New Gold Inc. (NGD-TSX, NYSE American) on Wednesday announced an abrupt change in its senior executive ranks. The company said Patrick Godin has been appointed CEO, replacing Renaud Adams, who has been CEO of New Gold since 2018.
Godin joined New Gold earlier this year after serving as Chief Operating Officer at Pretium Resources Inc. prior to the acquisition. He 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.
New Gold did not explain the timing of the announcement, but said Godin was brought into the COO role as a logical successor of Adams. The company said there are no other senior management changes. It said operations continue to perform well following the strong rebound in the third quarter of 2022.
New Gold shares declined on the news, falling 7.6% or 12 cents to $1.46 on volume of 1.8 million. The shares are currently trading in a 52-week range of $2.57 and 80 cents.
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.
The company produced 418,933 gold equivalent ounces (AuEq) (including 286,921 ounces of gold, and 61.7 million pounds of copper) in 2021. AuEq production at Rainy River was 242,961 ounces in 2021, consisting of 234,469 ounces of gold and 611,433 ounces of silver (open pit only).
For 2022, consolidated gold equivalent production is forecast at between 325,000 and 365,000 ounces.
On November 3, 2022, the company announced its results for the third quarter. Gold equivalent production for the quarter was 91,021 ounces, comprised of 70,147 ounces of gold, 8.5 million pounds of copper and 142,672 ounces of silver. All in sustaining costs during the quarter came in at US$1,637 an ounce, compared to an average realized gold price of US$1,727 an ounce. The average realized copper price was US$3.42 a pound.
“The third quarter saw our operations recover from their respective challenges during the first half of the year,’’ said Adams. “Rainy River is focused on continuing its ramp-up of mining the open pit ODM zone in the fourth quarter. Underground production commenced during the quarter and the priority continues to be feeding the mill with higher grade Intrepid underground material, which I anticipate in the very near term,’’ he said.
At New Afton, receiving the C-Zone permit and completing B3 development and drawbell construction in late-October, were significant milestones, Adams said. “Our priority remains on ramping up B3 production during the fourth quarter and continuing to advance C-Zone development, with initial production from the C-Zone expected in the second half of 2023.’’