NGD New Gold

Anne Day Vice President, Investor Relations
Renaud Adams President and Chief Executive Officer
Robert Chausse Executive Vice President and Chief Financial Officer
Call transcript
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Ladies and gentlemen, thank you for standing by, and welcome to the New Gold Third Quarter 2020 Earnings Conference Call. At this time, all the participant lines are in a listen-only mode. After the speakers presentation there will be a question and answer session. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Anne Day, Vice President of Investor Relations. you. Thank ahead. go Please

Anne Day

and for everyone. XXXX New Webcast. Call operator joining Earnings appreciate us and today Gold's good you, We morning, you Conference Thank Third Quarter

Chausse, today and period. operational results. brief open After been CEO; We the our has financial Renaud presentations we with will present us and have Q&A Rob completed, CFO, the lines who QX a Adams will for

statements begins Gold. language relating direct team the forward-looking in your note related statements the presentations cautionary you to our to respect, regarding would Today's to Before presentation. in cautionary refer today, presentation. like attention statements to a commentary In found the forward-looking detailed to forward-looking we I includes this New

materially Slide expressed forward-looking should You in the and from X be implied are additional that could those reviewed. results cautioned or information statements. actual X and Slide provide future and differ events

SEDAR, latest presented material New We other to U.S. filings also Factors actual amounts cause note Risk refer differ. on dollars. in in set entitled results you Please the that and MD&A that section could which all out are Gold's to available factors certain

in information addition, should of end Renaud Adams. important a in also the number now In that presented. provide be call presentation, are notes I material over to included there conjunction reviewed will the with and turn

Renaud Adams

Thank you, Anne, and thank you all for joining us today.

with and particular place Gold in in New in at the achieved third overall extremely are took significant quarter. months significant with pleased of nine that We the performance milestones XXXX, turnaround the first and our

value are significant our to now and balance on assets, With next creation. we hand enter and sheet liquidity positioned and restructured the phase of cash well performing

our regards implementing protocols performance, continued operating quarter, quarter asset we at the end. and COVID-free rapid to the with work including enhanced on quarter As COVID-XX of devices use for remains testing our third safety to during

of New historic productivities tailings the cash mine to mobilized all Creek potential And and and Mine facility. thickened detailed mine will XX,XXX cost exploration XXXX mill are overall well consolidated expected to per mine guidance with per with for mill average and meet operational the to that are XXX,XXX with the Mine the AISC opportunities cost annual monthly mill maximum a operating approximately under the unit will permit both guidance. tons Rainy XXXX existing mine ramp capacity optimize below and the the We performance The at delivered quarter day shift revised towards of our towards unit Afton construction, work and our strong reaching pleased advance mined Afton projects, at River with tons additional our drilling and target now mill throughput tracking objective level, the at the the to and New the very the be key and facility are planned tracking all day that BX/C-Zone a record launched Cherry extend and performance C-Zone resources drive XXXX design life storage development, our the including utilize the of free could was teams infrastructure. the recently tailings stabilization the have beyond. tailings testing target that near for currently at and improved mine of flow existing amended of and the up the to further unlock the overall The in performance allowed capacity been the

Artemis, to the million. the credit extended increasing available facility on had institutions. the a funds And credit the Artemis X lastly, plan, the healthy received end retained under quarter, borrowing letters Gold million to new has also $XXX credit facility. stakeholders to position October Rob Gold of XXX,XXX stake the transferred and third of in consideration terms results. ounces the At of to XXXX. turn Artemis. short, amended the nearly maximum to C$XXX completed quieter the quick an gold on up $XX be over now company to remaining to Under with of Chausse August now review approximately X% Blackwater the equity with I total agreement million, - During it payment a initial stream of quarter Artemis top-tier and bonds, in The $XXX million secured of a financial company Artemis of and mature XXXX a gold the the payment current credit facility in limit for X, liquidity for was come. approximately company a C$XXX related approximately of our with during for The to Project the The X% the C$XX stream mine its more quarter of position syndicate cash XX, company the Rob? In million New on based $XXX cash financial of the the New its the facility. stake a strong divestment will represents will quarter, quarter million delivered company of cash million. Under and surety of due costs Gold. this closure and

Robert Chausse

good Renaud and Thanks, morning.

October to press XXXX, Turning operating X Slide QX highlights with which our and release. the are provides our details production consistent for

ounces. the quarter per at equivalent Consolidated and production XXX,XXX lower XX,XXX from in ounce, sustaining sales ounces primarily pounds from quarter New gold gold cost of the River for amount grades and volumes. to During prior of lower gold lower year higher to were of Afton prior $X,XXX the with year year ounces. Rainy produced Rainy River as million is gold gold line grades The lower XX,XXX metal both quarter all-in operating equivalent the compared consisted per and due quarter, the The ounces copper, the New The Afton. due expense than was quarter. XX,XXX company XX.X equivalent totaling to ounce prior

our to Slide results financial Turning on X.

than million After at of an XX,XXX at copper realized average of sales ounce, before was due working per higher per per share charges, flow quarter, partially revenue $X.XX of pound. or grades. to per prices, company XXXX. for to a for net was in per earnings quarter, ounces higher $X.XX year and adjustments $XX.X Operating from share prior Third cost X% in QX, $X,XXX quarter and $XX than to gold $X.XX operating quarter in is QX of loss by $X.XX $X.XX $XXX.X primarily of earnings driven was QX by cash sales year of prior costs. per a per recorded loss operations or net higher revenue was The revenue $X.XX difference compared operating or million certain net depreciation. higher million million lower million $XX.X share driven of price the million revenue or XXXX. capital pounds $XX.X share compared the due QX, and higher lower offset XX.X quarter the of approximately The adjusting to lower share during metal the third and by

transaction, notes, on royalty. free earnings price QX unrealized Our includes the gold option adjusted River adjustments announced Rainy stream, contract, adjustments redemption related flow cash previous of our the the Blackwater to and

X, these breakdown CapEx. Our slide MD&A XXXX non-GAAP on our provides for capital measures. the expenditures, has QX all a Slide details of

and $XX.X Growth million. capital development Our and River New Afton. project BX Rainy the quarter dam tailing development work focused Afton. raise and Wick and at the advancement planned was at Spend Drains to capital tailings was total Mine sustaining for at was on of New related primarily leases

on along releases Moving the was that, bonds. XXXX notes September cash, as structure, to With hand completed want cash million approximately by transfer these X.X% early the to with full million during website. of touched in extended in the surety on had of due the its $XXXX to QX, during QX. the redemption due The XX, XXXX. yielding to you, credit in Renaud also And on notes the call our next that increased on our details the transactions, by company $XXX liquidity if various in look QX, XXXX. fund completed would Also, to of reclamation outstanding senior redemption liquidity slide those the noted. turn a Renaud. New company items, bondings $XXX on I’ll again, news offering you to and capital couple million Gold I but approximately we encourage quarter, million At in back facility $XX in

Renaud Adams

I Slide Rob. on you, XX. am Thank

Gold highest is procedures with committed to standards the and to New regards ESG.

and We the start community with will to asset On as now position with commitment was the cost a social cost is sides, and The some next with and cost XXXX. more have capital XXX,XXX a social year there significant expenditures mill and at X.X day, at will There XXXX we’ve expenses particular reserve the to capital of the cash AISC the combination ounces next are is and here up as of both Slide environment is targets cost the XX, surface the with start plan the once underground. exhausted. the upsides with well quite regards execute substantially phase on just cash cash On the River with are technical move as on the below enter gold XX, operating The the in and level spend – we XX, realized costs On to at and expansion to Slide the to strong governance mine. on and the guidance to now that extremely we improvements at pleased the management, the with capital And complete and The projects approximately value we and beyond. will of done surrounding with $X,XXX the the underground for at accountability. below both out sustaining forward flow and construction. the to price and governance was guidance free the a of point some which a million at and tailing starting life using guidance remarks, result are exercise XXXX the low extend cost also principle, best-in-class a upside the full Slide end reserve be all use lower into this and significant but mine ramping my opening starting and saving to capital mining cash regards expected a to expect mentioned higher with important with continue gold operating underground unit remain in life price will next Raining tons ounce significantly QX. in quick see pushed one We stop is production of of of the XXXX. flow operating to category mine our reserve with while key But applying frankly free in we as tailings in come. and the and productivities the due the and water expected asset. lower no towards in to really trending of drive strong upside XX, contemplates XXXX at on current mill $X,XXX capacity gold creation its target into done expected and December with a and now a an the upgrading growth around to the turn mid-range to structure our of looking side, now drive equally of year capacity or price, realized recategorize of mine Mine achieve in strong resources stockpile want asset XXXX guidance resource standalone in to gold positioned a the unit working

XXXX. well like, definitely to this We’ve we the XXX to it’s year? it something Is extend It’s to a method this just the more really of We our this XXX bit would some first with tune underground long-hole a a start converting hopefully and of Rainy towards take do next matter a we Could reserve early more idea to time. mid standalone start soft initiated meters The we scenario. time. look fine and XXXX are mine a But with also on the we Intrepid would towards approach to sort year? meters and Zone. life at side of or at decline Question, about So, of this. in milling behind need optimize mining couple come on matter of the as positioned and out the underground River. reinitiated

first mistake soon note hopefully Just XX the – point on drilling very Phase permit an with last bullet, and the was like of have honest X start Rainy but I’d be, or are to drilling River received at X,XXX in meters Slide a we and drilling on now the the preps we the quick we’ll start and out be program. should third will

broader the at we’ll XX come and in produced is more Slide in target has on Afton, target anomalies. and million third improved pounds areas New soil current the the with this. performance deposit operational first shown copper to two geochemical that of significant northeast More The XX, than quarter. of

achieve to point We spend. the to guidance results. capital development with east at and are to now guidance to operating the capital The track crew AISC I’d needed guidance. sustaining we QX BX like the cave to complete made recovery the expected strong decision the access as be revised the secure the out lower was growth to and sustaining below as to or temper that in at mid-range ready, reallocate the well on of to are below tracking due

of million BX result on capital productions pushed XXXX. XXXX, but to that, expecting HX be sustaining we are potentially schedule up remain of to $XX the a in before As

potentially a capital have growth to the in more construction XX, schedule we few in other On the change push the taken C-Zone. TAT We to COVID to could just Slide of million originally built project, of and but really we $XX regards now China. well been out C-Zone year, doesn’t XXXX, thought, QX the development, thickener we advanced but looking here. On are has currently and this key delay. with up our KPIs to it as advance The that expected XXXX

C-Zone the and definitely development. the the key of was underground XXXX, development BX aspect For

attracting well with the are C-Zone. We extremely

We are meters XXXX XXX with our target. ahead only on actually remaining

porphyry. efforts a mentioned of target program strong up positioned for the a New On in kilometers Operator? the have as Creek I be Black kilometers the comfortable this definitely more represent and There This presentation before, year. but entering we profitable new XX corner initiated we to of survey planned this close assets; Mine XX,XXX we’ll by launched optimized drills target balance BX, XXXX October BX we of now survey a to-date the with call. again to to significant slightly in over turn and forward. as for the XX will anomalies sheet, the with we would commence than the operator Phase and drilling the development is River are coupled are was here and see More but significant Zone the As Cherry financial now porphyry with planned. divestment closing, trending drilling definitely supported a up is I path of are next we come, In in now from remaining that QX were look to and a to program prospective and C-Zone Water as drilling trend copper Phase operation below turned located year, with meter company XX, value QX XX,XXX profitable and lot X. and turned as portion we completed, completed position the putting portion. There We the the in at XXXX geochemical geology in Slide positioned an be of for are targets. significant late be corner work X meters now extremely and upsides positioned been concludes Rainy compiled for lot together geophysical combined well self-funded as from we potential. line is and with has The well. X those gold a IP the with Cherry of our the target have well the with Afton We kilometers near-surface of now creation a assessment the strong feel approach, that and the And three with epithermal geophysical Creek going mill. Q&A as it geochemical of catch

Anne Day

operator. And us today. you, joining Thank you, for everyone thank

free feel good happy we’ll further accommodate. any have a you should you. always, Have day. Thank reach As out and questions, to to be


you gentlemen, concludes today's this call. and Ladies participating. conference Thank

You may now disconnect.