(All figures are in US dollars unless otherwise indicated)
VANCOUVER,
Feb. 27, 2014 /CNW/ - New Gold Inc.
("New Gold") (TSX:NGD) and (NYSE MKT:NGD) today announces fourth
quarter and full-year 2013 financial and operational results,
delivering the lowest annual total cash costs(1) in the
company's history. The company previously released its preliminary
operational results on February 6,
2014.
Fourth Quarter and Full-Year 2013
Overview |
- Fourth quarter 2013
-
- Adjusted net cash generated from operations(2) of
$93 million, or $0.19 per share
- Adjusted net earnings(3) of $17 million, or $0.04
per share
- Net loss of $255 million, or $0.51 per share, including an
after-tax impairment charge of $206 million
- Highest production quarter of 2013 - 106,520 ounces of gold and
24.0 million pounds of copper
- Low total cash costs(1) of $316 per ounce and all-in
sustaining costs(4) of $883 per ounce
- Full-year 2013
-
- Adjusted net cash generated from operations(2) of
$249 million, or $0.51 per share
- Adjusted net earnings(3) of $61 million, or $0.13
per share
- Net loss of $191 million, or $0.39 per share, including an
after-tax impairment charge of $206 million
- Production - 397,688 ounces of gold, 85.4 million pounds of
copper and 1.6 million ounces of silver
- Costs - total cash costs(1) of $377 per ounce, the
lowest in New Gold's history, and all-in sustaining
costs(4) of $899 per ounce
- Successfully completed the acquisition of Rainy River Resources
Ltd.
-
- Targeted commissioning in late 2016 with first year of full
production in 2017
- Cash and cash equivalents of $414 million
|
"We are proud to have generated over
$90 million of cash flow in the
fourth quarter, bringing what was a challenging year to a strong
close," stated Randall Oliphant,
Executive Chairman. "We now look forward to 2014 where we have
targeted a further decrease in costs, from what was already a
record low for our company, which will drive continued cash flow
generation. Currently, we feel particularly well positioned as the
start of the year has seen the appreciation of the gold price
coupled with the continued depreciation of the Canadian dollar
which significantly benefit the value of both our New Afton Mine
and our Canadian-based development projects."
Financial Results
Overview |
|
New Gold 2013
Fourth Quarter and Full-Year Summary Financial Results |
|
|
|
|
Three months
ended |
|
Twelve months
ended |
|
|
|
|
December
31, |
|
December
31, |
(in millions of U.S. dollars; except per share
amounts) |
|
|
|
2013 |
2012 |
|
2013 |
2012 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
$198.4 |
$250.9 |
|
$779.7 |
$791.3 |
|
|
|
|
|
|
|
|
|
Operating Margin(5) |
|
|
|
76.7 |
145.7 |
|
344.2 |
447.0 |
|
|
|
|
|
|
|
|
|
Net Earnings/(Loss) |
|
|
|
(254.7) |
123.9 |
|
(191.2) |
199.0 |
Net Earnings/(Loss) per Share |
|
|
|
(0.51) |
0.26 |
|
(0.39) |
0.43 |
|
|
|
|
|
|
|
|
|
Adjusted Net Earnings(3) |
|
|
|
16.7 |
49.7 |
|
61.3 |
183.5 |
Adjusted Net Earnings per Share(3) |
|
|
|
0.04 |
0.11 |
|
0.13 |
0.40 |
|
|
|
|
|
|
|
|
|
Net Cash Generated from Operations |
|
|
|
99.7 |
106.2 |
|
171.9 |
235.8 |
Adjusted Net Cash Generated from Operations(2) |
|
|
|
93.2 |
106.2 |
|
248.9 |
235.8 |
Revenue during the fourth quarter was primarily impacted by the
decrease in the average realized prices of gold, copper and silver.
When compared to the fourth quarter of 2012, the average realized
gold price decreased by 22%, the copper price by 8% and the silver
price by 38%. Copper sales volumes increased when compared to the
prior year quarter, however, gold and silver sales volumes were
down slightly. In 2013, the average realized gold price decreased
by 14%, the copper price by 9% and the silver price by 25%, when
compared to 2012. For the full year, New Gold's revenue generation
remained similar to 2012 despite lower commodity prices as the
price impact was offset by increased copper sales volumes due to a
full year of production from the New Afton Mine.
Operating margin(5) in both the
fourth quarter and full-year periods was impacted by lower
contributions from Mesquite, the Peak Mines and Cerro San Pedro
when compared to the same periods of the prior year. New Afton's
operating margin(5) in the fourth quarter remained
consistent with the prior year period as increased gold and copper
sales volumes and lower operating expenses offset lower realized
gold and copper prices. In 2013, New Afton's operating
margin(5) increased by 163% as the mine completed its
first full year of operation. During both the quarter and full-year
periods, the lower contributions from Mesquite and Cerro San Pedro
were due to a combination of lower commodity prices, lower gold
sales volumes and increased operating expenses. At Cerro San Pedro,
a pre-tax charge of $7 million was
included in operating expenses to reduce the carrying value of the
portion of long-term silver inventory that is not expected to be
recovered during the residual leaching period at the mine. The Peak
Mines delivered a strong operational performance during the fourth
quarter and full year with gold and copper sales volumes meeting or
exceeding the prior year levels; however, its operating
margin(5) was negatively impacted by lower realized gold
and copper prices.
The company reported a net loss of $255 million, or $0.51 per share, in the fourth quarter and a net
loss of $191 million, or $0.39 per share, in the full-year period. The
reported net loss in both periods was primarily attributable to an
after-tax impairment charge of $206
million. The impairment charge at Cerro San Pedro, which
accounted for the vast majority of the total charge, primarily
related to bringing down the value ascribed to Cerro San Pedro's
mineral reserves and resources as part of the purchase accounting
at the time of the company's three-way merger in 2008. The
resources that were most impacted were those at the base of the
current open pit. As these resources would require a deeper
extension of the open pit mine and construction of a new processing
facility to realize sufficient recoveries, New Gold concluded that
the economic returns were not sufficiently compelling and thus
opted not to pursue the development of this area.
Other elements leading to the reported net loss
in the fourth quarter included: a $7
million non-cash accounting charge related to the
reclassification of Other Comprehensive Income to earnings as the
loss incurred on the monetization of the company's legacy hedge
position in May of 2013 is realized into income over the original
term of the hedge contracts, a non-cash $14
million pre-tax loss on foreign exchange, and $2 million in redundancy charges from labour
force reductions at New Afton and the Peak Mines. Adjusted net
earnings(3) in the fourth quarter were $17 million, or $0.04 per share.
For the full year, additional factors that
impacted the company's financial results included: an increase in
exploration and business development expenses driven by the
successful Rainy River
acquisition, an increase in finance costs, a $19 million non-cash accounting charge related to
the reclassification of Other Comprehensive Income to earnings as
the loss incurred on the monetization of the company's legacy hedge
position in May of 2013 is realized into income over the original
term of the hedge contracts, a non-cash $26
million pre-tax loss on foreign exchange, and $5 million in non-recurring transaction costs
related to the Rainy River acquisition. This was partially offset
by a non-cash $49 million pre-tax
gain on the mark to market of the company's share purchase
warrants. Adjusted net earnings (3) in 2013 were
$61 million, or $0.13 per share.
New Gold's fourth quarter net cash generated
from operations was the company's highest of the year at
$100 million and remained similar to
the prior year quarter despite the significant decline in commodity
prices. The fourth quarter net cash generated from operations
included a $7 million non-recurring
benefit related to tax refunds from prior year periods. For the
full year, net cash generated from operations was $172 million, which included non-recurring cash
expenditures of $66 million related
to the settlement of the company's legacy gold hedge position in
May of 2013 and a total of $18
million related to the acquisition of Rainy River. This was partially offset by the
above-noted $7 million of tax refunds
related to prior periods. Taking into account these one-time items,
adjusted net cash generated from operations (2) for the
full year was $249 million,
representing a 6% increase over 2012. Beyond the items noted above,
the increase in full-year adjusted net cash generated from
operations(2) was driven by a $62
million decrease in cash taxes paid and a $35 million favourable movement in working
capital. New Gold is particularly proud to have delivered an
increase in adjusted net cash generated from
operations(2) given the decline in prices of each of the
commodities the company produces during 2013.
Production and
Cost Results |
|
New Gold 2013
Fourth Quarter and Full-Year Summary Operational Results |
|
|
|
|
Three months
ended |
|
Twelve months
ended |
|
|
|
|
December
31, |
|
December
31, |
|
|
|
|
2013 |
2012 |
|
2013 |
2012 |
Gold Production (thousand ounces) |
|
|
|
|
|
|
|
|
New Afton |
|
|
|
25.2 |
22.8 |
|
87.2 |
36.8 |
Mesquite |
|
|
|
34.9 |
29.2 |
|
107.0 |
142.0 |
Peak Mines |
|
|
|
24.2 |
28.8 |
|
100.7 |
95.5 |
Cerro San Pedro |
|
|
|
22.2 |
32.1 |
|
102.8 |
137.6 |
Total Gold Production |
|
|
|
106.5 |
112.9 |
|
397.7 |
411.9 |
|
|
|
|
|
|
|
|
|
Total Gold Sales |
|
|
|
104.5 |
109.8 |
|
391.8 |
395.5 |
Average Realized Gold Price ($ per ounce) |
|
|
|
$1,233 |
$1,578 |
|
$1,337 |
$1,551 |
|
|
|
|
|
|
|
|
|
Silver Production (thousand ounces) |
|
|
|
|
|
|
|
|
New Afton |
|
|
|
54.8 |
43.1 |
|
192.5 |
82.5 |
Peak Mines |
|
|
|
31.2 |
31.9 |
|
112.2 |
136.8 |
Cerro San Pedro |
|
|
|
297.5 |
401.3 |
|
1,300.6 |
1,938.5 |
Total Silver Production |
|
|
|
383.5 |
476.3 |
|
1,605.3 |
2,157.8 |
|
|
|
|
|
|
|
|
|
Total Silver Sales |
|
|
|
378.9 |
489.3 |
|
1,572.3 |
2,082.0 |
Average Realized Silver Price ($ per ounce) |
|
|
|
$20.10 |
$32.36 |
|
$23.16 |
$30.87 |
|
|
|
|
|
|
|
|
|
Copper Production (million pounds) |
|
|
|
|
|
|
|
|
New Afton |
|
|
|
20.5 |
17.3 |
|
72.0 |
28.5 |
Peak Mines |
|
|
|
3.5 |
3.6 |
|
13.4 |
14.4 |
Total Copper Production |
|
|
|
24.0 |
20.9 |
|
85.4 |
42.8 |
|
|
|
|
|
|
|
|
|
Total Copper Sales |
|
|
|
23.8 |
19.8 |
|
82.6 |
35.6 |
Average Realized Copper Price ($ per pound) |
|
|
|
$3.24 |
$3.52 |
|
$3.24 |
$3.56 |
|
|
|
|
|
|
|
|
|
Total Cash Costs(1) ($ per ounce) |
|
|
|
|
|
|
|
|
New Afton |
|
|
|
($1,428) |
($1,067) |
|
($1,196) |
($1,043) |
Mesquite |
|
|
|
$841 |
$787 |
|
$907 |
$690 |
Peak Mines |
|
|
|
$778 |
$743 |
|
$850 |
$764 |
Cerro San Pedro |
|
|
|
$911 |
$320 |
|
$676 |
$232 |
Total Cash Costs(1) |
|
|
|
$316 |
$254 |
|
$377 |
$421 |
|
|
|
|
|
|
|
|
|
All-in Sustaining Costs(4) ($ per ounce) |
|
|
|
|
|
|
|
|
New Afton |
|
|
|
$12 |
$168 |
|
($133) |
$358 |
Mesquite |
|
|
|
$988 |
$920 |
|
$1,108 |
$768 |
Peak Mines |
|
|
|
$1,106 |
$1,309 |
|
$1,331 |
$1,360 |
Cerro San Pedro |
|
|
|
$1,076 |
$458 |
|
$766 |
$358 |
All-in Sustaining Costs(4) |
|
|
|
$883 |
$823 |
|
$899 |
$827 |
New Afton's co-product costs(1) were $391 per ounce gold and $1.08 per pound copper in the fourth quarter of
2013 relative to $601 per ounce gold
and $1.28 per pound copper in the
prior year quarter. In 2013, the co-product costs(1)
were $486 per ounce gold and
$1.19 per pound copper, down from
$656 per ounce gold and $1.40 per pound copper in 2012.
New Gold previously released its fourth quarter
and full-year 2013 operational results on February 6, 2014.
Gold Production
Consistent with the company's plans, the fourth
quarter was New Gold's strongest of the year, enabling the company
to deliver at the high end of its updated 2013 full-year outlook of
390,000 to 400,000 ounces of gold production.
When compared to the fourth quarter of 2012,
production at New Afton and Mesquite increased due to higher ore
tonnes processed and higher grades, while Cerro San Pedro and the
Peak Mines were impacted by a combination of lower ore tonnes
processed and lower grades.
For the full year, production at New Afton
exceeded the guidance range of 75,000 to 85,000 ounces and the Peak
Mines met the guidance range of 95,000 to 105,000 ounces. During
2013, production at Mesquite was impacted by the mining of lower
than anticipated grades and by the combination of the pit wall
movement and lower recoveries at Cerro San Pedro. After facing
these challenges in the second half of 2013, Mesquite and Cerro San
Pedro combined to meet their updated full-year production
outlook.
Copper Production
New Gold's consolidated copper production during
the fourth quarter increased by 15% when compared to the same
period of the prior year. Full-year production was double that of
the prior year and met the high end of the copper guidance range,
set at the beginning of 2013, of 78 to 88 million pounds. The
increase in both periods was primarily attributable to New Afton's
strong ramp-up after the mine successfully commenced production
ahead of schedule in mid-2012.
Silver Production
Silver production in both the fourth quarter and
full year was below that of the same periods of the prior year due
to a combination of fewer ore tonnes being placed on the pad and
lower silver grades.
Total Cash Costs(1) and All-in
Sustaining Costs(4)
In both the fourth quarter and full-year
periods, New Gold continued to deliver its production at among the
lowest costs in the industry. New Gold's 2013 total cash
costs(1) of $377 per ounce
were in line with the company's outlook and represented the lowest
full-year cash costs in its history. Also, in the first year of
adoption of the new all-in sustaining costs(4) measure,
New Gold is proud to have delivered all-in sustaining
costs(4) below $900 per
ounce, which should position the company as one of the industry
leaders.
Total cash costs(1) in the fourth
quarter were $316 per ounce, with
increased copper sales volumes and the depreciation of the Canadian
and Australian dollars partially offsetting lower gold sales
volumes, lower silver by-product revenue and lower realized copper
prices. Total cash costs(1) in 2013 decreased by
$44 per ounce when compared to 2012,
benefitting from a full year of operation from the low-cost New
Afton Mine.
Fourth quarter all-in sustaining
costs(4) were above the prior year quarter with lower
costs at New Afton and the Peak Mines being offset by increased
costs at Cerro San Pedro and Mesquite. All-in sustaining
costs(4) for the full year delivered on the company's
outlook of $900 per ounce, led by New
Afton where the mine's copper revenue more than paid for all of New
Afton's operating and sustaining capital costs despite the decrease
in the copper price when compared to 2012.
Projects Overview
Rainy River
One of New Gold's key 2013 achievements was the
successful acquisition of Rainy River Resources, which added the
Rainy River project to the company's pipeline of exciting
development projects. Rainy River
is located in northwestern Ontario, and benefits from its proximity to
infrastructure.
On January 16,
2014, New Gold announced the results of its Feasibility
Study for the Rainy River project.
Rainy River Feasibility Study
Highlights |
- First nine years - average annual gold production of 325,000
ounces at total cash costs(1) of $613 per ounce and
all-in sustaining costs(4) of $736 per ounce
-
- Average mill head grade of 1.44 grams per tonne gold
- Life-of-mine gold and silver production of 3.4 million ounces
and 6.0 million ounces at total cash costs(1) of $663
per ounce and all-in sustaining costs(4) of $765 per
ounce
- Spot economics - at $1,330 per ounce gold, $21.50 per ounce
silver and a 0.90 US$/C$ exchange rate, Rainy River has a pre-tax
5% net present value ("NPV") of $646 million, an internal rate of
return ("IRR") of 17.0% and a payback period of 4.4 years
- Development capital costs of $885 million, inclusive of a $70
million contingency, at a 0.95 US$/C$ exchange rate
- Targeted commissioning in late 2016 with first year of full
production in 2017
- 14-year mine life with direct processing of open pit and
underground ore, at a rate of 21,000 tonnes per day, for first nine
years and processing of a combination of stockpile and underground
ore thereafter
|
The recent depreciation of the Canadian dollar
relative to the U.S. dollar benefits both the project development
and operating costs which, in turn, positively impacts the project
economics. When compared to the base case Feasibility Study
development capital costs shown above, the recent depreciation of
the Canadian dollar to a 0.90 US$/C$
exchange rate, results in approximately $45
million of development capital cost savings.
One of New Gold's key areas of focus during 2014
will be on advancing the permitting of the Rainy River project. The
project is being reviewed through a coordinated Federal
Environmental Assessment ("EA") - Provincial Individual EA process.
The EA is currently in the midst of its second consultation period
with the Federal and Provincial agencies, the local First Nations
and Métis groups and other local communities. In the month of
March, the company plans to submit purchase orders for the mobile
fleet, the primary crusher and the SAG and Ball mills, and also
intends to engage an EPCM partner who will then begin detailed
engineering for the project.
The Rainy River project enhances New Gold's
growth pipeline through its manageable capital costs, significant
production scale at below current industry average costs and good
regional exploration potential in a great mining jurisdiction. The
company looks forward to providing further updates on the
advancement of Rainy River
throughout 2014.
Blackwater
The company's Blackwater project is located approximately
160 kilometres southwest of the city of Prince George in south-central British Columbia. As previously disclosed, New
Gold plans to advance the project through the permitting phase in
2014. The company views the potential of having Blackwater fully permitted as further
enhancing the value of the project. In the current commodity price
environment, New Gold plans to sequence the development of its
projects with the near-term focus being on the advancement of the
lower capital cost Rainy River
project. Thereafter, the timing of Blackwater's development will be driven by
prevailing market conditions over the coming years. With the
benefit of the requisite permits for both projects, New Gold
believes it will be best positioned to maximize its flexibility
with respect to any future development decisions.
New Gold completed the Feasibility Study for
Blackwater in December of
2013.
Blackwater Feasibility Study
Highlights |
- First nine years - average annual gold production of 485,000
ounces at total cash costs(1) of $555 per ounce and
all-in sustaining costs(4) of $685 per ounce
- Life-of-mine gold and silver production of 7 million ounces and
30 million ounces at total cash costs(1) of $578 per
ounce and all-in sustaining costs(4) of $670 per
ounce
- 17-year mine life with direct processing for first 14 years and
processing of stockpile thereafter
- Life-of-mine operational strip ratio of 1.88 to 1.00
- Spot economics - at $1,330 per ounce gold, $21.50 per ounce
silver and a 0.90 US$/C$ exchange rate, Blackwater has a pre-tax 5%
NPV of $1.4 billion, an IRR of 14.0% and a payback period of 5.3
years
- Development capital costs of $1,865 million, inclusive of a
$190 million contingency, at a 0.95 US$/C$ exchange rate
- Conventional truck and shovel open pit mine with 60,000 tonne
per day whole ore leach processing plant
|
Similar to Rainy
River, Blackwater benefits
from the depreciating Canadian dollar. At Blackwater, a $0.05 movement in the US$/C$ exchange, with all
other assumptions held constant, results in approximately
$100 million of development capital
cost savings.
El Morro
New Gold's share of the El Morro project
provides the company with a 30% fully-carried interest in an
advanced stage, world-class gold-copper project in north-central
Chile. Under the terms of New
Gold's agreement with Goldcorp Inc. ("Goldcorp"), Goldcorp is
responsible for funding New Gold's full 30% share of capital costs.
The carried funding accrues interest at a fixed rate of 4.58%. New
Gold will repay its share of capital plus accumulated interest out
of 80% of its share of the project's cash flow with New Gold
retaining 20% of its share of cash flow from the time production
commences.
As the project's environmental permit is
temporarily suspended under an injunction granted by the Copiapo
Court of Appeals, activities during 2014 will continue to focus on
gathering information to support permit applications for submission
following the reinstatement of the environmental permit and
optimization of the project economics including a focus on the
long-term power supply.
2014 Guidance and Sensitivities
New Gold is pleased to reiterate its guidance
for 2014.
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New Gold 2014 Guidance |
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Gold |
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Copper |
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Silver |
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Total |
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All-in |
|
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Production |
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Production |
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Production |
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Cash
Costs(1) |
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Sustaining
Costs(4) |
|
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(thousand ounces) |
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(million pounds) |
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(thousand ounces) |
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($ per ounce) |
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($ per ounce) |
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|
New Afton |
|
|
|
102 - 112 |
|
|
78 - 84 |
|
|
200 - 300 |
|
|
(1,260) - (1,240) |
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(620 - (600) |
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Mesquite |
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113 - 123 |
|
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- |
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- |
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930 - 950 |
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1,310 - 1,330 |
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Peak Mines |
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95 - 105 |
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14 - 16 |
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50 - 150 |
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630 - 650 |
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1,065 - 1,085 |
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Cerro San Pedro |
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70 - 80 |
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- |
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1,100 - 1,300 |
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1,030 - 1,050 |
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1,125 - 1,145 |
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New Gold Consolidated |
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380 - 420 |
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92 - 100 |
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1,350 - 1,750 |
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$320 - $340 |
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$815 - $835 |
After New Gold delivered the lowest total cash
costs(1) in its history in 2013, costs are expected to
decrease by a further $35 to $55 per
ounce in 2014. New Afton's 2014 co-product cash costs(1)
are forecast to be $440 to $460 per
ounce of gold and $1.10 to $1.20 per
pound of copper.
Consistent with the expected decrease in cash
costs, New Gold is also targeting a $65 to
$85 per ounce decrease in all-in sustaining
costs(4). The anticipated decrease in all-in sustaining
costs(4) is driven by a combination of the lower total
cash costs(1) as well as decreases in sustaining capital
at New Afton and the Peak Mines.
Under the company's current plans, the second
half of 2014 is scheduled to have higher gold and copper
production, coupled with lower costs, compared to the first half of
the year.
Key assumptions used in the 2014 guidance
include gold, silver and copper prices of $1,300 per ounce, $20.00 per ounce and $3.25 per pound and Canadian dollar, Australian
dollar and Mexican peso exchange rates of $1.11, $1.14 and
$13.00 to the U.S. dollar. The diesel
price assumed for 2014 is $3.25 per
gallon, which is representative of recent prices being paid at
Mesquite. The following table provides an overview of the impact on
total cash costs(2), both by asset and on a consolidated
basis, of movements in the above-noted key assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cash Costs(1) -
Sensitivities |
Category |
|
|
|
Copper Price |
|
|
Silver Price |
|
|
AUD/USD |
|
|
CDN/USD |
|
|
MXN/USD |
|
|
Diesel |
Base Assumption |
|
|
|
$3.25 |
|
|
$20.00 |
|
|
$1.14 |
|
|
$1.11 |
|
|
$13.00 |
|
|
$3.25 |
Sensitivity |
|
|
|
+/- $0.25 |
|
|
+/- $1.00 |
|
|
+/- $0.05 |
|
|
+/- $0.05 |
|
|
+/- $1.00 |
|
|
+/- $0.25 |
Total Cash Costs(1) - Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Afton |
|
|
|
+/-$200 |
|
|
- |
|
|
- |
|
|
+/-$65 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mesquite |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
+/-$15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peak Mines |
|
|
|
+/-$40 |
|
|
- |
|
|
+/-$50 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cerro San Pedro |
|
|
|
- |
|
|
+/-$15 |
|
|
- |
|
|
- |
|
|
+/-$50 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Gold Consolidated |
|
|
|
+/-$60 |
|
|
+/-$5 |
|
|
+/-$15 |
|
|
+/-$15 |
|
|
+/-$10 |
|
|
+/-$5 |
Financial Update
At December 31,
2013, the key components of New Gold's balance sheet
included $414 million in cash and
cash equivalents and $878 million of
face value long-term debt (book value - $863
million). The components of the long-term debt are:
$300 million of 7.00% face value
senior unsecured notes due in April
2020; $500 million of 6.25%
face value senior unsecured notes due in November 2022; and $78
million in El Morro funding loans, repayable out of a
portion of New Gold's share of El Morro cash flow upon the start of
production. The company had 503 million common shares outstanding
at December 31, 2013.
Webcast and Conference Call
A webcast presentation and conference call to
discuss these results will be held on Friday, February 28, 2014, at 9:00 a.m. Eastern Time. Participants may access
the webcast by registering here or from our website at
www.newgold.com. You may also listen to the conference by calling
647-427-7450 or toll-free 1-888-231-8191 in North America. To listen to a recorded
playback after the event, please call 1-416-849-0833 or toll-free
1-855-859-2056 in North America -
Passcode 49646450. An archived webcast will also be available at
www.newgold.com following the event.
About New Gold Inc.
New Gold is an intermediate gold mining company. The company has a
portfolio of four producing assets and three significant
development projects. The New Afton Mine in Canada, the Mesquite
Mine in the United States, the Peak Mines in Australia and the
Cerro San Pedro Mine in Mexico, provide the company with its
current production base. In addition, New Gold owns 100% of the
Blackwater and Rainy River projects, both in Canada, as well as 30%
of the El Morro project located in Chile. New Gold's objective is
to continue to establish itself as a leading intermediate gold
producer, focused on the environment and sustainability. For
further information on the company, please visit
www.newgold.com. |
Cautionary Note Regarding Forward-Looking
Statements
Certain information contained in this news
release, including any information relating to New Gold's future
financial or operating performance are "forward looking". All
statements in this news release, other than statements of
historical fact, which address events or developments that New Gold
expects to occur are "forward-looking statements". Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the use of forward-looking
terminology such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates",
"projects", "potential", "believes" or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "should", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation of such terms.
Forward-looking statements in this news release include, among
others, statements under the heading "Project Overview" and "2014
Guidance and Sensitivities", including statements with respect to:
guidance for production, cash costs and all-in sustaining costs
(all related sensitivities); the results of the Rainy River and
Blackwater feasibility studies,
including the expected production, costs (and related
sensitivities), grades, stripping ratio, mining and processing
method and rate, stockpiling plan, mine life, NPV, IRR and
payback period associated with each project; planned activities for
2014 at each of the company's projects; the timing of permitting
activities and environmental assessment processes; and targeted
timing for commissioning and full production at Rainy River and sequencing of Blackwater.
All forward-looking statements in this news
release are based on the opinions and estimates of management as of
the date such statements are made and are subject to important risk
factors and uncertainties, many of which are beyond New Gold's
ability to control or predict. Certain material assumptions
regarding our forward-looking statements are discussed in this news
release, New Gold's MD&As, its Annual Information Form and its
Technical Reports filed at www.sedar.com. In addition to, and
subject to, such assumptions discussed in more detail elsewhere,
the forward-looking statements in this news release are also
subject to the following assumptions: (1) there being no
signification disruptions affecting New Gold's operations; (2)
political and legal developments in jurisdictions where New Gold
operates, or may in the future operate, being consistent with New
Gold's current expectations; (3) the accuracy of New Gold's current
mineral reserve and resource estimates; (4) the exchange rate
between the Canadian dollar, Australian dollar, Mexican Peso and
U.S. dollar being approximately consistent with current levels; (5)
prices for diesel, natural gas, fuel oil, electricity and other key
supplies being approximately consistent with current levels; (6)
labour and material costs increasing on a basis consistent with New
Gold's current expectations; (7) permitting and arrangements with
First Nations and other Aboriginal groups in respect of
Rainy River and Blackwater being consistent with New Gold's
current expectations; (8) all environmental approvals (including
the environmental assessment process for the Blackwater and Rainy
River projects), required permits, licenses and
authorizations being obtained from the relevant governments and
other relevant stakeholders within the expected timelines; and (9)
the results of the feasibility studies for the Rainy River and
Blackwater projects being
realized.
Forward-looking statements are necessarily based
on estimates and assumptions that are inherently subject to known
and unknown risks, uncertainties and other factors that may cause
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking statements. Such factors include, without
limitation: significant capital requirements; price volatility in
the spot and forward markets for commodities; fluctuations in the
international currency markets and in the rates of exchange of the
currencies of Canada, the United States, Australia, Mexico and Chile; discrepancies between actual and
estimated production, between actual and estimated reserves and
resources and between actual and estimated metallurgical
recoveries; changes in national and local government legislation in
Canada, the United States, Australia, Mexico and Chile or any other country in which New Gold
currently or may in the future carry on business; taxation;
controls, regulations and political or economic developments in the
countries in which New Gold does or may carry on business; the
speculative nature of mineral exploration and development,
including the risks of obtaining and maintaining the validity and
enforceability of the necessary licenses and permits and complying
with the permitting requirements of each jurisdiction in which New
Gold operates, including, but not limited to: in Canada, obtaining the necessary permits for
the Blackwater and Rainy River projects; in Mexico, where Cerro San Pedro has a history of
ongoing legal challenges related to our environmental authorization
(EIS); and in Chile, where the
courts have temporarily suspended the approval of the environmental
permit for El Morro; the lack of certainty with respect to foreign
legal systems, which may not be immune from the influence of
political pressure, corruption or other factors that are
inconsistent with the rule of law; the uncertainties inherent to
current and future legal challenges New Gold is or may become a
party to; diminishing quantities or grades of reserves and
resources; competition; loss of key employees; additional funding
requirements; rising costs of labour, supplies, fuel and equipment;
actual results of current exploration or reclamation activities;
uncertainties inherent to mining economic studies including the
feasibility studies for Rainy
River and Blackwater;
changes in project parameters as plans continue to be refined;
accidents; labour disputes; defective title to mineral claims or
property or contests over claims to mineral properties; unexpected
delays and costs inherent to consulting and accommodating rights of
First Nations and other Aboriginal groups; uncertainties with
respect to obtaining all necessary surface and other land use
rights or tenure for Rainy River;
risks, uncertainties and unanticipated delays associated with
obtaining and maintaining necessary licenses, permits and
authorizations and complying with permitting requirements,
including those associated with the environmental assessment
processes for Blackwater and
Rainy River. In addition, there
are risks and hazards associated with the business of mineral
exploration, development and mining, including environmental events
and hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion losses
(and the risk of inadequate insurance or inability to obtain
insurance to cover these risks) as well as "Risk Factors" included
in New Gold's disclosure documents filed on and available at
www.sedar.com.
Forward-looking statements are not guarantees of
future performance, and actual results and future events could
materially differ from those anticipated in such statements. All of
the forward-looking statements contained in this news release are
qualified by these cautionary statements. New Gold expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
events or otherwise, except in accordance with applicable
securities laws.
Cautionary Note to U.S. Readers Concerning
Estimates of Mineral Reserves and Mineral Resources
Information concerning the properties and
operations of New Gold has been prepared in accordance with
Canadian standards under applicable Canadian securities laws, and
may not be comparable to similar information for United States companies. The terms "Mineral
Resource", "Measured Mineral Resource", "Indicated Mineral
Resource" and "Inferred Mineral Resource" used in this Report are
Canadian mining terms as defined in the Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") Definition Standards for
Mineral Resources and Mineral Reserves adopted by CIM Council on
November 27, 2010 and incorporated by
reference in National Instrument 43-101 ("NI 43-101"). While
the terms "Mineral Resource", "Measured Mineral Resource",
"Indicated Mineral Resource" and "Inferred Mineral Resource" are
recognized and required by Canadian securities regulations, they
are not defined terms under standards of the United States
Securities and Exchange Commission. As such, certain
information contained in this Report concerning descriptions of
mineralization and resources under Canadian standards is not
comparable to similar information made public by United States companies subject to the
reporting and disclosure requirements of the United States
Securities and Exchange Commission.
An "Inferred Mineral Resource" has a great
amount of uncertainty as to its existence and as to its economic
and legal feasibility. Under Canadian rules, estimates of
Inferred Mineral Resources may not form the basis of feasibility or
pre-feasibility studies. It cannot be assumed that all or any
part of an "Inferred Mineral Resource" will ever be upgraded to a
higher confidence category. Readers are cautioned not
to assume that all or any part of an "Inferred Mineral Resource"
exists or is economically or legally mineable.
Under United
States standards, mineralization may not be classified as a
"Reserve" unless the determination has been made that the
mineralization could be economically and legally produced or
extracted at the time the Reserve estimation is made. Readers
are cautioned not to assume that all or any part of the Measured or
Indicated Mineral Resources that are not Mineral Reserves will ever
be converted into Mineral Reserves. In addition, the definitions of
"Proven Mineral Reserves" and "Probable Mineral Reserves" under CIM
standards differ in certain respects from the standards of the
United States Securities and Exchange Commission.
Technical Information
The scientific and technical information in this
news release has been reviewed and approved by Mark A. Petersen, Vice President, Exploration of
New Gold. Mr. Petersen is an AIPG Certified Professional Geologist
and a "qualified person" under National Instrument 43-101.
Non-GAAP Measures
(1) TOTAL CASH COSTS
"Total cash costs" per ounce figures are
non-GAAP measures which are calculated in accordance with a
standard developed by The Gold Institute, a worldwide association
of suppliers of gold and gold products that ceased operations in
2002. Adoption of the standard is voluntary and the cost measures
presented may not be comparable to other similarly titled measures
of other companies. New Gold reports total cash costs on a sales
basis. The company believes that certain investors use this
information to evaluate the company's ability to generate liquidity
through operating cash flow and that this measure, along with
sales, is considered to be a key indicator of the company's ability
to generate operating earnings and cash flow from its mining
operations. Total cash costs include mine site operating costs such
as mining, processing and administration costs, royalties,
production taxes, and realized gains and losses on fuel contracts,
but are exclusive of amortization, reclamation, capital and
exploration costs and net of by-product sales. Total cash costs are
then divided by ounces of gold sold to arrive at a per ounce
figure. Co-product cash costs remove the impact of other metal
sales that are produced as a by-product of gold production and
apportion the cash costs to each metal produced on a percentage of
revenue basis, and subsequently divides the amount by the total
ounces of gold or silver or pounds of copper sold, as the case may
be, to arrive at per ounce or per pound figures. Unless otherwise
indicated, all total cash cost information in this news release is
net of by-product sales. These measures, along with sales, are
considered to be a key indicator of a company's ability to generate
operating earnings and cash flow from its mining operations. This
data is furnished to provide additional information and is a
non-GAAP financial measure. Total cash costs and co-product cash
costs presented do not have a standardized meaning under GAAP and
may not be comparable to similar measures presented by other mining
companies. It should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
GAAP and is not necessarily indicative of cash flow from operations
under GAAP or operating costs presented under GAAP. Further details
regarding total cash costs and a reconciliation to the nearest GAAP
measures are provided in our MD&As accompanying our financial
statements filed from time to time on www.sedar.com.
(2) ADJUSTED NET CASH GENERATED FROM
OPERATIONS
"Adjusted net cash generated from operations"
and "Adjusted net cash generated from operations per share" are
non-GAAP financial measures. Net cash generated from operations has
been adjusted for one-time expenses related to the company's
acquisition of Rainy River in the
third quarter and a one-time charge incurred in the second quarter
related to the settlement of the company's legacy gold hedge
position. Because of the non-recurring nature of items removed, the
company believes the presentation of adjusted net cash generated
from operations enables investors and analysts to better understand
the underlying operating performance of our core mining business
and provides an additional manner to compare performance between
periods without the impact of non-recurring items. Adjusted net
cash generated from operations and adjusted net cash generated from
operations per share are intended to provide additional information
and are non-GAAP financial measures. They do not have any
standardized meaning under GAAP and may not be comparable to
similar measures presented by other companies. They should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP and are not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP.
|
|
|
|
|
New Gold 2013 Fourth Quarter and
Full-Year Adjusted Net Cash Generated
from Operations Reconciliation |
|
|
|
|
Three months ended |
|
Twelve months ended |
|
|
|
|
December 31, |
|
December 31, |
(in millions of U.S. dollars) |
|
|
|
2013 |
2012 |
|
2013 |
2012 |
|
|
|
|
|
|
|
|
|
Net cash generated from operations |
|
|
|
$99.7 |
$106.2 |
|
$171.9 |
$235.8 |
|
Settlement payment of gold hedge contracts |
|
|
|
-- |
-- |
|
65.7 |
-- |
|
Rainy River acquisition costs |
|
|
|
0.1 |
-- |
|
5.0 |
-- |
|
Payment of Rainy River acquisition expenses |
|
|
|
-- |
-- |
|
12.9 |
-- |
|
Amended tax returns for Peak Mines |
|
|
|
(6.6) |
-- |
|
(6.6) |
-- |
|
|
|
|
|
|
|
|
|
Adjusted net cash generated from operations |
|
|
|
$93.2 |
$106.2 |
|
$248.9 |
$235.8 |
|
|
|
|
|
|
|
|
|
(3) ADJUSTED NET EARNINGS
"Adjusted net earnings" and "adjusted net
earnings per share" are non-GAAP financial measures. Net earnings
have been adjusted and tax affected for the group of costs in
"Other gains and losses" on the condensed consolidated income
statement. The adjusted entries are also impacted for tax to the
extent that the underlying entries are impacted for tax in the
unadjusted net earnings from continuing operations. The company
uses this measure for its own internal purposes and believes the
presentation of adjusted net earnings enables investors and
analysts to better understand the underlying operating performance
of our core mining business through the eyes of management.
Management periodically evaluates the components of adjusted net
earnings based on an internal assessment of performance measures
that are useful for evaluating the operating performance of our
business and a review of the non-GAAP measures used by mining
industry analysts and other mining companies. Adjusted net earnings
and adjusted net earnings per share are intended to provide
additional information and is a non-GAAP financial measure. They do
not have any standardized meaning under GAAP and may not be
comparable to similar measures presented by other companies. They
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP and are
not necessarily indicative of operating profit or cash flow from
operations as determined under GAAP.
|
|
|
|
|
|
|
|
|
New Gold 2013 Fourth Quarter and
Full-Year Adjusted Net Earnings Reconciliation |
|
|
|
|
Three months ended |
|
Twelve months ended |
|
|
|
|
December 31, |
|
December 31, |
(in millions of U.S. dollars; except per share
amounts) |
|
|
|
2013 |
2012 |
|
2013 |
2012 |
|
|
|
|
|
|
|
|
|
Net earnings/(loss) |
|
|
|
($254.7) |
$123.9 |
|
($191.2) |
$199.0 |
Net earnings/(loss) per share |
|
|
|
($0.51) |
$0.26 |
|
($0.39) |
$0.43 |
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment |
|
|
|
272.5 |
-- |
|
272.5 |
-- |
|
Silver inventory write-down |
|
|
|
7.3 |
-- |
|
7.3 |
-- |
|
Ineffectiveness on hedging instruments |
|
|
|
-- |
1.3 |
|
(9.5) |
2.9 |
|
Realized and unrealized gain on non-hedged
derivatives |
|
|
|
(4.5) |
(70.2) |
|
(49.3) |
(61.1) |
|
(Gain)/loss on foreign exchange |
|
|
|
13.9 |
(3.4) |
|
25.7 |
1.3 |
|
Loss on disposal of assets |
|
|
|
0.9 |
2.0 |
|
2.6 |
3.3 |
|
Hedge reclassification to earnings |
|
|
|
7.0 |
-- |
|
18.7 |
-- |
|
Rainy River transaction expenses |
|
|
|
0.1 |
-- |
|
5.0 |
-- |
|
Loss on redemption of senior secured notes |
|
|
|
-- |
-- |
|
-- |
31.8 |
|
Redundancy charges |
|
|
|
2.4 |
-- |
|
2.4 |
-- |
|
Other |
|
|
|
2.8 |
0.7 |
|
4.5 |
1.9 |
|
Tax impact of above adjustments |
|
|
|
(31.0) |
(4.6) |
|
(27.4) |
4.4 |
|
|
|
|
|
|
|
|
|
Adjusted net earnings |
|
|
|
$16.7 |
$49.7 |
|
$61.3 |
$183.5 |
Adjusted net earnings per share |
|
|
|
$0.04 |
$0.11 |
|
$0.13 |
$0.40 |
|
|
|
|
|
|
|
|
|
(4) ALL-IN SUSTAINING COSTS
Consistent with guidance announced in 2013 by
the World Gold Council, an association of various gold mining
companies from around the world of which New Gold is a member, New
Gold defines "all-in sustaining costs" per ounce as the sum of
total cash costs, capital expenditures that are sustaining in
nature, corporate general and administrative costs, capitalized and
expensed exploration that is sustaining in nature and environmental
reclamation costs, all divided by the ounces of gold sold to arrive
at a per ounce figure. New Gold believes this non-GAAP financial
measure provides further transparency into costs associated with
producing gold and will assist analysts, investors and other
stakeholders of the company in assessing the company's operating
performance, its ability to generate free cash flow from current
operations and its overall value. This data is furnished to provide
additional information and is a non-GAAP financial measure. All-in
sustaining costs presented do not have a standardized meaning under
GAAP and may not be comparable to similar measures presented by
other mining companies. It should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with GAAP and is not necessarily indicative of cash flow from
operations under GAAP or operating costs presented under GAAP.
Further details regarding all-in sustaining costs and a
reconciliation to the nearest GAAP measures are provided in our
MD&As accompanying our financial statements filed from time to
time on www.sedar.com.
(5) OPERATING MARGIN
"Operating margin" is a non-GAAP financial
measure with no standard meaning under GAAP, which management uses
to further evaluate the company's results of operations in each
reporting period. Operating margin is calculated as revenue less
operating expenses and therefore does not include depreciation and
depletion. Operating margin is intended to provide additional
information and is a non-GAAP financial measure. It does not have
any standardized meaning under GAAP and may not be comparable to
similar measures presented by other companies. It should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP and is not necessarily
indicative of operating profit or cash flow from operations as
determined under GAAP.
|
|
|
|
|
|
|
|
|
New Gold 2013 Fourth Quarter and
Full-Year Operating Margin Reconciliation |
|
|
|
|
Three months ended |
|
Twelve months ended |
|
|
|
|
December 31, |
|
December 31, |
(in millions of U.S. dollars) |
|
|
|
2013 |
2012 |
|
2013 |
2012 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
$198.4 |
$250.9 |
|
$779.7 |
$791.3 |
Operating expenses |
|
|
|
($121.7) |
($105.2) |
|
($435.5) |
($344.3) |
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
|
$76.7 |
$145.7 |
|
$344.2 |
$447.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED INCOME STATEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31 |
|
Years ended December 31 |
|
|
|
|
|
$ |
$ |
|
$ |
$ |
(In millions of U.S. dollars, except per share
amounts) |
|
|
|
|
2013 |
2012 |
|
2013 |
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
198.4 |
250.9 |
|
779.7 |
791.3 |
Operating expenses |
|
|
|
|
121.7 |
105.2 |
|
435.5 |
344.3 |
Depreciation and depletion |
|
|
|
|
52.7 |
46.6 |
|
177.4 |
116.4 |
Earnings from mine operations |
|
|
|
|
24.0 |
99.2 |
|
166.8 |
330.6 |
|
|
|
|
|
|
|
|
|
|
Corporate administration |
|
|
|
|
5.6 |
8.9 |
|
26.7 |
25.2 |
Share-based payment expenses |
|
|
|
|
2.0 |
2.3 |
|
8.5 |
10.9 |
Asset impairment |
|
|
|
|
272.5 |
- |
|
272.5 |
- |
Exploration and business development |
|
|
|
|
5.7 |
8.6 |
|
34.1 |
20.6 |
(Loss) income from operations |
|
|
|
|
(261.8) |
79.3 |
|
(175.0) |
273.9 |
|
|
|
|
|
|
|
|
|
|
Finance income |
|
|
|
|
1.5 |
0.4 |
|
2.7 |
1.4 |
Finance costs |
|
|
|
|
(8.3) |
(11.6) |
|
(40.3) |
(16.4) |
Rainy River acquisition
costs |
|
|
|
|
(0.1) |
- |
|
(5.0) |
- |
Other (losses) gains |
|
|
|
|
(13.1) |
69.6 |
|
26.0 |
19.9 |
|
|
|
|
|
|
|
|
|
|
(Loss) earnings before taxes |
|
|
|
|
(281.8) |
137.7 |
|
(191.6) |
278.8 |
Income tax recovery (expense) |
|
|
|
|
27.1 |
(13.8) |
|
0.4 |
(79.8) |
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings |
|
|
|
|
(254.7) |
123.9 |
|
(191.2) |
199.0 |
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
(0.51) |
0.26 |
|
(0.39) |
0.43 |
Diluted |
|
|
|
|
(0.51) |
0.26 |
|
(0.39) |
0.42 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding
(in millions) |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
503.3 |
468.1 |
|
488.0 |
463.4 |
Diluted |
|
|
|
|
503.3 |
473.3 |
|
488.0 |
468.4 |
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at December 31 |
|
|
|
|
|
|
$ |
|
|
|
$ |
(In millions of U.S. dollars) |
|
|
|
|
|
2013 |
|
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
414.4 |
|
|
|
687.8 |
Trade and other receivables |
|
|
|
|
|
19.3 |
|
|
|
46.9 |
Inventories |
|
|
|
|
|
182.0 |
|
|
|
163.3 |
Current income tax
receivable |
|
|
|
|
|
31.8 |
|
|
|
6.6 |
Prepaid expenses and other |
|
|
|
|
|
10.5 |
|
|
|
12.9 |
Total current assets |
|
|
|
|
|
658.0 |
|
|
|
917.5 |
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
|
0.5 |
|
|
|
1.0 |
Non-current inventories |
|
|
|
|
|
31.0 |
|
|
|
32.4 |
Mining interests |
|
|
|
|
|
3,336.5 |
|
|
|
3,134.9 |
Deferred tax assets |
|
|
|
|
|
171.0 |
|
|
|
194.1 |
Other |
|
|
|
|
|
2.0 |
|
|
|
3.8 |
Total assets |
|
|
|
|
|
4,199.0 |
|
|
|
4,283.7 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
|
|
|
|
90.2 |
|
|
|
120.7 |
Current derivative
liabilities |
|
|
|
|
|
- |
|
|
|
56.4 |
Total current liabilities |
|
|
|
|
|
90.2 |
|
|
|
177.1 |
|
|
|
|
|
|
|
|
|
|
|
Reclamation and closure cost obligations |
|
|
|
|
|
61.4 |
|
|
|
68.5 |
Provisions |
|
|
|
|
|
9.4 |
|
|
|
9.5 |
Non-current derivative liabilities |
|
|
|
|
|
- |
|
|
|
54.1 |
Non-current non-hedged derivative liabilities |
|
|
|
|
|
27.8 |
|
|
|
80.3 |
Long-term debt |
|
|
|
|
|
862.5 |
|
|
|
847.8 |
Deferred tax liabilities |
|
|
|
|
|
381.0 |
|
|
|
322.9 |
Deferred benefit |
|
|
|
|
|
46.3 |
|
|
|
46.3 |
Other |
|
|
|
|
|
0.5 |
|
|
|
0.7 |
Total liabilities |
|
|
|
|
|
1,479.1 |
|
|
|
1,607.2 |
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
Common shares |
|
|
|
|
|
2,815.3 |
|
|
|
2,618.4 |
Contributed surplus |
|
|
|
|
|
90.0 |
|
|
|
85.2 |
Other reserves |
|
|
|
|
|
(17.6) |
|
|
|
(50.5) |
(Deficit) retained earnings |
|
|
|
|
|
(167.8) |
|
|
|
23.4 |
Total equity |
|
|
|
|
|
2,719.9 |
|
|
|
2,676.5 |
Total liabilities and equity |
|
|
|
|
|
4,199.0 |
|
|
|
4,283.7 |
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31 |
|
Years ended December 31 |
|
|
|
|
$ |
$ |
|
$ |
$ |
(In millions of U.S. dollars) |
|
|
|
2013 |
2012 |
|
2013 |
2012 |
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
|
Net (loss) earnings |
|
|
|
(254.7) |
123.9 |
|
(191.2) |
199.0 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
Realized gains (losses) on gold contracts |
|
|
|
7.0 |
(2.6) |
|
15.2 |
(9.9) |
|
|
Realized and unrealized foreign exchange losses
(gains) |
|
|
|
13.9 |
(3.4) |
|
25.7 |
1.3 |
|
|
Realized and unrealized gains on non-hedged
derivatives |
|
|
|
(4.5) |
(70.2) |
|
(49.3) |
(61.1) |
|
|
Unrealized (gains) losses on concentrate
contracts |
|
|
|
(0.1) |
3.4 |
|
1.2 |
2.4 |
|
|
Settlement payment of gold hedge contracts |
|
|
|
- |
- |
|
(65.7) |
- |
|
|
Payment of Rainy River acquistion expenses |
|
|
|
- |
- |
|
(12.9) |
- |
|
|
Loss on redemption of senior secured notes |
|
|
|
- |
- |
|
- |
31.8 |
|
|
Reclamation and closure costs paid |
|
|
|
(0.8) |
(0.1) |
|
(2.2) |
(8.0) |
|
|
Loss on disposal and impairment of assets |
|
|
|
273.4 |
2.0 |
|
275.1 |
3.3 |
|
|
Impairment loss of available-for-sale
securities |
|
|
|
3.0 |
- |
|
3.0 |
- |
|
|
Depreciation and depletion |
|
|
|
53.5 |
46.7 |
|
178.6 |
116.2 |
|
|
Equity-settled share-based payment expense |
|
|
|
2.0 |
2.0 |
|
8.1 |
8.5 |
|
|
Realized and unrealized (gains) losses on cash
flow hedging items |
|
|
|
- |
1.3 |
|
(9.5) |
2.9 |
|
|
Income tax (recovery) expense |
|
|
|
(27.1) |
13.9 |
|
(0.4) |
79.8 |
|
|
Finance income |
|
|
|
(1.5) |
(0.4) |
|
(2.7) |
(1.4) |
|
|
Finance costs |
|
|
|
8.3 |
11.5 |
|
40.3 |
16.4 |
|
|
|
|
72.4 |
128.0 |
|
213.3 |
381.2 |
|
Change in non-cash operating working
capital |
|
|
|
21.4 |
3.1 |
|
(9.7) |
(44.8) |
Cash generated from operations |
|
|
|
93.8 |
131.1 |
|
203.6 |
336.4 |
|
Income taxes recovered (paid) |
|
|
|
5.9 |
(24.9) |
|
(31.7) |
(100.6) |
Net cash generated from
operations |
|
|
|
99.7 |
106.2 |
|
171.9 |
235.8 |
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
Mining interests |
|
|
|
(88.2) |
(118.0) |
|
(289.3) |
(516.0) |
|
Proceeds received from government
assistance |
|
|
|
5.7 |
- |
|
5.7 |
- |
|
Proceeds received from sale of
pre-commercial production inventory |
|
|
|
- |
6.9 |
|
- |
14.5 |
|
Purchase of additional Blackwater
mining claims |
|
|
|
- |
- |
|
- |
(6.0) |
|
Acquisition of Rainy River (net of
cash received) |
|
|
|
(5.4) |
- |
|
(112.6) |
- |
|
Recovery of reclamation deposits |
|
|
|
- |
- |
|
- |
8.9 |
|
Proceeds from sale of assets |
|
|
|
0.4 |
- |
|
0.4 |
- |
|
Interest received |
|
|
|
1.3 |
0.3 |
|
2.1 |
1.1 |
Cash used in investing activities |
|
|
|
(86.2) |
(110.8) |
|
(393.7) |
(497.5) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
Issuance of common shares on exercise
of options and warrants |
|
|
|
0.3 |
67.7 |
|
5.5 |
75.4 |
|
Redemption of senior secured
notes |
|
|
|
- |
- |
|
- |
(197.6) |
|
Proceeds from issuance of senior
notes |
|
|
|
- |
500.0 |
|
- |
800.0 |
|
Financing initiation costs |
|
|
|
- |
(9.9) |
|
(0.3) |
(17.9) |
|
Interest paid |
|
|
|
(26.0) |
(12.4) |
|
(52.3) |
(20.0) |
Cash (used) generated by financing
activities |
|
|
|
(25.7) |
545.4 |
|
(47.1) |
639.9 |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on
cash and cash equivalents |
|
|
|
(2.2) |
(0.6) |
|
(4.5) |
0.2 |
|
|
|
|
|
|
|
|
|
Change in cash and cash
equivalents |
|
|
|
(14.4) |
540.2 |
|
(273.4) |
378.4 |
Cash and cash equivalents, beginning
of the period |
|
|
|
428.8 |
147.6 |
|
687.8 |
309.4 |
Cash and cash equivalents, end of
the period |
|
|
|
414.4 |
687.8 |
|
414.4 |
687.8 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents are
comprised of: |
|
|
|
|
|
|
|
|
|
Cash |
|
|
|
274.4 |
277.5 |
|
274.4 |
277.5 |
|
Short-term money market
instruments |
|
|
|
140.0 |
410.3 |
|
140.0 |
410.3 |
|
|
|
|
414.4 |
687.8 |
|
414.4 |
687.8 |
SOURCE New Gold Inc.