New Gold Comes Up Short On Guidance With 2024 Production Of 298,303 Gold Ounces
The production results for the fourth quarter of 2024 are in for New Gold (TSX: NGD). Production totaled 80,438 ounces of gold along with 14.5 million pounds of copper, which is said to represent the strongest production quarter of the year for the company.
Production during the quarter came from the New Afton and Rainy River mines operated by the company. At New Afton, 19,652 ounces of gold and 14.5 million pounds of copper were produced, an improvement of 19% and 15%, respectively, over the third quarter performance. At Rainy River, 60,786 ounces of gold were produced, a 2% decline from the 61,892 ounces produced in Q3.
Gold sold during the fourth quarter amounted to 77,281 ounces, while copper sales totaled 13.6 million pounds.
Full year production totaled 298,303 ounces of gold and 54.0 million pounds of copper. Gold production came up short in terms of guidance, with the company previously providing a range of 300,000 to 310,000 ounces. Copper production meanwhile was guided as being between 50 to 60 million pounds.
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The guidance shortfall was blamed on the Rainy River mine, which this year produced 225,694 ounces of gold, versus guidance of between 230,000 to 240,000 ounces. The shortfall was partially offset by overperformance at New Afton, which was expected to produce between 60,000 to 70,000 ounces of gold, and managed to produce 72,609 ounces. The shortfall at Rainy River was a result of mechanical downtime on the crushing and conveying system in December, resulting in lower throughput.
“The fourth quarter was our highest production quarter of the year. [..] New Afton delivered a standout quarter for gold production, beating the top end of its gold production guidance range. Rainy River experienced operational challenges in December impacting processing capabilities, leading to a slight miss on updated consolidated gold production guidance for the year,” commented Patrick Godin, CEO of New Gold.
Full financial results are slated to be released after market close on February 19, 2025.
New Gold last traded at $4.04 on the TSX.
Information for this story was found via the sources mentioned and company filings. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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