New Gold maintains a strong liquidity position. The company’s December 31, 2015 cash balance of $336 million together with the receivable for Royal Gold’s second instalment under the stream agreement of $75 million (the receipt of which is subject to the satisfaction of certain conditions) and the $184 million available for drawdown under New Gold’s revolving credit facility provide approximately $595 million of liquidity in addition to the net cash the company’s operating mines are expecting to generate.
In 2015, New Gold’s record full-year gold production of 435,718 ounces exceeded the high end of the guidance range of 390,000 to 430,000 ounces and delivered a 15 percent increase in production over 2014.
New Gold’s production costs remained competitive compared to the broader gold mining space as New Gold had total cash costs(1) of $443 per gold ounce sold and all-in sustaining costs(1) of $809 per gold ounce sold in 2015. We believe New Gold will continue to establish itself as one of the lowest-cost producers in the industry.
(in millions of U.S. dollars, except where noted)
|Gold production (ounces)||435,718||380,136||397,688|
|Gold sales (ounces)||428,852||371,179||391,823|
|Average realized price ($/ounce)(1)||1,149||1,256||1,337|
|Total cash costs per gold ounce sold ($/ounce)(1)||443||312||377|
|All-in sustaining costs per gold ounce sold ($/ounce)(1)||809||779||899|
|Adjusted net (loss) earnings(1)||(10.9)||45.2||61.3|
|Cash generated from operations||262.6||268.8||171.9|
|Adjusted cash generated from operations before changes in non-cash operating working capital(1)||265.0||310.4||258.6|
|Cash and cash equivalents||335.5||370.5||414.4|
|Capital expenditures (sustaining capital)(1)||121.5||129.8||159.5|
|Capital expenditures (growth capital)||268.0||149.5||129.8|
|Loss per basic share ($)||(0.40)||(0.95)||(0.39)|
|Adjusted net (loss) earnings per basic share(1) ($)||(0.02)||0.09||0.13|
(1) The company uses certain non-GAAP financial performance measures throughout this Annual Report. Average realized price, total cash costs and all-in sustaining costs per gold ounce sold, sustaining capital expenditures and adjusted net earnings are non-GAAP financial performance measures with no standard meaning under IFRS. For a description of each of the non-GAAP measures used in this Annual Report and a detailed reconciliation, please refer to the “Non-GAAP Financial Performance Measures” section of the Management’s Discussion and Analysis on pages 84–95 of the printed report.
(2) Of the $300 million credit facility, $115.9 million was utilized for letters of credit as at December 31, 2015.
This Annual Report contains information regarding New Gold’s 2015 guidance and other forward-looking information. Forward-looking information is based on various assumptions and is subject to risk. For further information, please refer to the inside back cover of the printed Annual Report.