NEW GOLD REPORTS THIRD QUARTER 2024 RESULTS
Strong All-in Sustaining Costs Drive Increasing Margins and Record Free Cash Flow Generation, Provides 2024 Operational Outlook Update
(All amounts are in
Third Quarter Delivers Highest Production and Lowest Costs This Year, Trends Expected to Continue into the Fourth Quarter
"New Afton delivered a strong operating quarter and completed critical C-Zone milestones ahead of schedule, while
- Third quarter consolidated production was 78,369 ounces of gold and 12.6 million pounds of copper at all-in sustaining costs1 of
$1,195 per gold ounce sold (by-product basis). - New Afton third quarter production was 16,477 ounces of gold and 12.6 million pounds of copper at all-in sustaining costs1 of (
$408 ) per gold ounce sold (by-product basis). The B3 cave continues to perform as planned, and C-Zone ore production is ramping up concurrently with construction of the cave footprint. Commercial production from C-Zone and crusher commissioning occurred early in the fourth quarter, two months ahead of schedule. -
Rainy River third quarter production was 61,892 ounces of gold at all-in sustaining costs1 of$1,327 per gold ounce sold (by-product basis). AlthoughRainy River achieved the highest production quarter year-to-date, operations were impacted by a voluntary suspension following a fatality in July, after which open pit production gradually returned to full capacity.
New Gold Achieves Record Quarterly Free Cash Flow, Further Strengthening the Balance Sheet
"Financially, the third quarter was excellent for
- The Company delivered record quarterly revenue of
$252 million , record cash flow from operations of$128 million , and record free cash flow1 of$57 million , driven by higher metal prices, operational discipline and efficient capital management. - During the third quarter, the Company made a payment of
$43 million to the Ontario Teachers' Pension Plan ("Ontario Teachers") as part of the minimum cash guarantee under the terms of the original 2020 New Afton strategic partnership. The Company also repaid$50 million of the$100 million drawn on its credit facility to fund the payment under the amending agreement with Ontario Teachers pursuant to which the strategic partnership was amended to reduce the free cash flow interest from 46.0% to 19.9% (the "Amending Agreement"). -
New Gold exits the third quarter with a strong financial position, with cash and cash equivalents of$133 million , and a liquidity position of$459 million as atSeptember 30, 2024 .
2024 Operational Outlook Update, Highlighted by Strong Cost Performance
"Although we expect consolidated gold production to be slightly below the original guidance range, copper production, cash costs, all-in sustaining costs and capital spending are all trending in-line with or better than the outlook presented at the beginning of this year," stated
"Considering the performance to date, and after reviewing the open pit ore blocks planned at
- Gold production is expected to be in the range of 300,000 to 310,000 ounces (previously 310,000 to 350,000 ounces). New Afton gold production is expected to be at the top end of the guidance range of 60,000 to 70,000 ounces.
Rainy River gold production is expected to be in the range of 230,000 to 240,000 ounces (previously 250,000 to 280,000 ounces). - Copper production is expected to be at the mid-point of the guidance range of 50 to 60 million pounds.
- Cash costs1 are trending in-line with the mid-point of the guidance range of
$725 to$825 per gold ounce sold, on a by-product basis, despite the slightly lower gold production outlook and lower capitalized waste stripping, as a result of lower mining and processing costs, achieved through operational discipline at both operations, and higher by-product revenues from higher copper prices. Overall, the unit mining cost per tonne is lower than plan due to operational efficiency improvements and cost reduction initiatives. - All-in sustaining costs1 are expected to be at the low end of the guidance range of
$1,240 to$1,340 per gold ounce sold, on a by-product basis, as a result of strong cash costs and lower sustaining capital spend.Rainy River's all-in sustaining costs are expected to be at the top end of its guidance range as lower mining and processing costs offset the lower expected production. All-in sustaining costs at New Afton are expected to be below the low end of its guidance range. - Operating expenses per gold ounce (co-product) are now tracking to the high end or slightly above the top end of the guidance range of
$965 to$1,065 per gold ounce sold as a result of lower capitalized waste stripping and slightly lower gold production, which offset the impact of lower mining and processing costs. Operating expenses per copper pound (co-product) are trending in-line with the mid-point of the guidance range of$1.90 to$2.40 per copper pound sold. - Sustaining capital1 is tracking approximately
$20 million below the low end of the guidance range of$115 million to$130 million , due to efficient capital management, savings related to execution of theRainy River tailings dam raise, lower capitalized waste stripping and timing of capital spend at New Afton. - Growth capital1 is tracking to the low end of the guidance range of
$175 million to$200 million , due to efficient capital management and early commissioning of the materials handling system at New Afton.
Notable Exploration Successes With a Focus on Near Mine Targets
"Our exploration strategy continued to advance during the third quarter, with positive exploration results released on both assets earlier in September. With the previously announced increased exploration budgets at both
- At
Rainy River , exploration drilling continues to advance on underground targets. During the third quarter, the Company provided an update on the ongoingRainy River exploration program (seeSeptember 11, 2024 news release), highlighting successful expansion of gold mineralized zones. These results are expected to have a positive impact onRainy River's Mineral Resource estimate at year-end 2024 and form the basis of additional exploration opportunities in the coming years. Exploration drilling in the fourth quarter will continue testing the down-dip continuity of existing underground zones while exploring for potential new mining zones. - At New Afton, the Company continues to prioritize exploration drilling from the underground drift previously completed in the second quarter. During the third quarter, the Company provided an additional update on the ongoing exploration program at New Afton (see
September 16, 2024 news release), highlighting positive exploration results in the eastern part of the mine where high-grade copper-gold porphyry mineralization was intersected. Exploration efforts during the fourth quarter will remain focused on potential near-mine copper-gold zones located above the C-Zone extraction level.
Consolidated Financial Highlights
|
Q3 2024 |
Q3 2023 |
9M 2024 |
9M 2023 |
Revenue ($M) |
252.0 |
201.3 |
662.3 |
587.3 |
Operating expenses ($M) |
107.6 |
107.5 |
323.9 |
329.6 |
Depreciation and depletion ($M) |
58.3 |
58.8 |
190.8 |
168.2 |
Net earnings (loss) ($M) |
37.9 |
(2.7) |
47.5 |
(37.1) |
Net earnings (loss), per share ($) |
0.05 |
— |
0.06 |
(0.05) |
Adj. net earnings ($M)1 |
64.3 |
23.1 |
94.3 |
53.1 |
Adj. net earnings, per share ($)1 |
0.08 |
0.03 |
0.13 |
0.08 |
Cash generated from operations ($M) |
127.9 |
100.1 |
283.2 |
217.0 |
Cash generated from operations, per share ($) |
0.16 |
0.15 |
0.38 |
0.32 |
Cash generated from operations, before changes in non-cash operating working capital ($M)1 |
120.0 |
87.7 |
283.1 |
228.5 |
Cash generated from operations, before changes in non-cash operating working capital, per share ($)1 |
0.15 |
0.13 |
0.38 |
0.33 |
Free cash flow ($M)1 |
57.0 |
21.6 |
62.8 |
(17.3) |
- Revenue in the third quarter increased over the prior-year period primarily due to higher metal prices and gold sales volume, partially offset by lower copper sales volume. For the nine months ended
September 30, 2024 , the increase in revenue relative to the prior-year period was primarily due to higher metal prices, partially offset by lower gold sales volume. - Operating expenses in the third quarter and for the nine months ended
September 30, 2024 were in-line with the prior year periods. - Depreciation expense in the third quarter was in-line compared to the prior-year period as the higher depreciable cost basis at
Rainy River was offset by the lower depreciable cost basis at New Afton due to the disposition of mineral interest properties as a result of the accounting for the Amending Agreement with Ontario Teachers. For the nine months endedSeptember 30, 2024 , depreciation and depletion increased due to a higher depreciable cost basis when compared to the prior-year period, partially offset by an inventory write-up atRainy River . Depreciation expense in the fourth quarter is expected to increase as C-Zone has reached commercial production and increases the depreciable cost basis. - Net earnings increased over the prior-year periods due to higher revenue. For the nine months ended
September 30, 2024 , the increase in net earnings was also attributable to a net gain on the derecognition of the New Afton free cash flow obligation. - Adjusted net earnings1 increased over the prior-year periods due to higher revenue, partially offset by higher depreciation in the nine months ended
September 30, 2024 . - Cash generated from operations and free cash flow1 increased over the prior-year periods primarily due to higher revenue, lower sustaining capital spend, and positive working capital movements. The Company delivered record quarterly free cash flow of
$57 million . -
September 30, 2024 cash and cash equivalents were$133 million .
Consolidated Operational Highlights
|
Q3 2024 |
Q3 2023 |
9M 2024 |
9M 2023 |
Gold production (ounces)2 |
78,369 |
82,986 |
217,865 |
241,991 |
Gold sold (ounces)2 |
81,791 |
79,821 |
219,565 |
241,247 |
Copper production (Mlbs)2 |
12.6 |
13.2 |
39.5 |
35.5 |
Copper sold (MIbs)2 |
11.0 |
13.0 |
36.4 |
32.5 |
Gold revenue, per ounce ($)3 |
2,485 |
1,900 |
2,297 |
1,902 |
Copper revenue, per pound ($)3 |
3.98 |
3.57 |
3.97 |
3.65 |
Average realized gold price, per ounce ($)1 |
2,507 |
1,924 |
2,324 |
1,926 |
Average realized copper price, per pound ($)1 |
4.18 |
3.78 |
4.19 |
3.89 |
Operating expenses per gold ounce sold ($/ounce, co-product)3 |
1,021 |
982 |
1,090 |
1,014 |
Operating expenses per copper pound sold ($/pound, co-product)3 |
2.18 |
2.24 |
2.33 |
2.61 |
Depreciation and depletion per gold ounce sold ($/ounce) |
715 |
739 |
872 |
699 |
Cash costs per gold ounce sold (by-product basis) ($/ounce)1 |
741 |
749 |
783 |
858 |
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)1 |
1,195 |
1,333 |
1,317 |
1,418 |
Sustaining capital ($M)1 |
19.8 |
35.6 |
77.2 |
97.5 |
Growth capital ($M)1 |
42.7 |
35.0 |
118.6 |
107.8 |
Total capital ($M) |
62.5 |
70.6 |
195.8 |
205.3 |
Operational Highlights
|
Q3 2024 |
Q3 2023 |
9M 2024 |
9M 2023 |
Gold production (ounces)2 |
61,892 |
64,970 |
164,908 |
191,053 |
Gold sold (ounces)2 |
67,228 |
62,426 |
169,837 |
193,846 |
Gold revenue, per ounce ($)3 |
2,501 |
1,921 |
2,323 |
1,920 |
Average realized gold price, per ounce ($)1 |
2,501 |
1,921 |
2,323 |
1,920 |
Operating expenses per gold ounce sold ($/ounce)3 |
1,089 |
1,056 |
1,195 |
1,074 |
Depreciation and depletion per gold ounce sold ($/ounce) |
681 |
641 |
809 |
613 |
Cash costs per gold ounce sold (by-product basis) ($/ounce)1 |
1,028 |
1,015 |
1,130 |
1,032 |
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)1 |
1,327 |
1,535 |
1,582 |
1,532 |
Sustaining capital ($M)1 |
17.9 |
28.7 |
69.5 |
82.6 |
Growth capital ($M)1 |
14.0 |
3.3 |
31.8 |
13.5 |
Total capital ($M) |
31.9 |
32.0 |
101.3 |
96.1 |
Operating Key Performance Indicators
|
Q3 2024 |
Q3 2023 |
9M 2024 |
9M 2023 |
Open Pit Only |
|
|
|
|
Tonnes mined per day (ore and waste) |
81,619 |
121,011 |
97,352 |
123,336 |
Ore tonnes mined per day |
24,374 |
36,177 |
19,527 |
35,567 |
Operating waste tonnes per day |
52,080 |
44,393 |
53,299 |
55,458 |
Capitalized waste tonnes per day |
5,164 |
40,442 |
24,526 |
32,311 |
Total waste tonnes per day |
57,245 |
84,835 |
77,825 |
87,769 |
Strip ratio (waste:ore) |
2.35 |
2.35 |
3.99 |
2.47 |
Underground Only |
|
|
|
|
Ore tonnes mined per day |
834 |
801 |
755 |
856 |
Waste tonnes mined per day |
1,117 |
474 |
1,166 |
456 |
Lateral development (metres) |
1,018 |
649 |
3,275 |
2,371 |
|
|
|
|
|
Tonnes milled per calendar day |
24,528 |
25,308 |
25,204 |
23,664 |
Gold grade milled (g/t) |
0.95 |
0.97 |
0.84 |
1.01 |
Gold recovery (%) |
93 |
90 |
92 |
91 |
- Third quarter gold production was 61,892 ounces. For the nine months ended
September 30, 2024 , gold production was 164,908 ounces. The decrease over the prior year periods was primarily due to increased mill feed from low-grade stockpiles. - Operating expenses per gold ounce sold for the third quarter was in-line with the prior-year period. Operating expenses per gold ounce sold for the nine months ended
September 30, 2024 , increased over the prior-year period primarily due to lower sales volumes. - All-in sustaining costs1 per gold ounce sold (by-product basis) for the third quarter decreased over the prior-year period due to higher sales volumes and lower sustaining capital spend. All-in sustaining costs per gold ounce sold (by-product basis) for the nine months ended
September 30, 2024 , increased over the prior-year period due to lower sales volumes, partially offset by lower sustaining capital spend. - Total capital for the third quarter is in-line with the prior-year period, and higher for the nine months ended
September 30, 2024 . The increase over the prior-year period is due to higher growth capital spend, partially offset by lower sustaining capital spend. Sustaining capital1 is primarily related to capitalized waste, capital components, and tailings management. Growth capital1 is related to underground development as the Underground Main and Intrepid zones continue to advance. - Free cash flow for the third quarter and nine months ended
September 30, 2024 , was$44 million and$53 million (net of stream payments) respectively, an increase compared to the prior-year periods primarily due to an increase in revenue from higher gold prices, partially offset by higher growth capital spend. - At
Rainy River , first development ore was mined from Underground Main in late September, ahead of schedule. Underground Main contains the majority of underground mineral reserves atRainy River and will be an important source of higher-grade production in the coming years to supplement mill feed from the open pit and the Intrepid underground zone. Mining of first ore follows the completion of the main fresh air raise and in-pit portal in the third quarter. With these important milestones completed, the Underground Main project is on track to commence stoping in the first half of 2025 and ramp up to an underground production rate of approximately 5,500 tonnes per day by 2027.
Operational Highlights
|
Q3 2024 |
Q3 2023 |
9M 2024 |
9M 2023 |
Gold production (ounces)2 |
16,477 |
18,016 |
52,957 |
50,937 |
Gold sold (ounces)2 |
14,564 |
17,395 |
49,728 |
47,401 |
Copper production (Mlbs)2 |
12.6 |
13.2 |
39.5 |
35.5 |
Copper sold (Mlbs)2 |
11.0 |
13.0 |
36.4 |
32.5 |
Gold revenue, per ounce ($)3 |
2,413 |
1,823 |
2,208 |
1,827 |
Copper revenue, per ounce ($)3 |
3.98 |
3.57 |
3.97 |
3.65 |
Average realized gold price, per ounce ($)1 |
2,536 |
1,932 |
2,330 |
1,948 |
Average realized copper price, per pound ($)1 |
4.18 |
3.78 |
4.19 |
3.89 |
Operating expenses ($/oz gold, co-product)3 |
709 |
718 |
730 |
769 |
Operating expenses ($/lb copper, co-product)3 |
2.18 |
2.24 |
2.33 |
2.61 |
Depreciation and depletion ($/ounce) |
864 |
1,077 |
1,078 |
1,042 |
Cash costs per gold ounce sold (by-product basis) ($/ounce)1 |
(583) |
(206) |
(401) |
145 |
Cash costs per gold ounce sold ($/ounce,co-product)1 |
775 |
786 |
799 |
844 |
Cash costs per copper pound sold ($/pound, co-product)1 |
2.39 |
2.46 |
2.55 |
2.87 |
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)1 |
(408) |
223 |
(195) |
502 |
All-in sustaining costs per gold ounce sold ($/ounce, co-product)1 |
828 |
915 |
861 |
951 |
All-in sustaining costs per copper pound sold ($/pound, co-product)1 |
2.55 |
2.86 |
2.74 |
3.23 |
Sustaining capital ($M)1 |
1.9 |
6.7 |
7.7 |
14.8 |
Growth capital ($M)1 |
28.7 |
31.7 |
86.8 |
94.3 |
Total capital ($M) |
30.6 |
38.4 |
94.5 |
109.1 |
Operating Key Performance Indicators
|
Q3 2024 |
Q3 2023 |
9M 2024 |
9M 2023 |
New Afton Mine Only |
|
|
|
|
Tonnes mined per day (ore and waste) |
9,614 |
9,790 |
10,188 |
9,716 |
Tonnes milled per calendar day |
11,302 |
8,651 |
10,851 |
8,326 |
Gold grade milled (g/t) |
0.57 |
0.72 |
0.62 |
0.69 |
Gold recovery (%) |
86 |
90 |
88 |
89 |
Copper grade milled (%) |
0.62 |
0.80 |
0.67 |
0.77 |
Copper recovery (%) |
88 |
91 |
90 |
91 |
Gold production (ounces) |
16,283 |
17,255 |
52,241 |
46,694 |
Copper production (Mlbs) |
12.6 |
13.2 |
39.5 |
35.5 |
Ore Purchase Agreements4 |
|
|
|
|
Gold production (ounces) |
195 |
761 |
716 |
4,243 |
- Third quarter production was 16,477 ounces of gold (inclusive of ore purchase agreements) and 12.6 million pounds of copper. For the nine months ended
September 30, 2024 , gold production was 52,957 ounces (inclusive of ore purchase agreements) and copper production was 39.5 million pounds. Third quarter production decreased over the prior year period due to lower grade and recovery. For the nine months endedSeptember 30, 2024 , the increase in gold and copper production over the prior-year period is due to higher tonnes processed, partially offset by lower grade and recovery. - Operating expenses per gold ounce sold and per copper pound sold for the third quarter decreased over the prior-year period due to lower underground mining cost in the third quarter. Operating expenses per gold ounce sold and per copper pound sold for the nine months ended
September 30, 2024 , decreased over the prior-year period due to lower underground mining cost and higher gold and copper sales volumes. - All-in sustaining costs1 per gold ounce sold (by-product basis) for the third quarter and nine months ended
September 30, 2024 , decreased over the prior-year periods due to the benefit of higher by-product revenues, lower operating expenses, and lower sustaining capital spend. - Total capital decreased over the prior-year periods, primarily due to lower sustaining and growth capital1 spend. Sustaining capital1 primarily related to tailings management and stabilization activities. Growth capital primarily related to the C-Zone underground mine development and cave construction.
- Free cash flow1 for the third quarter and nine months ended
September 30, 2024 , was$19 million and$31 million , respectively, a significant improvement over the prior-year periods primarily due to higher revenue and lower overall capital spend. - C-Zone, New Afton's fourth block cave, has achieved commercial production ahead of schedule with the materials handling system coming online in October and the cave footprint reaching the targeted hydraulic radius for self-cave propagation. Installation of the gyratory crusher and conveyor system was completed ahead of schedule and C-Zone is now set up for high capacity, low-cost, low-emission ore transportation for the life-of-mine. Additionally, construction of the C-Zone cave footprint has reached the targeted 18 draw bells for hydraulic radius. These two milestones are expected to have an immediate positive impact on unit operating costs and ultimately facilitate a ramp-up to previously achieved processing rates of more than 14,500 tonnes per day by 2026.
Third Quarter 2024 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/xPwpa23nj6B
- Participants may also listen to the conference call by calling North American toll free 1-888-510-2154, or 1-437-900-0527 outside of the
U.S. andCanada , passcode 45265. - To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3TCTEZb to receive an instant automated call back.
- A recorded playback of the conference call will be available until
November 30, 2024 by calling North American toll free 1-888-660-6345, or 1-289-819-1450 outside of theU.S. andCanada , passcode 45265. An archived webcast will also be available at www.newgold.com.
About New Gold
Endnotes |
|
|
|
1. |
"Cash costs per gold ounce sold", "all-in sustaining costs (AISC) per gold ounce sold", "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. |
2. |
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. |
3. |
These are supplementary financial measures which are calculated as follows: "revenue per ounce and pound sold" is total revenue divided by total gold ounces sold and copper pounds sold, "Operating expenses per gold ounce sold" is total operating expenses divided by total gold ounces sold; "depreciation and depletion per gold ounce sold" is total depreciation and depletion divided by total gold ounces sold; and "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. |
4. |
Key performance indicator data is inclusive of ounces from ore purchase agreements for New Afton. |
Non-GAAP Financial Performance Measures
Cash Costs per Gold Ounce Sold
"Cash costs per gold ounce sold" is a common non-GAAP financial performance measure used 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.
Cash cost figures are calculated in accordance with a standard developed by
The Company produces copper and silver as by-products of its gold production. The calculation of total cash costs per gold ounce for
To provide additional information to investors,
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 (AISC) per Gold Ounce Sold
"All-in sustaining costs per gold ounce sold" ("AISC") 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 ounce sold" 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 per gold ounce sold 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.
To provide additional information to investors, the Company has also calculated all-in sustaining costs per gold ounce sold on a co-product basis for New Afton, which removes the impact of other metal sales that are produced as a by-product of gold production and apportions the all-in sustaining costs to each metal produced on a percentage of revenue basis, and subsequently divides the amount by the total gold ounces, or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures. By including cash costs as a component of all-in sustaining costs, the measure deducts by-product revenue from gross cash costs.
The following tables reconcile the above non-GAAP measures to the most directly comparable IFRS measure on an aggregate and mine-by-mine basis.
Cash Costs and All-in Sustaining Costs per Gold Ounce Reconciliation Tables
|
Three months ended |
Nine months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
CONSOLIDATED CASH COST AND AISC RECONCILIATION |
|
|
|
|
Operating expenses |
107.6 |
107.5 |
323.9 |
329.6 |
Treatment and refining charges on concentrate sales |
4.1 |
4.7 |
14.1 |
13.7 |
By-product silver revenue |
(5.0) |
(3.3) |
(13.7) |
(10.0) |
By-product copper revenue |
(46.1) |
(49.2) |
(152.4) |
(126.4) |
Total cash cost1 |
60.6 |
59.8 |
172.0 |
206.9 |
Gold ounces sold2 |
81,791 |
79,821 |
219,565 |
241,247 |
Cash costs per gold ounce sold (by-product basis)1 |
741 |
749 |
783 |
858 |
Sustaining capital expenditures1 |
19.8 |
35.6 |
77.2 |
97.5 |
Sustaining exploration - expensed |
0.1 |
0.3 |
0.3 |
0.7 |
Sustaining leases1 |
0.1 |
1.5 |
1.9 |
7.7 |
Corporate G&A including share-based compensation |
14.3 |
6.2 |
29.5 |
20.1 |
Reclamation expenses |
2.9 |
3.1 |
8.3 |
9.3 |
Total all-in sustaining costs1 |
97.8 |
106.4 |
289.1 |
342.1 |
Gold ounces sold2 |
81,791 |
79,821 |
219,565 |
241,247 |
All-in sustaining costs per gold ounce sold (by-product basis)1 |
1,195 |
1,333 |
1,317 |
1,418 |
|
Three months ended |
Nine months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
Operating expenses |
73.2 |
65.9 |
203.0 |
208.1 |
By-product silver revenue |
(4.1) |
(2.5) |
(11.1) |
(8.1) |
Total cash costs net of by-product revenue |
69.1 |
63.4 |
191.9 |
200.0 |
Gold ounces sold2 |
67,228 |
62,426 |
169,837 |
193,846 |
Cash costs per gold ounce sold (by-product basis)1 |
1,028 |
1,015 |
1,130 |
1,032 |
Sustaining capital expenditures1 |
17.9 |
28.7 |
69.5 |
82.6 |
Sustaining leases1 |
0.0 |
1.3 |
1.0 |
7.2 |
Reclamation expenses |
2.2 |
2.4 |
6.3 |
7.3 |
Total all-in sustaining costs1 |
89.2 |
95.8 |
268.7 |
297.1 |
Gold ounces sold2 |
67,228 |
62,426 |
169,837 |
193,846 |
All-in sustaining costs per gold ounce sold (by-product basis)1 |
1,327 |
1,535 |
1,582 |
1,532 |
|
Three months ended |
Nine months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
NEW AFTON CASH COSTS AND AISC RECONCILIATION |
|
|
|
|
Operating expenses |
34.4 |
41.6 |
120.9 |
121.5 |
Treatment and refining charges on concentrate sales |
4.1 |
4.7 |
14.1 |
13.7 |
By-product silver revenue |
(0.8) |
(0.7) |
(2.6) |
(1.9) |
By-product copper revenue |
(46.1) |
(49.2) |
(152.4) |
(126.4) |
Total cash costs net of by-product revenue |
(8.5) |
(3.6) |
(19.9) |
6.9 |
Gold ounces sold2 |
14,564 |
17,395 |
49,728 |
47,401 |
Cash costs per gold ounce sold (by-product basis)1 |
(583) |
(206) |
(401) |
145 |
Sustaining capital expenditures1 |
1.9 |
6.7 |
7.7 |
14.8 |
Sustaining leases1 |
0.0 |
0.1 |
0.5 |
0.1 |
Reclamation expenses |
0.6 |
0.7 |
2.0 |
2.0 |
Total all-in sustaining costs1 |
(5.9) |
3.9 |
(9.7) |
23.8 |
Gold ounces sold2 |
14,564 |
17,395 |
49,728 |
47,401 |
All-in sustaining costs per gold ounce sold (by-product basis)1 |
(408) |
223 |
(195) |
502 |
Three months ended |
||||||
(in millions of |
Gold |
Copper |
Total |
|||
NEW AFTON CASH COST AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) |
|
|
|
|||
Operating expenses |
10.3 |
24.1 |
34.4 |
|||
Units of metal sold |
14,564 |
11.0 |
|
|||
Operating expenses ($/oz gold or lb copper sold, co-product)3 |
709 |
2.18 |
|
|||
Treatment and refining charges on concentrate sales |
1.2 |
2.9 |
4.1 |
|||
By-product silver revenue |
(0.3) |
(0.6) |
(0.8) |
|||
Cash costs (co-product)3 |
11.3 |
26.4 |
37.6 |
|||
Cash costs per gold ounce sold or lb copper sold (co-product)3 |
775 |
2.39 |
|
|||
Sustaining capital expendituresI |
0.6 |
1.4 |
1.9 |
|||
Sustaining leases |
0.0 |
0.0 |
0.0 |
|||
Reclamation expenses |
0.2 |
0.4 |
0.6 |
|||
All-in sustaining costs (co-product)2 |
12.1 |
28.1 |
40.2 |
|||
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)2 |
828 |
2.55 |
|
|||
I Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, 30% of operating costs were attributed to gold production and 70% of operating costs were attributed to copper production. |
Three months ended |
||||||
(in millions of |
Gold |
Copper |
Total |
|||
NEW AFTON CASH COST AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) |
|
|
|
|||
Operating expenses |
12.5 |
29.1 |
41.6 |
|||
Units of metal sold |
17,395 |
13.0 |
|
|||
Operating expenses ($/oz gold or lb copper sold, co-product)3 |
718 |
2.24 |
|
|||
Treatment and refining charges on concentrate sales |
1.4 |
3.3 |
4.7 |
|||
By-product silver revenue |
(0.2) |
(0.5) |
(0.7) |
|||
Cash costs (co-product)3 |
13.7 |
31.9 |
45.6 |
|||
Cash costs per gold ounce sold or lb copper sold (co-product)3 |
786 |
2.46 |
|
|||
Sustaining capital expendituresI |
2.0 |
4.7 |
6.7 |
|||
Reclamation expenses |
0.2 |
0.5 |
0.7 |
|||
All-in sustaining costs (co-product)2 |
15.9 |
37.1 |
53.0 |
|||
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)2 |
915 |
2.86 |
|
|||
I Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, 30% of operating costs were attributed to gold production and 70% of operating costs were attributed to copper production. |
Nine months ended |
||||||
(in millions of |
Gold |
Copper |
Total |
|||
NEW AFTON CASH COST AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) |
|
|
|
|||
Operating expenses |
36.3 |
84.7 |
120.9 |
|||
Units of metal sold |
49,728 |
36.4 |
|
|||
Operating expenses ($/oz gold or lb copper sold, co-product)3 |
730 |
2.33 |
|
|||
Treatment and refining charges on concentrate sales |
4.2 |
9.9 |
14.1 |
|||
By-product silver revenue |
(0.8) |
(1.8) |
(2.6) |
|||
Cash costs (co-product)3 |
39.7 |
92.7 |
132.4 |
|||
Cash costs per gold ounce sold or lb copper sold (co-product)3 |
799 |
2.55 |
|
|||
Sustaining capital expendituresI |
2.3 |
5.4 |
7.7 |
|||
Sustaining leases |
0.1 |
0.3 |
0.4 |
|||
Reclamation expenses |
0.6 |
1.4 |
2.0 |
|||
All-in sustaining costs (co-product)2 |
42.8 |
99.8 |
142.6 |
|||
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)2 |
861 |
2.74 |
|
|||
I Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, 30% of operating costs were attributed to gold production and 70% of operating costs were attributed to copper production. |
Nine months ended |
||||||
(in millions of |
Gold |
Copper |
Total |
|||
NEW AFTON CASH COST AND AISC RECONCILIATION (ON A CO-PRODUCT BASIS) |
|
|
|
|||
Operating expenses |
36.5 |
85.1 |
121.5 |
|||
Units of metal sold |
47,401 |
32.5 |
|
|||
Operating expenses ($/oz gold or lb copper sold, co-product)3 |
769 |
2.61 |
|
|||
Treatment and refining charges on concentrate sales |
4.1 |
9.6 |
13.7 |
|||
By-product silver revenue |
(0.6) |
(1.3) |
(1.9) |
|||
Cash costs (co-product)3 |
40.0 |
93.3 |
133.3 |
|||
Cash costs per gold ounce sold or lb copper sold (co-product)3 |
844 |
2.87 |
|
|||
Sustaining capital expendituresI |
4.4 |
10.4 |
14.8 |
|||
Reclamation expenses |
0.6 |
1.4 |
2.0 |
|||
All-in sustaining costs (co-product)2 |
45.1 |
105.2 |
150.2 |
|||
All-in sustaining costs per gold ounce sold or lb copper sold (co-product)2 |
951 |
3.23 |
|
|||
I Apportioned to each metal produced on a percentage of activity basis. For the above reconciliation table, 30% of operating costs were attributed to gold production and 70% of operating costs were attributed to copper production. |
Sustaining Capital Expenditures Reconciliation Table
|
Three months ended |
Nine months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
TOTAL SUSTAINING CAPITAL EXPENDITURES |
|
|
|
|
Mining interests per consolidated statement of cash flows |
62.5 |
70.6 |
195.8 |
205.3 |
New Afton growth capital expenditures1 |
(28.7) |
(31.7) |
(86.8) |
(94.3) |
|
(14.0) |
(3.3) |
(31.8) |
(13.5) |
Sustaining capital expenditures1 |
19.8 |
35.6 |
77.2 |
97.5 |
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" exclude "other gains and losses" as per Note 3 of the Company's unaudited condensed interim consolidated financial statements; and loss on redemption of long-term debt. Net earnings have been adjusted, including the associated tax impact, for the group of costs in "Other gains and losses" on the unaudited condensed interim consolidated income statements. Key entries in this grouping are: 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 |
Nine months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
ADJUSTED NET EARNINGS (LOSS) RECONCILIATION |
|
|
|
|
Income (loss) before taxes |
36.1 |
4.9 |
18.6 |
(28.4) |
Other losses |
29.1 |
20.3 |
84.6 |
84.6 |
Adjusted net earnings before taxes |
65.2 |
25.2 |
103.2 |
56.2 |
Income tax recovery (expense) |
1.8 |
(7.6) |
28.9 |
(8.7) |
Income tax adjustments |
(2.7) |
5.5 |
(37.8) |
5.6 |
Adjusted income tax expense1 |
(0.9) |
(2.1) |
(8.9) |
(3.1) |
Adjusted net earnings1 |
64.3 |
23.1 |
94.3 |
53.1 |
Adjusted net earnings per share (basic and diluted)1 |
0.08 |
0.03 |
0.13 |
0.08 |
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 |
Nine months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
CASH RECONCILIATION |
|
|
|
|
Cash generated from operations |
127.9 |
100.1 |
283.2 |
217.0 |
Change in non-cash operating working capital |
(7.9) |
(12.4) |
(0.1) |
11.5 |
Cash generated from operations, before changes in non-cash operating working capital1 |
120.0 |
87.7 |
283.1 |
228.5 |
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 |
84.0 |
49.9 |
(6.0) |
127.9 |
Less Mining interest capital expenditures |
(32.0) |
(30.6) |
— |
(62.6) |
Add Proceeds of sale from other assets |
— |
— |
— |
— |
Less Lease payments |
— |
— |
(0.1) |
(0.1) |
Less Cash settlement of non-current derivative financial liabilities |
(8.2) |
— |
— |
(8.2) |
Free Cash Flow1 |
43.8 |
19.3 |
(6.1) |
57.0 |
Three months ended |
||||
(in millions of |
|
New Afton |
Other |
Total |
FREE CASH FLOW RECONCILIATION |
|
|
|
|
Cash generated from operations |
54.7 |
43.5 |
1.8 |
100.1 |
Less Mining interest capital expenditures |
(32.0) |
(38.4) |
(0.1) |
(70.5) |
Add Proceeds of sale from other assets |
— |
— |
— |
— |
Less Lease payments |
(1.3) |
— |
(0.1) |
(1.4) |
Less Cash settlement of non-current derivative financial liabilities |
(6.6) |
— |
— |
(6.6) |
Free Cash Flow1 |
14.8 |
5.1 |
1.6 |
21.6 |
Nine months ended |
||||
(in millions of |
|
New Afton |
Other |
Total |
FREE CASH FLOW RECONCILIATION |
|
|
|
|
Cash generated from operations |
178.4 |
125.6 |
(20.8) |
283.2 |
Less Mining interest capital expenditures |
(101.3) |
(94.5) |
— |
(195.8) |
Add Proceeds of sale from other assets |
— |
0.2 |
— |
0.2 |
Less Lease payments |
(0.9) |
(0.5) |
(0.5) |
(1.9) |
Less Cash settlement of non-current derivative financial liabilities |
(22.9) |
— |
— |
(22.9) |
Free Cash Flow1 |
53.3 |
30.8 |
(21.3) |
62.8 |
Nine months ended |
||||
(in millions of |
|
New Afton |
Other |
Total |
FREE CASH FLOW RECONCILIATION |
|
|
|
|
Cash generated from operations |
156.0 |
76.0 |
(15.0) |
217.0 |
Less Mining interest capital expenditures |
(96.1) |
(109.1) |
(0.1) |
(205.3) |
Add Proceeds of sale from other assets |
0.1 |
— |
— |
0.1 |
Less Lease payments |
(7.2) |
(0.1) |
(0.4) |
(7.7) |
Less Cash settlement of non-current derivative financial liabilities |
(21.4) |
— |
— |
(21.4) |
Free Cash Flow1 |
31.4 |
(33.2) |
(15.5) |
(17.3) |
Average Realized Price
"Average realized price per gold ounce or per copper pound 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 for gold sales in each reporting period. "Average realized price per ounce of gold sold or copper pound 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 |
Nine months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
TOTAL AVERAGE REALIZED PRICE |
|
|
|
|
Revenue from gold sales |
203.3 |
151.7 |
504.3 |
458.9 |
Treatment and refining charges on gold concentrate sales |
1.8 |
1.9 |
6.0 |
5.8 |
Gross revenue from gold sales |
205.1 |
153.6 |
510.3 |
464.7 |
Gold ounces sold |
81,791 |
79,821 |
219,565 |
241,247 |
Total average realized price per gold ounce sold ($/ounce)1 |
2,507 |
1,924 |
2,324 |
1,926 |
|
Three months ended |
Nine months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
Revenue from gold sales |
168.1 |
120.0 |
394.5 |
372.3 |
Gold ounces sold |
67,228 |
62,426 |
169,837 |
193,846 |
|
2,501 |
1,921 |
2,323 |
1,920 |
|
Three months ended |
Nine months ended |
||
(in millions of |
2024 |
2023 |
2024 |
2023 |
NEW AFTON AVERAGE REALIZED PRICE |
|
|
|
|
Revenue from gold sales |
35.1 |
31.7 |
109.8 |
86.6 |
Treatment and refining charges on gold concentrate sales |
1.8 |
1.9 |
6.0 |
5.7 |
Gross revenue from gold sales |
36.9 |
33.6 |
115.8 |
92.3 |
Gold ounces sold |
14,564 |
17,395 |
49,728 |
47,401 |
New Afton average realized price per gold ounce sold ($/ounce)1 |
2,536 |
1,932 |
2,330 |
1,948 |
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 and nine months 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
All scientific and technical information contained in this news release has been reviewed and approved by
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