TORONTO - Shares of New Gold Inc. climbed more than 10 per cent in early trading after the company reported improved fourth-quarter performance at its troubled Rainy River mine.
The Toronto-based company says gold production at its Rainy River mine in Ontario surged 39 per cent in the fourth quarter to 77,202 ounces while production was fairly steady at its New Afton mine in British Columbia at just under 19,000 ounces.
Production for the year at the two mines, plus the now-shut Cerro San Pedro mine, came in at 315,483 ounces to fall within its revised guidance of between 275,000 and 330,000 ounces. The company announced the sale of its Mesquite gold mine in California for US$158 million last September.
The company revised down expected production for its Rainy River mine by about 100,000 ounces mid-way through last year, prompting its stock to drop by half to about a dollar.
The mine, which started production in 2017, has been plagued by cost overruns in construction and grade and recovery issues in operations.
Shares of New Gold were trading up 14 cents, or 10.94 per cent, at $1.41 at mid-morning on the Toronto Stock Exchange. The company's shares have climbed from $1.04 at the start of the year.
The Canadian Press