New Gold Delivers Higher 2016 Second Quarter Cash Flow and Significantly Lowers Full-Year Cost Guidance

Alleen voor leden beschikbaar, wordt daarom gratis lid!

28/07/2016 07:11
(All dollar figures are in US dollars unless otherwise indicated)

TORONTO, July 27, 2016 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) (NYSE MKT:NGD) today announces its 2016 second quarter results and provides an update on the construction of the company's Rainy River project.

2016 SECOND QUARTER HIGHLIGHTS

Gold production of 99,423 ounces increased by 15% relative to 2015 and copper production of 25.7 million pounds increased by 9%
All-in sustaining costs(1) decreased to $717 per ounce, including total cash costs(2) of $334 per ounce
All four operations generated free cash flow during the quarter
Cash generated from operations before changes in non-cash operating working capital(3) of $82 million, a 31% increase compared to 2015
Cash generated from operations of $79 million, a 39% increase from 2015
Adjusted net earnings(4) of $14 million, or $0.03 per share, relative to an adjusted net loss of $1 million, or nil per share, in 2015
Net loss of $9 million, or $0.02 per share, compared to net earnings of $9 million, or $0.02 per share, in 2015
Rainy River construction approximately 40% complete at June 30, 2016 with $107 million in capital expenditures during the quarter
June 30, 2016 cash and equivalents of $220 million
"We are proud to have delivered such strong second quarter results," stated Randall Oliphant, Executive Chairman. "The combination of higher production, lower costs and improved gold prices enabled us to generate a 39% increase in our cash flow. We are on track to meet our full-year gold production guidance and pleased to be in a position to lower our cost guidance. We look forward to a strong finish to the year."

"At the same time, our Rainy River project is moving ever closer to production. The construction of the processing facilities and initial mining activities are both going very well and we are making good progress in resolving the challenge we encountered earlier this year related to the ground conditions at the water and tailings management facilities," added Mr. Oliphant.

CONSOLIDATED YEAR-TO-DATE OPERATIONAL RESULTS AND 2016 GUIDANCE

Consistent with the expectations the company outlined as part of its first quarter results, gold production increased quarter over quarter, resulting in consolidated gold production of 190,234 ounces in the first six months of 2016 which was 5% higher than the same period of the prior year. As a result of the company's strong first half production, New Gold is well positioned to meet its full-year gold production guidance of 360,000 to 400,000 ounces. At the same time, the company's first half copper production of 51.1 million pounds was higher than planned, increasing by 10% relative to the prior-year period, and New Gold now anticipates it will exceed the high end of its full-year copper production guidance of 81.0 to 93.0 million pounds. Consolidated full-year silver production is expected to be at, or slightly below, the low end of the guidance range of 1.6 to 1.8 million ounces.

For the six-month period ended June 30, 2016, New Gold's all-in sustaining costs of $736 per ounce and total cash costs of $343 per ounce were both well below the prior year and are tracking below the company's 2016 cost guidance. The $233 per ounce decrease in all-in sustaining costs relative to the first half of 2015 was attributable to the combination of a $106 per ounce decrease in total cash costs and a $125 per ounce, or $20 million, decrease in the company's consolidated sustaining costs(1), which include New Gold's cumulative sustaining capital, exploration, general and administrative, and amortization of reclamation expenditures.

Based on New Gold's first half operating results, and assuming current commodity prices and foreign exchange rates, the company now expects its 2016 full-year total cash costs to be $360 to $400 per ounce, a $75 per ounce reduction from the company's original guidance range of $435 to $475 per ounce. As total cash costs form a component of all-in sustaining costs, New Gold similarly expects a $75 per ounce reduction from its 2016 full-year all-in sustaining costs to approximately $750 to $790 per ounce as compared to the company's original guidance range of $825 to $865 per ounce.

NEW GOLD SUMMARY OPERATIONAL RESULTS

Three months ended June 30 Six months ended June 30
2016 2015 2016 2015
GOLD PRODUCTION (thousand ounces)
New Afton 25.3 24.4 50.4 48.3
Mesquite 25.6 22.5 52.9 48.2
Peak Mines 31.3 14.9 50.9 34.3
Cerro San Pedro 17.3 24.7 36.1 50.6

Total Gold Production 99.4 86.4 190.2 181.4

Total Gold Sales (thousand ounces) 101.8 87.8 187.9 180.2

Average Realized Gold Price per ounce(5) $1,267 $1,191 $1,239 $1,210

COPPER PRODUCTION (million pounds)
New Afton 22.1 19.9 44.5 39.5
Peak Mines 3.6 3.7 6.6 7.1
Total Copper Production 25.7 23.6 51.1 46.6

Total Copper Sales (million pounds) 25.2 23.7 50.4 45.8

Average Realized Copper Price per pound(5) $2.14 $2.72 $2.14 $2.66

SILVER PRODUCTION (million ounces)
New Afton 0.1 0.1 0.1 0.1
Cerro San Pedro 0.2 0.3 0.5 0.6

Total Silver Production 0.3 0.4 0.7 0.8
Total Silver Sales (million ounces) 0.3 0.4 0.7 0.8

Average Realized Silver Price per ounce(5) $17.39 $16.23 $15.96 $16.41

TOTAL CASH COSTS(2)($ per ounce)
New Afton ($547) ($940) ($593) ($889)
Mesquite 611 839 618 867
Peak Mines 521 1,157 620 974
Cerro San Pedro 898 879 917 944

Total Cash Costs(2) $334 $410 $343 $449

All-IN SUSTAINING COSTS(1)($ per ounce)
New Afton ($131) ($235) ($198) ($295)
Mesquite 999 1,533 1,044 1,632
Peak Mines 706 1,549 827 1,337
Cerro San Pedro 941 889 947 955
All-in Sustaining Costs(1) $717 $922 $736 $969

2016 SECOND QUARTER CONSOLIDATED OPERATIONAL RESULTS

New Gold's second quarter gold production increased by 15% to 99,423 ounces when compared to the prior-year quarter. The increase in quarterly gold production was attributable to New Afton, Mesquite and the Peak Mines all delivering higher production. This was only partially offset by planned lower production from Cerro San Pedro as the mine was in its final months of active mining. Quarterly copper production also increased by 9% to 25.7 million pounds when compared to the second quarter of 2015. Silver production of 0.3 million ounces remained in line with 2015.

During the second quarter, all four of New Gold's operations delivered production at all-in sustaining costs below $1,000 per ounce. As a result of this strong performance, consolidated second quarter all-in sustaining costs of $717 per ounce decreased by $205 per ounce relative to the second quarter of 2015. The significant decrease in all-in sustaining costs relative to the prior-year quarter was attributable to the combination of a $76 per ounce decrease in total cash costs to $334 per ounce and a $129 per ounce, or $6 million, decrease in the company's consolidated sustaining costs. The decrease in total cash costs was driven by the combined benefit of higher gold production, the depreciation of the Canadian and Australian dollars and New Gold's business improvement initiatives more than offsetting the impact of lower by-product revenues resulting from lower realized copper prices(5).

New Afton

Gold production at New Afton during the second quarter increased to 25,287 ounces. The increase relative to the prior-year quarter was due to a 16% increase in mill throughput which more than offset a planned decrease in gold grade. Gold recoveries remained consistent at 83% despite the significant increase in throughput. New Afton's average mill throughput during the second quarter was 15,320 tonnes per day.

read more on
http://www.newgold.com/investors/NewGoldNews/PressReleaseDetail/2016/New-Gold-Delivers-Higher-2016-Second-Quarter-Cash-Flow-and-Significantly-Lowers-Full-Year-Cost-Guidance/default.aspx



Beperkte weergave !
Leden hebben toegang tot meer informatie! Omdat u nog geen lid bent of niet staat ingelogd, ziet u nu een beperktere pagina. Wordt daarom GRATIS Lid of login met uw wachtwoord


Copyrights © 2000 by XEA.nl all rights reserved
Niets mag zonder toestemming van de redactie worden gekopieerd, linken naar deze pagina is wel toegestaan.


Copyrights © DEBELEGGERSADVISEUR.NL