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New Gold Reports Third Quarter Results and Reaffirms Consolidated Production and Cost Guidance

November 6, 2019

TORONTO--(BUSINESS WIRE)--Nov 6, 2019--

New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) reports third quarter and nine-month results for the Company as of September 30, 2019 and reaffirms that the Company remains on-track to achieve consolidated annual production and cost guidance. (All amounts are in U.S. dollars unless otherwise indicated). A conference call and webcast will follow to discuss these results at 8:30 a.m. Eastern time (details are provided at the end of this press release).

(For detailed information, please refer to the Company’s Third Quarter Management’s Discussion and Analysis (MD&A) and Financial Statements that are available on the Company’s website at www.newgold.com and on SEDAR at www.sedar.com. The Company uses certain non-GAAP financial performance measures throughout this press release. Please refer to the “Non-GAAP Financial Performance Measures” section of this press release and the MD&A.).

Third Quarter and Nine-Month Highlights

“The Company has delivered another quarter of improving operational and cost performance from both assets as we continue to advance our short-term operational plan and reposition the company for long-term success. The quarter over quarter improvement in our performance has underpinned the completion of a strategic equity financing during the quarter, which allowed us to reduce our debt position by $100 million and strengthen our balance sheet.” stated Renaud Adams, CEO. “We will maintain our diligent focus on completing substantially all remaining construction projects at Rainy River in order to reposition the asset for efficient and sustainable mining, as we continue to advance C-zone development at New Afton. We continue to advance our updated life of mine plans for Rainy River and New Afton, which are expected to be released in mid-first quarter of 2020 and provide a path forward that is premised on maximizing profitability and shareholder value creation.”

Financial Highlights (Continuing Operations1)

 

Q3 2019

Q3 2018

9M 2019

9M 2018

Revenues from mining operations

168.4

147.1

491.4

447.1

Net earnings (loss), per share

(0.04)

(0.00)

(0.13)

(0.59)

Adj. net earnings (loss) 2 per share

(0.02)

(0.01)

(0.03)

(0.06)

Operating cash flow, per share

0.15

0.07

0.37

0.23

Adj. operating cash flow 2, per share

0.11

0.12

0.34

0.33

  1. Continuing operations include the Rainy River, New Afton and Cerro San Pedro Mines.
  2. Refer to the “Non-GAAP Performance Measures” section of this press release.

Operational Highlights

Continuing Operations 1

Q3 2019

Q3 2018

9M 2019

9M 2018

2019 Guidance

Gold eq. production (ounces) 2

128,899

129,022

384,719

375,701

465,000 – 520,000

Gold production (ounces)

91,087

77,533

255,701

218,055

300,000 – 335,000

Copper production (Mlbs)

20.1

21.7

61.2

64.3

75 – 85

Average realized gold price, per ounce 3

1,383

1,205

1,329

1,275

-

Average realized copper price, per pound 3

2.62

2.93

2.72

3.08

-

Operating expense, per gold eq. ounce 2

761

659

695

685

-

Total cash costs, per gold eq. ounce 2,3

819

643

751

720

740 – 820

AISC, per gold eq. ounce 2,3

1,318

1,098

1,161

1,169

1,330 -1,430

Sustaining capital and sustaining leases ($M) 3

56.3

52.4

138.1

144.1

255 - 285

Growth capital ($M) 3

9.2

4.0

23.6

30.4

50 - 55

  1. Continuing operations include the Rainy River, New Afton and Cerro San Pedro Mines. Comparative figures include Cerro San Pedro Mine which transitioned to reclamation in Dec. 2018.
  2. Gold eq. ounces produced includes silver ounces and copper pounds converted to a gold eq. based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q3 2019 was calculated based on average spot market prices of $1,474 per gold ounce, $17.02 per silver ounce and $2.63 per copper pound. The ratio for Q3 2018 was calculated based on average spot market prices of $1,213 per gold ounce, $14.99 per silver ounce and $2.77 per copper pound.
  3. Refer to the “Non-GAAP Performance Measures” section of this press release.

Rainy River Highlights

Rainy River Mine

Q3 2019

Q3 2018

9M 2019

9M 2018

2019 Guidance

Gold eq. production (ounces) 1

76,092

56,275

205,135

152,275

250,000 – 275,000

Gold eq. sold (ounces) 1

71,165

56,731

211,460

150,892

-

Gold produced (ounces)

75,080

55,538

202,650

150,082

245,000 – 270,000

Gold sold (ounces)

70,233

55,968

208,970

148,680

-

Average realized gold price, per ounce 2

1,382

1,209

1,326

1,274

-

Operating expense, per gold eq. ounce

922

760

876

905

-

Total cash costs, per gold eq. ounce 2

922

760

877

905

870 – 950

AISC, per gold eq. ounce 2

1,593

1,541

1,413

1,694

1,690 – 1,790

Sustaining capital and sustaining leases($M) 2

46.3

43.2

110.0

116.5

210 - 230

Growth capital ($M) 2

0.0

1.1

6.7

22.4

~3.0

  1. Gold eq. ounces for Rainy River includes silver ounces produced or sold converted to a gold eq. based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q3 2019 was calculated based on average spot market prices of $1,474 per gold ounce and $17.02 per silver ounce and includes 87,705 ounces of silver. The ratio for Q3 2018 was calculated based on average spot market prices of $1,213 per gold ounce, $14.99 per silver ounce and includes 59,643 ounces of silver.
  2. Refer to the “Non-GAAP Performance Measures” section of this press release.

Rainy River Mine

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Tonnes mined per day (ore and waste)

112,432

107,416

102,290

111,507

111,679

114,544

111,078

Ore tonnes mined per day

36,296

36,043

30,439

32,054

15,739

21,368

18,220

Operating waste tonnes per day

54,321

43,570

23,333

67,406

62,955

82,488

75,206

Capitalized waste tonnes per day

21,816

27,802

48,518

12,047

32,986

10,688

17,652

Total waste tonnes per day

76,137

71,372

71,851

79,453

95,941

93,176

92,858

Strip ratio (waste:ore)

2.1

1.98

2.36

2.48

6.10

4.36

5.10

Tonnes milled per calendar day

17,534

16,549

16,962

20,668

19,725

21,117

24,500

Gold grade milled (g/t)

1.08

1.24

1.21

1.42

1.19

1.15

1.14

Gold recovery

81%

87%

87%

89%

90%

93%

91%

Mill availability

77%

74%

76%

80%

89%

88%

88%

Gold production (oz)

39,325

55,219

55,538

77,202

61,557

66,013

75,080

Gold eq. production 1 (oz)

40,016

55,984

56,275

78,074

62,278

66,765

76,092

  1. Gold eq. ounces for Rainy River include silver ounces produced converted to a gold eq. based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q3 2019 was calculated based on average spot market prices of $1,474 per gold ounce and $17.02 per silver ounce and includes 87,705 ounces of silver.

New Afton Highlights

New Afton Mine

Q3 2019

Q3 2018

9M 2019

9M 2018

2019 Guidance

Gold eq. produced (ounces) 1

52,807

70,458

179,584

212,515

215,000 – 245,000

Gold eq. sold (ounces) 1

53,326

66,660

172,259

202,243

-

Gold produced (ounces)

16,007

19,916

53,051

58,551

55,000 – 65,000

Gold sold (ounces)

15,634

18,883

50,393

55,313

-

Copper produced (Mlbs)

20.1

21.7

61.2

64.3

75 - 85

Copper sold (Mlbs)

20.6

20.5

59.2

61.4

-

Average realized gold price, per ounce 2

1,390

1,194

1,343

1,276

-

Average realized copper price, per pound 2

2.62

2.93

2.72

3.08

-

Operating expense, per gold eq. ounce

545

359

473

395

-

Operating expense, per gold ounce

523

342

471

387

480 - 520

Operating expense, per copper pound

0.99

0.84

0.95

0.94

0.95 – 1.15

Total cash costs, per gold ounce (net of by-product credits) 2

(1,225)

(1,570)

(1,227)

(1,625)

(1,350) – (1,310)

Total cash costs, per gold eq. ounce 2

682

473

596

509

600 - 640

AISC, per gold ounce (net of by-product credits) 2

(586)

(1,057)

(663)

(1,097)

(500) – (420)

AISC, per gold eq. ounce 2

869

618

761

653

810 - 890

Sustaining capital and sustaining leases ($M) 2

9.7

9.1

27.4

27.5

45 - 55

Growth capital ($M) 2

8.2

1.2

13.6

2.3

40-45

  1. Gold eq. ounces for New Afton includes silver ounces and copper pounds produced or sold converted to a gold eq. based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q3 2019 was calculated based on average spot market prices of $1,474 per gold ounce, $17.02 per silver ounce and $2.63 per copper pound and includes 80,454 ounces of silver. The ratio for Q3 2018 was calculated based on average spot market prices of $1,213 per gold ounce, $14.99 per silver ounce and $2.77 per copper pound and includes 83,826 ounces of silver.
  2. Refer to the “Non-GAAP Performance Measures section of this press release.

New Afton Mine

Q1 18

Q2 18

Q3 18

Q4 18

Q1 19

Q2 19

Q3 19

Tonnes mined per day (ore and waste)

16,751

13,654

17,105

17,099

15,824

16,357

15,773

Tonnes milled per calendar day

14,333

14,804

14,518

15,012

14,759

14,992

15,572

Gold grade milled (g/t)

0.57

0.50

0.55

0.51

0.50

0.53

0.43

Gold recovery

84.1%

85.5%

84.7%

83.5%

83.2%

83.3%

80.2%

Gold production (oz)

19,998

18,637

19,916

18,778

17,841

19,203

16,007

Copper grade milled

0.94%

0.82%

0.89%

0.82%

0.80%

0.86%

0.76%

Copper recovery

83.2%

83.8%

83.0%

83.0%

83.2%

83.1%

83.5%

Copper production (Mlbs)

22.2

20.4

21.7

20.8

19.5

21.6

20.1

Gold eq. production 1 (oz)

73,717

68,340

70,416

67,191

60,986

65,791

52,807

  1. Gold eq. ounces for New Afton includes silver ounces and copper pounds produced converted to a gold eq. based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q3 2019 was calculated based on average spot market prices of $1,474 per gold ounce, $17.02 per silver ounce and $2.63 per copper pound and includes 80,454 ounces of silver.

Upcoming News and Events

Conference Call and Webcast Information

The Company plans to release its third quarter 2019 financial results before market open on Wednesday, November 6, 2019. A conference call and webcast will follow at 8:30 a.m. Eastern time to discuss these results.

About New Gold Inc.
New Gold is a Canadian-focused intermediate gold mining company with a portfolio of two core producing assets in Canada, the Rainy River and New Afton Mines as well as the 100% owned Blackwater development project. The Company also operates the Cerro San Pedro Mine in Mexico (in reclamation). New Gold’s vision is to build a leading diversified intermediate gold company based in Canada that is committed to environment and social responsibility. For further information on the Company, visit www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release, including any information relating to New Gold’s future financial or operating performance are “forward looking”. All statements in this news release, other than statements of historical fact, which address events, results, outcomes or developments that New Gold expects to occur are “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “targeted”, “estimates”, “forecasts”, “intends”, “anticipates”, “projects”, “potential”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation of such terms. Forward-looking statements in this news release include, among others, statements with respect to: guidance for production, operating expenses per gold ounce sold, total cash costs and all-in sustaining costs and the factors contributing to those expected results, including throughput and grades expected to be mined; expected capital expenditures; planned development and exploration activities for 2019 and beyond at the Company’s operations; and the expected timing of a revised life-of-mine plan for New Afton and Rainy River.

All forward-looking statements in this news release are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Gold’s ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in this news release, New Gold’s latest annual management’s discussion and analysis (“MD&A”), Annual Information Form and Technical Reports filed at www.sedar.com and on EDGAR at www.sec.gov. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this news release are also subject to the following assumptions: (1) there being no significant disruptions affecting New Gold’s operations; (2) political and legal developments in jurisdictions where New Gold operates, or may in the future operate, being consistent with New Gold’s current expectations; (3) the accuracy of New Gold’s current mineral reserve and mineral resource estimates; (4) the exchange rate between the Canadian dollar and U.S. dollar, and to a lesser extent, the Mexican Peso, being approximately consistent with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) equipment, labour and materials costs increasing on a basis consistent with New Gold’s current expectations; (7) arrangements with First Nations and other Aboriginal groups in respect of the Rainy River, New Afton and Blackwater being consistent with New Gold’s current expectations; (8) all required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines and the absence of material negative comments during the applicable regulatory processes; and (9) metals and other commodity prices and exchange rates being consistent with those estimated for the purposes of 2019 guidance.

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: significant capital requirements and the availability and management of capital resources; additional funding requirements; price volatility in the spot and forward markets for metals and other commodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States and, to a lesser extent, Mexico; discrepancies between actual and estimated production, between actual and estimated mineral reserves and mineral resources and between actual and estimated metallurgical recoveries; risks related to early production at the Rainy River Mine, including failure of equipment, machinery, the process circuit or other processes to perform as designed or intended; fluctuation in treatment and refining charges; changes in national and local government legislation in Canada, the United States and, to a lesser extent, Mexico or any other country in which New Gold currently or may in the future carry on business; taxation; controls, regulations and political or economic developments in the countries in which New Gold does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction in which New Gold operates, the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the uncertainties inherent to current and future legal challenges New Gold is or may become a party to; diminishing quantities or grades of mineral reserves and mineral resources; competition; loss of key employees; rising costs of labour, supplies, fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties; unexpected delays and costs inherent to consulting and accommodating rights of Indigenous groups; risks, uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorizations and complying with permitting requirements. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses and risks associated with a mine with relatively limited history of commercial production, such as Rainy River, (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as “Risk Factors” included in New Gold’s Annual Information Form, MD&A and other disclosure documents filed on and available at www.sedar.com and on EDGAR at www.sec.gov. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this news release are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

Technical Information
All scientific and technical information in this news release has been reviewed and approved by Mr. Eric Vinet, Vice President for the Company. Mr. Vinet is a Professional Engineer and member of the Ordre des ingénieurs du Québec. Mr. Vinet is a “Qualified Persons” for the purposes of NI 43-101.

Cautionary Note to U.S. Readers Concerning Estimates of Mineral Reserves and Mineral Resources
Information concerning the properties and operations of New Gold has been prepared in accordance with Canadian standards under applicable Canadian securities laws and may not be comparable to similar information for United States companies. The terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” used in this news release are Canadian mining terms as defined in the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted by CIM Council on May 10, 2014 and incorporated by reference in National Instrument 43-101. While the terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” are recognized and required by Canadian securities regulations, they are not defined terms under standards of the United States Securities and Exchange Commission. As such, certain information contained in this news release concerning descriptions of mineralization and mineral resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission.

An “Inferred Mineral Resource” has a great amount of uncertainty as to its existence and as to its economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies. It cannot be assumed that all or any part of an “Inferred Mineral Resource” will ever be upgraded to a higher confidence category. Readers are cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists or is economically or legally mineable.

Under United States standards, mineralization may not be classified as a “Reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve estimation is made. Readers are cautioned not to assume that all or any part of the measured or indicated mineral resources will ever be converted into mineral reserves. In addition, the definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” under CIM standards differ in certain respects from the standards of the United States Securities and Exchange Commission.

Non-GAAP Financial Performance Measures
All-in sustaining costs (AISC) per gold eq. ounce, total cash costs per gold ounce and per gold eq. ounce, sustaining capital, sustaining lease and growth capital, Adjusted net earnings/(loss), operating cash flows generated from operations, before changes in non-cash operating working capital and average realized price and are non-GAAP financial measures that do not have a 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 Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. In addition, certain non-GAAP measures are utilized, along with other measures, in the Company scorecard to set incentive compensation goals and assess performance of its executives.

All-In Sustaining Costs per Gold eq. Ounce
“All-in sustaining costs per gold eq. ounce” is a non-GAAP financial measure. Consistent with guidance announced in 2013 by the World Gold Council, an association of various gold mining companies from around the world New Gold defines “all-in sustaining costs” per ounce as the sum of total cash costs, capital expenditures that are sustaining in nature, corporate general and administrative costs, capitalized and expensed exploration that is sustaining in nature, lease payments that are sustaining in nature, and environmental reclamation costs, all divided by the ounces of gold eq. sold to arrive at a per ounce figure.

In addition to gold the Company produces copper and silver. Gold eq. ounces of copper and silver produced or sold in a quarter are computed by calculating the ratio of the average spot market copper and silver prices to the average spot market gold price in a quarter and multiplying this ratio by the pounds of copper and silver ounces produced or sold during that quarter. Gold eq. ounces produced or sold in a period longer than one quarter are calculated by adding the number of gold eq. ounces in each quarter of that period. Notwithstanding the impact of copper and silver sales, as a Company focused on gold production, New Gold aims to assess the economic results of its operations in relation to gold, which is the primary driver of New Gold’s business.

New Gold believes this non-GAAP financial measure provides further transparency into costs associated with producing gold and assists analysts, investors and other stakeholders of the Company in assessing the Company’s operating performance, its ability to generate free cash flow from current operations and its overall value. This data is furnished to provide additional information and is a non-GAAP financial measure. All-in sustaining costs presented do not have a 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 and is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.

Sustaining Capital
“Sustaining capital” is a non-GAAP financial measure as well as “staining lease” and “growth capital”. New Gold defines sustaining capital as net capital expenditures that are intended to maintain operation of its gold producing assets. A sustaining lease is similarly a capital lease payment that is sustaining in nature. New Gold terms non-sustaining capital costs to be “growth capital”, which are capital expenditures to develop new operations or capital expenditures related to major projects at existing operations where these projects will materially increase production. To determine sustaining capital expenditures, New Gold uses cash flow related to mining interests from its statement of cash flows and deducts any expenditures that are non-sustaining or growth capital. Management uses sustaining capital and other sustaining costs, to understand the aggregate net result of the drivers of all-in sustaining costs other than total cash costs. Sustaining capital, sustaining lease and growth capital are intended to provide additional information only, 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.

Total Cash Costs
“Total cash costs per ounce” and total cash costs per gold eq. ounce are non-GAAP financial measures which are calculated in accordance with a standard developed by The Gold Institute, a worldwide association of suppliers of gold and gold products that ceased operations in 2002. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. New Gold reports total cash costs on a sales basis. The Company believes that certain investors use this information to evaluate the Company’s performance and ability to generate liquidity through operating cash flow to fund future capital expenditures and working capital needs. This measure, along with sales, is considered to be a key indicator of the Company’s ability to generate operating earnings and cash flow from its mining operations. Total cash costs include mine site operating costs such as mining, processing and administration costs, royalties, production taxes, but are exclusive of amortization, reclamation, capital and exploration costs. Total cash costs per gold ounce are net of by-product sales and are divided by gold ounces sold to arrive at a per ounce figure. Total cash costs per gold eq. ounce are divided by gold eq. ounces sold to arrive at a per ounce figure.

Unless otherwise indicated, all total cash cost information in this news release is on a gold eq. ounce basis. Gold eq. ounces of copper and silver produced in a quarter are computed by calculating the ratio of the average spot market copper and silver prices to the average spot market gold price in a quarter and multiplying this ratio by the pounds of copper and silver ounces produced during that quarter. Gold eq. ounces produced in a period longer than one quarter are calculated by adding the number of gold eq. ounces in each quarter of that period. This data is furnished to provide additional information and is a non-GAAP financial measure. Total cash costs presented do not have a 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 and is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under GAAP.

Adjusted Net Earnings/(Loss)
“Adjusted net earnings/(loss)” and “adjusted net earnings/(loss) per share” are non-GAAP financial measures. Net earnings/(loss) have been adjusted and tax affected for the group of costs in “Other gains and losses” on the condensed consolidated income statement and other non-recurring items. The adjusted entries are also impacted for tax to the extent that the underlying entries are impacted for tax in the unadjusted net earnings/(loss) from continuing operations. The Company uses this measure for its own internal purposes. Management’s internal budgets and forecasts and public guidance do not reflect items which are included in other gains and losses. Consequently, the presentation of adjusted net earnings and adjusted net earnings per share enables investors and analysts to better understand the underlying operating performance of our core mining business through the eyes of management. Management periodically evaluates the components of adjusted net earnings and adjusted net earnings per share based on an internal assessment of performance measures that are useful for evaluating the operating performance of our business and a review of the non-GAAP measures used by mining industry analysts and other mining companies. Adjusted net (loss)/earnings and adjusted net (loss)/earnings per share are intended to provide additional information only and do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of operating profit or cash flows from operations as determined under IFRS.

Operating Cash Flows Generated from Operations, before Changes in Non-Cash Operating Working Capital
“Operating cash flows generated from operations, before changes in non-cash operating working capital” is a non-GAAP financial measure with no standard meaning under IFRS, which excludes changes in non-cash operating working capital. Management uses this measure to evaluate the Company’s ability to generate cash from its operations before temporary working capital changes.

Operating cash flows generated from operations, before non-cash changes in working capital is intended to provide additional information only and does not have any standardized meaning under IFRS; it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently and this measure is unlikely to be comparable to similar measures presented by other companies.

Average Realized Price
“Average realized price per ounce or pound sold” is a non-GAAP financial measure with no standard meaning under IFRS.

Management uses this measure to better understand the price realized in each reporting period for gold, silver, and copper sales. Average realized price is intended to provide additional information only and does not have any standardized definition under IFRS; it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently and this measure is unlikely to be comparable to similar measures presented by other companies.

For additional information with respect to the non-GAAP measures used by the Company, including reconciliation to the nearest IFRS measures, refer to the detailed Non-GAAP performance measure disclosure in the Management’s Discussion and Analysis for the year ended December 31, 2018 filed at www.sedar.com and on EDGAR at www.sec.gov.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191106005220/en/

CONTACT: Anne Day

Vice President, Investor Relations

Direct: +1 (416) 324-6003

Email:anne.day@newgold.com

KEYWORD: NORTH AMERICA CANADA

INDUSTRY KEYWORD: MINING/MINERALS NATURAL RESOURCES

SOURCE: New Gold Inc.

Copyright Business Wire 2019.

PUB: 11/06/2019 06:30 AM/DISC: 11/06/2019 06:30 AM

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