Q2 2024 New Gold Inc Earnings Call Transcript
Key Points
- New Gold Inc (NGD) achieved free cash flow positive status in the first half of 2024, entering a sustained free cash flow generation period.
- The New Afton mine won two safety awards for having the lowest total recordable injury frequency rate in 2023.
- Operationally, New Gold Inc (NGD) delivered on its quarterly plan with strong production results at low costs.
- Significant progress was made on key growth projects, all of which remain on track for completion in the second half of the year.
- Exploration efforts at both New Afton and Rainy River made meaningful progress, with approximately 20,000 meters drilled at Rainy River in the first half of 2024.
- A fatality occurred at the Rainy River mine, impacting the company's safety record and causing a temporary shutdown.
- Rainy River experienced higher costs compared to Q2 2023, although these are expected to trend lower in the second half of the year.
- The company faced a three-day operational halt at Rainy River due to the fatality, which could have minor impacts on quarterly performance.
- Capital expenditures at New Afton were lower than expected, partly due to delays in equipment delivery and project optimization efforts.
- Despite positive free cash flow, the company had to finance an upfront cash payment of $255 million for increasing its free cash flow interest in New Afton, impacting liquidity.
Good morning. My name is Ludi, and I will be your conference operator today. Welcome to the New Gold's second-quarter 2024 earnings conference call. (Operator Instructions)
Please be advised that today's conference call and webcast is being recorded. (Operator Instructions)
I would now like to hand the conference over to Ankit Shah, Executive Vice President of Strategy and Business Development. Please go ahead.
Thank you, Ludi. And good morning, everyone. We appreciate you joining us today for New Gold's second-quarter 2024 earnings conference call and webcast. On the line today, we have Patrick Godin, President and CEO; and Keith Murphy, our CFO.
In addition, we also have Luke Buchanan, Vice President, Technical Services; and Jean-Francois Ravenelle, Vice President, Geology, available for the question-and-answer portion of the call.
Should you wish to follow along with the webcast, please sign in from our homepage at newgold.com.
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