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Dec 31, 2024
New Gold Q4 2024 Earnings Report
New Gold reported a strong fourth quarter, achieving lower costs and higher revenues compared to the prior-year period.
Key Takeaways
New Gold Inc. delivered solid financial and operational results in Q4 2024, with a notable increase in revenue driven by higher gold and copper prices. The company reported net earnings of $55.1 million, operating income of $93.1 million, and free cash flow of $22.1 million. Adjusted EPS came in at $0.07 per share. The quarter saw lower all-in sustaining costs (AISC) of $1,018 per gold ounce, a 31% reduction from Q4 2023.
Q4 2024 revenue increased to $262.2 million, up from $199.2 million in Q4 2023.
Net earnings improved significantly to $55.1 million, compared to a net loss of $27.4 million in Q4 2023.
Gold production reached 80,438 ounces, a 2% increase from the prior-year period.
All-in sustaining costs per gold ounce (by-product basis) declined 31% year-over-year to $1,018.
New Gold
New Gold
Forward Guidance
New Gold expects continued production growth, supported by ongoing cost discipline and investments in growth projects. The company anticipates higher gold and copper production in 2025, with an emphasis on expanding operations at Rainy River and New Afton.
Positive Outlook
- Gold and copper production expected to increase in 2025.
- Operational efficiencies to further reduce costs.
- Ongoing underground mine development at Rainy River.
- Increased processing capacity at New Afton.
- Improved cash flow generation from cost optimization.
Challenges Ahead
- Potential production disruptions due to mechanical downtimes.
- Higher capital expenditure requirements for growth projects.
- Uncertainty in commodity price fluctuations.
- Increased mining costs due to inflationary pressures.
- Regulatory and permitting challenges in future expansions.