Blog Coverage New Gold Achieved 2016 Production Guidance; Provides Rainy River Update and 2017 Guidance

Upcoming AWS Coverage on Royal Gold Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 31, 2017 / Active Wall St. blog coverage looks at the headline from New Gold, Inc. (NYSE: NGD) as the Company announced on January 30, 2017, its Q4 2016 and full-year 2016 operating results, an update on the Rainy River project and guidance for FY17. The Canadian miner stated that the first production from the Rainy River mine in Ontario is set to be delayed by three months and an additional $195 million will be invested to bring the project online. Register with us now for your free membership and blog access at:

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One of New Gold’s competitors within the Gold industry, Royal Gold, Inc. (NASDAQ: RGLD), announced on January 09, 2017, that it will release its Q2 results before the market opens for trading on Thursday, February 02, 2017, followed by a conference call that day at noon ET. AWS will be initiating a research report on Royal Gold in the coming days.

Today, AWS is promoting its blog coverage on NGD; touching on RGLD. Get all of our free blog coverage and more by clicking on the links below:

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Preliminary 2016 Consolidated Operational Results

The gold production for the three month period, ending December 31, 2016, is 95,882 ounces, lower than the 131,719 benchmark for the same period in FY15. In the same quarterly period, copper production declined from 28.8 million pounds to 25.6 million pounds. Production of silver has declined since last year from 0.5 million ounces to 0.3 million ounces for the three month period ending December 31, 2016. The revenue generation per ounce for gold and silver for FY16 was considerably higher than the previous year’s results owing to a global surge in the commodity prices. Approximately $1,176 was generated in revenue per ounce of gold for Q4 2016 against the $1,067 mark for Q4 2015. Revenues from the sale of silver stood at $16.19 in the reported quarter against the $14.10 mark for the year earlier same period. Copper revenues also gained from $1.96 per pound for the three month period in FY15 to $2.22 per pound for Q3 2016.

Peak Mines had a considerably strong year with a net production of 107.449 thousand ounces of gold against 89,852 for the full year ending December 31 in 2016 and 2015, respectively. Similarly, solid operating performances at New Afton and Cerro San Pedro locations let the Company achieve the midpoint of its guidance range of 360 thousand to 400 thousand pounds by achieving full-year gold production of 381,663 ounces.

Rainy River Project

New Gold provided the last Rainy River Project update on October 04, 2016, since it acquired the north-western Ontario-based project in 2013. The highlights of the update included:

1. Concrete placement over 90% of the area;
2. Overall construction progress, about 55%;
3. Steelwork erection and cladding over 95% area;
4. Powerline complete with a scheduled connection to the power grid in November 2016;
5. About 15 million tons of overburden and waste stripping completed.

The latest update released on January 30, 2017, reported the following events:
1. The first production at the facility is scheduled for September 2017 with targeted commercial production of 21,000 ton per day of 60% of the designed capacity;
2. Approximately 24 million tons of overburden and waste stripping completed;
3. 2017 gold production guidance, production between 50,000 to 60,000 ounces, including the pre-commercial production of about 15,000 ounces;
4. Operating expense as per 2017 cost guidance was $905 to $945 per gold ounce where the all-in sustaining costs stood at $1,200 to $1,240 per ounce.

2017 Guidance

The Company announced the guidance for FY17 and reported:
1. Gold production to increase by 380 thousand to 430 thousand ounces, leveraging on the first targeted production at the Rainy River facility;
2. Copper production will remain relatively consistent at 100 million to 110 million pounds;
3. Operating expense would be in the range of $825 to $865 per ounce and about $1.25 to $1.45 per copper pound;
4. Commercial production expected from the Rainy River project by November 01, 2017;
5. Rainy River targeted the first production is scheduled for September, delayed by about three months from the previous estimate.

Stock Performance

New Gold’s share price finished yesterday’s trading session at $2.94, slumping 25.76%. A total volume of 28.88 million shares exchanged hands, which was higher than the 3 months average volume of 5.45 million shares. Since the start of the year, shares of the Company have surged 20.99%. The stock currently has a market cap of $1.51 billion.

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