New Gold reports strong Q1 at Rainy River, Ont.
New Gold Inc. (NGD-TSX, NYSE American) has announced senior management appointments after releasing better than expected first quarter, 2023 results.
The company reported production of 104,900 gold equivalent ounces (GEOs), consisting of 82,500 ounces of gold and 10.3 million pounds of copper That was 20% and 5% ahead of expectations, according to a Scotiabank report.
New Gold is a Canada-focused intermediate gold mining company. Its two core producing assets are the Rainy River mine in Ontario and the New Afton copper-gold mine, which is located in British Columbia. The company also holds a 5.0% equity stake in Artemis Gold Inc. [ARTG-TSXV], a company that acquired the Blackwater Project in central B.C. from New Gold in August 2020.
Higher underground tonnes at Rainy River boosted grades there and led to the strongest first quarter performance in the last four years despite maintenance issues. New Afton experienced year-over-year growth as the operation focused on the B3 and C-Zone development.
Meanwhile, New Gold reiterated that it remains well positioned to meet annual production guidance outlined earlier in 2023 and had previously guided to a back half weighted year.
On April 10, 2023, New Gold shares eased 5.0% or $0.08 to $1.51 on volume of 1.71 million. The shares are currently trading in a 52-week range of $2.50 and 80 cents.
Separately, the company said Yohann Bouchard has been named Executive Vice-President and Chief Operating Officer, while Ankit Shah has been promoted to the role of Executive Vice-President, Strategy and Business Development. The company said Bouchard brings more than 25 years of technical and operations experience in the mining industry have previously been senior vice-president and chief operating officer at Yamana Gold.
The company recently named Patrick Godin as CEO, replacing Renaud Adams, who was CEO of New Gold since 2018. Godin joined New Gold earlier in 2022 after serving as Chief Operating Officer at Pretium Resources Inc.. Godin has over 30 years of technical and operating experience, including a spell as Vice-President, Project Development for G Mining Services. He also served as CEO with Stornoway Diamonds Corp. [SWYDF-OTC].
“At Rainy River, we achieved our strongest first quarter of any year in the operation’s history and delivered production growth of nearly 13% over the same period last year as greater underground ore tonnes contributed to better-than-expected grade, which more than offset lower tonnes milled,’’ Godin said.
He said the milling rate was impacted during the quarter by mechanical maintenance on the SAG mill and crusher.
“In short, I’m proud of how our operations and teams delivered during the first quarter, and we remain well positioned to meet all annual production guidance metrics outlined earlier this year.’’ Godin said.