TORONTO (miningweekly.com) – New Gold has reported an adjusted net loss of $1.3-million, or $0.00 a share, in the second quarter ended June, compared with an adjusted profit of $8.2-million, or $0.02 a share, in the year-earlier period.
The TSX- and NYSE MKT-listed copper, gold and silver producer did, however, beat analyst expectations of a loss of $0.01 a share.
The adjusted net loss was attributable to the decrease in operating margin, coupled with increased finance costs, which was partially offset by lower depreciation and depletion, and corporate administration, exploration and business development expenses.
New Gold explained that the increase in finance costs was owing to the company no longer capitalising a portion of its interest expense for activities at the Blackwater project, in south-central British Columbia.
The company reported net earnings of $9.4-million, or $0.02 a share, down 42% year-over-year when compared with net earnings of $16.2-million in the same period a year earlier.
Revenue declined 6% to $167.7-million.
The company’s NYSE-listed stock on Wednesday closed 5.195% higher at $2.23 each.