NEW GOLD REPORTS FIRST QUARTER 2025 RESULTS

2025-04-29

TSXV - TSX Venture Exchange · Lithium · Bromine · Potash · Sodium · Canada

PR Newswire

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Solid Quarterly Performance Leads to Free Cash Flow Generation, Critical Path Items Achieved to Allow for Ramp-up in Production and Exploration Activities Going Forward

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

TORONTO , April 29, 2025 /PRNewswire/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) today reported financial and operating results for the quarter ended March 31, 2025 .

"The first four months of the year have been exceptionally positive for New Gold in achieving our strategic objectives," stated Patrick Godin , President and CEO. "We increased our future free cash flow by consolidating our interest in New Afton to 100%. We successfully refinanced and extended our senior notes and extended our credit facility. During the quarter, we also delivered two new Technical Reports outlining strong production profiles with lower costs. Collectively, these milestones are expected to create meaningful value for our shareholders and provide increased financial flexibility and optionality for New Gold moving forward."

"Operationally, we delivered our first quarter as planned, advancing several critical path objectives to set ourselves up to achieve our annual guidance. At New Afton, B3 grades were higher than expected as the cave nears exhaustion, which is now expected by the end of the second quarter of 2025. At Rainy River , our efforts to sequence waste stripping in the early months of the year have allowed us to remain on-track for a step-up in production starting in the second quarter, and to deliver an improved second half of the year. Additionally, underground development continues to advance, and I'm pleased to report the successful pit portal breakthrough occurred in early April, an important catalyst that enables the underground ramp-up to advance throughout the year," stated Mr. Godin.

"On the exploration front, the New Afton K-Zone exploration drift is now partially available for drilling, and our exploration efforts targeting K-Zone are expected to ramp-up aggressively. At Rainy River , exploration drilling focused on testing growth opportunities along the NW Trend. I look forward to providing updates on these efforts in the coming quarters," added Mr. Godin.

First Quarter Sees Strong Performance from New Afton, Rainy River On-Track for Ramp-up in Production Through Remainder of the Year

First quarter consolidated production was 52,186 ounces of gold and 13.6 million pounds of copper at all-in sustaining costs 1,2 of $1,727 per gold ounce sold. First quarter gold production represented approximately 15% of the midpoint of annual consolidated production guidance of 325,000 to 365,000 ounces of gold, slightly ahead of the planned first quarter of 14%.

New Afton first quarter production was 18,278 ounces of gold and 13.6 million pounds of copper at an all-in sustaining costs 1,2 of ($687) per gold ounce sold. First quarter production represented approximately 28% and 25% of the midpoint of annual guidance of 60,000 to 70,000 ounces of gold and 50 to 60 million pounds of copper, respectively, higher than the planned first quarter of 20% due to continued strong B3 grades leading to higher than planned head grades.

C-Zone cave construction continues to advance on schedule, facilitating a step up in copper and gold production in the second half of 2025. Undercutting is on track for completion in May and cave construction progress is more than 50% complete, as of the end of March. Other key project milestones completed in the first quarter include the relocation of the secondary sizer and commissioning of the C-Zone dewatering system. The flotation cleaner circuit upgrade is on schedule for commissioning in the third quarter, with construction commencing in April. This project is expected to improve copper and gold recoveries as the operation ramps up to full processing capacity of approximately 16,000 tonnes per day beginning in 2026.

Rainy River first quarter production was 33,908 ounces of gold at an all-in sustaining costs 1,2 of $2,758 per gold ounce sold. First quarter production represented approximately 12% of the midpoint of annual guidance of 265,000 to 295,000 ounces of gold, slightly ahead of the planned first quarter of 11%.

As outlined in the Rainy River operational outlook, open pit mining in the first quarter focused on waste stripping, with most of the mill feed coming from the low-grade stockpile. With the final waste stripping campaign for Phase 4 completed in April, the remaining benches are planned to provide ore production through to 2026 at an average strip ratio of 1:1.

The Rainy River underground mine achieved an important milestone with the breakthrough of the ramp to the pit portal in early April. The connection to the pit provides an immediate reduction in underground haulage distances, improves ventilation, and establishes a second means of egress to facilitate stope production from several new mining zones as they come online in late-2025.

The Company is on-track to deliver its 2025 consolidated production guidance of 325,000 to 365,000 ounces of gold and 50 to 60 million pounds of copper at all-in sustaining costs 1,2 of $1,025 to $1,125 per gold ounce sold.

Fourth Consecutive Quarter of Free Cash Flow Generation, Strategic Corporate Activities Supporting the Transformation of New Gold's Growth

The Company generated cash flow from operations of $108 million and free cash flow 4 of $25 million after investing over $43 million in advancing growth projects during the quarter. This was highlighted by New Afton's impressive $52 million in free cash flow 2 . The Company exited the first quarter in a strong financial position, with cash and cash equivalents of $213 million .

On February 12, 2025 , the Company provided its three-year operational outlook and filed Technical Reports for the New Afton and Rainy River mines outlining New Gold's strong production profile with declining costs, strong free cash flow generation and increasing net asset value while also highlighting upside to build on over the longer-term (see February 12, 2025 news release for additional information).

On March 4, 2025 , the Company completed a $400 million senior notes offering with an interest rate of 6.875% and due in 2032 that was used to fund the purchase and cancellation of approximately $289 million of its outstanding 7.50% senior notes due in 2027. The Company intends to redeem the approximately $111 million remaining 2027 senior notes on or about July 15, 2025 . In connection with the offering, S&P upgraded the Company's corporate rating from B to B+, upgraded the bond rating from B to BB-, and upgraded their outlook from Stable to Positive. Moody's maintained the Company's B2 corporate rating and B3 rating on the bonds and upgraded their outlook from Stable to Positive.

On March 24, 2025 , the Company and its syndicate of lenders executed an amendment to its existing revolving credit facility. Under the amendment, the term has been extended by four years, now maturing on March 23, 2029 . An accordion feature has also been added, which allows the principal amount of the credit facility to be increased by up to $100 million , subject to certain conditions.

Subsequent to quarter end, the Company entered into an agreement with Ontario Teachers' Pension Plan to acquire the remaining 19.9% free cash flow interest in the Company's New Afton Mine. The transaction is to be funded with cash on hand, borrowings from its existing credit facility, and a gold prepayment financing. Importantly, the transaction comes with no equity dilution to New Gold shareholders. Following the transaction, the Company will have fully consolidated its free cash flow interest in New Afton to 100%. The transaction is expected to close in early May (see April 7, 2025 news release for additional information). The $100 million gold prepayment associated with the New Afton transaction was finalized in mid-April. The Company has agreed to deliver approximately 2,771 ounces of gold per month over the July 2025 to June 2026 period at an average price of $3,157 per gold ounce.

New Afton K-Zone First Exploration Drill Bay Complete, Both Operations Advance Technical Studies for Growth Projects

At New Afton, the exploration priority for 2025 remains on K-Zone. Development of the 4500 Level exploration drift to target K-Zone is well advanced, with the first exploration drill bay now operational. The new exploration drift will facilitate infill drilling to support Mineral Resource development and exploration drilling to test extensions to the east and at depth. In parallel, preliminary technical studies are underway to assess potential mining scenarios for K-Zone, HW Zone, and D-Zone with the potential to extend New Afton mine life beyond 2031.

At Rainy River , following the significant increase in open pit Mineral Resources in 2024, the Company continues to expand, define, and evaluate opportunities to extend open pit mine life and keep the processing plant operating at full capacity beyond 2029. First quarter drilling was focused on testing growth opportunities along the NW Trend open pit target, while technical studies on potential pushbacks to the south of the main pit advanced, including the evaluation of waste rock and tailings storage options.

Consolidated Financial Highlights

| | Q1 2025 | Q1 2024 | | Revenue ($M) | 209.1 | 192.1 | | Operating expenses ($M) | 103.4 | 106.8 | | Depreciation and depletion ($M) | 57.2 | 62.7 | | Net loss ($M) | (16.7) | (43.5) | | Net loss, per share ($) | (0.02) | (0.6) | | Adj. net earnings ($M) 1 | 12.0 | 13.1 | | Adj. net earnings, per share ($) 1 | 0.02 | 0.02 | | Cash generated from operations ($M) | 107.5 | 54.7 | | Cash generated from operations, per share ($) | 0.14 | 0.08 | | Cash generated from operations, before changes in non-cash operating working capital ($M) 1 | 90.0 | 72.5 | | Cash generated from operations, before changes in non-cash operating working capital, per share ($) 1 | 0.11 | 0.11 | | Free cash flow ($M) 1 | 24.9 | (14.9) |

Revenue increased over the prior-year period primarily due to higher metal prices and higher copper sales volume, partially offset by lower gold sales volume.

Operating expenses were in-line with the prior-year period. Depreciation expense decreased when compared to the prior-year period due to lower gold production and open-pit tonnes mined at Rainy River .

Net earnings increased over the prior-year period primarily due to an increase in revenues. Adjusted net earnings 1 were relatively in-line with the prior-year period.

Cash generated from operations and free cash flow 1 increased over the prior-year period primarily due to higher revenue.

Consolidated Operational Highlights

| | Q1 2025 | Q1 2024 | | Gold production (ounces) 4 | 52,186 | 70,898 | | Gold sold (ounces) 4 | 52,164 | 70,077 | | Copper production (Mlbs) 4 | 13.6 | 13.3 | | Copper sold (MIbs) 4 | 13.2 | 12.0 | | Gold revenue, per ounce ($) 5 | 2,864 | 2,061 | | Copper revenue, per pound ($) 5 | 4.17 | 3.64 | | Average realized gold price, per ounce ($) 1 | 2,894 | 2,090 | | Average realized copper price, per pound ($) 1 | 4.30 | 3.86 | | Operating expenses per gold ounce sold ($/ounce, co-product) 3 | 1,437 | 1,106 | | Operating expenses per copper pound sold ($/pound, co-product) 3 | 2.15 | 2.44 | | Depreciation and depletion per gold ounce sold ($/ounce) 5 | 1,100 | 897 | | Cash costs per gold ounce sold (by-product basis) ($/ounce) 1,2 | 869 | 874 | | All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce) 1,2 | 1,727 | 1,396 | | Sustaining capital ($M) 1 | 32.7 | 25.9 | | Growth capital ($M) 1 | 42.5 | 35.1 | | Total capital ($M) | 75.2 | 61.1 |

New Afton Mine

Operational Highlights

| New Afton Mine | Q1 2025 | Q1 2024 | | Gold production (ounces) 4 | 18,278 | 18,179 | | Gold sold (ounces) 4 | 18,432 | 16,980 | | Copper production (Mlbs) 4 | 13.6 | 13.3 | | Copper sold (Mlbs) 4 | 13.2 | 12.0 | | Gold revenue, per ounce ($) 5 | 2,861 | 1,988 | | Copper revenue, per ounce ($) 5 | 4.17 | 3.64 | | Average realized gold price, per ounce ($) 1 | 2,947 | 2,108 | | Average realized copper price, per pound ($) 1 | 4.30 | 3.86 | | Operating expenses ($/oz gold, co-product) 3 | 662 | 740 | | Operating expenses ($/lb copper, co-product) 3 | 2.15 | 2.44 | | Depreciation and depletion ($/ounce) 5 | 1,331 | 1,216 | | Cash costs per gold ounce sold (by-product basis) ($/ounce) 1,2 | (769) | (34) | | Cash costs per gold ounce sold ($/ounce,co-product) 1,3 | 696 | 811 | | Cash costs per copper pound sold ($/pound, co-product) 1,3 | 2.26 | 2.67 | | All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce) 1,2 | (687) | 241 | | All-in sustaining costs per gold ounce sold ($/ounce, co-product) 1,3 | 720 | 894 | | All-in sustaining costs per copper pound sold ($/pound, co-product) 1,3 | 2.34 | 2.94 | | Sustaining capital ($M) 1 | 0.7 | 3.7 | | Growth capital ($M) 1 | 23.3 | 27.7 | | Total capital ($M) | 24.0 | 31.4 | | Free cash flow ($M) 1 | 52.5 | (3.6) |

Operating Key Performance Indicators

| New Afton Mine | Q1 2025 | Q1 2024 | | New Afton Mine Only | | | | Tonnes mined per day (ore and waste) | 12,356 | 10,734 | | Tonnes milled per calendar day | 12,366 | 10,153 | | Gold grade milled (g/t) | 0.57 | 0.68 | | Gold recovery (%) | 87 % | 88 % | | Copper grade milled (%) | 0.62 | 0.72 | | Copper recovery (%) | 89 % | 90 % | | Gold production (ounces) | 17,987 | 17,858 | | Copper production (Mlbs) | 13.6 | 13.3 | | Ore Purchase Agreements 6 | | | | Gold production (ounces) | 292 | 321 |

First quarter production was 18,278 ounces of gold (inclusive of ore purchase agreements) and 13.6 million pounds of copper. The increase over the prior-year period was due to higher tonnes processed, partially offset by lower grade and recovery.

Operating expenses per gold ounce sold 5 and per copper pound sold decreased over the prior-year period, primarily due to higher gold and copper sales volumes, and lower underground mining and processing costs with the gyratory crusher completed in Q4 2024 reducing underground haulage costs.

All-in sustaining costs 1,2 per gold ounce sold decreased over the prior-year period, primarily due to higher sales volumes, higher by-product revenues, and lower sustaining capital spend.

Total capital expenditures decreased over the prior-year period due to lower sustaining and growth capital spend. Sustaining capital 1 primarily related to equipment and vehicles. Growth capital 1 primarily related to C-Zone underground mine development, and cave construction.

Free cash flow was $52 million , an improvement over the prior-year period due to higher revenues and lower operating expenses.

Rainy River Mine

Operational Highlights

| Rainy River Mine | Q1 2025 | Q1 2024 | | Gold production (ounces) 4 | 33,908 | 52,719 | | Gold sold (ounces) 4 | 33,732 | 53,097 | | Gold revenue, per ounce ($) 5 | 2,866 | 2,085 | | Average realized gold price, per ounce ($) 1 | 2,866 | 2,085 | | Operating expenses per gold ounce sold ($/ounce) 5 | 1,861 | 1,223 | | Depreciation and depletion per gold ounce sold ($/ounce) 5 | 969 | 792 | | Cash costs per gold ounce sold (by-product basis) ($/ounce) 1,2 | 1,764 | 1,165 | | All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce) 1,2 | 2,758 | 1,638 | | Sustaining capital ($M) 1 | 32.0 | 22.2 | | Growth capital ($M) 1 | 19.3 | 7.4 | | Total capital ($M) | 51.3 | 29.6 | | Free cash flow ($M) | (12.8) | (2.5) |

Operating Key Performance Indicators

| Rainy River Mine | Q1 2025 | Q1 2024 | | Open Pit Only | | | | Tonnes mined per day (ore and waste) | 74,086 | 91,587 | | Ore tonnes mined per day | 4,529 | 16,476 | | Operating waste tonnes per day | 16,034 | 51,486 | | Capitalized waste tonnes per day | 53,523 | 23,626 | | Total waste tonnes per day | 69,557 | 75,111 | | Strip ratio (waste:ore) | 15.36 | 4.56 | | Underground Only | | | | Ore tonnes mined per day | 785 | 878 | | Waste tonnes mined per day | 1,454 | 957 | | Lateral development (metres) | 1,440 | 950 | | Open Pit and Underground | | | | Tonnes milled per calendar day | 24,468 | 25,023 | | Gold grade milled (g/t) | 0.54 | 0.83 | | Gold recovery (%) | 89 | 91 |

First quarter gold production was 33,908 ounces, a decrease over the prior-year period as planned primarily due to the focus on waste stripping in the quarter, which resulted in the majority of the mill feed coming from the low-grade stockpile.

Operating expenses per gold ounce sold increased over the prior-year period due to lower sales volumes.

All-in sustaining costs 1,2 per gold ounce sold increased over the prior-year period primarily due to lower sales volumes, and higher sustaining capital from capitalized waste stripping.

Total capital expenditures increased over the prior-year period due to higher sustaining and growth capital spend. Sustaining capital 1 primarily related to capitalized waste stripping, tailings dam raise, and capital components. Growth capital 1 related to underground development as the Underground Main and Intrepid zones continue to advance.

Free cash flow was a net outflow of $13 million (net of $6 million stream payment), a decrease compared to the prior-year period primarily due to lower revenue.

First Quarter 2025 Conference Call and Webcast

The Company will release its first quarter 2025 financial results after market close on Tuesday, April 29, 2025 . A conference call and webcast will be hosted on Wednesday, April 30, 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/Z0RMlnOPaWp

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 65691

To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4kIQyPi to receive an instant automated call back.

A recorded playback of the conference call will be available until May 30, 2025 by calling North American toll free 1-888-660-6345, or 1-289-819-1450 outside of the U.S. and Canada , passcode 65691. 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 New Afton copper-gold mine and the Rainy River gold mine. New Gold's vision is to be the most valued intermediate gold and copper producer through profitable and responsible mining for our shareholders and stakeholders. 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" "open pit net mining costs per operating tonne mined", "underground net mining costs per operating tonne mined", "processing costs per tonne processed", and "G&A costs per tonne processed" are all non-GAAP financial performance measures that are used in this MD&A. These measures do not have any standardized meaning under IFRS Accounting Standards, as issued by the IASB, 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 press release. | | | | | 2. | 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. | | | | | 3. | 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 ended March 31, 2025 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. |