New Gold (NGD) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 free cash flow of $57 million and revenue of $252 million, driven by higher metal prices, strong cost control, and operational milestones at both Rainy River and New Afton.

• Production totaled 78,369 gold ounces and 12.6 million pounds of copper at all-in sustaining costs (AISC) of $1,195/oz (by-product basis), with Rainy River achieving highest YTD production despite a temporary suspension.

• New Afton C-Zone and crusher system reached commercial production ahead of schedule; Rainy River achieved first underground ore development and completed a second portal.

• Positive exploration results at both operations, supporting future resource growth and ongoing expansion potential.

• Cash and cash equivalents stood at $133 million, with total liquidity of $459 million at quarter-end.

Financial highlights

• Q3 2024 revenue reached $252 million, a quarterly record, up from $201.3 million in Q3 2023, mainly due to higher metal prices and gold sales.

• Net earnings were $37.9 million ($0.05/share), up from a net loss of $2.7 million in Q3 2023; adjusted net earnings reached $64.3 million ($0.08/share).

• Record free cash flow of $57 million in Q3 2024, compared to $21.6 million in Q3 2023.

• Cash generated from operations reached $127.9 million in Q3 2024, up from $100.1 million in Q3 2023.

• Cash and cash equivalents at quarter-end were $133 million, with total liquidity of $459 million.

Outlook and guidance

• Full-year 2024 gold production expected at 300,000–310,000 ounces, slightly below initial guidance, with New Afton at the top end and Rainy River below guidance due to a temporary suspension.

• Copper production forecast at midpoint of 50–60 million pounds; all-in sustaining costs per gold ounce expected at the low end of $1,240–$1,340 guidance.

• Sustaining and growth capital both tracking to the lower end of guidance, with minimal deferrals into 2025.

• Q4 anticipated to be the lowest cost quarter of the year; 2025 and 2026 production outlooks remain unchanged.

• Updated mineral reserves/resources and a three-year operational outlook to be provided in Q1 2025.