New Gold Announces Third Quarter Results at Record Low Total Cash Cost with Cash of $391 Million

New Gold Announces Third Quarter Results at Record Low Total Cash Cost with Cash of $391 Million

(All figures are in US dollars unless otherwise indicated)


VANCOUVER, Nov. 4 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE AMEX:NGD) today announces financial and operational results for the third quarter of 2010. New Gold had an excellent third quarter with gold sales of 89,692 ounces at a total cash cost(1) of $435 per ounce, net of by-product sales, resulting in earnings from mine operations of $46.7 million and cash flow from operations of $35.5 million. New Gold is also pleased to reiterate its 2010 full year guidance of 330,000 to 360,000 ounces of expected gold production at a total cash cost(1) of $445 to $465 per ounce sold, net of by-product sales.
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Third Quarter Highlights
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- Cash flow from operations increased by 492% to $35.5 million from
$6.0 million in the same period in 2009
- Earnings from mine operations increased by 107% to $46.7 million from
$22.6 million in the same period in 2009
- Gold production increased by 15% to 91,332 ounces from 79,531 ounces
in the same period in 2009
- Total cash cost(1), net of by-product sales, decreased by $35 per
ounce to $435 per ounce from $470 per ounce in the same period in
2009
- Cerro San Pedro fully operational achieving record quarterly
performance, producing 37,473 ounces of gold at a total cash cost(1)
of $151 per ounce, net of by-product sales
- Underground development advance at New Afton exceeded plan by 20% as
1,066 metres of development were completed against a plan of 885
metres, with the highest ever monthly advance achieved in the month
of September
- Cash balance increased by $15 million from the end of the second
quarter to $391 million at September 30, 2010
- September 30, 2010 cash balance exceeds remaining capital required to
complete New Afton project of approximately $365 million
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"We are very pleased by delivering another strong quarter from our operations and how well New Gold is positioned today," stated Randall Oliphant, Executive Chairman. "We have a fully-funded company with a foundation of three operations combined with two exciting organic growth projects in New Afton and El Morro. With the continued strength of the underlying commodity market, we look forward to New Gold's continued cash flow growth in the coming years."