PR Newswire
TORONTO, Jan. 16, 2018
(All dollar figures are in US dollars unless otherwise indicated)
TORONTO, Jan. 16, 2018 /PRNewswire/ - New Gold Inc. ("New Gold" or the "Company") (TSX:NGD) (NYSE American:NGD) today announces its 2017 fourth quarter and full-year production results, provides 2018 guidance, and presents an update on the Company's growth projects. The preliminary figures provided for 2017 fourth quarter and full-year production and sales are approximate and may differ from the final results in the 2017 annual audited consolidated financial statements and management's discussion and analysis.
As the Company expects the sale of Peak Mines to close in the first quarter of 2018, Peak Mines has been classified as a discontinued operation. The below results are disclosed on a total basis and thus include Peak Mines for 2017 (unless otherwise noted).
2017 Highlights
2018 Guidance
"We are proud that our team delivered on the Company's key objectives in 2017," stated Hannes Portmann, President and Chief Executive Officer. "Rainy River successfully achieved commercial production, the balance of our operating mines generated very strong results and we simplified our portfolio with the sale of Peak. I thank the teams at all of our operations and projects for their dedication and contributions to these accomplishments."
"As we look forward to 2018, New Gold is transitioning from a period of investing in the Company's future to now benefitting from Rainy River's first full year of production," added Mr. Portmann. "With our solid production growth and streamlined asset base, our focus will continue to be on further optimizing the performance of all of our operations and maximizing free cash flow to enhance our financial flexibility."
2017 Fourth Quarter and Full Year Production Results
| | | |||
| Three months ended Dec 31 | Year ended Dec 31 | |||
| 2017 | 2016 | 2017 | 2016 | |
Operating information | |||||
Gold (ounces): | |||||
| Produced | 154,446 | 95,883 | 430,864 | 381,663 |
| Sold | 143,644 | 93,996 | 410,086 | 378,239 |
Copper (millions of pounds): | |||||
| Produced | 28.1 | 25.6 | 104.3 | 102.3 |
| Sold | 24.9 | 24.6 | 96.6 | 99.2 |
Silver (millions of ounces): | |||||
| Produced | 0.3 | 0.3 | 1.2 | 1.3 |
| Sold | 0.3 | 0.3 | 1.1 | 1.3 |
In the fourth quarter of 2017, the Company delivered record quarterly gold production of 154,446 ounces (including Peak Mines), resulting in full-year gold production of 430,864 ounces. The combination of Rainy River's start-up, Mesquite's very strong year, and solid operating results at New Afton and Peak Mines, enabled the Company to achieve its guidance range of 380,000 to 430,000 ounces. Full-year production was higher than 2016 primarily due to additional ounces from Rainy River, which transitioned to commercial production during the fourth quarter of 2017. From an accounting perspective, the Company recognized commercial production at Rainy River effective November 1, 2017.
New Gold's fourth quarter copper production of 28 million pounds was slightly higher than the first three quarters of 2017 and the prior-year quarter. Full-year copper production of 104 million pounds was higher than prior-year production and achieved the Company's 2017 guidance range of 100 to 110 million pounds.
The Company's full-year all-in sustaining costs are expected to be below the guidance range of $760 to $800 per ounce which had already been lowered by $65 per ounce in the second quarter of 2017.
Rainy River
| | | |||
| Three months ended Dec 31 | Year ended Dec 31 | |||
| 2017 | 2016 | 2017 | 2016 | |
Gold (ounces): | | | | | |
| Produced | 37,047 | - | 37,047 | - |
| Sold | 26,359 | - | 26,359 | - |
Note: Rainy River gold production includes 8,538 ounces from the pre-commercial production period. |
The Rainy River Mine commenced processing ore on September 14, 2017 and completed its first gold pour on October 5, 2017. Commercial production was achieved ahead of plan in mid-October. From an accounting perspective, the Company recognized commercial production effective November 1, 2017.
Mining and milling activities at Rainy River continued to progress well during the fourth quarter. Rainy River produced 37,047 ounces during the fourth quarter, with an additional 8,607 ounces of gold inventory in circuit at the end of the period. The milling rate for December averaged 21,000 tonnes per day, which is the nameplate capacity for the facility. Gold production for 2017, including gold inventory in circuit, totalled 45,654 ounces. This was slightly lower than the guidance range of 50,000 to 60,000 ounces, as the mill ramp-up began hitting nameplate throughput slightly later in the fourth quarter than planned, resulting in lower total tonnes milled. Consistent with the Company's plans, during the two-month commercial production period, the gold grade averaged approximately 1.0 gram per tonne with recoveries of 86%. With the mill operating at nameplate capacity, Rainy River is well positioned to deliver strong production in 2018.
Rainy River's 2017 all-in sustaining costs are expected to be above the guidance range of $1,400 to $1,440 per ounce due to lower gold sales volumes.
Project spending at Rainy River in October totalled $29 million. Subsequent to the start of commercial production, the Company paid $52 million in payables associated with the project development in the fourth quarter, with approximately $15 million in payables remaining at the end of 2017, bringing the 2017 full-year development capital spend to $511 million.
New Afton
| | | |||
| Three months ended Dec 31 | Year ended Dec 31 | |||
| 2017 | 2016 | 2017 | 2016 | |
Gold (ounces): | | | | | |
| Produced | 22,384 | 23,879 | 86,163 | 98,098 |
| Sold | 20,132 | 24,171 | 81,067 | 96,851 |
Copper (millions of pounds): | | | | | |
| Produced | 24.6 | 21.4 Werbung Mehr Nachrichten zur New Gold Aktie kostenlos abonnieren
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