(All amounts are in
Consolidated Second Quarter Highlights
- Gold equivalent1 ("gold eq.") production for the quarter of 70,514 ounces (52,431 ounces of gold, 7.4 million pounds of copper and 117,318 ounces of silver)
- Operating expenses3 of
$1,277 per gold eq. ounce - All-in sustaining costs2 of
$2,373 per gold eq. ounce, including total cash costs2 of$1,296 per gold eq. ounce - Average realized gold price2 of
$1,879 per ounce and average realized copper price2 of$4.14 per pound - Cash generated from operations of
$37 million , or$0.05 per share - Cash generated from operations, before changes in non-cash operating working capital2 of
$27 million , or$0.04 per share - Net loss of
$38 million , or$0.06 per share - Adjusted net loss2 of
$17 million , or$0.02 per share June 30, 2022 cash and cash equivalents of$277 million - During the quarter, the Company provided an update to its 2022 consolidated operational outlook (refer to the Company's
July 11, 2022 news release for further information) - During the quarter, the Company successfully completed the previously announced redemption of its outstanding
$100 million aggregate principal amount of its 6.375% Senior Notes due 2025 (refer to the Company'sMay 16, 2022 news release for further information)
"While the operational outlook changes to this year are unfortunate, our teams remained resilient during a challenging quarter and I remain confident that we are positioned to have a stronger second half of the year, and deliver on our updated guidance," stated
At
New Afton has historically proven to be a prolific block cave operation, a low-cost producer, and high free cash flow generator. We are working to return to these results as we near the completion of B3 development and continue to advance the C-Zone. With these new zones in production, we expect to return the asset, from 2024 forward, to years of low sustaining capital and higher grade, leading to increased production at low costs.
During the quarter, the Company provided an update to its 2022 consolidated operational outlook (refer to the Company's
Consolidated Operational Outlook | Revised Guidance | Original Guidance |
Gold eq. production (ounces) 1 | 325,000 - 365,000 | 380,000 - 440,000 |
Gold production (ounces) | 260,000 - 290,000 | 295,000 - 335,000 |
Copper production (Mlbs) | 25 - 35 | 35 - 45 |
Operating expenses, per gold eq. ounce3 | ||
All-in sustaining costs, per gold eq. ounce2 |
Rainy River Outlook | Revised Guidance | Original Guidance |
Gold eq. production (ounces)1 | 230,000 - 250,000 | 265,000 - 295,000 |
Gold production (ounces) | 225,000 - 245,000 | 260,000 - 290,000 |
Operating expenses, per gold eq. ounce3 | ||
All-in sustaining costs, per gold eq. ounce2 |
New Afton Outlook | Revised Guidance | Original Guidance |
Gold eq. production (ounces)1 | 95,000 - 115,000 | 115,000 - 145,000 |
Gold production (ounces) | 35,000 - 45,000 | 35,000 - 45,000 |
Copper production (Mlbs) | 25 - 35 | 35 - 45 |
Operating expenses, per gold eq. ounce3 | ||
All-in sustaining costs, per gold eq. ounce2 |
Consolidated Financial Highlights
Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | |
Revenue ($M) | 115.7 | 198.2 | 290.4 | 363.1 |
Operating expenses ($M) | 79.8 | 95.2 | 175.0 | 189.1 |
Net (loss) earnings ($M) | (37.9) | (15.8) | (45.7) | 1.0 |
Net (loss) per share ($) | (0.06) | (0.02) | (0.07) | — |
Adj. net (loss) earnings ($M)2 | (16.7) | 26.7 | (6.4) | 34.8 |
Adj. net (loss) earnings, per share ($)2 | (0.02) | 0.04 | (0.01) | 0.05 |
Cash generated from operations ($M) | 37.4 | 110.3 | 105.2 | 163.7 |
Cash generated from operations, per share ($) | 0.05 | 0.16 | 0.15 | 0.24 |
Cash generated from operations, before changes in non-cash operating working capital ($M)2 | 27.4 | 84.7 | 93.8 | 148.5 |
Cash generated from operations, before changes in non-cash operating working capital, per share ($)2 | 0.04 | 0.12 | 0.14 | 0.22 |
- Revenue decreased over the prior-year periods due to lower gold and copper sales volume, partially offset by higher realized gold prices. Lower sales in the quarter were impacted by the timing of concentrate shipments at New Afton of approximately 7,500 gold eq.1 ounces which have been deferred to the third quarter, a quarterly impact of approximately
$700 and$140 per gold eq. ounce on New Afton and consolidated all-in sustaining costs2. - Operating expenses were lower than the prior-year periods due to lower gold and copper sales volumes.
- Net loss increased over the prior-year periods primarily due to lower revenue and a higher loss on revaluation of investments, partially offset by lower operating expenses and a loss on revaluation of the New Afton free cash flow interest obligation in the prior-year periods.
- Adjusted net loss2 increased over the prior-year periods primarily due to lower revenues.
- Cash generated from operations decreased over the prior-year periods due to lower revenues.
Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | |
Gold eq. production (ounces)1 | 70,514 | 105,705 | 158,210 | 201,731 |
Gold eq. sold (ounces)1 | 62,509 | 104,221 | 155,045 | 196,039 |
Gold production (ounces) | 52,431 | 66,989 | 120,532 | 133,639 |
Gold sold (ounces) | 51,263 | 68,184 | 121,825 | 131,723 |
Copper production (Mlbs) | 7.4 | 18.2 | 15.6 | 32.0 |
Copper sold (MIbs) | 4.4 | 16.9 | 13.6 | 30.2 |
Gold revenue, per ounce ($) | 1,870 | 1,794 | 1,876 | 1,782 |
Copper revenue, per pound ($) | 3.97 | 4.14 | 4.17 | 3.91 |
Average realized gold price, per ounce ($)2 | 1,879 | 1,817 | 1,889 | 1,803 |
Average realized copper price, per pound ($)2 | 4.14 | 4.43 | 4.41 | 4.17 |
Operating expenses, per gold eq. ounce ($)3 | 1,277 | 913 | 1,129 | 964 |
Total cash costs, per gold eq. ounce ($)2 | 1,296 | 977 | 1,161 | 1,019 |
Depreciation and depletion, per gold eq. ounce ($)3 | 628 | 495 | 569 | 496 |
All-in sustaining costs, per gold eq. ounce ($)2 | 2,373 | 1,551 | 2,018 | 1,551 |
Sustaining capital and sustaining leases ($M)2 | 59.9 | 49.2 | 115.4 | 87.1 |
Growth capital ($M)2 | 18.9 | 33.2 | 41.8 | 51.8 |
Total capital and leases ($M) | 78.8 | 82.4 | 157.2 | 138.9 |
Operational Highlights
Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | |
Gold eq. production (ounces)1 | 43,759 | 55,163 | 103,654 | 111,676 |
Gold eq. sold (ounces)1 | 46,781 | 57,304 | 108,464 | 110,881 |
Gold production (ounces) | 42,516 | 52,901 | 101,349 | 107,557 |
Gold sold (ounces) | 45,517 | 55,062 | 106,152 | 106,857 |
Gold revenue, per ounce ($) | 1,879 | 1,817 | 1,886 | 1,802 |
Average realized gold price, per ounce ($)2 | 1,879 | 1,817 | 1,886 | 1,802 |
Operating expenses, per gold eq. ounce ($)3 | 1,029 | 974 | 983 | 989 |
Total cash costs, per gold eq. ounce ($)2 | 1,029 | 974 | 983 | 989 |
Depreciation and depletion, per gold eq. ounce ($)3 | 687 | 670 | 653 | 653 |
All-in sustaining costs, per gold eq. ounce ($)2 | 1,972 | 1,524 | 1,756 | 1,554 |
Sustaining capital and sustaining leases ($M)2 | 42.4 | 29.8 | 79.6 | 59.1 |
Growth capital ($M)2 | 2.6 | 3.7 | 7.5 | 5.0 |
Total capital and leases ($M) | 45.0 | 33.6 | 87.1 | 64.1 |
Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | |
Tonnes mined per day (ore and waste) | 110,153 | 158,556 | 114,381 | 154,683 |
Ore tonnes mined per day | 12,295 | 36,256 | 16,136 | 35,970 |
Operating waste tonnes per day | 19,560 | 71,124 | 27,337 | 68,399 |
Capitalized waste tonnes per day | 78,298 | 51,176 | 70,909 | 50,314 |
Total waste tonnes per day | 97,858 | 122,300 | 98,246 | 118,712 |
Strip ratio (waste:ore) | 7.96 | 3.37 | 6.09 | 3.30 |
Tonnes milled per calendar day | 23,302 | 25,349 | 23,807 | 25,822 |
Gold grade milled (g/t) | 0.69 | 0.82 | 0.80 | 0.81 |
Gold recovery (%) | 90 | 87 | 92 | 89 |
Rainy River's priority for the remainder of the year continues to be on positioning the open pit operations to its optimal conditions with the team focusing on operational efficiencies including optimizing the fleet and advancing our mining at an appropriate rate as the pit gets deeper and narrower. Significant progress has been made on dewatering the open pit and mining at the bottom of the pit has resumed and will continue to ramp-up throughout the year. Concurrently, the operation continues to make meaningful progress advancing the underground plan. The Intrepid zone continues to advance on time and on budget, with initial production expected to begin later this year. Advancing the underground plan is expected to lead to increasing production at attractive all-in sustaining costs, and at current commodity prices should generate strong margins and free cash flow over the next decade.- Open pit tonnes mined per day decreased over the prior-year periods due to the adverse impact from heavy rainfall around the
Fort Frances area in northwesternOntario , resulting in flooding in theRainy River open pit and impacting the mine plan. Approximately 1.1 million ore tonnes and 8.9 million waste tonnes (including 7.1 million capitalized waste tonnes) were mined from the open pit at an average strip ratio of 7.96:1. The higher-than-average strip ratio was a result of limited access to ore zones due to the in-pit flooding during the quarter, as such, equipment was re-allocated to advance waste and overburden stripping. The strip ratio is expected to average approximately 2.1:1 for the remainder of the open pit life. - Tonnes milled per calendar day decreased over the prior-year periods due to extra mechanical maintenance and the processing of harder ore from the North Lobe. Mining from the North Lobe open pit is expected to be completed in the first half of 2023.
- Gold eq.1 production was 43,759 ounces (42,516 ounces of gold and 93,210 ounces of silver), a decrease over the prior-year period primarily due to lower gold grade because of the use of stockpiled low-grade ore during the quarter. Quarterly gold grade milled positively reconciled with the reserve model and approximately 50% of the tonnes milled during the quarter was low-grade material. For the six-month period ended
June 30, 2022 , gold eq.1 production was 103,654 ounces (101,349 ounces of gold and 172,831 ounces of silver), a decrease over the prior-year period primarily due to lower tonnes processed. - Operating expense3 per gold eq. ounce increased over the prior-year period primarily due to lower sales volume and inflation-driven price increases of diesel, electricity, grinding media, and other inputs attributing to the higher unit costs. For the six-month period ended
June 30, 2022 , operating expense3 per gold eq. ounce was in-line with the prior-year period. - All-in sustaining costs2 per gold eq. ounce increased over the prior-year periods due to higher sustaining capital spend and lower sales volume.
- Total capital and leases for the quarter were
$45 million , and$87 million for the six-month period endedJune 30, 2022 , an increase over the prior-year periods due to higher sustaining capitalized waste mining costs as a result of the higher strip ratio. Sustaining capital2 during the quarter primarily related to$29 million of capitalized waste, as well as capital maintenance, and the advancement of the annual tailings dam raise. Growth capital2 primarily related to the development of the Intrepid underground zone, which advanced an additional 774 metres during the quarter. - Free cash flow2 for the quarter ended
June 30, 2022 , was$0.2 million (net of a$7 million stream payment), a decrease over the prior-year period due to a decrease in revenue. Free cash flow2 for the six months endedJune 30, 2022 , was$15 million (net of a$13 million stream payment), consistent with the prior-year period due to an increase in cash generated from operations offset by an increase in capital expenditures.
Operational Highlights
Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | |
Gold eq. production (ounces)1 | 26,755 | 50,542 | 54,556 | 90,055 |
Gold eq. sold (ounces)1 | 15,729 | 46,917 | 46,580 | 85,157 |
Gold production (ounces) | 9,916 | 14,088 | 19,183 | 26,082 |
Gold sold (ounces) | 5,746 | 13,122 | 15,673 | 24,866 |
Copper production (Mlbs) | 7.4 | 18.2 | 15.6 | 32.0 |
Copper sold (Mlbs) | 4.4 | 16.9 | 13.6 | 30.2 |
Gold revenue, per ounce ($) | 1,800 | 1,697 | 1,810 | 1,697 |
Copper revenue, per ounce ($) | 3.97 | 4.14 | 4.17 | 3.91 |
Average realized gold price, per ounce ($)2 | 1,879 | 1,817 | 1,914 | 1,809 |
Average realized copper price, per pound ($)2 | 4.14 | 4.43 | 4.41 | 4.17 |
Operating expenses, per gold eq. ounce ($)3 | 2,012 | 840 | 1,469 | 932 |
Total cash costs, per gold eq. ounce ($)2 | 2,090 | 981 | 1,575 | 1,058 |
Depreciation and depletion, per gold eq. ounce ($)3 | 441 | 274 | 364 | 284 |
All-in sustaining costs, per gold eq. ounce ($)2 | 3,222 | 1,402 | 2,355 | 1,396 |
Sustaining capital and sustaining leases ($M)2 | 17.2 | 19.1 | 35.1 | 27.6 |
Growth capital ($M)2 | 16.3 | 29.5 | 34.3 | 46.7 |
Total capital and leases ($M) | 33.5 | 48.7 | 69.4 | 74.3 |
Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | |
Tonnes mined per day (ore and waste) | 6,477 | 15,104 | 6,751 | 13,259 |
Tonnes milled per calendar day | 11,472 | 13,795 | 10,889 | 13,680 |
Gold grade milled (g/t) | 0.37 | 0.43 | 0.37 | 0.41 |
Gold recovery (%) | 80 | 80 | 81 | 80 |
Copper grade milled (%) | 0.42 | 0.79 | 0.45 | 0.72 |
Copper recovery (%) | 78 | 83 | 79 | 82 |
- At New Afton, with the Lift 1 zone and recovery level now closed, the priority for the remainder of the year is to complete B3 development and ramp-up production in the fourth quarter. Additionally, C-Zone development continues to advance with first production expected to commence in the latter part of 2023. Gold and copper production are expected to significantly increase during the C-Zone period, with all-in sustaining costs to significantly decrease, leading to robust free cash flow during that time.
- Underground tonnes mined per day decreased over the prior-year periods due to the planned completion of Lift 1 mining activities, as well as the closure of the low grade-higher cost recovery level zone in June, earlier than planned. Production ramp-up of the B3 zone continued on schedule during the quarter, with development expected to be completed by September.
- Tonnes milled per calendar day decreased over the prior-year periods as planned and is currently incorporating lower grade surface stockpiles to supplement the overall lower tonnes mined.
- Gold eq.1 production was 26,755 ounces (9,916 ounces of gold and 7.4 million pounds of copper), and for the six-month period ended
June 30, 2021 , gold eq.1 production was 54,556 ounces (19,183 ounces of gold and 15.6 million pounds of copper), a decrease over the prior-year periods due to lower tonnes processed and lower gold and copper grades. - Operating expense3 per gold eq. ounce increased over the prior-year periods, primarily due to lower sales volume, inflation-driven price increases, and a
$4 million ($250 per gold eq. ounce in the quarter) non-cash provision related to the write down of inventory to net realizable value. - All-in sustaining costs2 per gold eq. ounce increased over the prior-year periods, primarily due to lower sales volume, and higher sustaining capital spend for the six-month period. Sales in the quarter were impacted by timing of concentrate shipments with approximately 7,500 gold eq.1 ounces deferred to the third quarter, an impact of approximately
$700 per gold eq. ounce for the quarter. - Total capital and leases for the quarter were
$34 million , and$69 million for the six-month period endedJune 30, 2022 , a decrease over the prior-year periods, primarily due to timing of growth capital spend. Sustaining capital2 in the quarter primarily related to B3 mine development and tailings management and stabilization activities. Growth capital2 in the quarter primarily related to C-Zone development, which advanced 1,009 metres during the quarter. - Free cash flow2 for the quarter and six-month period ended
June 30, 2022 was a net outflow of$43 million and$76 million , a decrease over the prior-year periods due to lower revenue.
- The Company will host a webcast and conference call today at
8:30 am Eastern Time to discuss the Company's second quarter consolidated results. - Participants may listen to the webcast by registering on our website at www.newgold.com or via the following link https://produceredition.webcasts.com/starthere.jsp?ei=1556145&tp_key=026884e3d6
- Participants may also listen to the conference call by calling North American toll free 1-888-664-6383, or 1-416-764-8650 outside of the
U.S. andCanada , passcode 67678068 - A recorded playback of the conference call will be available until
September 4, 2022 by calling North American toll free 1-888-390-0541, or 1-416-764-8677 outside of theU.S. andCanada , passcode 678068. An archived webcast will also be available at www.newgold.com.
Endnotes | |
1. | Total gold eq. ounces include silver and copper produced/sold converted to a gold equivalent. All copper is produced/sold by the |
2. | "Total cash costs", "all-in sustaining costs", "adjusted net earnings/(loss)", "adjusted tax expense", "sustaining capital and sustaining leases", "growth capital", "cash generated from operations", "free cash flow", and "average realized gold/copper price per ounce/pound" are all non-GAAP financial performance measures that are used in this news release. These measures do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For more information about these measures, why they are used by the Company, and a reconciliation to the most directly comparable measure under IFRS, see the "Non-GAAP Financial Performance Measures" section of this news release. |
3. | These are supplementary financial measures which are calculated as follows: "Operating expenses per gold eq. ounce sold" is total operating expenses divided by total gold equivalent ounces sold and "depreciation and depletion per gold eq. ounce sold" is total depreciation and depletion divided by total gold equivalent ounces sold. |
Total Cash Costs per Gold eq. Ounce
"Total cash costs per gold equivalent ounce" is a non-GAAP financial performance measure that is a common financial performance measure in the gold mining industry but does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
This measure is intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. This measure is not necessarily indicative of cash generated from operations under IFRS or operating costs presented under IFRS.
Total cash cost figures are calculated in accordance with a standard developed by
In addition to gold, the Company produces copper and silver. Gold equivalent ounces of copper and silver produced or sold in a quarter are computed using a consistent ratio of copper and silver prices to the gold price and multiplying this ratio by the pounds of copper and silver ounces produced or sold during that quarter.
Notwithstanding the impact of copper and silver sales, as the Company is focused on gold production,
All-In Sustaining Costs per Gold eq. Ounce
"All-in sustaining costs per gold equivalent ounce" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
"All-in sustaining costs per gold equivalent ounce" is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.
Costs excluded from all-in sustaining costs are non-sustaining capital expenditures, non-sustaining lease payments and exploration costs, financing costs, tax expense, and transaction costs associated with mergers, acquisitions and divestitures, and any items that are deducted for the purposes of adjusted earnings.
Sustaining Capital and Sustaining Leases
"Sustaining capital" and "sustaining lease" are non-GAAP financial performance measures that do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
Growth Capital
"Growth capital" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
The following tables reconcile the above non-GAAP measures to the most directly comparable IFRS measure on an aggregate basis.
Consolidated OPEX, Cash Cost and All-in Sustaining Costs Reconciliation
Three months ended | Six months ended | |||
(in millions of | 2022 | 2021 | 2022 | 2021 |
CONSOLIDATED OPEX, CASH COST AND ALL-IN SUSTAINING COSTS RECONCILIATION | ||||
Operating expenses | 79.8 | 95.2 | 175.0 | 189.1 |
Gold equivalent ounces sold1 | 62,509 | 104,221 | 155,045 | 196,039 |
Operating expenses per gold equivalent ounce sold ($/ounce) | 1,277 | 913 | 1,129 | 964 |
Operating expenses | 79.8 | 95.2 | 175.0 | 189.1 |
Treatment and refining charges on concentrate sales | 1.2 | 6.7 | 5.0 | 10.8 |
Total cash costs | 81.0 | 101.9 | 180.0 | 199.8 |
Gold equivalent ounces sold1 | 62,509 | 104,221 | 155,045 | 196,039 |
Total cash costs per gold equivalent ounce sold ($/ounce)2 | 1,296 | 977 | 1,161 | 1,019 |
Sustaining capital expenditures2 | 56.9 | 46.5 | 109.5 | 81.7 |
Sustaining exploration - expensed | 0.2 | 0.1 | 0.4 | 0.3 |
Sustaining leases2 | 2.6 | 2.7 | 5.2 | 5.4 |
Corporate G&A including share-based compensation | 5.2 | 8.2 | 12.1 | 12.0 |
Reclamation expenses | 2.4 | 2.4 | 5.7 | 4.7 |
Total all-in sustaining costs | 148.3 | 161.7 | 312.9 | 304.0 |
Gold equivalent ounces sold1 | 62,509 | 104,221 | 155,045 | 196,039 |
All-in sustaining costs per gold equivalent ounce sold ($/ounce)2 | 2,373 | 1,551 | 2,018 | 1,551 |
Three months ended | Six months ended | |||
(in millions of | 2022 | 2021 | 2022 | 2021 |
Operating expenses | 48.2 | 55.8 | 106.6 | 109.7 |
Gold equivalent ounces sold1 | 46,781 | 57,304 | 108,464 | 110,881 |
Operating expenses per unit of gold sold ($/ounce) | 1,029 | 974 | 983 | 989 |
Operating expenses | 48.2 | 55.8 | 106.6 | 109.7 |
Total cash costs | 48.2 | 55.8 | 106.6 | 109.7 |
Gold equivalent ounces sold1 | 46,781 | 57,304 | 108,464 | 110,881 |
Total cash costs per gold equivalent ounce sold ($/ounce)2 | 1,029 | 974 | 983 | 989 |
Sustaining capital expenditures2 | 39.9 | 27.4 | 74.8 | 54.2 |
Sustaining leases2 | 2.3 | 2.4 | 4.6 | 4.9 |
Reclamation expenses | 1.9 | 1.8 | 4.5 | 3.5 |
Total all-in sustaining costs | 92.4 | 87.4 | 190.4 | 172.3 |
Gold equivalent ounces sold1 | 46,781 | 57,304 | 108,464 | 110,881 |
All-in sustaining costs per gold equivalent ounce sold ($/ounce)2 | 1,972 | 1,524 | 1,756 | 1,554 |
Three months ended | Six months ended | |||
(in millions of | 2022 | 2021 | 2022 | 2021 |
NEW AFTON OPEX, CASH COSTS AND AISC RECONCILIATION | ||||
Operating expenses | 31.6 | 39.4 | 68.4 | 79.4 |
Gold equivalent ounces sold1 | 15,729 | 46,917 | 46,580 | 85,157 |
Operating expenses per unit of gold sold ($/ounce) | 2,012 | 840 | 1,469 | 932 |
Operating expenses | 31.6 | 39.4 | 68.4 | 79.4 |
Treatment and refining charges on concentrate sales | 1.2 | 6.7 | 5.0 | 10.8 |
Total cash costs | 32.8 | 46.1 | 73.4 | 90.2 |
Gold equivalent ounces sold1 | 15,729 | 46,917 | 46,580 | 85,157 |
Total cash costs per gold equivalent ounce sold ($/ounce)2 | 2,090 | 981 | 1,575 | 1,058 |
Sustaining capital expenditures2 | 17.1 | 19.0 | 34.8 | 27.3 |
Sustaining leases2 | 0.1 | 0.1 | 0.3 | 0.3 |
Reclamation expenses | 0.6 | 0.6 | 1.3 | 1.2 |
Total all-in sustaining costs | 50.6 | 65.8 | 109.7 | 119.0 |
Gold equivalent ounces sold1 | 15,729 | 46,917 | 46,580 | 85,157 |
All-in sustaining costs per gold equivalent ounce sold ($/ounce) | 3,222 | 1,402 | 2,355 | 1,396 |
Sustaining Capital Expenditures Reconciliation Table
Three months ended | Six months ended | |||
(in millions of | 2022 | 2021 | 2022 | 2021 |
TOTAL SUSTAINING CAPITAL EXPENDITURES | ||||
Mining interests per consolidated statement of cash flows | 76.1 | 79.9 | 151.7 | 133.8 |
New Afton growth capital expenditures2 | (16.3) | (29.5) | (34.3) | (46.7) |
(2.6) | (3.7) | (7.5) | (5.0) | |
Sustaining capital expenditures2 | 57.2 | 46.7 | 109.9 | 82.1 |
Adjusted Net Earnings/(Loss) and Adjusted Net Earnings per Share
"Adjusted net earnings" and "adjusted net earnings per share" are non-GAAP financial performance measures that do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. "Adjusted net earnings" and "adjusted net earnings per share" excludes "loss on repayment of long term debt" and "other gains and losses" as per Note 3 of the Company's condensed consolidated financial statements. Net earnings have been adjusted, including the associated tax impact, for loss on repayment of long term debt and the group of costs in "Other gains and losses" on the condensed consolidated income statements. Key entries in this grouping are: the fair value changes for the gold stream obligation, fair value changes for the free cash flow interest obligation, fair value changes for copper price option contracts, foreign exchange gains/loss and fair value changes in investments. The income tax adjustments reflect the tax impact of the above adjustments and is referred to as "adjusted tax expense".
The Company uses "adjusted net earnings" for its own internal purposes. Management's internal budgets and forecasts and public guidance do not reflect the items which have been excluded from the determination of "adjusted net earnings". Consequently, the presentation of "adjusted net earnings" enables investors to better understand the underlying operating performance of the Company's core mining business through the eyes of management. Management periodically evaluates the components of "adjusted net earnings" based on an internal assessment of performance measures that are useful for evaluating the operating performance of
Three months ended | Six months ended | |||
(in millions of | 2022 | 2021 | 2022 | 2021 |
ADJUSTED NET (LOSS) EARNINGS RECONCILIATION | ||||
(Loss) earnings before taxes | (36.5) | (10.6) | (43.8) | 8.4 |
Other losses | 13.7 | 42.8 | 32.0 | 34.1 |
Loss on repayment of long-term debt | 4.3 | — | 4.3 | — |
Adjusted net (loss) earnings before taxes | (18.5) | 32.2 | (7.5) | 42.5 |
Income tax expense | (1.4) | (5.2) | (1.9) | (7.4) |
Income tax adjustments | 3.2 | (0.3) | 3.0 | (0.3) |
Adjusted income tax recovery (expense)2 | 1.8 | (5.5) | 1.1 | (7.7) |
Adjusted net (loss) earnings2 | (16.7) | 26.7 | (6.4) | 34.8 |
Adjusted (loss) earnings per share (basic and diluted)2 | (0.02) | 0.04 | (0.01) | 0.05 |
Cash Generated from Operations, before Changes in
"Cash generated from operations, before changes in non-cash operating working capital" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Other companies may calculate this measure differently and this measure is unlikely to be comparable to similar measures presented by other companies. "Cash generated from operations, before changes in non-cash operating working capital" excludes changes in non-cash operating working capital.
Cash generated from operations, before non-cash changes in working capital is intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. This measure is not necessarily indicative of operating profit or cash flows from operations as determined under IFRS. The following table reconciles this non-GAAP financial performance measure to the most directly comparable IFRS measure.
Three months ended | Six months ended | |||
(in millions of | 2022 | 2021 | 2022 | 2021 |
CASH RECONCILIATION | ||||
Cash generated from operations | 37.4 | 110.3 | 105.2 | 163.7 |
Change in non-cash operating working capital | (10.0) | (25.6) | (11.4) | (15.2) |
Cash generated from operations, before changes in non-cash operating working capital2 | 27.4 | 84.7 | 93.8 | 148.5 |
Free Cash Flow
"Free cash flow" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
Three months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 51.8 | (9.6) | (4.8) | 37.4 |
Less Mining interest capital expenditures | (42.7) | (33.4) | — | (76.1) |
Add Proceeds of sale from other assets | 0.1 | — | 0.2 | 0.3 |
Less Lease payments | (2.3) | (0.1) | (0.2) | (2.6) |
Less Cash settlement of non-current derivative financial liabilities | (6.7) | — | — | (6.7) |
Free Cash Flow2 | 0.2 | (43.1) | (4.8) | (47.7) |
Three months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 63.3 | 55.4 | (8.4) | 110.3 |
Less Mining interest capital expenditures | (31.4) | (48.5) | (0.1) | (80.0) |
Add Proceeds of sale from other assets | 0.3 | — | — | 0.3 |
Less Lease payments | (2.4) | (0.1) | (0.2) | (2.7) |
Less Cash settlement of non-current derivative financial liabilities | (6.5) | — | — | (6.5) |
Free Cash Flow2 | 23.3 | 6.8 | (8.7) | 21.4 |
Six months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 114.7 | 5.6 | (15.1) | 105.2 |
Less Mining interest capital expenditures | (82.5) | (69.1) | (0.1) | (151.7) |
Add Proceeds of sale from other assets | 0.2 | — | 0.2 | 0.4 |
Less Lease payments | (4.6) | (0.3) | (0.2) | (5.1) |
Less Cash settlement of non-current derivative financial liabilities | (13.0) | (12.4) | — | (25.3) |
Free Cash Flow2 | 14.7 | (76.2) | (15.2) | (76.5) |
Six months ended | ||||
(in millions of | New Afton | Other | Total | |
FREE CASH FLOW RECONCILIATION | ||||
Cash generated from operations | 93.2 | 84.6 | (14.1) | 163.7 |
Less Mining interest capital expenditures | (59.5) | (74.2) | (0.3) | (133.8) |
Add Proceeds of sale from other assets | 0.3 | 0.1 | — | 0.4 |
Less Lease payments | (4.9) | (0.3) | (0.3) | (5.4) |
Less Cash settlement of non-current derivative financial liabilities | (13.5) | (4.9) | — | (18.5) |
Free Cash Flow2 | 15.5 | 5.4 | (14.6) | 6.4 |
Average Realized Price
"Average realized price per ounce of gold sold" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Other companies may calculate this measure differently and this measure is unlikely to be comparable to similar measures presented by other companies. Management uses this measure to better understand the price realized in each reporting period for gold sales. "Average realized price per ounce of gold sold" is intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following tables reconcile this non-GAAP financial performance measure to the most directly comparable IFRS measure on an aggregate and mine-by-mine basis.
Three months ended | Six months ended | |||
(in millions of | 2022 | 2021 | 2022 | 2021 |
TOTAL AVERAGE REALIZED PRICE | ||||
Revenue from gold sales | 95.8 | 121.9 | 228.6 | 234.3 |
Treatment and refining charges on gold concentrate sales | 0.5 | 1.6 | 1.6 | 2.8 |
Gross revenue from gold sales | 96.3 | 123.5 | 230.2 | 237.1 |
Gold ounces sold | 51,263 | 68,184 | 121,825 | 131,723 |
Total average realized price per gold ounce sold ($/ounce)2 | 1,879 | 1,817 | 1,889 | 1,803 |
Three months ended | Six months ended | |||
(in millions of | 2022 | 2021 | 2022 | 2021 |
Revenue from gold sales | 85.5 | 100.0 | 200.2 | 192.5 |
Gold ounces sold | 45,517 | 55,062 | 106,152 | 106,857 |
1,879 | 1,817 | 1,886 | 1,802 |
Three months ended | Six months ended | |||
(in millions of | 2022 | 2021 | 2022 | 2021 |
NEW AFTON AVERAGE REALIZED PRICE | ||||
Revenue from gold sales | 10.3 | 21.9 | 28.4 | 41.8 |
Treatment and refining charges on gold concentrate sales | 0.5 | 1.6 | 1.6 | 2.8 |
Gross revenue from gold sales | 10.8 | 23.5 | 30.0 | 44.6 |
Gold ounces sold | 5,746 | 13,122 | 15,673 | 24,866 |
New Afton average realized price per gold ounce sold ($/ounce)2 | 1,879 | 1,817 | 1,914 | 1,809 |
For additional information with respect to the non-GAAP measures used by the Company, refer to the detailed "Non-GAAP Financial Performance Measure" section disclosure starting on page 27 in the MD&A for the three and six months ended
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release, including any information relating to
All forward-looking statements in this news release are based on the opinions and estimates of management that, while considered reasonable as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to important risk factors and uncertainties, many of which are beyond
Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: price volatility in the spot and forward markets for metals and other commodities; discrepancies between actual and estimated production, between actual and estimated costs, between actual and estimated Mineral Reserves and Mineral Resources and between actual and estimated metallurgical recoveries; equipment malfunction, failure or unavailability; accidents; risks related to early production at the
Technical Information
The scientific and technical information relating to the Mineral Resources and Reserves contained herein has been reviewed and approved by
View original content to download multimedia:https://www.prnewswire.com/news-releases/new-gold-reports-2022-second-quarter-results-301599535.html
SOURCE
© Canada Newswire, source