New Gold reports net loss in Q3 2021, expects to meet updated production and cost guidance

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(Kitco News) - New Gold (TSX: NGD) announced today that its total production in Q3 2021 was 105,628 gold equivalent ounces, a decrease of 9% compared to Q3 2020 (115,536 ounces).

The company said that its revenue for the quarter was $180 million, an increase of 3% compared to the prior-year period (Q3 2020: $174 million) due to higher gold and copper prices, partially offset by lower sales volume.

New Gold also reported net loss for the quarter ended September 30, 2021, of $11 million ($0.02 per share) compared to net earnings for the prior-year period of $16 million ($0.02 per share).

The company explained that the change was primarily due to an unrealized loss on the revaluation of investments, partially offset by lower finance costs.

Adjusted net earnings for the quarter were $23 million ($0.03 per share), an increase compared to the prior-year period primarily due to higher revenue and lower finance costs.

The company said it is currently on track to meet the updated annual consolidated gold equivalent production guidance range (405,000 to 450,000 ounces) and consolidated all-in sustaining costs range ($1,415 to $1,495 per gold equivalent ounce).

"The company responded well to the challenges experienced in the third quarter, positioning us to meet our updated guidance," stated president and CEO Renaud Adams. "As we look beyond 2021, we continue to advance the B3 ramp up and C-Zone development at New Afton and the development of the decline towards the Intrepid underground ore zone at Rainy River."

New Gold is a Canadian-focused intermediate mining Company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine. The company also holds an 8% gold stream on the Artemis Gold Blackwater project located in Canada, a 5% equity stake in Artemis Gold, and other Canadian-focused investments.

By Vladimir Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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