Achieves Top End of Consolidated Production Guidance and Midpoint of All-In Sustaining Cost Guidance
(All amounts are in
Focus on Operational Excellence Leads to Achieving 2023 Production and Cost Guidance Ranges
"2023 was a successful year for
- Fourth quarter consolidated gold eq.1 production of 105,082 ounces (79,187 ounces of gold, 12.0 million pounds of copper and 157,788 ounces of silver) at all-in sustaining costs2 of
$1,575 per gold eq. ounce. - Full year consolidated gold eq.1 production was 423,517 ounces (321,178 ounces of gold, 47.4 million pounds of copper and 593,146 ounces of silver), achieving the top end of 2023 consolidated production guidance.
- Full year consolidated all-in sustaining costs2 of
$1,545 per gold eq. ounce achieved the midpoint of 2023 consolidated cost guidance. - During the fourth quarter, the Company generated positive free cash flow2 of
$1 million after investing over$61 million in advancing growth projects.Rainy River had another excellent quarter generating$24 million in free cash flow2, net of$24 million in capital expenditures and$7 million in stream payments.
2024 an
"Last week we outlined our Operational Outlook for the next three years highlighting an approximately 35% increase in gold production and approximately 60% increase in copper production by 2026. As we work towards completing our growth projects this year, the reduction in operating costs and capital expenditures should see consistent free cash flow generation commencing in the second half of this year. This free cash flow growth is expected to increase over the next three years in-line with our increasing production profiles. We have reached the free cash flow inflection point, and I look forward to sharing progress throughout the year," added
- 2024 consolidated gold production is expected to be 310,000 to 350,000 ounces, compared to 321,178 in 2023. Production is expected to strengthen in the second half of the year, with the second half of 2024 expected to represent approximately 60% of annual production as waste stripping at
Rainy River is sequenced in the first half of the year. 2024 copper production is expected to be 50 to 60 million pounds, approximately 16% higher than 2023 driven by increased contribution from C-Zone at New Afton. - 2024 total capital is expected to be
$290 to$330 million , as growth projects at both operations are completed in the year. Commercial production at C-Zone remains on-track for the second half of 2024, along with commissioning of the underground crusher and conveyor. Initial production fromRainy River's undergroundMain Zone remains on-track for the fourth quarter of 2024. - 2024 is expected to be the final year of significant capital spending, as the Company starts to realize the benefits of these expenditures. As a result, consolidated gold production is expected to increase by approximately 35% over 2023 to 410,000 to 460,000 ounces in 2026. Copper production is expected to increase by approximately 60% compared to 2023 to 71 to 81 million pounds in 2026. All-in sustaining costs (on a by-product basis)2 are expected to decrease by over 50% compared to 2023 to between
$650 and$750 per ounce in 2026. - The higher production, lower total cash costs, and lower capital spend over the next three years are expected to drive significant free cash flow for the Company.
Consolidated Financial Highlights
Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
Revenue ($M) | 199.2 | 162.8 | 786.5 | 604.4 |
Operating expenses ($M) | 120.8 | 108.5 | 450.4 | 382.7 |
Net (loss) earnings ($M) | (27.4) | (16.9) | (64.5) | (66.8) |
Net (loss) earnings per share ($) | (0.04) | (0.02) | (0.09) | (0.10) |
Adj. net (loss) earnings ($M)2 | (4.7) | (6.3) | 48.4 | (26.1) |
Adj. net (loss) earnings, per share ($)2 | (0.01) | (0.01) | 0.07 | (0.04) |
Cash generated from operations ($M) | 70.6 | 31.9 | 287.6 | 190.7 |
Cash generated from operations, per share ($) | 0.10 | 0.05 | 0.42 | 0.28 |
Cash generated from operations, before changes in non-cash operating working capital ($M)2 | 64.9 | 44.3 | 293.4 | 181.6 |
Cash generated from operations, before changes in non-cash operating working capital, per share ($)2 | 0.09 | 0.06 | 0.43 | 0.27 |
- Revenue increased over the prior-year periods primarily due to higher sales volumes and higher gold prices, partially offset by lower copper prices.
- Operating expenses were higher than the prior-year periods due to higher production.
- Net loss for the quarter increased over the prior-year period primarily due to higher unrealized losses on the revaluation of the
Rainy River gold stream obligation and the New Afton free cash flow interest obligation, partially offset by higher revenue. For the year endedDecember 31, 2023 , net loss was consistent compared to the prior-year period. - Adjusted net earnings2 for the quarter was consistent compared to the prior-year period. For the year ended
December 31, 2023 , adjusted net earnings2 increased compared to the prior-year period primarily due to higher revenue and lower finance costs, partially offset by higher operating expenses, and depreciation and depletion. - Cash generated from operations increased over the prior-year periods primarily due to higher revenue.
Consolidated Operational Highlights
Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
Gold eq. production (ounces)1,3 | 105,082 | 97,824 | 423,517 | 347,054 |
Gold eq. sold (ounces)1,3 | 103,504 | 95,161 | 415,181 | 342,839 |
Gold production (ounces)3 | 79,187 | 80,694 | 321,178 | 271,373 |
Gold sold (ounces)3 | 77,870 | 78,507 | 319,116 | 269,147 |
Copper production (Mlbs)3 | 12.0 | 6.9 | 47.4 | 31.1 |
Copper sold (MIbs)3 | 11.9 | 6.8 | 44.4 | 30.2 |
Gold revenue, per ounce ($)4 | 1,977 | 1,736 | 1,920 | 1,791 |
Copper revenue, per pound ($)4 | 3.52 | 3.53 | 3.61 | 3.70 |
Average realized gold price, per ounce ($)2 | 2,001 | 1,751 | 1,944 | 1,808 |
Average realized copper price, per pound ($)2 | 3.72 | 3.74 | 3.84 | 3.94 |
Operating expenses, per gold eq. ounce ($)4 | 1,167 | 1,140 | 1,085 | 1,116 |
Total cash costs, per gold eq. ounce ($)2 | 1,209 | 1,167 | 1,128 | 1,150 |
Depreciation and depletion, per gold eq. ounce ($)4 | 640 | 551 | 566 | 572 |
All-in sustaining costs, per gold eq. ounce ($)2 | 1,575 | 1,668 | 1,545 | 1,818 |
Sustaining capital ($M)2 | 24.1 | 34.1 | 121.6 | 183.6 |
Growth capital ($M)2 | 36.5 | 37.1 | 144.3 | 109.2 |
Total capital ($M) | 60.6 | 71.2 | 265.9 | 292.8 |
Operational Highlights
Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
Gold eq. production (ounces)1,3 | 64,290 | 71,221 | 259,679 | 235,194 |
Gold eq. sold (ounces)1,3 | 62,650 | 68,392 | 260,897 | 233,788 |
Gold production (ounces)3 | 62,692 | 69,753 | 253,745 | 229,822 |
Gold sold (ounces)3 | 61,086 | 66,992 | 254,932 | 228,565 |
Gold revenue, per ounce ($)4 | 1,999 | 1,748 | 1,939 | 1,807 |
Average realized gold price, per ounce ($)2 | 1,999 | 1,748 | 1,939 | 1,807 |
Operating expenses, per gold eq. ounce ($)4 | 1,222 | 1,014 | 1,091 | 985 |
Total cash costs, per gold eq. ounce ($)2 | 1,222 | 1,014 | 1,091 | 985 |
Depreciation and depletion, per gold eq. ounce ($)4 | 769 | 559 | 640 | 634 |
All-in sustaining costs, per gold eq. ounce ($)2 | 1,600 | 1,467 | 1,554 | 1,605 |
Sustaining capital ($M)2 | 20.2 | 26.2 | 102.8 | 127.1 |
Growth capital ($M)2 | 4.2 | 4.2 | 17.8 | 17.7 |
Total capital ($M) | 24.5 | 30.4 | 120.6 | 144.8 |
Operating Key Performance Indicators
Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
Open Pit Only | ||||
Tonnes mined per day (ore and waste) | 109,895 | 110,536 | 119,948 | 112,826 |
Ore tonnes mined per day | 29,377 | 34,667 | 34,007 | 22,965 |
Operating waste tonnes per day | 47,838 | 56,547 | 53,537 | 39,017 |
Capitalized waste tonnes per day | 32,681 | 19,323 | 32,404 | 50,843 |
Total waste tonnes per day | 80,519 | 75,870 | 85,942 | 89,860 |
Strip ratio (waste:ore) | 2.74 | 2.19 | 2.53 | 3.91 |
Tonnes milled per calendar day | 25,046 | 22,225 | 24,012 | 23,568 |
Gold grade milled (g/t) | 0.94 | 1.16 | 0.99 | 0.91 |
Gold recovery (%) | 90 | 92 | 91 | 91 |
- Fourth quarter gold eq.1 production was 64,290 ounces (62,692 ounces of gold and 127,138 ounces of silver), a decrease over the prior-year period due to lower gold grade and recovery, partially offset by higher tonnes processed. Full year gold eq.1 production was 259,679 ounces (253,745 ounces of gold and 472,018 ounces of silver), an increase over the prior year primarily due to higher tonnes processed and higher gold grade. Full year gold eq.1 production achieved the top end of the 2023 guidance range of 235,000 to 265,000 ounces.
- Operating expense4 per gold eq. ounce for the quarter increased over the prior-year period due to lower sales volume. Full year operating expense per gold eq. ounce increased over the prior-year period due to lower capitalized tonnes, and increased costs associated with mill maintenance, partially offset by higher sales volume. Full year operating expense per gold eq. ounce was above the annual guidance range of
$905 to$985 per gold eq. ounce as a result of the lower capitalized tonnes, previously outlined in the Company's third quarter 2023 earnings release. - All-in sustaining costs2 per gold eq. ounce for the quarter increased over the prior-year period primarily due to lower sales volume, partially offset by a lower sustaining capital. Full year all-in sustaining costs2 per gold eq. ounce decreased over the prior-year period primarily from higher sales volume and lower sustaining capital. Full year all-in sustaining costs2 per gold eq. ounce was within the 2023 guidance range of
$1,475 to$1,575 per gold eq. ounce. - Total capital for the quarter and full year was
$24 million and$121 million , respectively, a decrease over the prior-year periods due to lower capitalized waste mining costs in the year, and lower capital development in the Intrepid underground zone. Sustaining capital2 primarily related to capitalized waste and tailings dam raise. Growth capital2 is related to the continued development of the Intrepid underground zone. Full year total capital is below the 2023 guidance range of$145 million to$165 million , with$25 million of capitalized waste deferred to 2024. - Free cash flow2 for the quarter and year ended
December 31, 2023 was$24 million and$55 million (net of$7 million and$29 million stream payments), respectively, an improvement over the prior-year periods primarily due to higher revenue and a decrease in capital expenditures.
Operational Highlights
Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
Gold eq. production (ounces)1,3 | 40,792 | 26,603 | 163,838 | 111,860 |
Gold eq. sold (ounces)1,3 | 40,853 | 26,769 | 154,284 | 109,051 |
Gold production (ounces)3 | 16,495 | 10,941 | 67,433 | 41,551 |
Gold sold (ounces)3 | 16,784 | 11,514 | 64,185 | 40,582 |
Copper production (Mlbs)3 | 12.0 | 6.9 | 47.4 | 31.1 |
Copper sold (Mlbs)3 | 11.9 | 6.8 | 44.4 | 30.2 |
Gold revenue, per ounce ($)4 | 1,898 | 1,668 | 1,846 | 1,699 |
Copper revenue, per ounce ($)4 | 3.52 | 3.53 | 3.61 | 3.70 |
Average realized gold price, per ounce ($)2 | 2,009 | 1,766 | 1,964 | 1,808 |
Average realized copper price, per pound ($)2 | 3.72 | 3.74 | 3.84 | 3.94 |
Operating expenses, per gold eq. ounce ($)4 | 1,081 | 1,461 | 1,074 | 1,395 |
Total cash costs, per gold eq. ounce ($)2 | 1,187 | 1,557 | 1,191 | 1,503 |
Depreciation and depletion, per gold eq. ounce ($)4 | 439 | 527 | 437 | 434 |
All-in sustaining costs, per gold eq. ounce ($)2 | 1,302 | 1,870 | 1,331 | 2,044 |
Sustaining capital ($M)2 | 3.8 | 7.9 | 18.7 | 56.5 |
Growth capital ($M)2 | 32.2 | 32.9 | 126.5 | 91.5 |
Total capital ($M) | 36.1 | 40.8 | 145.2 | 148.0 |
Operating Key Performance Indicators
Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
New Afton Mine Only | ||||
Tonnes mined per day (ore and waste) | 9,933 | 7,978 | 9,771 | 7,003 |
Tonnes milled per calendar day | 8,181 | 6,8145 | 8,289 | 9,0065 |
Gold grade milled (g/t) | 0.73 | 0.625 | 0.72 | 0.475 |
Gold recovery (%) | 90 | 865 | 90 | 845 |
Copper grade milled (%) | 0.79 | 0.57 | 0.77 | 0.51 |
Copper recovery (%) | 91 | 87 | 91 | 83 |
Gold eq. production (ounces)1 | 40,792 | 26,603 | 163,838 | 111,860 |
Gold production (ounces) | 15,942 | 9,356 | 62,637 | 37,788 |
Copper production (Mlbs) | 12.0 | 6.9 | 47.4 | 31.1 |
Ore Purchase Agreements5 | ||||
Gold production (ounces) | 553 | 1,585 | 4,796 | 3,763 |
- Fourth quarter gold eq.1 production was 40,792 ounces (16,495 ounces of gold and 12.0 million pounds of copper), and for the year ended
December 31, 2023 , gold eq.1 production was 163,838 ounces (67,433 ounces of gold and 47.4 million pounds of copper). The increase over the prior-year periods was due to higher grades and recovery. Full year gold eq.1 production exceeded the 2023 guidance range of 130,000 to 160,000 ounces. - Operating expense4 per gold eq. ounce decreased over the prior-year periods, primarily due to higher sales volume. Full year operating expense4 per gold eq. ounce was within the 2023 guidance range of
$1,035 to$1,115 per gold eq. ounce. - All-in sustaining costs2 per gold eq. ounce decreased over the prior-year periods, primarily due to higher sales volume and lower sustaining capital spend. Full year all-in sustaining costs2 per gold eq. ounce was at the low end of the 2023 guidance range of
$1,320 to$1,420 per gold eq. ounce. - Total capital for the quarter and full year was
$36 million and$145 million , respectively, relatively in-line with prior-year periods. Sustaining capital2 is primarily related to the continuation of tailings management and stabilization activities. Growth capital2 primarily related to C-Zone development, which advanced 1,242 meters during the quarter. Full year total capital is at the low end of the 2023 guidance range of$145 million to$185 million . - Free cash flow2 for the quarter and year ended
December 31, 2023 was a net outflow of$11 million and$44 million , respectively, an improvement over the prior-year periods primarily due to an increase in revenue and a decrease in capital expenditure.
Fourth Quarter and Full Year 2023 Conference Call and Webcast
The Company will host a webcast and conference call tomorrow,
- Participants may listen to the webcast by registering on our website at www.newgold.com or via the following link https://app.webinar.net/QKynzVelmWD
- Participants may also listen to the conference call by calling North American toll free 1-888-664-6383, or 1-416-764-8650 outside of the
U.S. andCanada , passcode 03373344. - To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3RAcXl4 to receive an instant automated call back.
- A recorded playback of the conference call will be available until
March 14, 2024 by calling North American toll free 1-888-390-0541, or 1-416-764-8677 outside of theU.S. andCanada , passcode 373344. An archived webcast will also be available at www.newgold.com.
Endnotes
- Total gold eq. ounces include silver and copper produced/sold converted to a gold equivalent. All copper is produced/sold by the
New Afton Mine . Gold eq. ounces forRainy River in Q4 2023 includes production of 127,138 ounces of silver (124,421 ounces of silver sold) converted to a gold eq. based on a ratio of$1,750 per gold ounce and$22.00 per silver ounce used for 2023 guidance estimates. Gold eq. ounces for New Afton in Q4 2023 includes 12.0 million pounds of copper produced (11.9 million pounds sold) and 30,651 ounces of silver produced (28,838 ounces of silver sold) converted to a gold eq. based on a ratio of$1,750 per gold ounce,$3.50 per copper pound and$22.00 per silver ounce used for 2023 guidance estimates. - "Total cash costs", "all-in sustaining costs" (or "AISC"), "adjusted net earnings/(loss)", "adjusted tax expense", "sustaining capital and sustaining leases", "growth capital", "cash generated from operations, before changes in non-cash operating working capital", "free cash flow", and "average realized gold/copper price per ounce/pound" are all non-GAAP financial performance measures that are used in this news release. These measures do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For more information about these measures, why they are used by the Company, and a reconciliation to the most directly comparable measure under IFRS, see the "Non-GAAP Financial Performance Measures" section of this news release.
- Production is shown on a total contained basis while sales are shown on a net payable basis, including final product inventory and smelter payable adjustments, where applicable.
- These are supplementary financial measures which are calculated as follows: "revenue per ounce/pound" is revenue divided by gold ounces or copper pounds sold, "operating expenses per gold eq. ounce" is operating expenses divided by gold equivalent ounces sold, "depreciation and depletion per gold eq. ounce" is depreciation and depletion divided by gold equivalent ounces sold, "operating expenses ($/oz gold, co-product)" and "operating expenses ($/lb copper, co-product)" is operating expenses apportioned to each metal produced on a percentage of activity basis, and subsequently divided by the total gold ounces, or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures.
- Key performance indicator data is inclusive of ounces from ore purchase agreements for New Afton.
The New Afton Mine purchases small amounts of ore from local operations, subject to certain grade and other criteria. These ounces represented approximately 3% of total gold ounces produced at New Afton during the quarter, and 7% for the year endedDecember 31, 2023 , using New Afton's excess mill capacity. All other ounces are mined and produced at New Afton.
Non-GAAP Financial Performance Measures
Total Cash Costs per Gold eq. Ounce
"Total cash costs per gold equivalent ounce" is a non-GAAP financial performance measure that is a common financial performance measure in the gold mining industry but does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
This measure is intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. This measure is not necessarily indicative of cash generated from operations under IFRS or operating costs presented under IFRS.
Total cash cost figures are calculated in accordance with a standard developed by
In addition to gold, the Company produces copper and silver. Gold equivalent ounces of copper and silver produced or sold in a quarter are computed using a consistent ratio of copper and silver prices to the gold price and multiplying this ratio by the pounds of copper and silver ounces produced or sold during that quarter.
Notwithstanding the impact of copper and silver sales, as the Company is focused on gold production,
In 2024,
Unless indicated otherwise, all total cash cost information in this news release is shown on a gold equivalent basis. In 2024,
Sustaining Capital and Sustaining Leases
"Sustaining capital" and "sustaining lease" are non-GAAP financial performance measures that do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
Growth Capital
"Growth capital" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
All-In Sustaining Costs per Gold eq. Ounce
"All-in sustaining costs per gold equivalent ounce" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
"All-in sustaining costs per gold equivalent ounce" is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.
Costs excluded from all-in sustaining costs are non-sustaining capital expenditures, non-sustaining lease payments and exploration costs, financing costs, tax expense, and transaction costs associated with mergers, acquisitions and divestitures, and any items that are deducted for the purposes of adjusted earnings
In 2024
Unless indicated otherwise, the all-in sustaining cost information in this news release is shown on a gold equivalent basis. In 2024,
The following tables reconcile the above non-GAAP measures to the most directly comparable IFRS measure on an aggregate basis.
Consolidated OPEX, Cash Cost and All-in Sustaining Costs Reconciliation
Three months ended | Twelve months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
CONSOLIDATED OPEX, CASH COST AND ALL-IN | ||||
Operating expenses | 120.8 | 108.5 | 450.4 | 382.7 |
Gold equivalent ounces sold1 | 103,504 | 95,161 | 415,181 | 342,839 |
Operating expenses per gold equivalent ounce sold ($/ounce) | 1,167 | 1,140 | 1,085 | 1,116 |
Operating expenses | 120.8 | 108.5 | 450.4 | 382.7 |
Treatment and refining charges on concentrate sales | 4.3 | 2.6 | 18.1 | 11.7 |
Total cash costs2 | 125.1 | 111.0 | 468.4 | 394.2 |
Gold equivalent ounces sold1 | 103,504 | 95,161 | 415,181 | 342,839 |
Total cash costs per gold equivalent ounce sold ($/ounce)2 | 1,209 | 1,167 | 1,128 | 1,150 |
Sustaining capital expenditures2 | 24.1 | 34.2 | 121.6 | 182.9 |
Sustaining exploration - expensed | 0.2 | — | 0.9 | 0.5 |
Sustaining leases2 | 1.5 | 2.9 | 9.3 | 10.8 |
Corporate G&A including share-based compensation | 9.2 | 7.6 | 29.3 | 23.3 |
Reclamation expenses | 2.8 | 3.0 | 12.1 | 11.5 |
Total all-in sustaining costs2 | 163.0 | 158.8 | 641.6 | 623.2 |
Gold equivalent ounces sold1 | 103,504 | 95,161 | 415,181 | 342,839 |
All-in sustaining costs per gold equivalent ounce sold ($/ounce)2 | 1,575 | 1,668 | 1,545 | 1,818 |
Three months ended | Twelve months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
Operating expenses | 76.6 | 69.4 | 284.7 | 230.4 |
Gold equivalent ounces sold1 | 62,650 | 68,392 | 260,897 | 233,788 |
Operating expenses per unit of gold sold ($/ounce) | 1,222 | 1,014 | 1,091 | 985 |
Operating expenses | 76.6 | 69.4 | 284.7 | 230.4 |
Total cash costs2 | 76.6 | 69.4 | 284.7 | 230.4 |
Gold equivalent ounces sold1 | 62,650 | 68,392 | 260,897 | 233,788 |
Total cash costs per gold equivalent ounce sold ($/ounce)2 | 1,222 | 1,014 | 1,091 | 985 |
Sustaining capital expenditures2 | 20.2 | 26.2 | 102.8 | 126.3 |
Sustaining leases2 | 1.1 | 2.3 | 8.3 | 9.4 |
Reclamation expenses | 2.3 | 2.5 | 9.6 | 9.2 |
Total all-in sustaining costs2 | 100.2 | 100.3 | 405.4 | 375.2 |
Gold equivalent ounces sold1 | 62,650 | 68,392 | 260,897 | 233,788 |
All-in sustaining costs per gold equivalent ounce sold ($/ounce)2 | 1,600 | 1,467 | 1,554 | 1,605 |
Three months ended | Twelve months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
NEW AFTON OPEX, CASH COSTS AND AISC RECONCILIATION | ||||
Operating expenses | 44.2 | 39.1 | 165.7 | 152.3 |
Gold equivalent ounces sold1 | 40,853 | 26,769 | 154,284 | 109,051 |
Operating expenses per unit of gold sold ($/ounce) | 1,081 | 1,461 | 1,074 | 1,395 |
Operating expenses | 44.2 | 39.1 | 165.7 | 152.3 |
Treatment and refining charges on concentrate sales | 4.3 | 2.6 | 18.0 | 11.7 |
Total cash costs2 | 48.5 | 41.7 | 183.7 | 164.0 |
Gold equivalent ounces sold1 | 40,853 | 26,769 | 154,284 | 109,051 |
Total cash costs per gold equivalent ounce sold ($/ounce)2 | 1,187 | 1,557 | 1,191 | 1,503 |
Sustaining capital expenditures2 | 3.8 | 7.9 | 18.7 | 56.4 |
Sustaining leases2 | 0.3 | — | 0.4 | 0.3 |
Reclamation expenses | 0.6 | 0.5 | 2.5 | 2.3 |
Total all-in sustaining costs2 | 53.2 | 50.1 | 205.3 | 223.0 |
Gold equivalent ounces sold1 | 40,853 | 26,769 | 154,284 | 109,051 |
All-in sustaining costs per gold equivalent ounce sold ($/ounce)2 | 1,302 | 1,870 | 1,331 | 2,044 |
Sustaining Capital Expenditures Reconciliation Table
Three months ended | Twelve months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
TOTAL SUSTAINING CAPITAL EXPENDITURES | ||||
Mining interests per consolidated statement of cash flows | 60.6 | 71.3 | 265.9 | 292.9 |
New Afton growth capital expenditures2 | (32.2) | (32.9) | (126.5) | (91.5) |
(4.2) | (4.2) | (17.8) | (17.7) | |
Sustaining capital expenditures2 | 24.1 | 34.2 | 121.6 | 183.7 |
Adjusted Net Earnings/(Loss) and Adjusted Net Earnings per Share
"Adjusted net earnings" and "adjusted net earnings per share" are non-GAAP financial performance measures that do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. "Adjusted net earnings" and "adjusted net earnings per share" excludes "loss on repayment of long term debt" and "other gains and losses" as per Note 3 of the Company's condensed consolidated financial statements. Net earnings have been adjusted, including the associated tax impact, for loss on repayment of long-term debt and the group of costs in "Other gains and losses" on the condensed consolidated income statements. Key entries in this grouping are: the fair value changes for the
The Company uses "adjusted net earnings" for its own internal purposes. Management's internal budgets and forecasts and public guidance do not reflect the items which have been excluded from the determination of "adjusted net earnings". Consequently, the presentation of "adjusted net earnings" enables investors to better understand the underlying operating performance of the Company's core mining business through the eyes of management. Management periodically evaluates the components of "adjusted net earnings" based on an internal assessment of performance measures that are useful for evaluating the operating performance of
Three months ended | Twelve months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
ADJUSTED NET (LOSS) EARNINGS RECONCILIATION | ||||
(Loss) earnings before taxes | (30.8) | (5.7) | (59.2) | (65.4) |
Other losses | 30.7 | (7.3) | 115.3 | 25.7 |
Loss on repayment of long-term debt | — | — | — | 4.3 |
Corporate restructuring | — | 2.1 | — | 2.1 |
Adjusted net (loss) earnings before taxes | (0.1) | (10.9) | 56.1 | (33.3) |
Income tax expense | 3.4 | (11.2) | (5.3) | (1.4) |
Income tax adjustments | (8.0) | 15.8 | (2.4) | 8.6 |
Adjusted income tax recovery (expense)2 | (4.6) | 4.6 | (7.7) | 7.2 |
Adjusted net (loss) earnings2 | (4.7) | (6.3) | 48.4 | (26.1) |
Adjusted (loss) earnings per share (basic and diluted)2 | (0.01) | (0.01) | 0.07 | (0.04) |
Cash Generated from Operations, before Changes in
"Cash generated from operations, before changes in non-cash operating working capital" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Other companies may calculate this measure differently and this measure is unlikely to be comparable to similar measures presented by other companies. "Cash generated from operations, before changes in non-cash operating working capital" excludes changes in non-cash operating working capital.
Cash generated from operations, before non-cash changes in working capital is intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. This measure is not necessarily indicative of operating profit or cash flows from operations as determined under IFRS. The following table reconciles this non-GAAP financial performance measure to the most directly comparable IFRS measure.
Three months ended | Twelve months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
CASH RECONCILIATION | ||||
Cash generated from operations | 70.6 | 31.9 | 287.6 | 190.7 |
Change in non-cash operating working capital | (5.7) | 12.4 | 5.8 | (9.1) |
Cash generated from operations, before changes in non-cash operating working capital2 | 64.9 | 44.3 | 293.4 | 181.6 |
Free Cash Flow
"Free cash flow" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
Three months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 56.6 | 25.6 | (11.6) | 70.6 |
Less Mining interest capital expenditures | (24.5) | (36.1) | — | (60.6) |
Add Proceeds of sale from other assets | — | — | (0.1) | (0.1) |
Less Lease payments | (1.1) | (0.3) | (0.2) | (1.6) |
Less Cash settlement of non-current derivative financial liabilities | (7.5) | — | (0.1) | (7.6) |
Free Cash Flow2 | 23.6 | (10.8) | (12.0) | 0.7 |
Three months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 42.2 | (0.7) | (9.6) | 31.9 |
Less Mining interest capital expenditures | (30.4) | (40.7) | (0.2) | (71.3) |
Add Proceeds of sale from other assets | — | — | — | — |
Less Lease payments | (2.3) | — | (0.3) | (2.6) |
Less Cash settlement of non-current derivative financial liabilities | (5.7) | — | — | (5.7) |
Free Cash Flow2 | 3.8 | (41.4) | (10.1) | (47.7) |
Twelve months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 212.7 | 101.6 | (26.7) | 287.6 |
Less Mining interest capital expenditures | (120.6) | (145.2) | (0.1) | (265.9) |
Add Proceeds of sale from other assets | — | — | (0.1) | (0.1) |
Less Lease payments | (8.3) | (0.4) | (0.6) | (9.3) |
Less Cash settlement of non-current derivative financial liabilities | (28.8) | — | (0.1) | (28.9) |
Free Cash Flow2 | 55.0 | (44.0) | (27.6) | (16.6) |
Twelve months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 195.4 | 22.6 | (27.3) | 190.7 |
Less Mining interest capital expenditures | (144.8) | (147.9) | (0.3) | (292.9) |
Add Proceeds of sale from other assets | 0.8 | 0.1 | — | 0.9 |
Less Lease payments | (9.4) | (0.3) | (0.6) | (10.3) |
Less Cash settlement of non-current derivative financial liabilities | (24.0) | (12.4) | — | (36.4) |
Free Cash Flow2 | 18.0 | (137.9) | (28.1) | (148.0) |
Average Realized Price
"Average realized price per ounce of gold sold" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Other companies may calculate this measure differently and this measure is unlikely to be comparable to similar measures presented by other companies. Management uses this measure to better understand the price realized in each reporting period for gold sales. "Average realized price per ounce of gold sold" is intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following tables reconcile this non-GAAP financial performance measure to the most directly comparable IFRS measure on an aggregate and mine-by-mine basis.
Three months ended | Twelve months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
TOTAL AVERAGE REALIZED PRICE | ||||
Revenue from gold sales | 153.9 | 136.3 | 612.8 | 482.2 |
Treatment and refining charges on gold concentrate sales | 1.9 | 1.1 | 7.6 | 4.4 |
Gross revenue from gold sales | 155.8 | 137.4 | 620.4 | 486.6 |
Gold ounces sold | 77,870 | 78,507 | 319,116 | 269,147 |
Total average realized price per gold ounce sold ($/ounce)2 | 2,001 | 1,751 | 1,944 | 1,808 |
Three months ended | Twelve months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
Revenue from gold sales | 122.1 | 117.1 | 494.3 | 413.1 |
Gold ounces sold | 61,086 | 66,992 | 254,932 | 228,565 |
1,999 | 1,748 | 1,939 | 1,807 |
Three months ended | Twelve months ended | |||
(in millions of | 2023 | 2022 | 2023 | 2022 |
NEW AFTON AVERAGE REALIZED PRICE | ||||
Revenue from gold sales | 31.9 | 19.2 | 118.5 | 69.1 |
Treatment and refining charges on gold concentrate sales | 1.9 | 1.1 | 7.6 | 4.4 |
Gross revenue from gold sales | 33.8 | 20.3 | 126.1 | 73.5 |
Gold ounces sold | 16,784 | 11,514 | 64,185 | 40,582 |
New Afton average realized price per gold ounce sold ($/ounce)2 | 2,009 | 1,766 | 1,964 | 1,808 |
For additional information with respect to the non-GAAP measures used by the Company, refer to the detailed "Non-GAAP Financial Performance Measure" section disclosure in the MD&A for the three months and year ended
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release, including any information relating to
All forward-looking statements in this news release are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond
Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: price volatility in the spot and forward markets for metals and other commodities; discrepancies between actual and estimated production, between actual and estimated costs, between actual and estimated Mineral Reserves and Mineral Resources and between actual and estimated metallurgical recoveries; equipment malfunction, failure or unavailability; accidents; risks related to early production at the
Technical Information
The scientific and technical information contained in this news release has been reviewed and approved by
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