NEW GOLD REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

2025-02-19

TSXV - TSX Venture Exchange · Canada

PR Newswire

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Strong Cost Discipline Leads to All-In Sustaining Costs Beating the Low End of Guidance and Delivering Another Strong Quarter of Free Cash Flow

(All amounts are in U.S. dollars unless otherwise indicated)

TORONTO , Feb. 19, 2025 /PRNewswire/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) reports fourth quarter and full year 2024 results. Full year 2024 production totaled 298,303 gold ounces at all-in sustaining costs 4 of $1 ,239 per gold ounce. Another quarter of strong cost performance leads full-year 2024 all-in sustaining costs to beat the low end of the guidance range and deliver strong quarterly cash flow from operations of $110 million and free cash flow of $22 million , while still investing in exploration and advancing growth projects that are expected to significantly increase production in the coming years.

Focus on Cost Performance Leads to 2024 All-In Sustaining Cost Beating Guidance

"2024 was a year of perseverance for New Gold, highlighted by operational discipline and capital management by our operations and our people," stated Patrick Godin , President and CEO. "We delivered all-in sustaining costs better than our guidance range set out at the start of the year despite the impacts to production late in the year. As a result, New Gold delivered three quarters in a row of solid free cash flow generation, while continuing to invest in our projects and exploration, and delivering key catalysts ahead of schedule and on budget."

Fourth quarter consolidated production of 80,438 ounces of gold and 14.5 million pounds of copper at all-in sustaining costs 4 of $1,018 per gold ounce (by-product basis) 2 , the lowest all-in sustaining cost 2 quarter of 2024. Fourth quarter production represented a 2% gold and 21% copper increase over the prior-year period, while all-in sustaining costs were 31% lower than the prior-year period and trended down quarter-over-quarter throughout 2024. Full year consolidated gold production was 298,303 ounces of gold and 54.0 million pounds of copper at all-in sustaining costs 4 of $1,239 per gold ounce, below the bottom end of the 2024 consolidated cost guidance of $1,240 to $1,340 per gold ounce (by-product basis) 2 . During the fourth quarter the Company generated free cash flow 4 of $22 million after investing $65 million in advancing growth projects. Rainy River generated $36 million in free cash flow 2 , net of $30 million in capital expenditures and $11 million in stream payments. The Company generated $85 million in free cash flow 2 for 2024 after investing over $270 million in total capital, including $184 million in growth capital delivering C-Zone commercial production at New Afton and first ore from Rainy River underground Main ahead of schedule. December 31, 2024 cash and cash equivalents were $105 million after repaying the remaining $50 million outstanding on the credit facility during the quarter, which was drawn to finance the partial repurchase of the Ontario Teachers' Pension Plan ("OTPP") free cash flow interest in New Afton, increasing New Gold's interest to 80.1%.

Consolidated Financial Highlights

| | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | Revenue ($M) | 262.2 | 199.2 | 924.5 | 786.5 | | Operating expenses ($M) | 112.4 | 120.8 | 436.3 | 450.4 | | Depreciation and depletion ($M) | 56.7 | 66.0 | 247.5 | 234.2 | | Net earnings (loss) ($M) | 55.1 | (27.4) | 102.6 | (64.5) | | Net earnings (loss), per share ($) | 0.07 | (0.04) | 0.14 | (0.09) | | Adj. net earnings ($M) 1 | 59.1 | (4.7) | 153.4 | 48.4 | | Adj. net earnings, per share ($) 1 | 0.07 | (0.01) | 0.20 | 0.07 | | Cash generated from operations ($M) | 109.6 | 70.6 | 392.8 | 287.6 | | Cash generated from operations, per share ($) | 0.14 | 0.10 | 0.52 | 0.42 | | Cash generated from operations, before changes in non-cash operating working capital ($M) 1 | 125.7 | 64.9 | 408.8 | 293.4 | | Cash generated from operations, before changes in non-cash operating working capital, per share ($) 1 | 0.16 | 0.09 | 0.54 | 0.43 | | Free cash flow ($M) 1 | 22.1 | 0.7 | 84.9 | 16.6 |

Revenue increased over the prior-year periods primarily due to higher gold and copper prices and higher copper sales volume, partially offset by lower gold sales volume. Operating expenses were lower than the prior-year periods due to lower gold production at Rainy River , and lower operating expenses at New Afton. Depreciation expense in the fourth quarter decreased when compared to the prior-year period due to lower gold production at Rainy River . For the year ended December 31, 2024 , depreciation and depletion increased when compared to the prior-year period due to higher gold and copper production at New Afton, and the achievement of commercial production at C-Zone. Net earnings increased over the prior-year periods due to an increase in revenues and lower operating expenses. Adjusted net earnings 1 increased compared to the prior-year periods primarily due to higher revenue and lower operating expenses. Cash generated from operations and free cash flow 1 increased over the prior-year periods primarily due to higher revenue.

Consolidated Operational Highlights

| | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | Gold production (ounces) 4 | 80,438 | 79,187 | 298,303 | 321,178 | | Gold sold (ounces) 4 | 77,281 | 77,870 | 296,846 | 319,116 | | Copper production (Mlbs) 4 | 14.5 | 12.0 | 54.0 | 47.4 | | Copper sold (MIbs) 4 | 13.6 | 11.9 | 50.0 | 44.4 | | Gold revenue, per ounce ($) 5 | 2,633 | 1,977 | 2,384 | 1,920 | | Copper revenue, per pound ($) 5 | 3.96 | 3.52 | 3.97 | 3.61 | | Average realized gold price, per ounce ($) 1 | 2,667 | 2,001 | 2,413 | 1,944 | | Average realized copper price, per pound ($) 1 | 4.18 | 3.72 | 4.19 | 3.84 | | Operating expenses per gold ounce sold ($/ounce, co-product) 3 | 1,093 | 1,154 | 1,091 | 1,048 | | Operating expenses per copper pound sold ($/pound, co-product) 3 | 2.04 | 2.61 | 2.25 | 2.61 | | Depreciation and depletion per gold ounce sold ($/ounce) 5 | 733 | 851 | 836 | 736 | | Cash costs per gold ounce sold (by-product basis) ($/ounce) 2 | 728 | 994 | 769 | 891 | | All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce) 2 | 1,018 | 1,481 | 1,239 | 1,434 | | Sustaining capital ($M) 1 | 10.3 | 24.1 | 87.5 | 121.6 | | Growth capital ($M) 1 | 65.0 | 36.5 | 183.6 | 144.3 | | Total capital ($M) | 75.3 | 60.6 | 271.1 | 265.9 |

New Afton Mine

Operational Highlights

| New Afton Mine | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | Gold production (ounces) 4 | 19,652 | 16,495 | 72,609 | 67,433 | | Gold sold (ounces) 4 | 18,442 | 16,784 | 68,170 | 64,185 | | Copper production (Mlbs) 4 | 14.5 | 12.0 | 54.0 | 47.4 | | Copper sold (Mlbs) 4 | 13.6 | 11.9 | 50.0 | 44.4 | | Gold revenue, per ounce ($) 5 | 2,539 | 1,898 | 2,298 | 1,846 | | Copper revenue, per ounce ($) 5 | 3.96 | 3.52 | 3.97 | 3.61 | | Average realized gold price, per ounce ($) 1 | 2,679 | 2,009 | 2,424 | 1,964 | | Average realized copper price, per pound ($) 1 | 4.18 | 3.72 | 4.19 | 3.84 | | Operating expenses ($/oz gold, co-product) 3 | 647 | 790 | 707 | 775 | | Operating expenses ($/lb copper, co-product) 3 | 2.04 | 2.61 | 2.25 | 2.61 | | Depreciation and depletion ($/ounce) 5 | 1,000 | 1,069 | 1,057 | 1,049 | | Cash costs per gold ounce sold (by-product basis) ($/ounce) 2 | (691) | 224 | (479) | 166 | | Cash costs per gold ounce sold ($/ounce, co-product) 3 | 721 | 856 | 778 | 847 | | Cash costs per copper pound sold ($/pound, co-product) 3 | 2.27 | 2.83 | 2.47 | 2.86 | | All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce) 2 | (540) | 502 | (289) | 502 | | All-in sustaining costs per gold ounce sold ($/ounce, co-product) 3 | 766 | 939 | 835 | 948 | | All-in sustaining costs per copper pound sold ($/pound, co-product) 3 | 2.42 | 3.10 | 2.66 | 3.20 | | Sustaining capital ($M) 1 | 1.4 | 3.8 | 9.2 | 18.7 | | Growth capital ($M) 1 | 44.0 | 32.2 | 130.8 | 126.5 | | Total capital ($M) | 45.4 | 36.1 | 139.9 | 145.2 |

Operating Key Performance Indicators

| New Afton Mine | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | New Afton Mine Only | | | | | | Tonnes mined per day (ore and waste) | 11,890 | 9,933 | 10,616 | 9,771 | | Tonnes milled per calendar day | 13,189 | 8,181 | 11,439 | 8,289 | | Gold grade milled (g/t) | 0.58 | 0.73 | 0.61 | 0.72 | | Gold recovery (%) | 85 % | 90 % | 87 % | 90 % | | Copper grade milled (%) | 0.62 | 0.79 | 0.65 | 0.77 | | Copper recovery (%) | 87 % | 91 % | 89 % | 91 % | | Gold production (ounces) | 19,310 | 15,942 | 71,551 | 62,637 | | Copper production (Mlbs) | 14.5 | 12.0 | 54.0 | 47.4 | | Ore Purchase Agreements 6 | | | | | | Gold production (ounces) | 342 | 553 | 1,058 | 4,796 |

Fourth quarter production was 19,652 ounces of gold (inclusive of ore purchase agreements) and 14.5 million pounds of copper. For the year ended December 31, 2024 , gold production was 72,609 ounces (inclusive of ore purchase agreements) and 54.0 million pounds of copper. The increase over the prior-year periods was due to higher tonnes processed, partially offset by lower grade and recovery. Operating expenses per gold ounce sold 5 and copper pound sold for the quarter and for the year ended December 31, 2024 decreased over the prior-year periods, primarily due to lower underground mining and processing costs, and higher gold and copper sales volumes. Full year operating expense per gold ounce sold was well below the 2024 guidance range of $720 to $820 per gold ounce sold, and operating expense per copper pound sold was within the 2024 guidance range of $1.90 to $2.40 per copper pound sold. All-in sustaining costs 1 per gold ounce sold (by-product basis) for the fourth quarter and for the year ended December 31, 2024 decreased over the prior-year periods, primarily due to higher sales volume, higher by-product revenues, and lower sustaining capital spend. Full year all-in sustaining costs 1 per gold ounce sold (by-product basis) was well below the 2024 guidance range of $25 to $125 per gold ounce sold. Total capital expenditures for the quarter increased over the prior-year period, primarily from the increase in growth capital as C-Zone achieved commercial production in the fourth quarter. For the year ended December 31, 2024 , total capital decreased over the prior-year period, mainly from lower sustaining capital. Sustaining capital 1 is primarily related to the continuation of tailings management and stabilization activities. Growth capital 1 is primarily related to C-Zone underground mine development and cave construction. Full year total capital is below the 2024 guidance range of $145 million to $165 million , with approximately $15 million deferred into 2025. Free cash flow 1 for the quarter was a net outflow of $6 million , an improvement over the prior year period due to higher revenues. Free cash flow 1 for the quarter was negative due to the increased spending to achieve C-Zone commercial production. Free cash flow 1 for the year ended December 31, 2024 was an inflow of $24 million , an improvement over the prior-year period due to higher revenues and lower operating expenses.

Rainy River Mine

Operational Highlights

| Rainy River Mine | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | Gold production (ounces) 4 | 60,786 | 62,692 | 225,694 | 253,745 | | Gold sold (ounces) 4 | 58,839 | 61,086 | 228,676 | 254,932 | | Gold revenue, per ounce ($) 5 | 2,662 | 1,999 | 2,410 | 1,939 | | Average realized gold price, per ounce ($) 1 | 2,662 | 1,999 | 2,410 | 1,939 | | Operating expenses per gold ounce sold ($/ounce) 5 | 1,233 | 1,254 | 1,205 | 1,117 | | Depreciation and depletion per gold ounce sold ($/ounce) | 647 | 788 | 767 | 655 | | Cash costs per gold ounce sold (by-product basis) ($/ounce) 1 | 1,172 | 1,206 | 1,141 | 1,074 | | All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce) 2 | 1,358 | 1,593 | 1,524 | 1,547 | | Sustaining capital ($M) 1 | 8.8 | 20.2 | 78.3 | 102.8 | | Growth capital ($M) 1 | 21.0 | 4.2 | 52.8 | 17.8 | | Total capital ($M) | 29.8 | 24.5 | 131.1 | 120.6 |

Operating Key Performance Indicators

| Rainy River Mine | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | Open Pit Only | | | | | | Tonnes mined per day (ore and waste) | 75,644 | 109,895 | 91,895 | 119,948 | | Ore tonnes mined per day | 21,774 | 29,377 | 20,092 | 34,007 | | Operating waste tonnes per day | 53,870 | 47,838 | 53,443 | 53,537 | | Capitalized waste tonnes per day | 0 | 32,681 | 18,361 | 32,404 | | Total waste tonnes per day | 53,870 | 80,519 | 71,803 | 85,942 | | Strip ratio (waste:ore) | 2.47 | 2.74 | 3.57 | 2.53 | | Underground Only | | | | | | Ore tonnes mined per day | 1,068 | 859 | 834 | 857 | | Waste tonnes mined per day | 1,506 | 653 | 1,251 | 506 | | Lateral development (metres) | 1,602 | 659 | 5,235 | 3,030 | | Open Pit and Underground | | | | | | Tonnes milled per calendar day | 22,656 | 25,046 | 24,563 | 24,012 | | Gold grade milled (g/t) | 0.97 | 0.94 | 0.85 | 0.99 | | Gold recovery (%) | 93 | 90 | 92 | 91 |

Fourth quarter gold production 1 was 60,786 ounces, a decrease over the prior-year period due to lower tonnes processed impacted by unexpected mechanical down-time on the crushing and conveying system in December, partially offset by higher grade and higher recovery. For the year ended December 31, 2024 , gold production was 225,694 ounces, a decrease over the prior-year period due to lower gold grade, partially offset by higher tonnes processed and higher gold recovery. Operating expenses per gold ounce sold for the fourth quarter decreased over the prior-year period due to lower processing cost associated with lower mill maintenance and mining consumables. For the year ended December 31, 2024 , operating expenses per gold ounce sold increased over the prior-year period due to lower gold sales and lower capitalized waste stripping, partially offset by lower processing costs and an increase in the net realizable value of the low-grade stockpile. Full year operating expenses per gold ounce sold was above the 2024 guidance range of $1,025 to $1,125 per gold ounce sold as a result of lower capitalized waste stripping. All-in sustaining costs 1 per gold ounce sold (by-product basis) 2 for the fourth quarter and the year ended December 31, 2024 decreased over the prior-year period primarily due to lower sustaining capital. Full year all-in sustaining costs 1 per gold ounce sold was within the 2024 guidance range of $1,425 to $1,525 per gold ounce sold, despite lower production. Total capital expenditures for the quarter and year ended December 31, 2024 increased over the prior-year periods due to higher underground mine development metres, partially offset by lower capitalized waste in the year. Sustaining capital 1 for the full year is primarily related to capitalized waste and tailings dam raise. Growth capital 1 for the full year is related to underground development as the underground Main and Intrepid zones continue to advance. Full year total capital is below the 2024 guidance range of $145 million to $165 million , due to efficient capital management, savings related to execution of the Rainy River tailings dam raise, and lower capitalized waste stripping with approximately $5 million deferred into 2025.. Free cash flow for the quarter and year ended December 31, 2024 was $36 million and $90 million (net of $11 million and $34 million stream payments), respectively, an improvement over the prior-year periods primarily due to higher revenue and lower operating expenses.

Fourth Quarter and Full Year 2024 Conference Call and Webcast

The Company will release its fourth quarter and full year 2024 financial results after market close on Wednesday, February 19, 2025 . A conference call and webcast will be hosted on Thursday, February 20, 2025 at 8:30 am Eastern Time .

Participants may listen to the webcast by registering on our website at www.newgold.com or via the following link https://app.webinar.net/nvDNqb8B0py Participants may also listen to the conference call by calling North American toll free 1-888-699-1199, or 1-416-945-7677 outside of the U.S. and Canada , passcode 58557 To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4fR2dsv to receive an instant automated call back. A recorded playback of the conference call will be available until March 20, 2025 by calling North American toll free 1-888-660-6345, or 1-289-819-1450 outside of the U.S. and Canada , passcode 58557. An archived webcast will also be available at www.newgold.com

About New Gold New Gold is a Canadian-focused intermediate mining Company with a portfolio of two core producing assets in Canada , the Rainy River gold mine and the New Afton copper-gold mine. New Gold's vision is to build a leading diversified intermediate gold company based in Canada that is committed to the environment and social responsibility. For further information on the Company, visit www.newgold.com .

| Endnotes | | | | | | 1. | "Cash costs per gold ounce sold", "all-in sustaining costs per gold ounce sold" (or "AISC"), "adjusted net earnings/(loss)", "adjusted tax expense", "sustaining capital and sustaining leases", "growth capital", "average realized gold/copper price per ounce/pound", "cash generated from operations before changes in non-cash operating working capital", "free cash flow" are all non-GAAP financial performance measures that are used in this news release. These measures do not have any standardized meaning under International Financial Reporting Standards (" IFRS "), as issued by the International Accounting Standards Board ("IASB"), and therefore may not be comparable to similar measures presented by other issuers. | | | | | 3. | The Company produces copper and silver as by-products of its gold production. All-in sustaining costs based on a by-product basis, which includes silver and copper net revenues as by-product credits to the total costs. These are extraction concepts, as the commodities produced represent commodities sold in the course of the Company's ordinary activities. | | | | | 4. | Co-product basis includes net silver sales revenues as by-product credits and apportions net costs to each metal produced by 30% gold, 70% copper, and subsequently dividing the amount by the total gold ounces sold, or pounds of copper sold, to arrive at per ounce or per pound figures. These are extraction concepts, as the commodities produced represent commodities sold in the course of the Company's ordinary activities | | | | | 4. | 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. | | | | | 5. | These are supplementary financial measures which are calculated as follows: "Revenue gold ($/ounce)" and "Revenue copper ($/pound)" is total gold revenue divided by total gold ounces sold and total copper revenue divided by copper pounds sold, respectively, "Operating expenses ($/oz gold, co-product)" is total operating expenses apportioned to gold based on a percentage of activity basis divided by total gold ounces sold, "Operating expenses ($/lb copper, co-product)" is total operating expenses apportioned to copper based on a percentage of activity basis divided by total copper pounds sold; "Depreciation and depletion ($/oz gold)" is depreciation and depletion expenses divided by total gold ounces sold. | | | | | 6. | Key performance indicator data for the three months and year ended December 31, 2024 is exclusive 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 1% of total gold ounces produced using New Afton's excess mill capacity. All other ounces are mined and produced at New Afton. |