New Gold Inc.

New Gold Announces Operations at the Rainy River Mine Have Resumed

TORONTO, July 29, 2024 /CNW/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) announces that operations resumed during the day shift on Saturday July 27th at the Rainy River Mine in northwestern Ontario, following the employee fatality reported on July 24th. Operations safely resumed Saturday, as no other equipment or site infrastructure was impacted in the incident. New Gold is supporting the authorities with their investigation.

The thoughts of management remain with the family, friends and colleagues who have been impacted by this tragic incident. The health, safety and wellbeing of our employees is our top priority.

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July 29, 2024
New Gold Appoints Christian Milau to the Board of Directors

TORONTO, July 29, 2024 /CNW/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) is pleased to announce that Christian Milau has been appointed to its Board of Directors (the "Board") effective immediately.

Christian brings over 25 years of experience in finance, capital markets and mining. He is a mining executive with experience leading growth-oriented exploration, development, and operating mining companies with a focus on gold and copper. His mining experience includes Chief Executive Officer of Equinox Gold from 2016 to 2022, leading the company through five mergers and acquisitions and growing from a single-asset developer to a multi-mine producer with eight operating mines. Prior to Equinox, he served as Chief Executive Officer at True Gold Mining from 2015 until it was acquired by Endeavour Mining in 2016. He also served as Chief Financial Officer of Endeavour Mining from 2011 to 2015, and Vice President, Treasurer at New Gold from 2008 to 2011. He is currently the Chief Executive Officer and a founder of Saudi Discovery Company, a private copper exploration company focused on exploration in Saudi Arabia. He is also a corporate director, serving on the boards of Copper Standard Resources, Arras Minerals Corp., Carbon Streaming Corporation and Northern Dynasty Minerals.

"On behalf of the Board and the team at New Gold, I am pleased to welcome Christian back to New Gold, and to our Board, at a very exciting time for our Company. I am confident his strategy and capital markets experience will prove to be an asset to our Board as the Company transitions to a significant free cash flow generator and looks to our future as a leading intermediate gold producer," said Nick Chirekos, Chair of the Corporate Governance and Nominating Committee of the Board.

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   Second quarter consolidated production was 68,598 ounces of gold and 13.6 million pounds of copper at all-in sustaining costs1 of $1,381 per gold ounce sold (by-product basis).
   New Afton had a strong second quarter, producing 18,300 ounces of gold and 13.6 million pounds of copper at all-in sustaining costs1 of ($433) per gold ounce sold (by-product basis). Second quarter gold and copper production were in-line with plan. The B3 cave continues to perform slightly better than plan, and C-Zone ore production is ramping up concurrent with construction of the cave footprint. Commercial production from C-Zone and crusher commissioning remains on-track for the second half of the year.
   Rainy River's second quarter delivered to plan, producing 50,298 ounces of gold at all-in sustaining costs1 of $1,868 per gold ounce sold (by-product basis). Prioritizing open pit waste stripping activities in the first half positioned the open pit well to release higher grade ore and deliver stronger production in the second half. The mill continues to perform well, with throughput averaging over 26,000 tonnes per day and recoveries over 90% for the quarter. Both the mine and mill are well positioned to deliver on annual guidance.
   Through the first six months of the year, gold production represented 42% of the mid-point of guidance, and copper production represented 49%, in-line with the previously stated outlook. For the first six months, consolidated all-in sustaining costs1 were $1,389 per gold ounce sold. With production set to increase and all-in sustaining costs set to decrease in the second half of the year, the Company remains on-track to achieve 2024 consolidated production guidance of 310,000 to 350,000 ounces of gold and 50 to 60 million pounds of copper at all-in sustaining costs1 of $1,240 to $1,340 per gold ounce sold (by-product basis).

Multiple Corporate Milestones Achieved in a Positive Free Cash Flow Quarter, the Company Has Entered a Sustained Free Cash Flow Generation Period

"During the quarter, we also successfully delivered an accretive transaction for our shareholders by increasing our free cash flow interest in New Afton to 80.1%," added Mr. Godin. "As we've now entered a period of sustained free cash flow, this is further enhanced with our increased interest in a world-class copper-gold mine."

   The Company delivered strong cash flow from operations during the second quarter of $100 million, driven by higher copper production and higher metal prices. Cash generated from operations, before changes in non-cash operating working capital1, totaled $90 million. The Company delivered free cash flow1 of $20 million in the quarter while continuing to invest in its growth projects. With the Company exiting the first half of 2024 free cash flow positive, New Gold has now entered a sustained free cash flow generation period.
   During the second quarter, the Company successfully entered into an agreement relating to its strategic partnership with Ontario Teachers' Pension Plan ('Ontario Teachers') whereby New Gold increased its effective free cash flow interest in New Afton to 80.1%. Ontario Teachers' free cash flow interest in New Afton was reduced from 46.0% to 19.9% in exchange for an upfront cash payment of $255 million. To fund the payment, the Company completed an oversubscribed $173 million equity financing, and borrowed $100 million from its existing revolving credit facility. Through this transaction, New Gold was successfully able to deliver a meaningful increase in attributable life-of-mine cash flow in an existing high-quality operation while maintaining its balance sheet strength and financial liquidity. As at June 30, 2024, cash and cash equivalents were $184 million, and the Company maintained a liquidity position of $461 million.
   During the second quarter, the Company also announced the publication of its 2023 Environmental, Social and Governance Reports ("ESG Reports") and its 2023 Task Force on Climate-Related Financial Disclosures Report ("TCFD Report"). New Gold has published an annual ESG Report since 2015 (formerly, the Sustainability Report) reporting on the sustainability-related material topics that matter most to its stakeholders. The 2023 ESG Reports and TCFD Report are available on New Gold's Sustainability Microsite, accessible through www.newgold.com.

Growth Projects Nearing Completion, to Add Significant Free Cash Flow Generation

"After a productive first half of 2024, our growth projects remain on track for completion by the end of the year. The second quarter saw numerous milestones at both the Rainy River underground Main project and the New Afton C-Zone block cave project that have positioned us for success. Rainy River remains on track to achieve first ore from the underground Main Zone by the end of this year, while New Afton expects to achieve commercial production at C-Zone in the second half of 2024. As we've now entered a period of free cash flow generation, bringing both of these projects online as planned will further build on that free cash flow generation as outlined in our three-year operational outlook," added Mr. Godin.

   At Rainy River, underground development rates continued to ramp up during the second quarter and are expected to continue to increase into the second half of the year. As previously discussed, one of the priorities for 2024 is to establish the primary ventilation circuit. At the end of the second quarter, both the ODM East ventilation loop and the fresh air raise were approximately 50% complete, in-line with plan. With the development of the in-pit portal set to commence in the third quarter, underground Main Zone remains on-track for first ore in the fourth quarter of 2024, with the ramp-up in underground production to approximately 5,500 tonnes per day by 2027.
   At New Afton, the Company reiterates expectations to commission the C-Zone gyratory crusher and conveyor system on time, with the cave achieving hydraulic radius in the second half of 2024. Lateral development continues to advance on plan, with over 80% of development metres complete. C-Zone cave construction remains on track to achieve hydraulic radius in the second half of 2024. The new C-Zone gyratory crusher and conveyor system continued to make significant progress towards completion in the second half of 2024. With C-Zone development and the gyratory crusher and conveyor system nearing completion, the increase in processing rates, and decrease in costs is expected to generate meaningful free cash flow over the coming years.

Exploration Milestones Achieved in the Quarter, Sustainable Production Remains the Focus

"We made significant progress with our exploration efforts at both operations during the second quarter. After allocating additional funding to new opportunities at Rainy River earlier in the year, our exploration team advanced numerous high priority surface and underground targets. At New Afton, with the completion of the exploration drift in the quarter, the team has been able to advance priority near-mine targets. Our exploration strategic objective is to target a sustainable production platform of approximately 600,000 gold equivalent ounces per year with a line of sight until at least 2030. We are targeting releasing an additional exploration update to the market later in the third quarter," stated Mr. Godin.

   At Rainy River, exploration drilling continues to make meaningful progress from both surface and underground. Through the first half of 2024, the Company has drilled approximately 20,000 metres at Rainy River testing the down-plunge extension of ODM Main and 17 East Zones at depth, the Intrepid Strike-Extension, and exploring the Gap zone located between the Intrepid and Main Zones. During the second quarter, surface drilling prioritized targets with potential for open pit extraction including NW-Trend, Zone 280, and ODM East. Drilling continues to progress as planned for both surface and underground targets. Rainy River's priority is to sustain mill throughput beyond 2029.
   Exploration efforts at New Afton achieved multiple notable milestones during the quarter. Following the intersection of high-grade copper-gold porphyry mineralization at K-Zone (refer to the Company's May 29, 2024 news release for further information), the exploration drift being developed to provide additional drill platforms was completed and drilling of the K-Zone and AI-Southeast targets from the drift commenced as planned. The Company also completed exploration drilling to extend the D-Zone resource envelope. New Afton continues to execute on its exploration strategy to extend the mine life beyond 2030. Exploration efforts remain focused on potential near-mine zones located above the C-Zone extraction level to minimize capital investment and maximize free cash flow generation.

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July 31, 2024
New Gold Appoints Richard O'Brien Chair of the Board

TORONTO, July 31, 2024 /CNW/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) is pleased to announce that Richard O'Brien has been appointed as Chair of the Board effective August 1, 2024. Mr. O'Brien was appointed to the Board of Directors on March 25, 2024, where it was announced that he was expected to transition into the Chair role. As previously disclosed, Ian Pearce will retire from the Board of Directors effective August 1, 2024.

"On behalf of the Board and New Gold, I would like to express my gratitude to Ian not only for his eight years of dedication and commitment to the Board of Directors, but also for his assistance during this transition period over the last four months," said Richard O'Brien, Chair of the Board. "New Gold is well positioned to take advantage of this significant free cash flow period, as we pursue our goal of being a miner of choice, and a leading intermediate gold producer."  

"I would like to thank Ian for his tremendous support and guidance during my tenure as CEO at New Gold," said Patrick Godin, President & CEO. "We are grateful for the wealth of experience and dedication he brought to the Board and this will help serve as the foundation for the Company's future success."

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Ross brings over 30 years of experience in mining, overseeing and financing mining projects and activities for both senior and junior mining companies. Ross has spent over 20 years at Resource Capital Funds ('RCF') where he is currently Senior Strategic Advisory Partner and was previously the head of RCF's Private Equity Funds.  He serves as Chair of the Private Equity Mature Funds Investment Committee. In his current role, Ross is responsible for serving as an ambassador for the firm, building relationships with potential and existing investors, evaluating investment merits, and developing and executing business strategies for each investment. Prior to Resource Capital Funds, Ross was President and Chief Executive Officer of GTN Copper Corporation from 1998-2001, and Director of Business Development at Newmont Mining Corporation from 1993-1997. Ross holds a Ph.D. in Mineral Economics from the Colorado School of Mines, an M.S. in Metallurgy from the University of Arizona, and a B.S. in Metallurgical Engineering from the University of Arizona.

"Sophie's operational discipline and focus on safety, and Ross' technical and financial expertise will be proven assets for New Gold," said Richard O'Brien, Chair of the Board. "I am pleased to welcome Sophie and Ross to our Board at a time where New Gold continues to demonstrate its ability to deliver on its strategic objectives in pursuit of our mission to be a leading intermediate gold producer. I am confident Sophie and Ross bring the right professional experience to accelerate this strategy."

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Diamond drilling conducted from surface and from underground confirmed the extension of gold mineralization along strike at Intrepid and down-plunge at the ODM East and 17-East zones of Underground Main (“UG Main”). In addition, diamond drilling from the connection ramp between Intrepid and UG Main led to the intersection of sulphide-bearing gold mineralization above current underground mining cut-off grade (1.74 g/t AuEq) and minimum mining width (2.4 metres) at the Gap Area target.

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Drilling from the recently completed exploration drift intersected a series of high-grade bornite dominant lenses hosted within a broader chalcopyrite-bearing halo, together forming a copper-gold mineralized system extending over 300 metres in strike and locally exceeding 50 metres in width (Figure 1). Borehole EA24-510 intersected some of the best grade discovered to date at New Afton.

   K-Zone drilling highlights1,2:
       2.83% copper mineralization and 1.90 g/t gold (4.14% CuEq) over 84 metres core length (30 metres estimated true width) in Borehole EA24-510 including:
           4.18% copper mineralization and 3.03 g/t gold (6.27% CuEq) over 50 metres core length (18 metres estimated true width) in bornite-bearing zone
       0.99% copper mineralization and 1.23 g/t gold and (1.79% CuEq) over 169 metres core length (40 metres estimated true width) in Borehole EA24-516 including:
           1.60% copper mineralization and 1.87 g/t gold (2.83% CuEq) over 76 metres core length (19 metres estimated true width) in bornite-bearing zone
       3.25% copper mineralization and 1.91 g/t gold (4.57% CuEq) over 36 metres core length (19 metres estimated true width) in Borehole EA24-519 in bornite-bearing zone
       1.13% copper mineralization and 1.43 g/t gold and (2.07 CuEq%) over 93 metres core length (33 metres estimated true width) in Borehole EA24-520 including:
           1.66% copper mineralization and 2.14 g/t gold (3.07 CuEq%) over 54 metres core length (19 metres estimated true width) in bornite-bearing zone

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