New Gold Announces Record Gold Production and Cash Flow for Fourth Quarter and Year Ended 2009
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VANCOUVER, March 4 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE AMEX: NGD) today announces financial and operational results for the fourth quarter and year ended 2009. The company had its best operational year, exceeding gold production guidance at lower than forecasted total cash costs(1) resulting in record cash flow for New Gold. New Gold is also pleased to re-iterate its guidance for 2010 with forecast gold production expected to increase further to between 330,000 and 360,000 ounces at total cash cost(1) of $445 to $465 per ounce sold, net of by-product sales.
Fourth Quarter and Full Year 2009 Highlights
Results presented below are for the period of ownership for the Mesquite (June 1, 2009) and Cerro San Pedro mines (June 30, 2008).
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- Highest quarterly gold production for the company in the fourth
quarter with an increase of 41% to 111,672 ounces from 78,950 ounces
in the same period in 2008
- Total cash cost(1) in the fourth quarter decreased 17% to $472 per
ounce sold, net of by-product sales, from $567 per ounce sold in the
same period in 2008
- Cash flow from operations of $54.4 million in the fourth quarter 2009
versus $17.3 million in the same period in 2008
- Gold production in 2009 increased 29% to 301,773 ounces from 233,103
ounces in 2008
- Total cash cost(1) in 2009 decreased 18% to $465 per ounce sold, net
of by-product sales, from $566 per ounce sold in 2008
- Cash flow from operations of $79.0 million for 2009 versus $23.1
million in the prior year
- 2009 year-end cash balance of $271.5 million, including $9.2 million
of restricted cash, versus $182.0 million in 2008
- Additional net cash of $70.1 million received after year end from
sale of asset backed notes ($47.3 million) and payment from Goldcorp
($50.0 million) less Mesquite term loan pre-payment ($27.2 million)
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"2009 was an exceptional year for New Gold on so many levels," stated Randall Oliphant, Executive Chairman. "Our operational performance beat guidance on both production and costs, leading to record cash flow for our company. Combining this cash flow with the cash received from our corporate development initiatives has significantly enhanced the company's financial flexibility and positions us extremely well as we look for opportunities to continue growing our business."