Toronto’s New Gold reports it’s hit the top end of its 2023 production target at its mine in northwestern Ontario.
Gold equivalent production at its Rainy River Mine, northwest of Fort Frances, and its New Afton Mine in British Columbia amounted to a combined 105,082 ounces, a seven per cent increase over the same period in 2022.
In a news release, the company said mining at the Rainy River Mine has delivered stable quarterly production with strong performances from the open pit and underground side of the operation, as well as from the processing plant. Gold production achieved the top end of the 2023 production target, known in industry vernacular as guidance.
At the start of last year, guidance at Rainy River was set between 235,000 and 265,000 ounces. The mine finished the year at 259,679 ounces, including 64,290 ounces in the fourth quarter.
In a statement, New Gold president-CEO Patrick Godin said that’s the sixth consecutive quarter of “delivering to our plan.”
"Both operations exit 2023 performing well and having made excellent progress on growth initiatives,” said Godin. “I expect 2024 to be transformational for our company and position us well to increase production at decreasing costs and significantly less capital spend, allowing us to maximize our free cash flow generation in the years to come.”
The fourth phase of mine development of the open pit portion at Rainy River is well underway with removal of the surface layer of soil and rock, known as overburden and waste stripping. The future of the Rainy River Mine is in underground mining.
The company said the Main Zone of its underground development remains on track for first gold production during the fourth quarter of this year with production ramping up in 2025.
Capital spending will taper off upon completion of waste stripping at Rainy River after 2024, which will lead to more free cash flow in the coming years as gold production increases and costs decrease.
New Gold will go into detail in its three-year forecast in early February. The fourth-quarter performance and full 2023 financial results will be released on Feb. 13 and discussed by management in a Feb. 14 conference call and webcast.
