New Gold (TSX: NGD; NYSE: NGD) has acquired full ownership of the New Afton copper-gold mine in British Columbia and prepped its new C-Zone to hit peak output.
The mine will underpin the company’s ambition to nearly double gold output to 490,000 oz. annually by 2027. The company expects to generate $2.2 billion (C$3 billion) in free cash flow through 2027 at $3,000 per oz. gold and $4 per lb. copper.
On May 1 New Gold bought the remaining 19.9% free cash flow interest in New Afton from the Ontario Teachers’ Pension Plan for $300 million. New Gold completed the C-Zone block cave to increase mine lifeto 2031.
“No one knows the asset [New Afton] more than we do,” CEO Patrick Godin told The Northern Miner in Quebec City this month. “It was a good transaction for Teachers and it was a good transaction for us.”
At Rainy River in Ontario, New Gold is expanding the fifth-stage open pit and advancing underground zones to extend production through 2033. Probable reserves total 10.7 million tonnes at 3.89 grams gold per tonne for 1.34 million oz. gold underground.
New Gold expects to produce 325,000 – 365,000 oz. gold and 50 – 60 million lb. copper this year, growing to nearly 500,000 gold-equivalent oz. in 2026. Lower sustaining capital needs from 2027 are expected to boost margins across both operations.
Watch below the full interview with The Northern Miner’s western editor, Henry Lazenby.
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