certain operational hurdles.

Looking Ahead


With optimistic projections for 2025, New Gold aims to expand production and enhance operational efficiencies. The management intends to ramp up efforts in exploration and development at both the New Afton and Rainy River mines, asserting a commitment to sustainable growth and shareholder value.

In conclusion, New Gold’s robust performance in Q4 2024, marked by strong cost discipline and operational advancements, sets a promising outlook for further successes in the evolving landscape of the mining industry. For more details and updates, interested parties are encouraged to follow New Gold’s investor communications as they unveil their strategic plans for the upcoming year.

Conference Call Information


Investors and analysts are invited to participate in a conference call scheduled for February 20, 2025, at 8:30 AM ET, where further insights and information about New Gold’s financial and operational performance will be shared.

For further inquiries, please visit New Gold's website.

Topics Business Technology)

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