Canada-focused gold miner New Gold said that strong fourth-quarter results led to it achieving the top-end of its consolidated 2023 production guidance.
In the fourth quarter, consolidated gold-equivalent production of 105 082 oz, comprising 79 187 oz of gold, 12-million pounds of copper and 157 788 oz of silver, which is a 7% increase compared with the prior-year fourth-quarter period, was achieved, the company said.
"Our strong fourth-quarter production results mark our sixth consecutive quarter of delivering to our plan, with a 7% increase in gold-equivalent production over the prior-year period. As a result, New Gold achieved the top-end of its 2023 gold-equivalent production guidance set at the start of 2023," said New Gold president and CEO Patrick Godin.
Owing to the strong fourth quarter operating results, the 2023 consolidated gold-equivalent production was 423 517 oz, including 321 178 oz of gold, 47.4-million pounds of copper and 593 146 oz of silver, thereby achieving the top end of its 2023 consolidated production guidance.
The company will release its fourth quarter and full year financial results for the year ended December 31, 2023, on February 13.
The company reported another excellent quarter from New Afton as a result of higher tonnes processed, higher gold and copper grades and higher recovery rates. The mine's B3 zone extraction rates continue to exceed plan.
For the year, gold production from the mine exceeded 2023 guidance, with copper production achieving the top-end, said Godin.
Further, Rainy River continues to deliver stable production quarter-over-quarter. The openpit and underground mines delivered in the fourth quarter, aided by another strong performance from the processing plant. Gold production from the mine also achieved the top-end of 2023 guidance.
"Both operations exit 2023 performing well and having made excellent progress on growth initiatives. I expect 2024 to be transformational for our company and position us well to increase production at decreasing costs and significantly less capital spend, allowing us to maximise our free cash flow generation in the years to come," he said.
At Rainy River, Phase 4 of the openpit is under way, with overburden removal complete and waste stripping well advanced. Phase 4 waste stripping activities are expected to significantly decrease after 2024. Rainy River's underground Main zone remains on track for first production in the fourth quarter of 2024 and is expected to ramp up production throughout 2025.
At New Afton, C-Zone production commenced at the end of September 2023 with the first draw bell blast. Commercial production remains on track for the second half of 2024, ramping up to full production by the end of 2025.
Meanwhile, the company's near-term free cash flow thesis remains intact.
Capital spending is expected to taper off significantly upon completion of growth projects and a significant reduction in openpit waste stripping at Rainy River after 2024. Together with increasing production profiles at both operations and decreasing costs, free cash flow is expected to increase significantly in the coming years, Godin said.