Former Newmont Mining CEO joins board at New Gold
New Gold Inc. (NGD-TSX, NYSE) said Richard O’Brien, the former CEO of Newmont Mining Corp. [NGT-TSX, NEM-NYSE] has joined the Canadian company’s board of directors. He is expected to become New Gold’s board Chairperson following the retirement of Ian Pearse in August, 2024.
O’Brien has more than 40 years of experience in the mining and energy sectors, including over 20 years in CEO and CFO roles. He was President and CEO of Newmont Mining from 2007 to 2013, Executive Vice-President, and CFO from 2006 to 2007 and Senior Vice-President and CFO from 2005 to 2006.
O’Brien also served as President and CEO of Boart Longyear Ltd., the world’s leading provider of drilling services, drilling equipment and performance tooling for mining and drilling companies, from 2013 to 2015.
He is currently a corporate director, serving on boards of Vulcan Materials Co., Xcel Energy Inc., and Ma’aden, the Saudi Arabian mining company. He was Chair of the Board of Pretium Resources from 2019 to 2022, prior to its acquisition by Newcrest Mining Ltd., an Australian company with significant mining operations in Canada, including British Columbia’s Golden Triangle region. Newcrest was recently acquired by Newmont Mining in a US$16.8 billion buyout deal.
“I am confident that he will provide valuable leadership as the company prepares for increasing production and decreasing costs, transitioning to a significant free cash flow generator,’’ said Nick Chirekos, Chair of the Corporate Governance and Nominating Committee of the Board. “I would also like to thank Ian for his commitment, resilience and invaluable contribution to our company since joining the Board of Directors in 2016.’’
New Gold shares were largely unchanged on the news, easing 0.46% or $0.01 to $2.15. The shares currently trade in a 52-week range of $2.37 and $1.17.
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 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.
In 2023, the company said production totaled 423,517 gold equivalent ounces (AuEq) at an all-in-sustaining cots of US$1,545 per ounce, including 321,178 ounces of gold, 47.4 million pounds of copper and 593,146 ounces of silver. In doing to, it achieved the top end of its 2023 AuEq guidance range.
This year, the company said consolidated gold production is expected to be between 310,000 and 350,000 ounces. In 2024, the company expects to produce 50 to 60 million pounds of copper. The 16% year-over-year expected increase in copper production will be driven by an increased contribution from the C-Zone at New Afton.