New Gold Inc. has officially published its financial and operating results for the quarter ended March 31, 2025.
Going by this published lowdown, the company’s first quarter consolidated production stood at 52,186 ounces of gold and 13.6 million pounds of copper. The stated output came at all-in sustaining costs of $1,727 per gold ounce sold. More on that would reveal how the first quarter gold production represented approximately 15% of annual consolidated production guidance midpoint i.e. 325,000 to 365,000 ounces of gold, slightly ahead of the planned first quarter of 14%.
Next up, we must dig into how the company’s New Afton project saw its first quarter production settling around 18,278 ounces of gold and 13.6 million pounds of copper, at an all-in sustaining cost worth $687 per gold ounce sold. Here, the first quarter production represented approximately 28% and 25% of the annual guidance midpoint i.e. 60,000 to 70,000 ounces gold, and 50 to 60 million pounds copper, respectively.
This marks a higher figure than the planned 20% due to continued strong B3 grades, instigating higher than planned head grades.
Then, there is Rainy River project, which clocked a first quarter production of 33,908 ounces gold at an all-in sustaining costs of $2,758 per gold ounce sold. Markedly enough, first quarter production represented 12% of the midpoint of annual guidance i.e. 265,000 to 295,000 ounces of gold, slightly ahead of the planned first quarter of 11%.
Beyond that, the Rainy River underground mine achieved a breakthrough of ramp to the pit portal. You see, this particular connection to the pit provides an immediate reduction in underground haulage distances, improves ventilation, as well as establishes a second means of egress to facilitate stope production from several new mining zones.
Another detail worth a mention is rooted in the New Gold’s C-Zone cave, where construction continues to advance on schedule, facilitating a step up in copper and gold production in the second half of 2025.
Undercutting is also on track for completion in May and cave construction progress is more than 50% complete, as of the end of March. Not just that, the site would go on to see various other key project milestones completed in the first quarter. For instance, it achieved the relocation of secondary sizer and commissioned the C-Zone dewatering system.
“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,” said Mike Godin, CEO and President of New Gold.
As for the financials, New Gold’s cash flow just from operations rounded out at $108 million, with free cash flows reaching $25 million after investing over $43 million in advancing growth projects during the quarter.
The company also completed a $400 million senior notes offering with an interest rate of 6.875%. Due in 2032, the stated offering was used to fund the purchase and cancellation of approximately $289 million outstanding 7.50% senior notes due in 2027.
Apart from that, we ought to mention how the company and its syndicate of lenders successfully executed an amendment to its existing revolving credit facility. Under the given amendment, the term has been extended by four years, now maturing on March 23, 2029. Not just that, an accordion feature has also been installed, something which allows the principal amount of the credit facility to be increased by up to $100 million, subject to certain conditions.
“The first four months of the year have been exceptionally positive for New Gold in achieving our strategic objectives,” said Godin. “We increased our future free cash flow by consolidating our interest in New Afton to 100%. During the quarter, we also delivered two new Technical Reports outlining strong production profiles with lower costs.
