New Gold releases three-year operational outlook
New Gold Inc. (NGD-TSX, NYSE American) has released a three-year operational outlook for its key operations in British Columbia and Ontario.
The company said it expects its consolidated gold production this year to be in the 325,000 to 365,000 ounces range, marking a roughly 16% increase from 2024, driven by increased production from the company’s Rainy River mine in Ontario.
The gold production target for 2025 includes 60,000 to 70,000 ounces from the New Afton mine in British Columbia, and 265,000 to 295,000 ounces from Rainy River, where the company is anticipating a 20% increase over the previous year due to a 25% rise in the gold grade as the underground mining rate is expected to increase.
Copper production this year is expected to be in the 50 to 60 million pounds range. In 2024, the company produced 54.0 million pounds of copper, achieving the midpoint of its guidance range. All of the copper production comes from the New Afton mine.
Looking further ahead, New Gold is guiding investors to anticipate gold production of 435,000 to 490,000 ounces in 2026 and 375,000 to 445,000 ounces in 2027. Copper production is forecast to increase to 85 million to 100 million pounds in 2026, rising to 95 million to 115 million pounds in 2027.
“Our exploration efforts translated to successfully replacing mining depletion of reserves in 2024,’’ said New Gold President and CEO Patrick Godin. “At New Afton, the East Extension expansion adds high-grade material to a low-risk, low-cost operation, while C-zone’s increased draw height extends the mine life at no additional capital,’’ he said.
“At Rainy River, the phase 5.0 expansion extends the open pit, accomplishing our main mine plan objectives to push processing of the low-grade stockpile into the future and keep the mill full to the end of 2029.”
As of December 31, 2024, New Gold reported total mineral reserves of 2.95 million ounces of gold and 7.8 million ounces of silver, plus 631 million pounds of copper. Measured and indicated mineral resources, exclusive of mineral reserves, totals 2.64 million ounces of gold, 9.0 million ounces of silver and 1.1 billion pounds of copper. At New Afton, copper and gold mineral reserves increased by 15% and 13% respectively, compared with year-end 2023. C-zone mineral reserves tonnes increased by 27% year over year with an increase in draw height to 450 metres, extending the New Afton reserve life to 2031.
“In 2024, the company reached a free cash flow inflection point and 2025 will continue to build on that,’’ Godin said. “This year, we expect to see the value from the significant investments made in recent years on our growth projections through increased production, decreasing costs, and substantial free cash flow generation,” he said.
All-in-sustaining costs [on a by-product basis] are expected to decrease by 17% to the 2024 midpoint guidance of between US$l,025 to US$1,125 per ounce in 2025.
On Thursday, the shares eased 0.935% or $0.04 to $4.24 and trade in a 52-week range of $4.54 and $1.47.