New Gold Posts Record Revenue In Q3 While Cutting 2024 Production Guidance
New Gold (TSX: NGD) this morning reported its third quarter financial results, posting $252.0 million in topline revenue, an increase of 25% on a year over year basis, off the back of producing 78,369 gold ounces and 12.6 million pounds of copper.
Production during the third quarter came from the New Afton and Rainy River mines, with New Afton producing 16,477 ounces of gold and 12.6 million pounds of copper, while Rainy River saw the production of 61,892 gold ounces.
The averaged realized gold price during the quarter came in at $2,507 per ounce, while copper averaged out at $4.18 per pound.
All in sustaining costs per gold ounce sold came in at $1,195 per ounce, a decline from $1,333 per gold ounce sold during the year-ago period.
Thanks to improved metals prices, the company reported cash flow from operations of $128 million, and free cash flow of $57 million, both of which hit record levels.
Net earnings for the quarter totaled $37.9 million, versus a loss of $2.7 million a year ago, while adjusted net earnings climbed to $64.3 million, versus a loss of $23.1 million a year ago.
The company closed out the quarter with cash and cash equivalents of $133 million, and a liquidity position of $459 million. During the quarter the company also paid down $50 million on a credit facility in place with the Ontario Teachers Pension Fund.
Looking forward to the fourth quarter, consolidated gold production is expected to be below the previously provided guidance range, which is attributed to lower than expected production at Rainy River, due to less high grade tonnes on two open pit benches than previously expected. Guidance now calls for gold production of 300,000 to 310,000 on a full year basis, versus prior guidance of 310,000 to 350,000 ounces.
Copper production meanwhile is expected to come in at the mid-point of the previously guided range of 50 to 60 million pounds. All-in sustaining costs are expected to come in on the low end of the previously guided $1,240 to $1,340 per ounce.
“Although we expect consolidated gold production to be slightly below the original guidance range, copper production, cash costs, all-in sustaining costs and capital spending are all trending in-line with or better than the outlook presented at the beginning of this year,” commented Patrick Godin, CEO of New Gold.
New Gold last traded at $4.05 on the TSX.
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