On-Track to Achieve Annual Guidance
(All amounts are in U.S. dollars unless otherwise indicated)
TORONTO, Oct. 28, 2025 /PRNewswire/ - New Gold Inc. ("New Gold" or the "Company") (TSX:NGD) (NYSE:NGD) today reported financial and operating results for the quarter and nine-months ended September 30, 2025. Third quarter 2025 production was 115,213 ounces of gold and 12.0 million pounds of copper, at an operating expense of $874 per gold ounce sold (co-product basis)3 and all-in sustaining costs1 of $966 per gold ounce sold (by-product basis). Record Rainy River quarterly production contributed to strong cash flow from operations of $301 million and record quarterly free cash flow1 of $205 million, highlighted by a record $183 million of quarterly free cash flow from Rainy River.
"New Gold delivered a strong third quarter, highlighted by multiple records for production and free cash flow generation. Rainy River produced over 100,000 ounces of gold in the quarter, a 63% increase over the second quarter, as the open pit continued to perform as expected following the release of the higher-grade material in June. At New Afton, the B3 cave continued to over-deliver during the third quarter, averaging over 4,300 tonnes per day. Additional tonnage from B3 continues to provide excellent shareholder value as it comes with no additional capital as we continue to shift all production resources over to C-Zone. The performance from our two assets led to a record $205 million of free cash flow, a 225% quarter-over-quarter improvement over our previous record last quarter," stated Patrick Godin, President and CEO.
"The strong operating performance and free cash flow generation allowed the Company to advance our corporate objectives. We repaid, one quarter ahead of plan, the full $150 million drawn on the credit facility for the New Afton transaction earlier this May.. In total, the Company repaid an impressive $260 million of debt obligations during the quarter," added Mr. Godin.
"As we look to the fourth quarter of 2025, we remain well positioned to deliver on our full-year guidance. With the performance to date, we are tracking in-line with both consolidated gold and copper production guidance. Additionally, consolidated capital spending and cash costs are trending in-line with their respective guidance ranges, while all-in sustaining costs are expected to be at the top end of its guidance range," stated Mr. Godin.
"The Company demonstrated that our two assets are delivering on production and this performance shows we are well positioned to deliver on our longer-term plan. New Afton's C-Zone remains on track to deliver the planned production ramp up in 2026, as does Rainy River's open pit and underground operations, which are expected to deliver significant free cash flow over the coming years," concluded Mr. Godin.
Third Quarter Highlighted by Record Production from Rainy River and New Afton's Ongoing B3 Over Performance
Third quarter consolidated production was 115,213 ounces of gold and 12.0 million pounds of copper at all-in sustaining costs1,2 of $966 per gold ounce sold. Gold production through the first nine months of 2025 represented approximately 71% of the midpoint of annual consolidated production guidance of 325,000 to 365,000 ounces of gold.
New Afton third quarter production was 14,912 ounces of gold and 12.0 million pounds of copper at all-in sustaining costs1,2 of ($595) per gold ounce sold. The B3 cave continued to perform better than planned, delivering an average of 4,300 tonnes per day through the quarter. With the cave nearing exhaustion, the third quarter experienced an expected quarter-over-quarter decline in head grades towards the planned levels provided earlier in the year. Production through the first nine months of 2025 represented approximately 77% and 71% of the midpoint of annual guidance of 60,000 to 70,000 ounces of gold and 50 to 60 million pounds of copper, respectively.
C-Zone cave construction continues to advance on schedule, with an expected quarter-over-quarter step up in copper and gold production in the fourth quarter of 2025. Cave construction progress is 79% complete as of the end of September. The flotation cleaner circuit upgrade was completed and commissioned during the quarter, and is achieving the designed recovery improvements for gold and copper and positions New Afton to fully capitalize on this investment once the mill is operating at full capacity starting in 2026.
Rainy River third quarter production was 100,301 ounces of gold at all-in sustaining costs1,2 of $1,043 per gold ounce sold, a 63% production increase and 39% decrease in all-in sustaining costs over the second quarter as the mill processed higher grade open pit ore. Rainy River's third quarter production included approximately 5,900 ounces of gold-in-circuit inventory as discussed at the end of the second quarter. Gold production through the first nine months of 2025 represented approximately 70% of the midpoint of annual guidance of 265,000 to 295,000 ounces of gold. Importantly, during the third quarter, the mill demonstrated the ability to process the required gold production to achieve the 2026 production target outlined in the Rainy River Technical Report earlier this year without compromising on recovery.
Rainy River underground continues to advance well with several key initiatives undertaken in the quarter specifically designed to improve recruitment and retention, including camp facilities upgrades, travel improvements and contract modifications to incentivize and reward optimized development rates. Underground development and stope production will expand out three mining zones and will continue to increase through the fourth quarter.
Record Quarterly Free Cash Flow Achieved; Balance Sheet Further Strengthened
The Company generated cash flow from operations of $301 million and record quarterly free cash flow1 of $205 million after investing approximately $56 million in advancing growth projects during the quarter. This was highlighted by Rainy River's record $183 million in quarterly free cash flow1.
During the quarter, the Company redeemed the remaining $111 million aggregate principal amount of outstanding 2027 Notes on July 15, 2025, funded with cash on hand. The Company also repaid the $150 million drawn on the credit facility, one quarter ahead of plan.
The Company exited the second quarter in a strong financial position, with cash and cash equivalents of $123 million.
2025 Operational Guidance Update, On-Track to Achieve Outlook
Gold production is expected to be in-line with the 325,000 to 365,000 ounce guidance range. New Afton gold production is expected to be at the midpoint of the guidance range of 60,000 to 70,000 ounces. Rainy River gold production is expected to be above the midpoint of the 265,000 to 295,000 ounce guidance range.
Copper production is expected to be at the mid-point of the guidance range of 50 to 60 million pounds.
Consolidated cash costs1 are trending above the mid-point of the guidance range of $600 to $700 per gold ounce sold, on a by-product basis. New Afton cash costs on a by-product basis are expected to be below the bottom end of the guidance range on favourable by-product prices. Rainy River cash costs on a by-product basis are expected to be at the high end of the guidance range as strong operational performance is offset by higher underground mining costs and related camp costs due to the amended underground contract. Cash costs at both operations include an additional $40 per ounce related to share-based payment increases during the quarter.
Consolidated all-in sustaining costs1 are trending at the high end of the guidance range of $1,025 to $1,125 per gold ounce sold, on a by-product basis, and include a higher share-based expense of $75 per ounce year-to-date due to an increase in the Company's share price. All-in sustaining costs at New Afton are expected to be below the low end of its guidance range due to lower cash costs. Rainy River's all-in sustaining costs are expected to be at the high end of its guidance range due to higher cash costs.
Operating expenses per gold ounce (co-product) are tracking to the high end of the guidance range of $900 to $1,000 per gold ounce sold as a result of higher underground mining and camp costs at Rainy River. Operating expenses per copper pound (co-product) are trending in-line with the guidance range of $1.75 to $2.25 per copper pound sold.
Sustaining capital1 is tracking to the low end of the guidance range of $95 million to $110 million.
Growth capital1 is tracking to midpoint of the guidance range of $175 million to $205 million, due to efficient capital management at New Afton, partially offset by higher underground capital expenditures at Rainy River primarily due to the higher underground development costs from the amended underground contract.
Consolidated Financial Highlights
Q3 2025
Q3 2024
9M 2025
9M 2024
Revenue ($M)
462.5
252.0
980.0
662.3
Operating expenses ($M)
131.2
107.6
345.6
323.9
Depreciation and depletion ($M)
69.5
58.3
192.7
190.8
Net earnings ($M)
142.3
37.9
194.2
47.5
Net earnings, per share ($)
0.18
0.05
0.25
0.06
Adj. net earnings ($M)1
199.5
64.3
301.3
94.3
Adj. net earnings, per share ($)1
0.25
0.08
0.38
0.13
Cash generated from operations ($M)
300.7
127.9
571.2
283.2
Cash generated from operations, per share ($)
0.38
0.16
0.72
0.38
Cash generated from operations, before changes in non-cash operating working capital ($M)1
296.4
120.0
547.4
283.1
Cash generated from operations, before changes in non-cash operating working capital, per share ($)1
0.37
0.15
0.69
0.38
Free cash flow ($M)1
204.7
57.0
292.0
62.8
Revenue increased over the prior-year periods due to higher gold and copper prices and sales volumes.
Operating expenses were higher than the prior-year periods due to higher gold production partially offset by an inventory write-up gain of $5.1 million for the quarter and $10.8 million for the nine months ended September 30, 2025 at Rainy River.
Depreciation and depletion expense in the third quarter increased when compared to the prior-year period due to higher gold production. For the nine months ended September 30, 2025, depreciation and depletion was relatively consistent when compared to the prior-year period.
Share-based payment expenses for the third quarter and nine months ended September 30, 2025 was $7.1 million and $20.6 million, respectively, impacted by an increase in the Company's share price.
Net earnings increased over the prior-year periods due to higher revenue.
Adjusted net earnings1 increased over the prior-year periods primarily due to higher revenue.
Cash generated from operations and free cash flow1 increased over the prior-year periods primarily due to higher revenue.
Consolidated Operational Highlights
Q3 2025
Q3 2024
9M 2025
9M 2024
Gold production (ounces)4
115,213
78,369
245,994
217,865
Gold sold (ounces)4
117,481
81,791
245,241
219,565
Copper production (Mlbs)4
12.0
12.6
39.1
39.5
Copper sold (MIbs)4
11.9
11.0
37.8
36.4
Gold revenue, per ounce ($)5
3,447
2,485
3,277
2,297
Copper revenue, per pound ($)5
4.36
3.98
4.25
3.97
Average realized gold price, per ounce ($)1
3,458
2,507
3,295
2,324
Average realized copper price, per pound ($)1
4.47
4.18
4.37
4.19
Operating expenses per gold ounce sold ($/ounce, co-product)3
874
1,021
1,054
1,090
Operating expenses per copper pound sold ($/pound, co-product)3
2.41
2.18
2.31
2.33
Depreciation and depletion per gold ounce sold ($/ounce)5
593
715
788
872
Cash costs per gold ounce sold (by-product basis) ($/ounce)2
639
741
709
783
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)2
966
1,195
1,260
1,317
Sustaining capital ($M)1
19.2
19.8
85.9
77.2
Growth capital ($M)1
56.4
42.7
157.0
118.6
Total capital ($M)
75.6
62.5
242.9
195.8
New Afton Mine
Operational Highlights
New Afton Mine
Q3 2025
Q3 2024
9M 2025
9M 2024
Gold production (ounces)4
14,912
16,477
50,181
52,957
Gold sold (ounces)4
14,755
14,564
50,039
49,728
Copper production (Mlbs)4
12.0
12.6
39.1
39.5
Copper sold (Mlbs)4
11.9
11.0
37.8
36.4
Gold revenue, per ounce ($)5
3,431
2,413
3,164
2,208
Copper revenue, per pound ($)5
4.36
3.98
4.25
3.97
Average realized gold price, per ounce ($)1
3,517
2,536
3,250
2,330
Average realized copper price, per pound ($)1
4.47
4.18
4.37
4.19
Operating expenses ($/oz gold, co-product)3
832
709
747
730
Operating expenses ($/lb copper, co-product)3
2.41
2.18
2.31
2.33
Depreciation and depletion ($/ounce)5
1,849
864
1,576
1,078
Cash costs per gold ounce sold (by-product basis) ($/ounce)2
(730)
(583)
(708)
(401)
Cash costs per gold ounce sold ($/ounce,co-product)3
859
775
778
799
Cash costs per copper pound sold ($/pound, co-product)3
2.49
2.39
2.40
2.55
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)2
(595)
(408)
(609)
(195)
All-in sustaining costs per gold ounce sold ($/ounce, co-product)3
900
828
808
861
All-in sustaining costs per copper pound sold ($/pound, co-product)3
2.61
2.55
2.49
2.74
Sustaining capital ($M)1
1.3
1.9
2.7
7.7
Growth capital ($M)1
29.3
28.7
78.6
86.8
Total capital ($M)
30.6
30.6
81.3
94.5
Free cash flow ($M)1
30.1
19.3
115.2
30.8
Operating Key Performance Indicators
New Afton Mine
Q3 2025
Q3 2024
9M 2025
9M 2024
New Afton Mine Only
Tonnes mined per day (ore and waste)
10,937
9,614
12,159
10,188
Tonnes milled per calendar day
11,495
11,302
12,506
10,851
Gold grade milled (g/t)
0.52
0.57
0.53
0.62
Gold recovery (%)
84 %
86 %
85 %
88 %
Copper grade milled (%)
0.57
0.62
0.58
0.67
Copper recovery (%)
90 %
88 %
89 %
90 %
Gold production (ounces)
14,853
16,283
49,606
52,241
Copper production (Mlbs)
12.0
12.6
39.1
39.5
Ore Purchase Agreements6
Gold production (ounces)
59
195
575
716
Third quarter production4 was 14,912 ounces of gold (inclusive of ore purchase agreements) and 12.0 million pounds of copper. For the nine months ended September 30, 2025, gold production4 was 50,181 ounces (inclusive of ore purchase agreements) and 39.1 million pounds of copper. The decrease in gold and copper production4 over the prior-year periods is due to lower grade and recovery as the B3 cave nears exhaustion and C-Zone continues to ramp up to full production.
Operating expenses per gold ounce sold5 and per copper pound sold for the third quarter increased over the prior-year period primarily due to higher tonnes mined. Operating expenses per gold ounce sold5 and per copper pound sold for the nine months ended September 30, 2025 were in line with the prior-year period.
All-in sustaining costs1 per gold ounce sold (by-product basis)2 decreased over the prior-year periods primarily due to higher by-product revenue and lower sustaining capital spend.
Total capital expenditures for the quarter were in-line with the prior year period. For the nine months ended September 30, 2025 total capital expenditures decreased over the prior-year period, due to lower sustaining and growth capital spend. Sustaining capital1 primarily related to mobile equipment. Growth capital1 primarily related to construction, mine development, tailings, and machinery and equipment.
Free cash flow1 for the third quarter and the nine months ended September 30, 2025 was $30 million and $115 million, respectively, a significant improvement over the prior-year periods primarily due to higher revenue.
During the quarter, the Company provided a comprehensive exploration update (see news release dated September 9, 2025). At New Afton, new underground drilling confirmed the width and continuity of previously reported mineralization at K-Zone and discovered additional copper-gold porphyry mineralization emanating from the roots of the zone, which have more than doubled the known extent of the system. The K-Zone mineralized system now reaches approximately 600 metres in strike length and 900 metres in vertical extent, while exploration drill holes from surface have intersected new mineralization 550 metres to the east of the current footprint, demonstrating the potential for further growth. The Company increased the 2025 New Afton exploration budget to $22 million and currently has nine drill rigs actively targeting the K-Zone. A maiden K-Zone mineral resource estimate is expected to be announced with the Company's year-end Mineral Reserve and Mineral Resource estimate update early in 2026.
Rainy River Mine
Operational Highlights
Rainy River Mine
Q3 2025
Q3 2024
9M 2025
9M 2024
Gold production (ounces)4
100,301
61,892
195,813
164,908
Gold sold (ounces)4
102,725
67,228
195,202
169,837
Gold revenue, per ounce ($)5
3,450
2,501
3,306
2,323
Average realized gold price, per ounce ($)1
3,450
2,501
3,306
2,323
Operating expenses per gold ounce sold ($/ounce)5
880
1,089
1,133
1,195
Depreciation and depletion per gold ounce sold ($/ounce)
411
681
584
809
Cash costs per gold ounce sold (by-product basis) ($/ounce)1
836
1,028
1,072
1,130
All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)2
1,043
1,327
1,536
1,582
Sustaining capital ($M)1
17.9
17.9
83.3
69.5
Growth capital ($M)1
27.1
14.0
78.4
31.8
Total capital ($M)
45.0
31.9
161.6
101.3
Free cash flow ($M)1
182.6
43.8
214.8
52.3
Operating Key Performance Indicators
Rainy River Mine
Q3 2025
Q3 2024
9M 2025
9M 2024
Open Pit Only
