#Canada #Toronto #New Gold #New Afton #Rainy River

New Gold Reports Strong Q2 2025 Financial Results

New Gold Inc. has recently shared its financial and operational achievements for the second quarter of 2025, marking a strong growth trajectory in production and cash flow generation. The company reports a commendable output of 78,595 ounces of gold and 13.5 million pounds of copper, alongside an operating expense of $1,070 per gold ounce sold, reinforcing its position in the mining industry.

Key Highlights

The second quarter witnessed a significant quarter-over-quarter production increase, yielding a substantial cash flow from operations totaling $163 million and a remarkable quarterly free cash flow of $63 million. Notably, the Rainy River operation contributed a record $45 million in free cash flow, underscoring its pivotal role in the company's performance. Patrick Godin, the President and CEO, emphasized that this quarter built on the momentum established in the first quarter, positioning New Gold to meet its annual guidance effectively.

Production Achievements

At the New Afton Mine, production outperformed guidance, yielding 16,991 ounces of gold with copper production holding steady at 13.5 million pounds. The B3 cave's performance exceeded expectations, with production through the first half of 2025 representing approximately 54% of the annual guidance for gold and 49% for copper. Meanwhile, Rainy River’s production of 61,604 ounces of gold significantly surpassed previous quarters, capitalizing on a transition to higher-grade open-pit ore.

June specifically saw extraordinary production rates, achieving a new monthly record of 37,341 ounces, indicating excellent prospects for continued improvements in the coming months. The successful transition between grades has allowed for increased expectations for the second half of 2025 in terms of both production volume and cost efficiency.

Operational Efficiencies and Future Prospects

The operational efficiencies witnessed at both mines continued to impress, with strong mill performance and a noteworthy increase in processing capacity. Furthermore, underground development is advancing rapidly, and recent efforts to commission the necessary ventilation infrastructure have paved the way for expedited production in late 2025. New Gold remains committed to enhancing resource recovery, with exploration initiatives ramped up at both New Afton and Rainy River.

New Afton’s exploration program achieved unprecedented levels with a substantial drilling campaign underway. In total, seven diamond drills are active, promoting organic growth initiatives. Similarly, the Rainy River operations focus on maximizing the underground ore inventory while exploring potential extensions at various deposits.

Financial Metrics

From a financial standpoint, New Gold's revenue for the second quarter reached $308.4 million, a marked increase over previous periods. The company also recorded adjusted net earnings of $89.8 million, compared to $17 million in Q2 2024, showcasing remarkable growth. Key performance metrics, including the cash generated from operations, presented robust figures that reflect the overall health of the business.

With expectations set for continued strength through 2025, the company anticipates achieving its production guidance of between 325,000 to 365,000 ounces of gold and an ambitious target for copper output. The focus on reducing costs alongside increasing production efficiency indicates a promising outlook.

Conclusion

New Gold Inc. is well-positioned to sustain its growth trajectory through operational excellence and strategic resource management. The achievements from Q2 2025 not only highlight the company’s financial fortitude but also its commitment to advancing its core projects while delivering value to stakeholders. As the company heads into the second half of the year, the strategies and initiatives put in place will likely further bolster its market standing and operational success.

For further insights, stakeholders are encouraged to participate in the upcoming conference call where New Gold will discuss its future outlook and operational strategies in detail.