New Gold (TSX: NGD) posted its Q3 2025 results, with quarterly revenue of $462.5 million, up 83.5% year over year from $252.0 million, driven by record Rainy River production and stronger realized prices.
Gold ounces sold increased 43.6% to 117,481 while copper pounds sold rose 8.2% to 11.9 million. Average realized gold price increased 37.9% to $3,458 per ounce and average realized copper price rose 6.9% to $4.47 per pound.
Operating expenses increased 21.9% to $131.2 million and depreciation and depletion rose 19.2% to $69.5 million, consistent with higher output. The company also recorded reversals in other losses of $49.2 million and income tax adjustments of $31.7 million.
This resulted in a huge swing in net earnings, rising 275.5% to $142.3 million from $37.9 million. This translates to $0.18 earnings per share, up from $0.05.
Adjusted for one-off items and valuations, adjusted net earnings also climbed 210.3% to $199.5 million, or $0.25 per share. This includes adjusting for a recorded $5.1 million inventory write-up at Rainy River in the quarter.
Cash flow from operations was $300.7 million, up 135.1% year over year, while total capital expenditures were $75.6 million, up 21.0% from last year. Free cash flow then came in at a record $204.7 million, a 259.1% jump from $57.0 million a year ago. Mine-level disclosure shows Rainy River contributed $182.6 million of free cash flow and New Afton $30.1 million, offset by negative $8.1 million in other items.
Cash and cash equivalents ended at $123.3 million, up from $105.2 million at year-end 2024.
Operationally, consolidated Q3 gold production rose 47.0% to 115,213 ounces while copper production slipped 4.8% to 12.0 million pounds. Operating expense per gold ounce on a co-product basis improved 14.4% to $874 while for copper it increased 10.6% to $2.41, which sits above the stated full-year guidance range of $1.75 to $2.25 per pound.
Rainy River set a quarterly record with 100,301 ounces at AISC of $1,043 per ounce, a 63% production increase and a 39% AISC reduction versus Q2 as higher-grade open pit ore hit the mill. The quarter included about 5,900 ounces released from gold-in-circuit. New Afton delivered 14,912 ounces of gold and 12.0 million pounds of copper with an AISC of negative $595 per gold ounce on strong by-product credits.
Cash costs per gold ounce on a by-product basis decreased 13.8% year over year to $639 and AISC decreased 19.2% to $966 per ounce.
Management expects full-year gold production within 325,000 to 365,000 ounces with New Afton at the midpoint of 60,000 to 70,000 ounces and Rainy River above the midpoint of 265,000 to 295,000 ounces. Copper is guided to the midpoint of 50 to 60 million pounds.
Consolidated cash costs are trending above the midpoint of $600 to $700 per ounce on a by-product basis, and consolidated AISC is trending to the high end of $1,025 to $1,125 per ounce. Notably, Q3 AISC of $966 per ounce sits below that range while year-to-date AISC of $1,260 is above it, implying a steep cost improvement already realized in Q3 and a management view that share-based costs and Rainy River underground spending could keep the full-year print high.
New Gold last traded at $8.83 on the TSX.
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