Intermediate Gold Producer
Mexico, Canada, Australia, Brazil & Alaska
New Gold Inc. Vancouver, British Columbia; TSX: NGD; NYSE: NGD
New Gold is an intermediate gold producer with cash flow positive operating assets in the United States, Mexico and Australia and development projects in Canada and Chile.
The company has a solid platform for profitable growth with a strong financial position and a talented management team and Board of Directors who have the experience to continue to execute on New Gold's growth strategy.
The Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico and Peak Gold Mines in Australia are expected to produce between 380,000 and 400,000 ounces of gold in 2011.
The fully-funded New Afton project in Canada is scheduled to add further growth in 2012.
In addition, New Gold owns 30% of the world-class El Morro project located in Chile and, in June 2011, New Gold acquired the exciting Blackwater project in Canada
The Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico and Peak Gold Mines in Australia are expected to produce between 380,000 and 400,000 ounces of gold in 2011.
The fully-funded New Afton project in Canada is scheduled to add further growth in 2012.
2011 Outlook
Through the first nine months of 2011, New Gold has produced 286,484 ounces of gold at total cash cost(1), net of by-product sales, of $409 per ounce.
New Gold is pleased to reiterate the 2011 production guidance the company set at the beginning of the year for gold production of 380,000 to 400,000 ounces.
New Gold's initial guidance for 2011 total cash cost(1) per ounce sold, net of by-product sales, was $430 to $450 per ounce. In May of 2011, based on the rapid appreciation of silver and copper prices, New Gold lowered its total cash cost(1) guidance for the year to $390 to $410 per ounce. Among other assumptions, this cost guidance range was based upon a $4.00 per pound copper price.
Taking into account the year-to-date realized copper price and assuming $3.50 per pound copper in the fourth quarter, total cash cost(1) per ounce sold, net of by-product sales, for the year may be nominally above the company's reduced guidance range of $390 to $410 per ounce.
New Gold should finish the year as one of the lowest cost producers in the industry.
In addition to the three operating mines, the company's three development projects should continue to advance meaningfully with multiple catalysts anticipated in late 2011 and early 2012.
New Gold has a clear vision of becoming a million ounce gold equivalent producer, with a lower than industry average cash cost per ounce by 2014.External Growth through conintued consolidation of junior gold producers.
New Gold is working towards maximizing shareholder value through diversified production, maintaining a reduced risk profile and enhancing growth potential. The board of directors, management and the employees of New Gold Inc. are committed to achieving this in a socially responsible and sustainable manner.
New Gold Inc. is listed on the Toronto Stock Exchange (TSX) and the American Stock Exchange (AMEX) under the symbol NGD
New Gold has two operating properties:
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Peak Mines, a gold-copper underground mining operation that has been steadily increasing gold production, resources and mine life
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Cerro San Pedro Mine, a gold-silver heap-leach operation which is located in central Mexico and began production in the first quarter of 2007.
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Amapari Mine, a gold heap leach operation located in the State of Amapari in Brazil was recently placed on temporary care and maintenance.
New Gold Inc. is forecasting between 265,000 and 295,000 ounces of gold production in 2008 with a significant increase of production in 2010, as New Afton is expected to commence production by late 2009.
Development Projects
Currently, New Gold has two development projects:
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New Afton, British Columbia, Canada a development project.
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El Morro, northern Chile, a joint venture site that New Gold has 30% of the interest. Currently, El Morro has no production date set.
Exploration
Reserves are a vital part of the success of New Gold. New Gold is currently leading four exploration projects in three different countries.
These projects include:
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Ajax-Python, British Columbia;
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Rio Figueroa, Copiapó, northern Chile and
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Liberty Bell, Central Alaska