NGD New Gold

Ankit Shah Vice President, Strategy and Business Development
Renaud Adams President and Chief Executive Officer
Rob Chausse Executive Vice President and Chief Financial Officer
Trevor Turnbull Scotiabank
Call transcript
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Hello and thank you for standing by, and welcome to the New Gold First Quarter 2021 Earnings Conference Call. [Operator instructions] Please be advised that today's conference is being recorded. I'd now like to hand conference over to your speaker today, Ankit Shah, VP of Strategy and Business Development. Please go ahead.

Ankit Shah

Thank you, Michelle, and good morning, everyone. us call New and joining XXXX first you conference earnings webcast. appreciate today Gold's for quarter I

On the wish line from and with CEO; today webcast, our we have Rob the CFO. Renaud home Chausse, page Should sign you please to at along and follow in Adams, President

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

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

that also factors risk certain filings on section SEDAR, refer which and to in New factors cause the you out other We latest MD&A differ. available could entitled set actual results to Gold's material

In are I notes call a the important conjunction number presentation, now reviewed with Rob presented. the to addition, will Chausse. there the information in turn end provide more material that of over of the at should and be conclusion

Rob Chausse

very highlights Thanks providers release. our with And production Slide details consistent our morning, for X Ankit. much good operating are The press QX. April production

and year and at primarily from Total lower Amount to River to equivalent Afton. prior New quarter During ounces gold of ounces XX.X ounces consisted from QXm throughput grades Rainy pounds due as gold gold million copper, Afton. the ounces. produced is compared XX,XXX lower gold company of XX,XXX of the lower of XX,XXX production New XX,XXX gold

to $X.XX was prior due FX first equivalent rate impact rate against volumes of higher the guided in FX rate, than lower around year regards the of impact Canadian strengthening operating expense million. sales ounce dollar US the our CAD was with FX Our dollar quarter per and a quarter to $X the our

and $X sensitivity the a $X,XXX lower ounce, volumes. change X% basis due equivalent year sustaining cash in primarily about CAD quarter $X.XX impact a the our million all-in forward operating to than US prior represents quarter sales the for per Consolidated Going on costs were FX rate higher flow.

on into revenue first our was prior the per pounds by of year Turning quarter $X.XX revenue ounce, due financial at metal driven average XX,XXX pound. X; realized QX $XXX.X XX.X of of higher million $X,XXX and gold gold than of quarter results at approximately prices. price slide an was to higher sales sales ounces per copper XX% million

operating prices. metal by $X.XX higher adjustments share a per earnings share per Our the for charges, million XXXX, share of cash differences share of compared $XX.X or Company certain lower earnings quarter revenue primarily loss was share $X.XX due other net $X.XX recorded in to in to than flow the loss in prior of $X.XX for or before $XX.X per driven net capital or compared first quarter, net per $XX QX to the QX or million million were QX adjusting working $X.XX XXXX. of After higher depreciation. and million a $X.X quarter during year per higher

on Our to royalty. the adjustments adjusted unrealized mark-to-market flow cash related our and QX includes adjustments River earnings free Rainy stream,

Afton. at development capital million on call slide project spend that, turn on primarily BX assets in to development, on operating track details March capital the quarter. capital to additional remain $XX.X the at to capital around slide. we achieve guidance. XX, capital. With has and project was on capital specifically Sustaining related On million structure, the both on XXXX, sustaining MD&A focused $XXX $XX.X million million the measures I'll expenditures and Growth the $XXX tailings million in New work non-GAAP on in and planned was growth $XX.X and over operating Our We're discussed. both cash provides New We Adams, on spent mine next Capital at liquidity. CEO. Renaud TAT was Afton. had our X our

Renaud Adams

And joining has today. management, will annual New efforts, report. in as addressed water comment climate, thanks and sustainability Rob. our people, all tailings X area, Beside four of be sustainability which for on fully I'm Thanks, slide again, additional safety, upcoming for global everyone on health ESG. and indigenous focused the us sustainability and our Gold

issues adapted mining our have company the facing to We effort in sustainability the ESG industry. our pressing most with align

not forward, can we at we build area what doing way looking and are currently we a about of for new presenting improve on. to As it is look operating but looking

are roadmaps our ambitious emissions. XXXX to reduce working on We with goal our currently

While community continuing create to to our the in we operate. value host area

management cultural for I've on ideas generate driven Our on systems tailings risk water, progressive side, include slides ongoing implemented efficiencies environmental Operation the seeks and local and both carbon footprint, actively that and employee to our energy basis. traditional work aspect an environmental for communities our achieve help our programs and operation. have help understand partnership monitoring climate, overall to with reclamation

electric efficiencies. Going will that fleet. achieve our first already has goal. forward, reduction underground comprehensive equipment Meanwhile, we will plan climate and Afton implement to mobile more also help outlines for a energy emission opportunities This its its electrification added action New us

continue of well create part indigenous management in safety of relations, and tailings to in which the prioritize very goal, objectives our and water, operate objectives while people larger Our value, global all impacts, in health community We to the to people we do achieving being our and in. and climate, clear. and minimize be to continue environmental the want

been company results private site of and Rainy was base in area the its on Health our quickly testing. Ontario provides really implementation. the bring Northwestern [Indiscernible] non-negative directed The with testing Individual to the days, results administrative a within so These as hour three test. have referred case to which the was Northwestern worked second positive positive. COVID unit are terminology officially Just test were update. onsite the really with which touch health results and a public separate PCR confirmed at River public so only early -- in-house unit, a health -- and the to a previously the considered has take The result in in first positive with to testing PCR the cases positive from testing

as However, continue going were referred be will forward previously non-negative be we cases positive and as cases referred as that treated such. to will presumed

infected also further currently exposure. the individual All and news isolate Rainy April been mine. XX in only River active detected cases cases by and There the have on tracing at The XX referred the As through individual team two of limit positive cases, release. including are the contact majority health to is our any performed site really prior site. the public

very following of have period. also All were them COVID-XX as that applicable currently And the mine. to public New Northwestern of there confirmed I'm Afton recovered at the cases cases no are health quarantine report positive by pleased the active

Harte, to company significant owned the Angus. reinvesting continue minority by and positions quarter. in in Artemis Recently future a the our added Gold stream Blackwater map by gold Canada, XX, slide the including in in Development Talisker currently across New X% mine Moving new The held positions Gold. three shows all

regards Canada. land in the Talisker, goldmine set also Afton we mines, mine explorer, New leverage an BC. of is significant a and prospective unique to that They package, that in new productions are team's potential a package Gold underground multi the an We XX joined neighborhood in land management the record It's with underground from of resources. this Harte opportunity really Canada. a historic part grams of year. place Noranda is including a opportunity in the towards Gold. investment XX.X% explore a is gold given New in under own really for XX.X% opportunity our invest to strong skill million to a been over of experience explorer like Angus a Canada. in to and prospective in ounces ounces recently a camp, Our for mining New creation the ounces was for million package, regard resources X.X% in good experience package potential significant expand the the With our small land tonne that's very land value mining This in company's to more strong track to XXX,XXX in With than over and grade which

their and strategic last quarter. pleased landscape investment capable and to the with we're been over very together minority we've So the put

Moving comment River to XX operational for slide on quarter performance. I'm first performance. on additional now Rainy

our per forth. nearly with period I'm XX,XXX It's 'XX pleased seen quarter another while as year. winter that day last pit and tonnes roughly the per mine XXX performance lower year the of grade day extremely with XXX,XXX the the well and also and well This would plan. compare I per We've year. significant line was this extremely day. which tonnes day. good overall tonnes considering last same And mill a tonnes open over in with really same achieving improvement XX,XXX achieved compared per mill period with a mine last the day did XXX,XXX achieving say The water conditions tonnes it target The so again of productivity. First, was

production that XXXX really year, despite I year-over-year, the XX% last improvement that point XX% below last year achieved the grade period roughly I'd compared improvement over same QX, of at period the last think that really same period the was the to out And speak fact The and year. period XXXX. same in like time year. the to overall last in our for

XX% So grade over last rose a I Dollars. below a the lower cash a significant productions a year, more costs grade. on improvement said XX% stronger Canadian Same as despite last much same slightly despite the period

continued QX significant we So grade the continue has at the consider to the Afton, second was such as exhaust in there remains higher our a achieve productivity for X.X of was reductions continue down road move grams tonne the forward year, sequence average to and Slide of costs preparation and its a ratio. we speaks of current previously asset and in the over this the and achieve On expecting mine our the C-Zone good eventually discussed half to we first BX significant as incident. now track has New cave. the we've We're road. lower the an and for blockade a then on mine we and The frankly all really lower our transition grade permit will BX the as increase compare The in following to planned half cave that and of on half And of as level production lower pretty Lift second quarter. as improvement the improve the last initially period to are to with continues when of the quarter BX was and -- plan guidance. itself, it year the grade grade low of XX after speaks X continue We had QX and and year. towards productivities and the over mud-rush planned further up grade both year increase expecting the the the you slightly down the strip up the it to the the the ramp wrap year our made recovery into eventually was will as a we which quite cave of that mine work

in to more as come QX. the we So advance

season plan as on a Our the of and development construction C-Zone track remains planned. for start

track on we're So results pleased with achieve phase well really as of both exploration New mines first their Afton. at are to the very guidance,

first in And focused pretty interpretations patterns deposit. be different we're to some nearly interesting we're the similar drilling Afton of engaged deeper going XX,XXX the showed pretty us phase drilling second of where phase on The now those meters New to priority as three follow drilling have this in well as come well, targets, or some like has the on on to more commenced up We mentioned we to on underground got year. as trends. that the program

Operator? portion. now of the presentation will turn -- call really the to this completing is the call. portion back I the So to for the operator Q&A our


[Operator Turnbull from first comes from Trevor question Scotiabank. Instructions] Your


on accounting your way for Yes, question thanks had underground. River I expenditures read through Renaud. it guess Rainy quickly. I pretty the I a for

it? like intrepid with the done you it Or you've and on So $X I might the for I'm the But just looked something have order way missing work of And more something in expenditures But missed you're than going for it you're the like million had so that. about at it zone underground is I the seems gross intrepid. forth. a way the accounting wondering it. work am in


guess -- disclose very million the I our your expecting it's but gross even No, are now when of guidance you expenses clarify $X advantage the all take ore gross plan. we capital. has And mentioned same it's a to see previously to we'll And continue level capital. just was with execution -- There interesting extremely in block of as And result. the within pleased booking very between beyond gross you on to the just our some our guidance responded that the our ounces. is we're captured total model. the the first And gain compared question I And and really the that we in well here the timeline capital. part on here execute has all

and expecting year to starting continue the develop see our next as expenses move there pick for we're up [Indiscernible] will to plan the quarter, you So the and within forward, in we will


about think material year? -- you process any going XX,XXX talked tonnes all Or to to in the able is for a I this you Are do be future? And of the stockpiled put sometime you stockpile. this add looking having develop to that to


going. some the year. we'll you comes stockpile truth is, average - a impact a There is tonnes in many currently be how as really from result, we're underground. mean, imagine. imagine to stockpiling you to the taken, some first is the if XX,XXX precautions is a and can the eventually, and XX But we'll I see are but see with not can day, this definitely something when It metals quarter where processed lot It's we you of XX,XXX tonnes we're this later

So to processing. decided initiate has we equipped we sure got be well we're to do


a a there of way to And mill in grade of to obviously in up actually because the to just just process sort shock built going it's it? a Is of mill see some stockpiles the batch probably be it operating. blend how bit higher the when more way a it's or you maybe maybe bit reacts the to the a plan been bit will


we're be disclosed at previously it there this At aspects our eventually on by as of so maybe we're study, in mine continuing extension we're batching? We're more, intentions actually bringing our Would improve potential any to looking be of, result the yet. will far, working stage, life milling opportunity on to extension not blend.

blend. the case is is basic just plan Our to


over will presenters the we our the time, for turn further closing this questions no At have remarks. in queue. I back call to

Ankit Shah

To of us who Michelle. joined you you all today. Thank you, Thank have again.

or additional you out As by to always, reach should have hesitate any great phone much. questions, please do us day. very not Have a email. Thanks to


Thank you, call. everyone. This concludes today's conference

You disconnect. may now