Investor Day 2013February 5, 2013Arcadian Loft                    1
Discussion topicsCompany Overview                                     Randall Oliphant2012 Operating Performance and 2013 ...
Cautionary statementAll monetary amounts in U.S. dollars unless otherwise statedTotal cash costs shown net of by-product s...
Cautionary statement (cont’d)CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESO...
Company Overview                   5
New Gold overview    Focus on Value Enhancement        Established Track Record     Experienced/Invested Team          Low...
2012 to 2013 – The path forward                      2012 Achievements                                                    ...
2012 to 2013 – The path forward (cont’d)         2012 Achievements                           2013 ObjectivesNew Afton achi...
2012 to 2013 – The path forward (cont’d)                      2012 Achievements                                           ...
Board of DirectorsDavid Emerson, Former Canadian Cabinet Minister   Martyn Konig, Former Chairman European GoldfieldsJames...
Growing resource base in solid jurisdictions    Measured & Indicated Gold Resources per 1,000 shares                      ...
Capitalization and liquidity                                                                                              ...
Fourth quarter leads to strong 2012                                                                                       ...
Operational execution  Gold production(1) (thousand ounces)                                                               ...
2013 consolidated guidance                     2012 Actual                                                         2013 Gu...
2013 consolidated guidance and sensitivities            Gold production(1)                                                ...
Lower costs driving margin expansion                                 New Gold offers shareholders potential for over $450 ...
2013 estimated all-in sustaining cash costs                                     Total cash costs(1)                       ...
A future of growth                                               Peer leading growth with targeted doubling of production ...
History of growth leading to outperformance                                         New Gold         Gold Production Growt...
2012 Operating Performanceand 2013 Outlook                             21
2012 guidance versus actuals                                                                                              ...
2012 actuals versus 2013 guidance                             Gold Production (Koz)                                       ...
Mesquite                            Gold Production(1) (Koz)                                                              ...
Cerro San Pedro           Gold Production(1) (Koz)                                                   Silver Production(1) ...
Peak Mines             Gold Production (Koz)                                          Copper Production (Mlbs)            ...
New Afton                   Gold Production (Koz)                                     Copper Production (Mlbs)            ...
New Afton (cont’d)         Total Cash Costs(1) ($/oz)                                       Total Cash Costs(1) ($/oz)    ...
2012 and 2013 capital expenditures by site•   New Gold’s 2013 estimated capital expenditures of $290 million are down 42% ...
2013 capital expenditures by category•   The below breaks down capital expenditures at each site into two categories – ann...
2013 capital expenditures by category (cont’d)Cerro San Pedro - $40 million                           •    $30 million – f...
Health, Safety and CorporateSocial Responsibility                               32
Overview                      Policy                                               Governance• At New Gold, our commitment...
Safety, environmental and social responsibility highlights                         Safety                              •  ...
Safety performance   8.0   6.0                                                                                            ...
2012 recognitionsNew Afton              2011 Mining and Sustainability Award       Corporate Advocate for Aboriginal Busin...
2013 key objectives                    ISO 14001 certification for all New Gold operations     Pre-approval for Internatio...
Development Projects                       38
Two growth projects sharing key characteristics            Blackwater                                         El Morro (30...
A future of further gold and copper leverage   •        Blackwater and El Morro combine to provide New Gold shareholders w...
Blackwater             41
Site snapshot                42
Project overview•   Acquired in mid-2011 through acquisition of    Richfield Ventures•   Conducted aggressive exploration ...
Blackwater area map                                            ~112km to                                            Vander...
2012 key achievements              Signing of two exploration agreements with First Nations               Approval of Mult...
Mineral resource update since PEA•      2012 year end resource update successfully upgraded majority of mineralization int...
Mineral resource update since PEA (cont’d)•   In assessing the updated mineral resource estimate, New Gold is focused on t...
General update since PEA                               $1.8 billion (inclusive of $346 million contingency) per PEA      D...
2013 plans and initiatives         Update process flowsheet, throughput and grinding plant selection studies              ...
Project planning, management and execution initiative    New Gold has engaged McKinsey & Company to collaborate with Black...
Blackwater – Indicative timeline                                                                                      2012...
El Morro           52
El Morro (30%)                                2.9 Moz                                                                     ...
El Morro (30%) – Funding structure(1)                                                Total Capital                        ...
El Morro project – Plan view                               55
La Fortuna deposit                        2012 open pit Proven and                     Probable reserves and Measured     ...
Overview of updated Feasibility Study   •     El Morro Feasibility Study was updated in December 2011   •     Key paramete...
Reserves and Resourcesand Exploration Update                         58
Gold reserves and resources                                                                                               ...
Exploration growing resources                                                                     Measured & Indicated Gol...
Increasing gold leverage per share   •     10% increase in Measured and                                                   ...
Measured and Indicated resource contribution         Gold M&I Resources(2)                                                ...
2013 exploration program overview•   New Gold’s estimated exploration budget for 2013 is $50 million    • Capitalized: $20...
Blackwater area map                                            ~112km to                                            Vander...
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Investor day 2013 v final

  1. 1. Investor Day 2013February 5, 2013Arcadian Loft 1
  2. 2. Discussion topicsCompany Overview Randall Oliphant2012 Operating Performance and 2013 Outlook Ernie MastHealth, Safety and Corporate Social Responsibility Bob GallagherDevelopment Projects Bob GallagherReserves and Resources and Exploration Update Mark PetersenNew Afton Value Enhancing Initiatives Kurt KeskimakiConclusion Randall Oliphant 2
  3. 3. Cautionary statementAll monetary amounts in U.S. dollars unless otherwise statedTotal cash costs shown net of by-product sales unless otherwise statedCAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSCertain information contained in this presentation, including any information relating to New Golds future financial or operating performance may be deemed "forward looking". All statementsin this presentation, other than statements of historical fact, that address events or developments that New Gold expects to occur, are "forward-looking statements”. Forward-lookingstatements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget","scheduled", "estimates", "forecasts", "intends", "anticipates", “projects”, “potential”, "believes" or variations of such words and phrases or statements that certain actions, events or results"may", "could", "would", “should”, "might" or "will be taken", "occur" or "be achieved" or the negative connotation. All such forward-looking statements are based on the opinions and estimatesof management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Golds ability to control or predict.Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may causeactual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, withoutlimitation: significant capital requirements; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico andChile; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimatedproduction, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in international, national and local governmentlegislation in Canada, the United States, Australia, Mexico and Chile or any other country in which New Gold currently or may in the future carry on business; taxation; controls, regulations andpolitical or economic developments in the countries in which New Gold does or may carry on business; the speculative nature of mineral exploration and development, including the risks ofobtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction that New Gold operates,including, but not limited to obtaining the necessary permits for the Blackwater project, in Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EISand Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; the lack of certainty with respect to foreign legal systems, which maynot be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the uncertainties inherent to current and future legal challenges thecompany is or may become a party to,; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration orreclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineralproperties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusualor unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as "RiskFactors" included in New Golds disclosure documents filed on and available at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results andfuture events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionary statements.New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordancewith applicable securities laws. 3
  4. 4. Cautionary statement (cont’d)CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCESInformation concerning the properties and operations discussed in this presentation has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be comparable tosimilar information for United States companies. The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" used in this presentation are Canadian miningterms as defined in accordance with NI 43-101 under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Mineral Reserves adopted by the CIMCouncil on December 11, 2005. While the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are recognized and required by Canadian regulations,they are not defined terms under standards of the United States Securities and Exchange Commission. Under United States standards, mineralization may not be classified as a "reserve" unless the determination hasbeen made that the mineralization could be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this presentation concerning descriptionsof mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United StatesSecurities and Exchange Commission. An "Inferred Mineral Resource" has a great amount of uncertainty as to its existence and as to its economic and legal feasibility. It cannot be assumed that all or any part of an"Inferred Mineral Resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. Readers arecautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into Mineral Reserves. Readers are also cautioned not to assume that all or any part of an "Inferred MineralResource" exists, or is economically or legally mineable. In addition, the definitions of "Proven Mineral Reserves" and "Probable Mineral Reserves" under CIM standards differ in certain respects from the standards of theUnited States Securities and Exchange Commission.TECHNICAL INFORMATIONThe scientific and technical information in this presentation has been reviewed by Mark Petersen, a Qualified Person under National Instrument 43-101 and an employee of New Gold.(1) TOTAL CASH COSTS“Total cash costs” per ounce figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading NorthAmerican gold producers. The Gold Institute ceased operations in 2002, but the standard is widely accepted as the standard of reporting cash cost of production in North America. Adoption of the standard is voluntaryand the cost measures presented may not be comparable to other similarly titled measures of other companies. New Gold reports total cash costs on a sales basis. Total cash costs includes mine site operating costssuch as mining, processing, administration, royalties and production taxes, but is exclusive of amortization, reclamation, capital and exploration costs. Total cash costs are reduced by any by-product revenue and are thendivided by ounces sold to arrive at the total by-product cash costs of sales. The measure, along with sales, is considered to be a key indicator of a company’s ability to generate operating earnings and cash flow from itsmining operations. This data is furnished to provide additional information and is a non-IFRS measure. Total cash costs presented does not have a standardized meaning prescribed by IFRS and may not be comparableto similar measures presented by other mining companies. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative ofoperating costs presented under IFRS. A reconciliation will be provided in the MD&A accompanying the quarterly financial statements.(2) ALL-IN SUSTAINING CASH COSTSThe company is working with the World Gold Council and is in the process of adopting an “all-in sustaining cash costs” measure that the company believes more fully defines the total costs associated with producing gold.Although the definition is still preliminary, all-in sustaining cash costs, as currently defined, includes: by-product cash costs, corporate general and administrative expenses, exploration expense and sustaining capital.This metric is a non-IFRS measure.(3) PEA – ADDITIONAL CAUTIONARY NOTEThis note regarding the Preliminary Economic Assessment (“PEA”) is in addition to cautionary language already included within the news release as required under NI 43-101. The Blackwater PEA is preliminary in natureand includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is nocertainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.This note regarding the preliminary economic assessment (“PEA”) is in addition to cautionary language already included in this news release as required under NI 43-101. The Blackwater PEA is preliminary in nature andincludes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is nocertainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This news release includes information on NewGold’s PEA with respect to the Blackwater Project, which was outlined in the PEA Technical Report filed on October 10, 2012. As disclosed in the news release, New Gold has, since the date of the PEA, updated themineral resource estimate for the Blackwater Project. Although the PEA represents useful, accurate and reliable information based on the information available at the time of its publication, and provides an importantindicator as to the economic potential of the Blackwater Project, the PEA is based on mineral resources estimates with an effective date of July 27, 2012, which do not reflect drilling conducted since their effective date,and the PEA does not reflect the latest mineral resource estimate. Certain assumptions used in the PEA, some of which relate to the July 27, 2012 mineral resource estimate, may have changed from those used for thenew resource estimate, causing a variation of parameters. Moreover, the updated mineral resource estimate may have an impact on New Gold’s plans on how it intends to develop the deposit, including pit outlines,production rates and mine life. 4
  5. 5. Company Overview 5
  6. 6. New Gold overview Focus on Value Enhancement Established Track Record Experienced/Invested Team Low Cost/High Margin Growing Resources Doubling Gold Production Organically Strong Balance Sheet Accretive ‘per share’ GrowthESTABLISHING THE LEADING INTERMEDIATE GOLD COMPANY 6
  7. 7. 2012 to 2013 – The path forward 2012 Achievements 2013 Objectives Forecasting additional 12% gold 6% gold production growth production growth Targeting a further ~$145 per Total cash costs(1) declined by $25 ounce reduction in total cash per ounce costs(1) Average realized margin of $1,130 Margin expected to grow to per ounce $1,325(2) per ounceNotes: 1. Refer to Cautionary Statement and note on Total cash costs. 2. 2013 estimated margin per ounce based on mid-point of range of total cash costs of $275 per ounce and an assumed gold price of $1,600 per ounce. 7
  8. 8. 2012 to 2013 – The path forward (cont’d) 2012 Achievements 2013 ObjectivesNew Afton achieved full production Evaluation of New Afton millahead of schedule (September throughput increase/C-Zone2012) explorationSuccessfully completed Blackwater Focus on Feasibility Study andPreliminary Economic Assessment PermittingMeasured and Indicated resources Increase resources organically atincreased by 10% per share; New Blackwater, New Afton C-Zone andAfton extended mine life by two Peak Minesyears 8
  9. 9. 2012 to 2013 – The path forward (cont’d) 2012 Achievements 2013 Objectives Increased liquidity and balance Build increased flexibility through sheet strength free cash flow generation Strengthened team with additions of Continuously look for David Emerson to the Board of opportunities to add talented Directors and Ernie Mast as VP people Operations Outperformed S&P/TSX gold index(1) Strive to further history of by 25% outperformanceNotes: 1. S&P/TSX Gold Index includes 54 gold companies in various stages of development/production. 9
  10. 10. Board of DirectorsDavid Emerson, Former Canadian Cabinet Minister Martyn Konig, Former Chairman European GoldfieldsJames Estey, Former Chairman UBS Canada Pierre Lassonde, Chairman Franco-NevadaRobert Gallagher, President & CEO Randall Oliphant, Executive ChairmanVahan Kololian, Founder Terra Nova Partners Raymond Threlkeld, CEO Rainy River Resources Collectively over $125 million invested in New Gold 10
  11. 11. Growing resource base in solid jurisdictions Measured & Indicated Gold Resources per 1,000 shares M&I Resources(2): 21.4 Moz 50 40 Blackwater 30 New Afton 20 Cerro San Pedro Mesquite 10 - YE 2009 (1) YE 2010 YE 2011 YE 2012 El Morro(3) Track record of increasing M&I gold resources on a ‘per share’ basis Operating assets Peak Mines Development projectsNotes: 1. Excludes resources from Amapari which was sold in April 2010. 2. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. Measured and Indicated resources inclusive of reserves, and Capoose Indicated resources of 196Koz. 3. New Gold holds a fully carried 30% interest in the El Morro project. 11
  12. 12. Capitalization and liquidity • All corporate debt now due in 2020 or beyond(3) • Two senior unsecured notes offerings during 2012 ($300 million/7.00%, $500 Cash and million/6.25%) $688mm Equivalents(1) • Redemption of 10% senior secured notes • Early conversion of 5% convertible debenture Undrawn Credit • Total common shares outstanding of 476 $100mm Facility(2) million Liquidity Position $788mmNotes: 1. Cash and equivalents as at December 31, 2012. The cash balance provided is an unaudited figure and may differ slightly from the final result included in the 2012 annual audited financial statements and MD&A. 2. $50 million of total $150 million currently used for Letters of Credit. 3. See Appendix 1 for detailed breakdown of components of debt. 12
  13. 13. Fourth quarter leads to strong 2012 Fourth Quarter and Full Year 2012 Gold Production (thousand ounces) • Fourth quarter was the strongest of 2012 and 450 412 among the best in New 300 Gold’s history 150 113 • New Afton started to hit - Q412 FY2012 its stride Fourth Quarter and Full Year 2012 Total Cash Costs ($/ounce)(1) • Mining of higher grade $600 areas at Peak Mines $421 $400 • Fourth quarter total cash $254 $200 costs(1) demonstrate company’s low costs - Q412 FY2012 • Highest ever quarterly and Fourth Quarter and Full Year 2012 Average Realized Margin ($/ounce)(2) annual average realized $1,400 $1,324 margin $1,130 $1,100 $800 $500 Q412 FY2012Notes: 1. Refer to Cautionary Statement and note on Total cash costs. 2. Average realized margin per ounce calculated as average realized gold price in fourth quarter and full year 2012 less total cash costs per ounce during fourth quarter and full year 2012. 13
  14. 14. Operational execution Gold production(1) (thousand ounces) 412 383 387 302 2009 2009 2010 2010 2011 2011 2012 2012 Guidance Actual Guidance Actual Guidance Actual Guidance Actual Total cash costs(1)(2) ($/ounce) $465 $446 $418 $421 2009 2009 2010 2010 2011 2011 2012 2012 Guidance Actual Guidance Actual Guidance Actual Guidance Actual Four year track record of delivering on guidance, production growth and lower cash costsNotes: 1. Refer to Cautionary Statement and note on Total cash costs. 2. 2009 costs shown based on Canadian GAAP and 2010 and beyond based on IFRS. 14
  15. 15. 2013 consolidated guidance 2012 Actual 2013 Guidance +48Koz Gold production + 12% Gold production(1) 412Koz 440 - 480Koz Total cash costs(2) Total cash costs(2) $421/oz ($146/oz) $265 - $285/oz (35%)Notes: 1. Gold sales expected to be in same range as production. 2. Refer to Cautionary Statement and note on Total cash costs. 15
  16. 16. 2013 consolidated guidance and sensitivities Gold production(1) Total cash costs(2) 440 - 480Koz $265 - $285/oz • Gold production growth through full year of • By-product sensitivities: production at New Afton and increased • $0.25 per pound change in copper impacts throughput and recoveries at Peak Mines consolidated cash costs by ~$45 per ounce • Copper production forecast to double to 78 to 88 • $1.00 per ounce change in silver impacts million pounds consolidated cash costs by ~$3 per ounce • Copper and silver by-products continue to act as • At spot commodity prices and foreign exchange natural hedge to industry-wide cost pressures rates, total cash costs(2) would be below $250 • By-product price assumptions (consistent with per ounce 2012): • Copper $3.50 per pound • Silver $30.00 per ounceNotes: 1. Gold sales range forecast to be 440,000 to 480,000 ounces. 2. Refer to Cautionary Statement and note on Total cash costs. 16
  17. 17. Lower costs driving margin expansion New Gold offers shareholders potential for over $450 per ounce(1) of incremental margin $800 (3) $736 $643 Total Cash Costs (US$/oz)(2) $600 $557 Incremental Margin to New Gold $478 Shareholders $465 $400 $446 $418 $421 $265-$285 $200 2009 2010 2011 2012 2013ENotes: 1. Calculated based on Q3’2012 GFMS industry average less mid-point of New Gold 2013 cost guidance. 2. Refer to Cautionary Statement and note on Total cash costs. 3. Industry data per GFMS reports calculated net of by-product credits as at Q3’2012. 17
  18. 18. 2013 estimated all-in sustaining cash costs Total cash costs(1) $275/oz General and administrative ~$60/oz Exploration expense ~$70/oz Sustaining capital(2) ~$470/oz All-in sustaining cash costs(3) ~$875/ozNotes: 1. Refer to Cautionary Statement and note on Total cash costs. $275 per ounce based on mid-point of 2013 guidance. 2. Sustaining capital based on New Gold’s total 2013 estimated capital expenditures excluding expenditures related to growth-related initiatives. 3. All-in sustaining cash costs calculated using the mid-point of New Gold’s estimated 2013 production range. 18
  19. 19. A future of growth Peer leading growth with targeted doubling of production by 2017 1,000 800 Gold Production (thousand ounces) 600 ~440 - 480 412 400 387 200 2011A 2012A 2013E 2017E 19
  20. 20. History of growth leading to outperformance New Gold Gold Production Growth Margin Growth(1) Trailing 3 Years S&P/TSX Gold Index (9%) FTSE Gold Mines Index (8%) +36% +116% HUI Index Gold Price 3% 53% New Gold (US$) 203% (50%) 0% 50% 100% 150% 200% 250% 2012 S&P/TSX Gold Index (16%) FTSE Gold Mines Index (15%) +6% +11% HUI Index Gold Price (11%) 7% New Gold (US$) 9% (20%) (15%) (10%) (5%) 0% 5% 10% 15% 2011 FTSE Gold Mines Index (16%) S&P/TSX Gold Index (14%) +1% +32% HUI Index New Gold (US$) (13%) 3% Gold Price 10% (20%) (15%) (10%) (5%) 0% 5% 10% 15% 2010 S&P/TSX Gold Index 26% FTSE Gold Mines Index 29% +27% +47% Gold Price HUI Index 30% 33% New Gold (US$) 168% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180%Notes: 1. Margin per ounce calculated as average realized gold price less total cash costs per ounce. 2. Bloomberg. All amounts in USD. 3. S&P/TSX Gold Index includes 54 gold companies in various stages of development/production. 4. FTSE Gold Mines Index includes 26 gold producing companies. 5. HUI Index includes 15 of the major global gold producers. 20
  21. 21. 2012 Operating Performanceand 2013 Outlook 21
  22. 22. 2012 guidance versus actuals Gold Production (Koz) • Achieved consolidated 405-445 production and sales 150 guidance for each of gold, silver and copper 100 142 138 412 • Total cash costs(1) also 50 96 within guidance range 37 - • Each asset a meaningful Mesquite Cerro San Pedro Peak New Afton Consolidated contributor to overall Reflects 2012 guidance range portfolio Total Cash Costs(1) ($/oz) • Portfolio mix $410-$430 continues to be $1,000 effective with by- $500 $764 $690 $232 products providing - $421 offset to cost ($500) ($1,043) pressures ($1,000) ($1,500) Mesquite Cerro San Peak New Afton Consolidated Pedro Reflects 2012 guidance rangeNotes: 1. Refer to Cautionary Statement and note on Total cash costs. 22
  23. 23. 2012 actuals versus 2013 guidance Gold Production (Koz) Total Cash Costs(1) ($/oz) + 48Koz ($146/oz) + 12% 480 (35%) 440 $421 $285 412 $265 2012A 2013E 2012A 2013E 2013 Guidance Summary Gold production Silver production Copper production Total cash costs(1)(2) (Koz) (Moz) (Mlbs) ($/oz) Mesquite 130 - 140 -- -- $830 - $850 Cerro San Pedro 140 - 150 1.4 - 1.6 -- $375 - $395 Peak Mines 95 - 105 -- 12 - 14 $670 - $690 New Afton 75 - 85 -- 66 - 74 ($1,410) - ($1,390)(3) Total 440 - 480 1.4 - 1.6 78 - 88 $265 - $285Notes: 1. Refer to Cautionary Statement and note on Total cash costs. 2. By-product price assumptions: Silver - $30.00/oz; Copper - $3.50/lb. 3. New Afton co-product cost estimates: Gold - $570-$590/oz; Copper - $1.20-$1.30/lb. 23
  24. 24. Mesquite Gold Production(1) (Koz) Total Cash Costs(2) ($/oz) $850 140 $830 142 $690 130 2012A 2013E 2012A 2013E 2012A versus 2013E Key assumptions and sensitivities • Production expected to decline moderately • Diesel comprises ~25% of Mesquite’s total costs due to the planned processing of ore from an • Rack diesel price most correlated to Brent oil price area within the mine plan that is below reserve grade • Budgeted diesel price in 2013 8% higher than 2012 average price paid • Increase in costs attributable to higher cost leach pad inventory working through sales • Every 10% change in diesel price has ~$20 per and lower production base ounce impact on costsNotes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxides; ~35% for sulphides. 2. Refer to Cautionary Statement and note on Total cash costs. 24
  25. 25. Cerro San Pedro Gold Production(1) (Koz) Silver Production(1) (Moz) Total Cash Costs(2) ($/oz) 150 $395 140 138 1.6 1.9 $375 1.4 $232 2012A 2013E 2012A 2013E 2012A 2013E 2012A versus 2013E Key assumptions and sensitivities • Targeting 5% increase in gold production • Silver price - $30.00 per ounce (2012A - $30.78 per • Decrease in tonnes processed offset by ounce) increase in gold grade • Mexican Peso: U.S. foreign exchange – 13:1 • Increase in costs primarily driven by lower silver • $1.00 per ounce change in silver equals ~$10 per by-product production as well as lower price ounce change in Cerro San Pedro cash costs assumption • $1.00 change in Mexican Peso equals ~$25 per • ~$95 per ounce of increase in costs ounce change in Cerro San Pedro cash costs attributable to lower silver by-product revenue • Silver grades decreasing by ~25%Notes: 1. Cerro San Pedro life-of-mine recovery continues to track at: Gold – ~60%; Silver – ~25%. 2. Refer to Cautionary Statement and note on Total cash costs. 25
  26. 26. Peak Mines Gold Production (Koz) Copper Production (Mlbs) Total Cash Costs(1) ($/oz) 105 14 96 95 $764 $690 14 12 $670 2012A 2013E 2012A 2013E 2012A 2013E 2012A versus 2013E Key assumptions and sensitivities • Increased gold production driven by 50,000 • Copper price - $3.50 per pound (2012A - $3.51per tonne increase in tonnes processed pound) • Similar copper production a result of increased • Australian dollar: U.S. foreign exchange – 1:1 tonnes processed and copper recoveries offset • $0.25 per pound change in copper equals ~$35 per by lower copper grades ounce change in Peak Mines cash costs • Reduction in estimated cash costs a result of • $0.01 change in Australian dollar equals ~$10 per increased gold production and lower foreign ounce change in Peak Mines cash costs exchange rate assumption versus average 2012 exchange rateNotes: 1. Refer to Cautionary Statement and note on Total cash costs. 26
  27. 27. New Afton Gold Production (Koz) Copper Production (Mlbs) 74 85 66 75 37 28 2012A 2013E 2012A 2013E2012A versus 2013E• New Afton entering first full year of production in 2013 after successful 2012 start-up• Increased gold production driven by a full year of operations as well as continued recovery improvements, partially offset by lower gold grade• Copper production expected to more than double, driven by full year of production as well as increases in copper grades and recoveries 27
  28. 28. New Afton (cont’d) Total Cash Costs(1) ($/oz) Total Cash Costs(1) ($/oz) Total Cash Costs(1) ($/oz) (By-Product) (Co-Product Gold) (Co-Product Copper) 2012A 2013E $590 $656 $1.30 $570 $1.40 $1.20 ($1,043) ($1,390) 2012A 2013E 2012A 2013E ($1,410) Key assumptions and sensitivities • Copper price - $3.50 per pound (2012A - $3.58 per pound) • Canadian dollar: U.S. foreign exchange – 1:1 • $0.25 per pound change in copper equals ~$220 per ounce change in New Afton by-product cash costs • $0.01 change in Canadian dollar equals ~$15 per ounce change in New Afton by-product cash costsNotes: 1. Refer to Cautionary Statement and note on Total cash costs. 28
  29. 29. 2012 and 2013 capital expenditures by site• New Gold’s 2013 estimated capital expenditures of $290 million are down 42% from 2012 • Capital includes costs related to ongoing annual sustaining capital as well as investments for future production• Capital estimates by site are shown below:Total 2012 Actual Capital Expenditures: $497 million Total 2013 Capital Expenditure Estimate: $290 million Mesquite Cerro San Pedro $11mm $15mm Mesquite $20mm Peak Mines $47mm Cerro San Pedro $40mm New Afton $110mm Blackwater New Afton $127mm $297mm Peak Mines $60mm Blackwater $60mm 29
  30. 30. 2013 capital expenditures by category• The below breaks down capital expenditures at each site into two categories – annual sustaining capital and direct investments for future production growth and mine life extensionNew Afton - $110 million • $90 million – continued cave and drawbell development as well as related 18% technical services • Total of ~90 drawbells expected to be completed by end of 2013 82% • Annual drawbell development to decrease over mine life with commensurate decrease in capitalBlackwater - $60 million • $15 million – capitalized exploration • $45 million – Feasibility and related engineering studies, permitting, camp 100% facilities/operationPeak Mines - $60 million • $30 million – underground development and capitalized exploration • $30 million – equipment, mine and mill projects/maintenance 50% 50% Direct investment for future production Annual sustaining capital 30
  31. 31. 2013 capital expenditures by category (cont’d)Cerro San Pedro - $40 million • $30 million – final leach pad expansion and capitalized stripping for phase 5 25% development 75% • $10 million – site maintenance/processing improvementsMesquite - $20 million • $12 million – two additional trucks and construction of new welding and tire shops • $8 million – equipment components/site maintenance 40% 60% New Gold’s 30% share of estimated El Morro capital cost of $23 million fully carried by Goldcorp Inc. Direct investment for future production Annual sustaining capital 31
  32. 32. Health, Safety and CorporateSocial Responsibility 32
  33. 33. Overview Policy Governance• At New Gold, our commitment to corporate • The HSE & CSR Committee of our Board of social responsibility is specified in our Health, Directors provides oversight of our progress Safety, Environment and Corporate Social and adherence to the principles of our Policy Responsibility (“HSE & CSR”) Policy Commitment • On the ground wherever we work, the organization, resources and commitment of our people are in place to actualize the Policy • New Gold is a business participant of the UN Global Compact and has committed to its principles in the areas of human rights, labor, environment and anti-corruption • New Gold is a signatory to the International Cyanide Management Code • Our Sustainability Report is published annually 33
  34. 34. Safety, environmental and social responsibility highlights Safety • Cerro San Pedro – over one million man hours without a Lost Time Incident (“LTI”)New Gold is the sum total of our employees’ strengths – it is a company-wide policy to develop their careers and • New Afton continues as one of the lowest LTI protect their health and safety underground mines Environment • Mesquite – certified under the International Cyanide Management CodeNew Gold takes a pro active risk-management approach tosafeguarding the environment guided by high international • Cerro San Pedro – re-certified ISO 14001 Environmental and national standards Management System for 2011-2014 period • Cerro San Pedro – recognized as a socially responsible Social Responsibility company for the third straight year by Mexican CentreNew Gold fosters open communication with local residents for Philanthropy and community leaders and strives to be a full partner in the long-term sustainability of the communities and • Opened local Vanderhoof office and sample preparation regions in which we operate laboratory to support the Blackwater Project • New Afton – working together with local First Nations on project contracts 34
  35. 35. Safety performance 8.0 6.0 New Gold 2011 Industry Average 2011 4.0 New Gold 2012 2.0 0.0 Peak New Afton Blackwater Cerro San Mesquite All Operations PedroNotes: 1. Industry stats are supplied by those jurisdictions in which each mine is operating and is reflective of underground and surface operations as appropriate. 2. “All Operations” compares the average rate of injury for all New Gold operations versus average rate for all Regulatory jurisdictions based on 200,000 hours. 35
  36. 36. 2012 recognitionsNew Afton 2011 Mining and Sustainability Award Corporate Advocate for Aboriginal Business Award Viola R. MacMillan Award for company or mine developmentBlackwaterNorthern British Columbia Prospector/Developer of the Year AwardCerro San Pedro Mexican Mining Chamber Award for Excellence in SafetyPeak Mines Cobar Business Award for Environmental Achievement 36
  37. 37. 2013 key objectives ISO 14001 certification for all New Gold operations Pre-approval for International Cyanide Management Code at Cerro San Pedro and Peak Mines Formalize community engagement and feedback systems at all sites Continue active engagement with First Nations at Blackwater and New Afton Initiate certification process for ‘Towards Sustainable Mining’ at Blackwater Begin filing Environmental Impact Assessment with federal and provincial environmental assessment agencies for Blackwater 37
  38. 38. Development Projects 38
  39. 39. Two growth projects sharing key characteristics Blackwater El Morro (30%) Significant resource base Continued exploration potential Located in areas with strong mining tradition Estimating below industry average costs Robust production and cash flow generation potential 39
  40. 40. A future of further gold and copper leverage • Blackwater and El Morro combine to provide New Gold shareholders with significant gold and copper resource exposure • The two assets combined should double the company’s production base at low costs Measured & Indicated Potential Annual Gold/Copper Inferred Resources(1)(3) Resources(1)(2) Production(4) Gold Copper Gold Copper Gold Copper (Moz) (Blbs) (Moz) (Blbs) (Koz) ~600 (Mlbs) 12 11.2 6 12 6 600 250 El Morro 10 10 500 El Morro 200 8 4 8 4 400 150 6 6 300 Blackwater 2.1 ~85 100 4 Blackwater 2 4 2 200 2.2 El Morro El Morro 50 2 2 El Morro 0.6 100 Blackwater - - - - - - Gold Copper Gold Copper Gold CopperNotes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. El Morro shown at New Gold’s attributable 30% share. 2. Blackwater Measured and Indicated resources inclusive of Capoose Indicated resources of 196Koz. 3. Blackwater Inferred resources inclusive of Capoose Inferred resources of 595Koz. 4. El Morro shown at New Gold’s attributable 30% share. 40
  41. 41. Blackwater 41
  42. 42. Site snapshot 42
  43. 43. Project overview• Acquired in mid-2011 through acquisition of Richfield Ventures• Conducted aggressive exploration drill program to increase size and quality of mineral resource• Completed Preliminary Economic British Columbia Assessment (“PEA”) in September 2012• 2012 year end resource included additional Vanderhoof 101,056 metres in 466 holes beyond PEA Prince George• Total 2012 drilling over 270,000 metres Blackwater project wide• Targeting completion of Feasibility Study by late 2013 New Afton Vancouver Victoria 43
  44. 44. Blackwater area map ~112km to Vanderhoof Capoose Resource Blackwater ~160km to Project Prince George 50km Blackwater Resource 80km 44
  45. 45. 2012 key achievements Signing of two exploration agreements with First Nations Approval of Multi-Year Area Based exploration permit Opened regional office and sample preparation lab in Vanderhoof Completion of Preliminary Economic Assessment Confirmed point of access to B.C. Hydro power connection Initiated Federal and Provincial environmental processes Completed Geotechnical Investigation Program Completed Environmental Baseline Program Completed 2012 year end mineral resource estimate 45
  46. 46. Mineral resource update since PEA• 2012 year end resource update successfully upgraded majority of mineralization into Measured and Indicated resource categories • 33% of Measured and Indicated resource contained gold ounces now at Measured classification whereas previously all classified as Indicated • Infill drilling now complete on main Blackwater mineral resource• Incorporation of infill drilling and updated geologic resource constraints post-PEA resulted in a decline in the overall resource inventory offset by a significant increase in confidence Year End 2012 Mineral Resources September 2012 Mineral Resource Estimate (0.4 AuEq g/t cut-off) (0.3 AuEq g/t cut-off) Tonnes Au Ag Gold Silver Tonnes Au Ag Gold Silver Category Category (000’s) (g/t) (g/t) (Koz) (Koz) (000’s) (g/t) (g/t) (Koz) (Koz) Measured 88,188 0.94 5.2 2,670 14,740 Measured -- -- -- -- -- Indicated 207,958 0.81 6.2 5,400 41,450 Indicated 267,145 0.88 4.3 7,520 36,930 Total M&I 296,146 0.85 5.9 8,070 56,190 Total M&I 267,145 0.88 4.3 7,520 36,930 Inferred 16,585 0.58 10.8 310 5,760 Inferred 120,478 0.69 7.3 2,660 28,280 46
  47. 47. Mineral resource update since PEA (cont’d)• In assessing the updated mineral resource estimate, New Gold is focused on the highest quality tonnes and ounces to maximize profitability rather than global resource inventory • Increased resource reporting cut-off to 0.4 gold-equivalent grams per tonne (“AuEq g/t”) from PEA resource cut-off (0.3 AuEq g/t) to maximize grade of tonnes to be mined at expense of more marginal resources – Intend to stockpile material below 0.4 AuEq g/t cut-off for processing later in Blackwater’s mine life • Continue to target a variable cut-off strategy for mine planning to process most profitable ore tonnes in early years to maximize internal rate of return and payback period – 2012 year end resource expected to support a steadier production profile in first 10 years when compared to PEA which saw higher production in first five years at expense of lower production levels in years six through 10 • Total estimated gold production in first 10 years is expected to remain consistent with that of the PEA 47
  48. 48. General update since PEA $1.8 billion (inclusive of $346 million contingency) per PEA Development Capital remains consistent with current expectations Trade-off studies ongoing, however, total mining, processing Operating Cost Per Tonne and G&A cost per tonne expected remain in line with PEA estimates Subject to ongoing scheduling optimizations through Mine Plan completion of Feasibility Study. Focus on mining/processing of most profitable ounces Strip Ratio Remains in line with PEA estimate 48
  49. 49. 2013 plans and initiatives Update process flowsheet, throughput and grinding plant selection studies Update infrastructure trade-off studies Mine planning and optimized production schedule Detailed design of tailings facility, powerline, access road and fresh water supply route Complete Feasibility Study Complete Environmental Assessment Report Continue discussions with First Nations regarding Participation Agreements 49
  50. 50. Project planning, management and execution initiative New Gold has engaged McKinsey & Company to collaborate with Blackwater team on establishing a Project Implementation Plan• Key objective is to maximize effectiveness of project planning to ensure delivery and execution of Blackwater is consistent with New Gold’s prior developments including: Mesquite, Cerro San Pedro and New AftonAreas of focus include:• Delivery model selection• Project team organization• Reporting metrics and management processes• Labour strategy• Procurement strategy• Governance• Risk management 50
  51. 51. Blackwater – Indicative timeline 2012 2013 2014 2015 2016 2017 Development activity H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 First Nations & Public Consultation Drilling Preliminary Economic Assessment Base Line Environmental Studies Project Description/Terms of Reference Environmental Assessment Reports Provincial Approval Federal Approval Feasibility Study Engineering Procurement Construction Production Target Reflects critical path in timelineNotes: 1. Indicative timeline is dependent on permit approvals. There is no assurance this timeline will be achieved nor that the deposit will ever reach the production stage. 51
  52. 52. El Morro 52
  53. 53. El Morro (30%) 2.9 Moz 2.1 Blbs Gold Reserve(1) Copper Reserve(1) • Goldcorp – 70% partner and project operator • New Gold’s 30% share of capital fully-funded by Goldcorp • Current resource entirely within La Fortuna deposit • Neighbouring El Morro deposit underexplored • 2012 year end update added 0.4 million ounces of gold and 229 million pounds of copper to reserves(1) • Addressing recent temporary suspension of environmental permit • Resolution targeted prior to end of 2013 • Chile evaluating various alternatives for a power source to northern Chilean development projectsNotes: 1. New Gold’s attributable 30% share. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. 53
  54. 54. El Morro (30%) – Funding structure(1) Total Capital 100% 100% Average annual ~ $3.9 billion cash flow 30% 70% Funded by ~ $2.7 billion $1.2 billion 30% 70% interest at 4.58% 20% 80% Carried funding repayment • New Gold’s 30% share of development capital 100% carried • Interest fixed at 4.58%Notes: 1. Capital estimates based on December 2011 Feasibility Study. 54
  55. 55. El Morro project – Plan view 55
  56. 56. La Fortuna deposit 2012 open pit Proven and Probable reserves and Measured and Indicated resources Underground Inferred resource with block cave potential 500 metres 56
  57. 57. Overview of updated Feasibility Study • El Morro Feasibility Study was updated in December 2011 • Key parameters for New Gold include: • 30% share of estimated development capital, or $1.2 billion, carried by Goldcorp – Receive cash flow from start of production – Interest rate fixed at 4.58% • Base 17-year mine life • 30% share of annual production: ~90,000 ounces of gold and ~85 million pounds of copper • Estimated total cash costs(1), net of by-products ($700) per ounce – Co-product gold ~$550 per ounce – Co-product copper ~$1.45 per pound • At today’s prices, approximates $290 million in annual EBITDANotes: 1. Refer to Cautionary Statement and note on Total cash costs. 57
  58. 58. Reserves and Resourcesand Exploration Update 58
  59. 59. Gold reserves and resources Year End 2011 Year End 2012 Proven and Probable Reserves Proven and Probable Reserves (Moz) • Mine depletion at four operating assets partially offset by year-over-year reserve increases at New Afton and Peak Mines 7.9 7.7 • New Afton reserve update adds ~2 years to mine life Measured and Indicated Resources (Moz)(2) Measured and Indicated Resources • 10% increase in resources per share 18.8 21.4 Inferred Resources (Moz) 6.3 4.4Notes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. 2. Measured and Indicated resources inclusive of reserves. 59
  60. 60. Exploration growing resources Measured & Indicated Gold Resources (million ounces, inclusive of reserves) 22.0 3.2 21.4 21.0 20.0 19.0 18.8 18.0 (0.6) 17.0 16.0 15.0 12/31/2011 Ounces Mined Ounces added through 12/31/2012 2012 exploration/updated resource estimates Blackwater New Afton Mesquite Peak Mines Cerro San PedroNotes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. 60
  61. 61. Increasing gold leverage per share • 10% increase in Measured and Measured and Indicated Resources(1) Indicated gold resources per share • 49% increase in Blackwater 50 resources Gold Resources (ounces per 1,000 shares) 40 • 14% increase in New Afton resources 30 • Fourth consecutive year with ‘per share’ growth in Measured and 20 Indicated resources 10 - YE 2009 YE 2010 YE 2011 YE 2012Notes: 1. Measured and Indicated resources inclusive of reserves. 61
  62. 62. Measured and Indicated resource contribution Gold M&I Resources(2) Silver M&I Resources(2) Copper M&I Resources(2) 21.4 Moz 132 Moz 4.1 Blbs Capoose Peak Mines Cerro San Pedro New Afton El Morro Mesquite Peak Mines New Afton Capoose Blackwater Blackwater El Morro Cerro San Pedro December 31, 2012 Blackwater El Morro Cerro San Pedro Capoose Mesquite New Afton Peak MinesNotes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. 2. Measured and Indicated resources inclusive of reserves. 62
  63. 63. 2013 exploration program overview• New Gold’s estimated exploration budget for 2013 is $50 million • Capitalized: $20 million • Expensed: $30 million Capitalized: $5 million Capitalized: $15 million Expensed: $5 million Expensed: $15 million Peak Mines 33,000 metres Blackwater 40,000 metres New Afton 40,000 metres Expensed: $10 million 63
  64. 64. Blackwater area map ~112km to Vanderhoof Capoose Resource Blackwater ~160km to Project Prince George 50km Blackwater Resource 80km 64
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