The following is a summary of the New Gold Inc. (NGD) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 revenue was $218 million, primarily driven by higher metal prices and increased copper production.
The company became free cash flow positive in the first half of 2024.
Net earnings for Q2 were $52 million, benefiting from a $42 million gain due to the derecognition of the New Afton free cash flow obligation.Consolidated all-in sustaining costs were $1,381 per gold ounce, in line with expectations, and are projected to trend lower in the second half of the year.
Business Progress:
New Gold delivered as planned for the first half of 2024 and remains on track to meet its yearly guidance.
Significant progress was made on the C-Zone project at New Afton, with increased production due to ramp up.
Rainy River advanced its waste stripping program and is well positioned for increased production in H2 2024.
Exploration efforts are advancing, with 20,000 meters drilled at Rainy River in H1. An exploration update is expected in Q3.
Opportunities:
Transition from B3 to C-Zone at New Afton expects to enhance production and reduce costs.
High-grade ore accessibility at Rainy River in H2 2024 will potentially lower operating costs and improve financial performance.
Sustained free cash flow generation period entered, providing an opportunity for enhanced shareholder returns.
Risks:
The continuation of mining and increased production remains contingent on maintaining safety standards following the recent fatality at Rainy River.
More details: New Gold IR
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