New Gold reports strong Q1 output

TORONTO (miningweekly.com) – Canadian copper and gold producer New Gold saw strong production results during the first quarter ended March 31, lifting gold output to 90 811 oz, which is in line with 2015 production, as slightly higher output from the company's New Afton, Mesquite and Peak mines partially offset planned lower output from Cerro San Pedro.

Quarterly copper output rose by 10% to 25.4-million pounds over the same period of 2015, as a result of the continued strong operating performance at New Afton stemming from the mine's expanded grinding capacity. Silver output totalled 400 000 oz, flat when compared with the same period a year earlier.

New Gold reported consolidated first quarter all-in sustaining costs (AISC) of $758/oz, which was down by more than $270/oz year-on-year, owing to the combination of a $132/oz decrease in total cash costs to $354/oz, as well as a $124/oz, or $14-million, decrease in the company's consolidated sustaining costs, which included New Gold's cumulative sustaining capital, exploration, general and administrative, and amortisation of reclamation expenditures.

Toronto-based New Gold reiterated its guidance for 2016 of 360 000 oz to 400 000 oz of gold at an AISC of $825/oz to $865/oz, including total cash costs of $435/oz to $475/oz. Driven by expected increases in gold production at the Mesquite and Peak mines, the consolidated quarterly gold production was expected to rise through the third quarter before declining modestly over the fourth quarter, the company advised.