New Gold Inc. Price & Performance (NGD)

Today's commentary includes forward looking statements relating to New. In this respect, we refer you to our detailed cautionary note regarding forward looking statements in the presentation. Cautioned that actual results and future events could differ materially from those expressed or implied in forward looking statements. Slide two provides additional information and should be reviewed. We also refer you to the section entitled Risk Factors in New Gold's latest annual information form MD and A and other filings available on SEDAR plus which set out certain material factors that could cause actual results to differ. In addition, at the conclusion of the presentation, there are a number of endnotes that provide important information. And should be reviewed in conjunction with the materials. Slide four highlights some of the key comps We accomplished a lot of our objectives we laid out at the start of the year. By prioritizing health and safety through our courage to care culture, we delivered a low tripper and continued to improve year over year.

The company produced just under 300,000 ounces of gold and 54,000,000 pounds of copper, at an all in sustaining cost of $12.39 dollars per ounce. Beating the low end of our all in sustaining cost guidance range. The strong cost discipline led to increasing margins and delivering cash flow from operations of over $390,000,000 and free cash flow of $85,000,000 Throughout the year, we successfully delivered on key project milestones. At New Afton, achieved commercial production at CZone and commissioned the crusher and conveyor systems. At Rainy River, mined the first development ore from the underground main zone These milestones were accomplished on budget and ahead of schedule. Last week, we released updated technical reports for both assets. These reports incorporated mine life extensions at both sites and increased our underlying net asset value. Our exploration efforts throughout the year successfully replaced mining depletion of reserves a gold equivalent basis. We plan to maintain this momentum in 2025 to unlock additional long term value. Finally, in May, we increased our exposure at New Afton to over 80% following the transaction with Ontario Teachers. Reducing their free cash flow interest from 46% to 19.9%. 2024 successfully positioned our company and we look forward to building on this in 2025.

To create significant value for our shareholders. With that, I will turn the call over to Keith. Thank you, Ankit. I'm on Slide six, which has our operating highlights. Q4 production was pre released back in early January. But it's worth reiterating certain points. Q4 delivered the highest production and lowest costs of the year. Production totaled approximately 80,400 gold ounces and 14,500,000 pounds The increase in gold production compared to the third quarter was driven by higher feed grades at both sites.

Consolidated all in sustaining costs for the quarter were $10.18 dollars a decrease of 15% over the third quarter.

This is highlighted by strong cost performance at both operations with Rainy River continuing to decrease its solvency and New Afton achieving an all in sustaining cost of negative $540 per ounce.

After considering the copper credits. Despite the slight missing gold production compared to our updated guidance, strong cost management and discipline allowed the company to beat the low end of its original 2024 consolidated all in sustaining cost guide. Our total capital expenditures for the quarter $75,000,000 $10,000,000 spends on sustaining capital and $65,000,000 on capital. [indiscernible] [indiscernible] primarily relates to capitalized waste and tailings up.

Growth capital for the full year is what I see underground development, as the underground main and intraper zones continue to All year total capital is below the 2024 guide dollars dollars due to efficient capital management, savings related to the execution of the Rainy River tailings dammaries, and lower capitalized waste stripping with approximately $5,000,000 of growth capital deferred into 2025.

At Newlafton, sustaining capital is primarily related to continuation of the tailings management and stabilization activities.

New Afton growth capital is primarily related to C zone underground mine development and cave construction. Full year total capital below the 2024 guidance range of $145,000,000 to $165,000,000 approximately $15,000,000 of capital deferred into 2025.

I'll touch on operations starting with Rainy River on Slide 7. Gold production in the fourth quarter was impacted by unexpected mechanical downtime on the crushing conveying system in December. Despite the lower gold production, the team did an excellent job to control costs. All in sustaining costs were $13.27 dollars per ounce for the fourth quarter which resulted in the operation achieving the original full year all in sustaining cost guidance range. This is an impressive effort from the team and resulted in $90,000,000 of free cash flow generated in 2024, while setting up the operation for a sustained period of free cash flow generation. Turning now to Nuamcin on Slide eight New.

Newmaster delivered another strong operating quarter with an increase of 90% gold production and 15% copper production over the third quarter. The B3K performed as planned and C zone ore production is ramping up following commercial production and cursor commissioning early in the fourth quarter. Bulk production beat the top end of the original 2024 guidance range [indiscernible] copper production achieving the midpoint, All in sustaining costs for the quarter and the year decreased substantially compared to the prior year period driven by lower operating expenses lower sustaining capital expense and higher byproduct New. As a result, full year all in sustaining costs per gold ounce sold well below the 2024 guidance range.

The operation generated $24,000,000 of free cash flow while completing the key infrastructure required to enter a period of sustained free cash flow going forward. Both operations exit 2024 well positioned generate significant free cash flow. To wrap up with our financial results on Slide 10, Fourth quarter revenue was $262,000,000 which is a quarterly record. Q4 revenue was higher than the prior year quarter primarily due to higher metal prices and higher copper sales slightly offset by lower gold sales. Cash generated from operations before working capital adjustments was $126,000,000 or $0.16 per share for the quarter.

Higher than the prior year period, primarily due to higher revenues.

NUGO generated quarterly free cash flow of 22,000,000 due to higher revenue, partially offset by higher capital expenditures in the quarter, as key growth projects milestones were achieved. Company recorded net earnings of approximately $55,000,000 or $0.07 per share during Q4, an increase due to higher revenues.

After adjusted for certain other charges, net earnings were $59,000,000 or $0.07 per share in Q4 a significant increase compared to an adjusted net loss of $5,000,000 in the fourth quarter of twenty twenty three. Our Q4 adjusted earnings include adjustments related to other gains and losses.

At the end of Q4, we had cash on hand of about $105,000,000 and a liquidity position of $482,000,000 with the credit facility undrawn.

In the second half of twenty twenty four, we repaid the entirety of the $100,000,000 drawn on the credit facility related to the Ontario Teachers' Buyback transaction with the cash on hand and during a capital intensive period for both operations. This is made possible by the operational excellence and cost discipline both of our sites showed during the year.

Sum up, we remain in a very healthy financial position. With that, I'll turn the call to Pat. Thanks, Keith.

Glad you have us summarized our three years outlook we released last week.

We expect continued and sync can grow in gold and copper production over the next three years. Both operations are currently drilling to production increase with the realization of that were completed Lower production is expected to increase from 300,000 ounces in 2024 to a midpoint of 410,000 ounces in 2027. 30% increase over three years. Copper production is expected to increase from 24,000,000 pounds in 2024 to an impressive four zero five million pounds in 90% decrease over that period. [indiscernible] [indiscernible] By 2027, the council will be at all in sustaining costs. Is expected to be $400 to $500 per gold ounces, [indiscernible] significantly over the next three years. [indiscernible] And the reduction stripping at Trinity River. 2025 estimates consider the carryover of some capital that was not spent. In 2024. With the increase in production combined with the reduction in unit costs and tapering capital costs over the next three years, the company is well positioned to deliver significant free cash flow. Based on our updated outlook, we expect to generate same time free cash flow over the next three years following the inflection point mid-twenty twenty four. Current consensus commodity prices [indiscernible] $1,700,000 in free cash flow that we At current spot price, the figure exceeds $2,000,000,000 over 80% of our market cap.

At New Afternoon twenty twenty five, New will look a lot like 2024 as we continue transitioning from the B3 cave to the seasonal cave. Total gold production for the year is expected to be 60,000 expected to be 50,000,000 to 60,000,000 pounds. These old mining rates will continue to ramp up throughout the year towards 16,000 tonnes per day. The increased rate is partially offset by lower grades in SB3K that's exhausted in the first half of twenty twenty five, and C zone grades gradually increased Probably a year. Partition is expected to significantly strengthen in the second half with the first quarter representing approximately 20% of the annual production, again driven by lower grade as B3 nears end of KELIIVES. Green River is expecting gold production of 265,000 to 285,000 ounces for the year a 20% increase compared to the 226,000 ounces produced in 2024. Increase is driven by 20%, 25% increase in gold grade as the underground mining rate increased during the year. Approximately 11% of production is scheduled in the first half and 37% in the first half This is due to the open pit mining sequence. Are currently completing restripping in Phase four we are primarily focused somewhere between 500 pounds From Q2 onwards, we will release higher grade low strip ratio ore from the open pit.

The same reasons, outstanding capital is weighted for the first half of the year. The underground mine is well positioned to deliver 846,000 ounces in 2025 as a result of the development completed in 2024. Later development is consistent throughout the year. Growth capital allocation is higher in the first half of twenty twenty five due to the commissioning to commissioning the fresh air raise funds, which will be completed in Q2. Of this year and the purchase of mobile and equipment. In closing, 2024 was a challenging year, but an important year. And 2025 will be another important one. We will continue to deliver on our stated strategic goals. This includes delivering on 2025 production and cost guidance with the same attention to health and safety.

Support from our employees for the Courage to Care program has contributed significantly to our health and safety performances and enjoying the company. At New Afton, we will ramp up season and advance the development of East Extension. At Geneva, we will continue to ramp up the underground mine in advance phase for our open pit development. We will continue to increase our exploration [indiscernible] targeting future reserve replacement. New have entered in a very exciting time for New Gold of increasing production and same kind of free cash flow generation. In a robust community cycle. Combined that with our safe, well established mining jurisdiction, [indiscernible] opportunity. I strongly believe we have a team dedicated to value creation. As demonstrated last week with the delivery of two new technical report and mine life extension at both of our assets. 2025 will be a busy year, but we look forward to building on free cash flow inflection point achieved in 2024 to create value for our company our stakeholders by teammates, and our shareholders. With that, we will open the floor up to questions. Thank you, Lee.

We will now begin question and answer session. Your first question comes from Eric Yes.

Good morning, Pat and team. Thanks a lot for taking my question.

Nice to see the company generating cash flow here despite investing in the assets. Just question on Rainy River, I want to follow-up from the session and again the MDD. You talk about the opportunity for additional pit pushbacks with minimal drilling there. Just sort of wondering what you need to see or how those might ultimately get into the mine plan? Any color would be appreciated. Thanks.

Thank you for that. So we as As we present, we present the Page five with an extension, the west side of the pit. We are actually drilling the North West strand with an extension to the West of the Orbany. So we are currently doing this. It's an opportunity for us to extend the MyLife. But we're also having [indiscernible] It's depending on putting. So we have the drilling that is mostly completed there. It will be driven by the gas price, the whole price for sure.

But also, we have to come in the next step. We need to confirm the ultimate capacity of our tailings storage facility. [indiscernible] something that is fully attached and feasible. So and totally supported by the infrastructure that we have. If we want to extend or push back the pit, we have to determine our capacity to handle the tailings by itself. And it's something that we are currently working on.

Okay, fantastic. I really appreciate that. And just a question, as we look out into 2025, obviously, the back half is is setting up pretty strong Q1 is going to be lower production. Any comments on the cost how we should think about on sustaining costs throughout the early quarters of the year? [indiscernible] similar with the production profile that that Todd outlined, we expect Q3 the second half of the year to be stronger and we expect our cost profile to follow that. So [indiscernible] towards the end of the year as our production profile increases.

Great. That's helpful. I appreciate the added color. I'll hop back in the queue.

There are no further questions. Please continue.

All right. Thank you, Vincent, and thank you for everyone who joined us today. As always, should you have any additional questions, please do not hesitate to reach out to us by phone or email. Thanks and have a great day.

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