Canadian gold miner New Gold is looking forward to a new phase of its growth strategy, CEO Renaud Adams said on Tuesday, telling investors that the company has improved its operational performance, reinforced its balance sheet and strengthened its liquidity position.
New Gold’s two mines in Canada have returned to pre-Covid levels and the miner has completed all non-recurring capital projects at Rainy River.
“We can now take a longer-term perspective,” Renaud comments in the miner’s second-quarter production results announcement.
“New Gold's future will be supported by profitable operations, a stronger balance sheet, and as our current hedges expire at year end, we will be fully exposed to the strengthened gold price.”
The company produced 98 079 gold-equivalent ounces (GEOs), comprising 64 294 oz of gold, 134 282 oz of silver and 16.9-million pounds of copper in the June quarter.
Rainy River, which was shut for 12 days in the first quarter, resumed operations on April 3. The mine produced 49 633 GEOs in the quarter under review. New Afton produced 49 446 GEOs.
New Gold withdrew its guidance on April 15 to better assess the impact of Covid-19. It will publish a new guidance on July 30, when its second-quarter financial results are released.