New Gold Inc ((TSE:NGD)) has held its Q2 earnings call. Read on for the main highlights of the call.
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New Gold Inc’s recent earnings call presented a generally positive outlook, highlighting significant achievements in production, safety, and financial performance. Despite facing some challenges in processing high-grade material on time, the company showcased its resilience and strategic focus, leaving investors with an optimistic view of its future prospects.
Record Free Cash Flow
New Gold Inc reported a record quarterly free cash flow of $63 million, marking a significant achievement for the company. The Rainy River mine contributed substantially to this success, with a quarterly record of $45 million in free cash flow, underscoring the company’s strong financial performance.
Strong Safety Performance
The company’s commitment to health and safety was evident as New Afton received three safety awards, and Rainy River won the Thunder Bay District Mine Rescue Championship. These accolades highlight New Gold’s dedication to maintaining a safe working environment for its employees.
Increased Production and Improved Costs
Gold production reached approximately 78,600 ounces, with all-in sustaining costs showing improvement over the first quarter of 2025. Notably, New Afton’s all-in sustaining cost was negative $537 per ounce, thanks to copper credits, reflecting efficient cost management.
Exploration Progress
Significant progress was made in exploration activities, with record activity at New Afton and advancements at Rainy River. The work on the Northwest trend open pit zone is particularly noteworthy, indicating potential for future growth and resource expansion.
Strategic Acquisition
New Gold strategically acquired the remaining 19.9% free cash flow interest at New Afton, consolidating its interest to 100%. This move strengthens the company’s position and aligns with its long-term strategic goals.
Delay in High-Grade Material Processing
A one-week delay in sequencing higher-grade open pit material at Rainy River led to an increase of approximately 5,900 ounces of gold in circuit inventory at the end of the quarter. This challenge slightly impacted production timelines but is being addressed by the company.
Guidance Challenges
Gold production at Rainy River for the first six months was slightly behind the first half guidance due to the delay in processing higher-grade material. However, the company remains confident in overcoming these challenges in the upcoming quarters.
Forward-Looking Guidance
During the second quarter of 2025, New Gold provided guidance indicating strong operational and financial performance. The company achieved a total gold production of approximately 78,600 ounces and 13.5 million pounds of copper, with all-in sustaining costs of $1,393 per ounce. New Afton’s C-Zone construction was reported to be 65% complete, with a target processing rate of 16,000 tonnes per day by early 2026. The company remains on track to meet its 2025 production and cost objectives, emphasizing health, safety, and shareholder value creation.
In conclusion, New Gold Inc’s earnings call highlighted a positive sentiment with notable achievements in financial performance, safety, and strategic acquisitions. Despite facing some operational challenges, the company remains committed to its growth objectives and continues to demonstrate resilience in its operations. Investors can look forward to a promising future as New Gold stays on course to meet its production and cost targets.