New Gold (TSX: NGD) released its Q2 2025 financials, posting a revenue jump to $308.4 million, up 41% YoY from last year’s $218.2 million, as stronger gold prices and higher ounces sold more than offset weaker copper pricing.
Gold sales climbed to 75,596 ounces, up 12% from last year’s 67,697 ounces, and benefited from a 41% surge in the average realized price to US$3,317 per ounce from last year’s US$2,346 per ounce. Copper told the opposite story: 12.7 million pounds were sold, down 5% YoY from 13.3 million pounds, at an average realized price of US$4.34 per pound, a shave off from last year’s US$4.49 per pound.
Operating expense held essentially flat at $111 million, while depreciation slipped 5% to $66 million. The cost discipline, combined with the price lift, swung bottomline performance to net earnings of $68.6 million (or $0.09 per share) from a Q1 2025 loss of roughly $17 million and against $53.1 million a year earlier.
Adjusted net earnings surged to $89.8 million versus $17.0 million in a year ago. Adjusted earnings per share came in at $0.11 against last year’s $0.02.
Operating cash flow hit $162.9 million, up 62% YoY from $100.4 million. Free cash flow set a record at $62.5 million, triple last year’s $20.4 million with Rainy River property generating $44.9 million of that total.
Cash and equivalents rose to $226 million even after a $50 million cash outlay to buy out Ontario Teachers’ 19.9% stream on New Afton. New Gold also retired the remaining $111 million of its 2027 notes, trimming gross debt and interest drag.
On production, consolidated output reached 78,595 gold ounces from last year’s 68,598 gold ounces and 13.5 million copper pounds against 13.6 million pound a year ago. AISC averaged US$1,393 per ounce, virtually unchanged YoY but well below the Q1 spike of US$1,665 per ounce. Even so, the H12025 AISC sits at US$1,529 per ounce—36% above the top of full-year guidance.
New Afton’s negative AISC at US$537 per ounce cushioned group averages, while Rainy River printed US$1,696 AISC per ounce despite a record June output of 37,341 ounces at 1.44 g/t gold. Rainy River has delivered just 34% of its midpoint production target year-to-date, versus the 50% pacing implied by guidance, after sequencing delays left 5,900 gold ounces in circuit. Management says higher grade ore, accelerated underground development, and a flotation-circuit upgrade should close the gap, but the mine must cut unit costs by roughly US$600 per ounce in H2 to land within group targets.
Management reaffirmed full-year guidance of 325,000-365,000 gold ounces, 50 million-60 million copper pounds, and AISC of US$1,025-US$1,125 per ounce. Exploration spend is ramping with seven drills at New Afton and three at Rainy River completing around 43% of planned 2025 progress by quarter-end.
New Gold last traded at $6.05 on the TSX.
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