Blue Jay Gold Corp. press release
New Gold Achieves Updated 2022 Guidance and Reports Fourth Quarter and Full Year 2022 Results
TSXV - TSX Venture Exchange · Canada
Canada NewsWire
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Provides 2023 Operational Outlook and Updated Mineral Reserves and Resources
(All amounts are in U.S. dollars unless otherwise indicated)
TORONTO , Feb. 16, 2023 /CNW/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) reports fourth quarter and full year 2022 results, updates Mineral Reserves and Mineral Resources for the Company as of December 31, 2022 , and provides its 2023 operational outlook. The Company will host a conference call and webcast today at 8:30 am Eastern Time to discuss these items (details are provided at the end of this news release). For detailed information, please refer to the Company's Management's Discussion and Analysis ("MD&A") and consolidated financial statements for the year ended December 31, 2022 that are available on the Company's website at www.newgold.com and on SEDAR at www.sedar.com . The Company uses certain non-GAAP financial performance measures throughout this release. Please refer to the "Non-GAAP Financial Performance Measures" section of this news release and the MD&A for more information. Numbered note references throughout this news release are to endnotes which can be found at the end of this news release.
Consolidated Fourth Quarter and Full Year Highlights
Total production for the fourth quarter was 97,824 gold equivalent 1 ("gold eq.") ounces (80,694 ounces of gold, 128,145 ounces of silver and 6.9 million pounds of copper). For the year, production was 347,054 gold eq. 1 ounces (271,373 ounces of gold, 497,647 ounces of silver and 31.1 million pounds of copper), achieving the updated annual guidance for all metals Operating expenses 4 for the quarter were $1,140 per gold eq. ounce and $1,116 per gold eq. ounce for the year, below the updated annual guidance range of $1,120 to $1,200 per gold eq. ounce Total cash costs 2 for the quarter were $1,167 per gold eq. ounce and $1,150 per gold eq. ounce for the year All-in sustaining costs 2 for the quarter were $1,668 per gold eq. ounce and $1,818 per gold eq. ounce for the year, below the updated annual guidance range of $1,875 to $1,975 per gold eq. ounce Average realized gold price 2 was $1,751 per ounce and average realized copper price 2 was $3.74 per pound for the quarter. Average realized gold price 2 was $1,808 per ounce and average realized copper price 2 was $3.94 per pound for the year Cash generated from operations for the quarter was $32 million ( $0.05 per share) and $191 million ( $0.28 per share) for the year Cash generated from operations for the quarter, before changes in non-cash operating working capital 2 was $44 million ( $0.06 per share) and $182 million ( $0.27 per share) for the year Net loss for the quarter was $17 million ( $0.02 per share) and $67 million ( $0.10 per share) for the year Adjusted net loss 2 for the quarter was $6 million ( $0.01 per share) and $26 million ( $0.04 per share) for the year 2022 year-end Mineral Reserves of 3.3 million ounces of gold and 607 million pounds of copper December 31, 2022 cash and cash equivalents of $201 million
"Although the year presented several challenges for New Gold, our teams remained resilient, accomplishing a number of key objectives, including meeting or beating all updated annual production and cost guidance ranges," stated Patrick Godin , President and CEO. "This was underpinned by a strong fourth quarter which included Rainy River's strongest production quarter of the year, as we began to incorporate higher grade material from the Intrepid zone, as well as New Afton ramping up production from B3 to its targeted rate of 8,000 tonnes per day, ahead of schedule."
"Looking ahead to 2023, our core strategy and objectives remain unchanged. We will advance key priorities at both sites with the health and safety of our team at the forefront. At Rainy River , we will continue to advance underground production from the Intrepid zone and begin developing the Main zone below the pit with the first in-pit portal to be completed in the second half of the year. This year will also be the last significant capital waste stripping year which will reduce sustaining capital in future years. We will continue to focus on improving the reliability of the processing plant while looking for opportunities to optimize our costs. At New Afton, the focus remains on steady state mining rates from B3, first ore from C-Zone in the second half of the year and continuing to advance and grow our exploration program based on the positive results seen to date. Achieving these objectives is expected to lead to a 10% increase in production with lower costs compared to 2022 and secure strong future production at both assets. I remain confident in our team's ability to deliver on these objectives and look forward to updating the market on our progress through the year."
Consolidated Financial Highlights
| | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | Revenue ($M) | 162.8 | 202.6 | 604.4 | 745.5 | | Operating expenses ($M) | 108.5 | 99.6 | 382.7 | 377.3 | | Net (loss) earnings ($M) | (16.9) | 150.9 | (66.8) | 140.6 | | Net (loss) earnings, per share ($) | (0.02) | 0.22 | (0.10) | 0.21 | | Adj. net (loss) earnings ($M) 2 | (6.3) | 24.7 | (26.1) | 82.9 | | Adj. net (loss) earnings, per share ($) 2 | (0.01) | 0.04 | (0.04) | 0.12 | | Cash generated from operations ($M) | 31.9 | 105.7 | 190.7 | 323.7 | | Cash generated from operations, per share ($) | 0.05 | 0.16 | 0.28 | 0.48 | | Cash generated from operations, before changes in non-cash operating working capital ($M) 2 | 44.3 | 92.9 | 181.6 | 322.7 | | Cash generated from operations, before changes in non-cash operating working capital, per share ($) 2 | 0.06 | 0.14 | 0.27 | 0.47 |
Revenue for the quarter decreased over the prior-year period primarily due to lower copper sales volume and lower gold and copper average realized prices. For the year ended December 31, 2022 , the decrease in revenue over the prior-year period was due to lower gold and copper sales volume and lower copper average realized prices. Operating expenses were higher than the prior-year periods due to higher operating expenses at New Afton, as production from B3 continued to ramp-up, and inflation-driven price increases. Net earnings decreased over the prior-year periods primarily due to lower revenue, higher operating expenses, and the gain on the sale of the Blackwater gold stream in the prior-year period. Adjusted net earnings 2 decreased over the prior-year periods primarily due to lower revenue and higher operating expenses. Cash generated from operations for the quarter decreased over the prior-year periods primarily due to lower revenue and negative working capital movements. For the full year, the decrease in cash generated from operations was due to lower revenue, partially offset by positive working capital movements.
Consolidated Operational Highlights
| | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | Gold eq. production (ounces) 1,3 | 97,824 | 111,574 | 347,054 | 418,933 | | Gold eq. sold (ounces) 1,3 | 95,161 | 109,214 | 342,839 | 402,449 | | Gold production (ounces) 3 | 80,694 | 81,072 | 271,373 | 286,921 | | Gold sold (ounces) 3 | 78,507 | 78,745 | 269,147 | 277,451 | | Copper production (Mlbs) 3 | 6.9 | 14.2 | 31.1 | 61.7 | | Copper sold (Mlbs) 3 | 6.8 | 14.2 | 30.2 | 58.4 | | Gold revenue, per ounce ($) 4 | 1,736 | 1,778 | 1,791 | 1,778 | | Copper revenue, per pound ($) 4 | 3.53 | 4.07 | 3.70 | 3.97 | | Average realized gold price, per ounce ($) 2 | 1,751 | 1,798 | 1,808 | 1,798 | | Average realized copper price, per pound ($) 2 | 3.74 | 4.37 | 3.94 | 4.24 | | Operating expenses, per gold eq. ounce ($) 4 | 1,140 | 912 | 1,116 | 938 | | Total cash costs, per gold eq. ounce ($) 2 | 1,167 | 965 | 1,150 | 991 | | Depreciation and depletion, per gold eq. ounce ($) 4 | 551 | 469 | 572 | 489 | | All-in sustaining costs, per gold eq. ounce ($) 2 | 1,668 | 1,355 | 1,818 | 1,463 | | Sustaining capital and sustaining leases ($M) 2 | 37.2 | 33.6 | 195.1 | 156.8 | | Growth capital ($M) 2 | 37.1 | 26.9 | 109.2 | 101.7 | | Total capital and leases ($M) | 74.3 | 60.5 | 304.3 | 258.5 |
Rainy River Mine
Operational Highlights
| Rainy River Mine | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | Gold eq. production (ounces) 1,3 | 71,221 | 70,500 | 235,194 | 242,961 | | Gold eq. sold (ounces) 1,3 | 68,392 | 68,380 | 233,788 | 237,061 | | Gold production (ounces) 3 | 69,753 | 68,356 | 229,822 | 234,469 | | Gold sold (ounces) 3 | 66,992 | 66,239 | 228,565 | 228,693 | | Gold revenue, per ounce ($) 4 | 1,748 | 1,796 | 1,807 | 1,797 | | Average realized gold price, per ounce ($) 2 | 1,748 | 1,796 | 1,807 | 1,797 | | Operating expenses, per gold eq. ounce ($) 4 | 1,014 | 897 | 985 | 955 | | Total cash costs, per gold eq. ounce ($) 2 | 1,014 | 897 | 985 | 955 | | Depreciation and depletion, per gold eq. ounce ($) 4 | 559 | 571 | 634 | 625 | | All-in sustaining costs, per gold eq. ounce ($) 2 | 1,467 | 1,281 | 1,605 | 1,415 | | Sustaining capital and sustaining leases ($M) 2 | 28.5 | 24.0 | 136.5 | 100.9 | | Growth capital ($M) 2 | 4.2 | 2.3 | 17.7 | 11.6 | | Total capital and leases ($M) | 32.7 | 26.3 | 154.2 | 112.5 |
Operating Key Performance Indicators
| Rainy River Mine (Open Pit Mine only) | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | Tonnes mined per day (ore and waste) | 110,536 | 129,775 | 112,826 | 147,131 | | Ore tonnes mined per day | 34,667 | 33,885 | 22,965 | 39,716 | | Operating waste tonnes per day | 56,547 | 62,348 | 39,017 | 71,869 | | Capitalized waste tonnes per day | 19,323 | 33,542 | 50,843 | 35,546 | | Total waste tonnes per day | 75,870 | 95,890 | 89,860 | 107,415 | | Strip ratio (waste:ore) | 2.19 | 2.83 | 3.91 | 2.70 | | Tonnes milled per calendar day | 22,225 | 24,492 | 23,568 | 25,342 | | Gold grade milled (g/t) | 1.16 | 1.03 | 0.91 | 0.88 | | Gold recovery (%) | 92 | 92 | 91 | 89 |
Fourth quarter gold eq. 1 production was 71,221 ounces (69,753 ounces of gold and 110,133 ounces of silver), an increase over the prior-year period due to higher gold grade with the inclusion of higher grade underground tonnes, partially offset by lower tonnes processed. Full year gold eq. 1 production was 235,194 ounces (229,822 ounces of gold and 402,964 ounces of silver), a decrease over the prior year mainly due to lower tonnes processed. Full year gold eq. 1 production fell within the updated guidance range of 230,000 to 250,000 ounces. Operating expense 4 per gold eq. ounce increased over the prior-year periods as inflation-driven price increases were partially offset by a weakening of the Canadian dollar relative to the U.S. dollar. Full year operating expense per gold eq. ounce achieved the updated annual guidance range of $960 to $1,040 per gold eq. ounce. All-in sustaining costs 2 per gold eq. ounce increased over the prior-year periods primarily due to higher operating costs and higher sustaining capital. Full year all-in sustaining costs 2 per gold eq. ounce was slightly below the updated annual guidance range of $1,620 to $1,720 per gold eq. ounce. Total capital and leases for the quarter and full year were $33 million and $154 million , respectively, an increase over the prior-year periods due to higher sustaining capitalized waste mining costs as a result of the higher strip ratio, and the continued development of the Intrepid underground zone. Sustaining capital 2 during the quarter primarily related to capitalized waste as well as capital maintenance, and the advancement of the annual tailings dam raise. Growth capital 2 related to the development of the Intrepid underground zone. Free cash flow 2 for the quarter was a net inflow of $4 million (net of a $6 million stream payment), a decrease over the prior-year period primarily due to a decrease in cash generated from operations and an increase in capital expenditures. Full year free cash flow 2 was a net inflow of $18 million (net of a $24 million stream payment), a decrease over the prior year primarily due to an increase in capital expenditures, partially offset by an increase in cash generated from operations.
New Afton Mine
Operational Highlights
| New Afton Mine | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | Gold eq. production (ounces) 1,3 | 26,603 | 41,074 | 111,860 | 175,972 | | Gold eq. sold (ounces) 1,3 | 26,769 | 40,835 | 109,051 | 165,387 | | Gold production (ounces) 3 | 10,941 | 12,716 | 41,551 | 52,452 | | Gold sold (ounces) 3 | 11,514 | 12,507 | 40,582 | 48,758 | | Copper production (Mlbs) 3 | 6.9 | 14.2 | 31.1 | 61.7 | | Copper sold (Mlbs) 3 | 6.8 | 14.2 | 30.2 | 58.4 | | Gold revenue, per ounce ($) 4 | 1,668 | 1,685 | 1,699 | 1,690 | | Copper revenue, per ounce ($) 4 | 3.53 | 4.07 | 3.70 | 3.97 | | Average realized gold price, per ounce ($) 2 | 1,766 | 1,807 | 1,808 | 1,804 | | Average realized copper price, per pound ($) 2 | 3.74 | 4.37 | 3.94 | 4.24 | | Operating expenses, per gold eq. ounce ($) 4 | 1,461 | 938 | 1,395 | 912 | | Total cash costs, per gold eq. ounce ($) 2 | 1,557 | 1,079 | 1,503 | 1,042 | | Depreciation and depletion, per gold eq. ounce ($) 4 | 527 | 297 | 434 | 288 | | All-in sustaining costs, per gold eq. ounce ($) 2 | 1,870 | 1,330 | 2,044 | 1,385 | | Sustaining capital and sustaining leases ($M) 2 | 7.9 | 9.5 | 56.8 | 54.5 | | Growth capital ($M) 2 | 32.9 | 24.6 | 91.5 | 90.1 | | Total capital and leases ($M) | 40.8 | 34.1 | 148.3 | 144.6 |
Operating Key Performance Indicators
| New Afton Mine | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | Tonnes mined per day (ore and waste) | 7,978 | 13,705 | 7,003 | 13,271 | | Tonnes milled per calendar day | 6,938 | 13,125 | 9,105 | 13,386 | | Gold grade milled (g/t) | 0.62 | 0.41 | 0.47 | 0.41 | | Gold recovery (%) | 86 | 81 | 84 | 81 | | Copper grade milled (%) | 0.57 | 0.67 | 0.51 | 0.70 | | Copper recovery (%) | 87 | 80 | 83 | 81 |
Fourth quarter gold eq. 1 production was 26,603 ounces (10,941 ounces of gold and 6.9 million pounds of copper), and for the year ended December 31, 2022 , gold eq. 1 production was 111,860 ounces (41,551 ounces of gold and 31.1 million pounds of copper). The decrease over the prior-year periods was due to lower tonnes mined and processed. Full year gold eq. 1 production fell within the updated guidance range of 95,000 to 115,000 ounces. Operating expense 4 per gold eq. ounce increased over the prior-year periods, primarily due to lower sales volume. Full year operating expense per gold eq. ounce was below the updated guidance range of $1,485 to $1,565 per gold eq. ounce due to a weaker Canadian dollar relative to the U.S. dollar assumption used to set guidance. All-in sustaining costs 2 per gold eq. ounce increased over the prior-year periods, primarily due to lower sales volume and higher sustaining capital spend for the year ended December 31, 2022 . Full year all-in sustaining costs 2 per gold eq. ounce was below the updated annual guidance range of $2,210 to $2,310 per gold eq. ounce due to a weaker Canadian dollar relative to the U.S. dollar assumption used to set guidance. Total capital and leases for the quarter and full year were $41 million and $148 million , respectively, relatively in-line with prior-year periods. Sustaining capital 2 in the quarter primarily related to the completion of B3 mine development, and the continuation of tailings management and stabilization activities. Growth capital 2 in the quarter primarily related to C-Zone development, which advanced 1,076 meters during the quarter. Free cash flow 2 for the quarter and full year was a net outflow of $41 million and $138 million , respectively, a decrease over the prior-year periods due to a decrease in cash generated from operations and an increase in capital expenditures.
2023 Operational Outlook
| Operational Estimates | Rainy River Mine | New Afton Mine | 2023 Consolidated Guidance | | Gold eq. production (ounces) 1,3,5 | 235,000 - 265,000 | 130,000 - 160,000 | 365,000 - 425,000 | | Gold production (ounces) | 230,000 - 260,000 | 50,000 - 60,000 | 280,000 - 320,000 | | Copper production (Mlbs) | - | 38 - 48 | 38 - 48 | | Operating expenses, per gold eq. ounce 4 | $905 - $985 | $1,035 - $1,115 | $950 - $1,030 | | All-in sustaining costs, per gold eq. ounce 2 | $1,475 - $1,575 | $1,320 - $1,420 | $1,505 - $1,605 | | Capital Investment & Exploration Estimates | Rainy River Mine | New Afton Mine | 2023 Consolidated Guidance | | Total capital ($M) | $145 - $165 | $145 - $185 | $290 - $350 | | Sustaining capital ($M) 2 | $125 - $135 | $15 - $35 | $140 - $170 | | Growth capital ($M) 2 | $20 - $30 | $130 - $150 | $150 - $180 |
Gold equivalent production 3,5 is expected to be between 365,000 to 425,000 ounces, approximately 13% higher than 2022 production. Production is expected to strengthen in the second half of the year, with the second half of 2023 to represent approximately 55% of annual production.
Operating expenses 4 are expected to be $950 to $1,030 per gold eq. ounce, lower than the prior year as a result of higher production and sales volumes from both sites. All-in sustaining costs 2 are expected to be $1,505 to $1,605 per gold eq. ounce, lower than the prior year due to lower sustaining capital spend and higher sales volumes. All-in sustaining costs 2 are expected to trend lower in the second half of the year, consistent with the production profile.
Total capital is expected to be $290 to $350 million , of which, sustaining capital 2 is expected to be $140 to $170 million , and growth capital 2 is expected to be $150 to $180 million . The decrease in sustaining capital 2 over the prior year predominantly relates to the completion of B3 mine development in 2022. The increase in growth capital 2 relates to C-Zone development, advancing underground development at the Intrepid underground zone, and commencing development at the Main underground zone at Rainy River . Quarterly sustaining capital and growth capital 2 are expected to be relatively consistent through the year.
In 2023, the Company will report production on a gold equivalent, gold and copper basis. Operating expenses and all-in sustaining costs will be reported on a per gold equivalent ounce basis. Throughout the year, the Company will report gold equivalent ounces using a constant ratio of $1,750 per gold ounce, $22.00 per silver ounce and $3.50 per copper pound, and a foreign exchange rate of $1.32 Canadian dollars to $1.00 US dollar.
2023 Rainy River Operational Outlook
| Operational Estimates | 2023 Guidance | | Gold eq. production (ounces) 1,3 | 235,000 - 265,000 | | Gold production (ounces) | 230,000 - 260,000 | | Operating expenses, per gold eq. ounce 4 | $905 - $985 | | All-in sustaining costs, per gold eq. ounce 2 | $1,475 - $1,575 | | Capital Investment & Exploration Estimates | 2023 Guidance | | Total capital ($M) | $145 - $165 | | Sustaining capital ($M) 2 | $125 - $135 | | Growth capital ($M) 2 | $20 - $30 |
Gold equivalent production 1,3 is expected to be 235,000 to 265,000 ounces, an increase over the prior year due to an increase in gold grade, tonnes mined and processed, as well as ramping-up ore extraction from the Intrepid underground zone throughout the year. Production is expected to strengthen in the second half of the year as planned maintenance activities for the processing plant are to be completed in the first half of the year. The second half of 2023 is expected to represent approximately 55% of the annual production. Operating expenses 4 are expected to be $905 to $985 per gold eq. ounce, a decrease over the prior year, primarily due to higher production and sales volume. All-in sustaining costs 2 are expected to be $1,475 to $1,575 per gold eq. ounce, a decrease over the prior year, primarily due to higher production and sales volume. All-in sustaining costs 2 are expected to trend lower in the second half of the year, consistent with the production profile. Total capital is expected to be $145 to $165 million . Sustaining capital 2 is expected to be $125 to $135 million , including approximately $70 million in capitalized waste, $35 million towards the annual tailings dam raise, $15 million in capital parts and components replacement programs, $5 million in sustaining capital development for the Intrepid underground zone, and $5 million related to other general sustaining capital and working capital payments. Growth capital 2 is expected to be $20 to $30 million , related to the continued development of the Intrepid underground zone, and the commencement of development of the Main underground zone below the pit. Sustaining capital and growth capital 2 are expected to be generally consistent throughout the year.