TORONTO (miningweekly.com) – Vancouver-based New Gold  expects production will grow to between 330 000 oz and 360 000 oz of gold this year, compared with 301 773 oz in 2009, which was already a 29% increase year-on-year.

Cash costs in 2010 are forecast from $45/oz to $465/oz, net of by-product credits.

New Gold has operating mines in the US and Australia and development projects in Canada and Chile.

The company reported a fourth-quarter net loss of $7,7-million, compared with a $41,1-million profit a year earlier, after recording a number of one-off charges.

However, revenue jumped to $131,8-million for the quarter, compared with $36,7-million a year earlier, boosted by higher gold prices, as well as additional production from the Mesquite mine, that New Gold acquired when it bought Western Goldfields.

The company produced 111 672 oz of gold in the fourth quarter, a 41% increase compared with a year earlier.

Cash costs after by-product sales decreased 17% from the fourth quarter of 2008, to $472/oz.

"2009 was an exceptional year for New Gold on so many levels," executive chairperson Randall Oliphant said in a statement.

"Our operational performance beat guidance on both production and costs, leading to record cash flow for our company.”

Shares in New Gold rose 4,9% on Friday, to C$4,93 apiece by 16:15 in Toronto.

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