GMP Latin American Mining Conference | Panama               November 14-16, 2012
Cautionary statementAll monetary amounts in U.S. dollars unless otherwise statedCAUTIONARY NOTE REGARDING FORWARD-LOOKING ...
Cautionary statement (cont’d)CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESO...
The evolution of New Gold                                                                                   Successfully c...
History of accretive growth                                                     NGD              Gold Price               ...
Project development and operational execution     Gold production(1) (000s ounces)             450             400        ...
Management and Board of DirectorsEXECUTIVE MANAGEMENT TEAM                   BOARD OF DIRECTORSRandall Oliphant, Executive...
Growing resource base in solid jurisdictions     Measured & Indicated Gold Resources per 1,000 shares                     ...
Cost trends: New Gold versus industry(1)(2)                                   $700                                        ...
Key metrics trending in the right direction                                                                               ...
2012 third quarter operating results                                                                                   201...
New Afton - Successfully commissioned                                                                                     ...
New Afton – Looking to unlock additional value                                                Value Enhancement Opportunit...
El Morro (30%) – A world class project                             El Morro (30%)                                         ...
Blackwater – A robust project                                       Blackwater                                            ...
Blackwater – Project overview•    Start of production in 2017•    Conventional truck and shovel open pit mine with 60,000 ...
Preliminary Economic Assessment (“PEA”) in review (1)                                                                     ...
Blackwater – Area map                                            ~112km to                                            Vand...
Blackwater – Indicative timeline   •      Remains unchanged from mid-2011 targeted timeline                               ...
A future of growth•    El Morro and Blackwater expected to more than double New Gold’s gold production by 2017     at low ...
Net asset value per share appreciation                 Net Asset Value(1)                                                 ...
2012 – A year of catalysts                       Blackwater resource update                        New Afton production st...
The New Gold investment thesis         EXPERIENCED BOARD AND MANAGEMENT FULLY FUNDED COMPANY WITH STRONG BALANCE SHEETDIVE...
Appendix           Appendices                                                Page           1. Financial information      ...
Appendix 1         Capitalization and liquidity                 April 2012 Senior Note Financing                          ...
Appendix 1         Summary of debt                                               Undrawn Credit                           ...
Appendix 1           Trend of expanding margins continues           $1,800                                                ...
Appendix 1  2012 third quarter financial highlights           Earnings from Mine Operations                          Adjus...
Appendix 1         Track record of per share growth outperforming gold                           Average gold price increa...
Appendix 1         2012 guidance                   Gold production(1)                                      Total cash cost...
Appendix 2         Mesquite                                                                                               ...
Appendix 2         Cerro San Pedro                                                                                        ...
Appendix 2  Peak Mines                                                                     2011 Actual & 2012 Guidance    ...
Appendix 3Block cave mines                   GMP Latin American Mining Conference | Panama | November 14-16, 2012   34 34
Appendix 3     New Afton – 2012 production start-up •       The combination of over six months of active underground minin...
Appendix 3Production and sales                                                       New Afton 2012 Guidance       Gold pr...
Appendix 3         Operating costs   •      Operating costs ~$25 per tonne in first five months of commercial production(1...
Appendix 3    New Afton – C Zone exploration•     3 phase underground core drilling program totaling 40,000 meters commenc...
Appendix 4         El Morro (30%) – funding structure(1)                                                   Total Capital  ...
Appendix 4      Selected porphyry gold/copper deposits/mines(1)  Gold  Grade   (g/t)  0.80  0.70  0.60                    ...
Appendix 4         El Morro relative positioning(1)                                                                       ...
Appendix 5Blackwater drill program                                               Cumulative number               Cumulativ...
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
Print version   corporate presentation - november 6, 2012.pdf
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Print version corporate presentation - november 6, 2012.pdf

  1. 1. GMP Latin American Mining Conference | Panama November 14-16, 2012
  2. 2. Cautionary statementAll monetary amounts in U.S. dollars 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-looking statementsare 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. GMP Latin American Mining Conference | Panama | November 14-16, 2012 2 2
  3. 3. 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, andmay not be comparable to similar information for United States companies. The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred MineralResource" used in this presentation are Canadian mining terms 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 CIM Council 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 StatesSecurities and Exchange Commission. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralizationcould be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this presentation concerning descriptions ofmineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirementsof the United States Securities 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. Itcannot 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 notform the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into MineralReserves. Readers are also cautioned not to assume that all or any part of an "Inferred Mineral Resource" exists, or is economically or legally mineable. In addition, the definitions of "ProvenMineral Reserves" and "Probable Mineral Reserves" under CIM standards differ in certain respects from the standards of the United 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 productsand included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is widely accepted as the standard of reporting cash cost of production inNorth America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. New Gold reports totalcash costs on a sales basis. Total cash costs includes mine site operating costs such 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 then divided 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 its mining operations. This data is furnished toprovide 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 comparable to similarmeasures 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 necessarilyindicative of operating costs presented under IFRS. A reconciliation will be provided in the MD&A accompanying the quarterly financial statements.(2) PEA – ADDITIONAL CAUTIONARY NOTEThis note regarding the preliminary economic assessment (PEA) is in addition to cautionary language already included within the presentation as required under NI 43-101. The BlackwaterPEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enablethem to be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do nothave demonstrated economic viability. GMP Latin American Mining Conference | Panama | November 14-16, 2012 3 3
  4. 4. The evolution of New Gold Successfully commissioning New Afton Further strengthening team History of accretive growth Developing world-class assets Growing resources Doubling gold productionTrack record of delivering on plans organically Lowering costs, expanding margins and increasing cash flow Increasing net asset value Blackwater – Summer 2012 GMP Latin American Mining Conference | Panama | November 14-16, 2012 4 4
  5. 5. History of accretive growth NGD Gold Price S&P/TSX Gold Index FTSE Gold Mines Index HUI Index 500% 450% Closing of Richfield acquisition 400% +267% 350% Completed $1.2bn business 300% combination with Western Goldfields 250% 200% +76% 150% +20% 100% +3% (1%) 50% 0% 1-Jun-09 9-Jun-12 4-Mar-10 17-Oct-09 23-Jan-12 20-Jul-10 22-Apr-11 5-Dec-10 7-Sep-11 25-Oct-12 6-Nov-12Source: 1. Bloomberg. All amounts in USD.Note: 2. S&PTSX Gold Index includes 59 gold companies in various stages of development/production. 3. FTSE Gold Mines Index includes 26 gold producing companies. 4. HUI Index includes 15 of the major global gold producers. GMP Latin American Mining Conference | Panama | November 14-16, 2012 5 5
  6. 6. Project development and operational execution Gold production(1) (000s ounces) 450 400 405-445 350 383 387 300 250 302 200 233 150 100 50 0 2008 2009 2009 2010 2010 2011 2011 2012 Actual Guidance Actual Guidance Actual Guidance Actual Guidance Total cash cost(1)(2) ($/oz) $600 $500 $566 $400 $465 $446 $418 $410-430 $300 $200 $100 $0 2008 2009 2009 2010 2010 2011 2011 2012 Actual Guidance Actual Guidance Actual Guidance Actual Guidance Successfully brought Cerro San Pedro, Mesquite and New Afton into production on, or ahead of, scheduleNotes: 1. Refer to Cautionary Statement and note on Total cash cost. 2. 2009 and 2008 costs shown based on Canadian GAAP. GMP Latin American Mining Conference | Panama | November 14-16, 2012 6 6
  7. 7. Management and Board of DirectorsEXECUTIVE MANAGEMENT TEAM BOARD OF DIRECTORSRandall Oliphant, Executive Chairman David Emerson, Former Canadian Cabinet MinisterRobert Gallagher, President & CEO James Estey, Former Chairman UBS Securities CanadaBrian Penny, Executive VP and CFO Robert Gallagher, President & CEOErnie Mast, VP Operations Vahan Kololian, Founder Terra Nova Partners Martyn Konig, Former Executive Chairman European Goldfields• Board and Management hold 15 million shares of Company Pierre Lassonde, Chairman Franco-Nevada – ~$160 million investment Randall Oliphant, Executive Chairman Raymond Threlkeld, CEO Rainy River Resources GMP Latin American Mining Conference | Panama | November 14-16, 2012 7 7
  8. 8. Growing resource base in solid jurisdictions Measured & Indicated Gold Resources per 1,000 shares M&I Resources(2): 20.9 Moz 50 40 Blackwater 30 New Afton 20 Cerro San Pedro Mesquite 10 - (1) 2009 2010 2011 Today 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 6 for detailed disclosure on Reserve and Resource calculations. Measured and Indicated Resources inclusive of Reserves, and Capoose Indicated Resources of 384koz. 3. New Gold holds a fully carried 30% interest in the El Morro project. GMP Latin American Mining Conference | Panama | November 14-16, 2012 8 8
  9. 9. Cost trends: New Gold versus industry(1)(2) $700 $643 $600 Total Cash Costs (US$/oz)(2) $557 $566 $500 $478 $464 $465 $446 $400 $418 $410-$430 $300 2008 2009 2010 2011 2012E New Gold provides leverage to gold price Margin +241% (US$/oz) $297 $1,014 Gold price +69% (US$/oz) $863 $1,460Notes: 1. Industry data per GFMS reports calculated net of by-product credits. 2. Refer to Cautionary Statement and note on Total cash cost. GMP Latin American Mining Conference | Panama | November 14-16, 2012 9 9
  10. 10. Key metrics trending in the right direction 2012 Gold Production (thousand ounces) • New Afton production start 120 105 and strong performance of 100 99 95 three other operations 80 60 drives best quarter of 2012 40 20 - Q112 Q212 Q312 • Fourth quarter should be 2012 Total Cash Costs, net of by-product sales ($/ounce)(1) even stronger $600 $543 $472 • Company, once again, on $400 $443 track to achieve both production and cost $200 Q112 Q212 Q312 guidance 2012 Average Realized Margin ($/ounce)(2) $1,200 $1,117 $1,032 $1,014 $900 $600 Q112 Q212 Q312Notes: 1. Refer to Cautionary Statement and note on Total cash cost. 2. Margin per ounce calculated as average realized gold price in 2012 third quarter less total cash cost per ounce during 2012 third quarter. GMP Latin American Mining Conference | Panama | November 14-16, 2012 10 10
  11. 11. 2012 third quarter operating results 2012 Third Quarter 2012 Nine Months Earning from Earning from Gold sales Cash cost(1) Gold sales Cash cost(1) Mine Operations Mine Operations (000s ounces) ($/oz) (000s ounces) ($/oz) ($mm) ($mm) Mesquite 32 $722 $13 113 $664 $58 Cerro San Pedro 34 $218 $41 103 $205 $123 Peak Mines 22 $796 $15 64 $772 $42 New Afton 7 ($955) $8 7 ($955) $8 95 $443 $77 286 $486 $231Note: 1. Refer to Cautionary Statement and note on Total cash cost. GMP Latin American Mining Conference | Panama | November 14-16, 2012 11 11
  12. 12. New Afton - Successfully commissioned Reserves(1) Highlights • Located 10 kilometres from Kamloops, British Gold Copper Columbia • Dedicated labour force 1 Moz 1 Blbs • Commercial and full production achieved ahead of schedule Production and Costs • ~One year of active underground operations 2012 Production(2) 2012 Cash Costs(3) • Potential to double New Gold’s cash flow at Gold today’s prices 35-45Koz ~($1,250)/oz by-product Copper ~$640/oz co-product(4) 30-35Mlbs ~$1.40/lb LOM Production LOM Cash Costs(3) Gold 85Koz ($1,750)/oz by-product Copper $525/oz co-product(4) Extracting ore from underground 75Mlbs $1.15/lbNotes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. 2. Production includes all production including the gold and copper produced prior to commercial production. 3. Refer to Cautionary Statement and note on Total cash cost. 4. Co-product cash cost calculated based on relative percentage of gold and copper revenue, respectively. GMP Latin American Mining Conference | Panama | November 14-16, 2012 12 12
  13. 13. New Afton – Looking to unlock additional value Value Enhancement Opportunities C-Zone exploration Mill building Mill optimization beyond 11,000 tpd Regional exploration – 111km2 land packageConveyor Ore stockpile GMP Latin American Mining Conference | Panama | November 14-16, 2012 13 13
  14. 14. El Morro (30%) – A world class project El Morro (30%) Gold Reserve(1) 2.5 Moz Copper Reserve(1) 1.9 Blbs • On June 27, 2012 Ontario Superior Court of Justice validated New Gold/Goldcorp partnership at El Morro Location Chile • Capital fully-funded by 70% partner Goldcorp Mine type Open Pit • 1.2 Moz inferred gold resource at higher gold and Reserves1 – Gold/Copper (Moz/Mlbs) 2.5/1,868 copper grades in deeper portion of La Fortuna deposit Resources1 – Gold/Copper (Moz/Mlbs) 3.0/2,193 • Current Resource entirely within La Fortuna deposit Estimate mine life 17 years • Neighbouring El Morro deposit underexplored LOM production/yr (Au koz/Cu Mlbs)2 90/85 • Addressing recent temporary suspension of LOM cash cost/oz co-product (Au/Cu)3 $550/$1.45 environmental permitNotes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. Measured and Indicated Resources inclusive of Reserves. El Morro Reserves and Resources shown on attributable 30% basis. 2. Refer to Cautionary Statements. 3. Refer to Cautionary Statements and note on Total cash cost. Life of mine co-product costs based $1,200/oz gold and $2.75/lb copper. GMP Latin American Mining Conference | Panama | November 14-16, 2012 14 14
  15. 15. Blackwater – A robust project Blackwater Preliminary Economic Assessment Indicated/Inferred Gold Resource(1) 7.5 Moz/ 2.7 Moz Average Annual Gold Production(3) 507,000 ounces Average Total Cash Costs(3) $536 per ounce • Consolidated significant land position – 1,000km2 • Year-round accessibility for drilling/development Location Canada • Central British Columbia near infrastructure Proposed mine type Open Pit • Ability to fund continued exploration/development M&I Resources1 – Gold/Silver (Moz) 7.5/36.9 internally Inferred Resources1 – Gold/Silver (Moz) 2.7/28.3 – Development capital $1.8 billion including 24%, or $346 million contingency Targeted production2 2017 • Tax synergies with New AftonNotes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. 2. Blackwater start date based on indicative timeline which is dependent on continued exploration success, environmental approvals and the determination that the deposit is economically viable. 3. Averages based on first 15 years of production. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. GMP Latin American Mining Conference | Panama | November 14-16, 2012 15 15
  16. 16. Blackwater – Project overview• Start of production in 2017• Conventional truck and shovel open pit mine with 60,000 tonnes per day processing plant• Life-of-mine strip ratio of 2.36 to 1• Low grade stockpiling strategy• Simple, conventional flowsheet using whole ore leach process• Life-of-mine gold and silver recoveries of 87% and 53%, respectively• Conventional waste rock and Tailings Storage Facility• Power supply from the hydroelectric power grid, via 133 kilometre transmission line• Minimal off-site infrastructure required – Good existing access road; water supply within 15 kilometres• Low environmental risk and facility designed for closure GMP Latin American Mining Conference | Panama | November 14-16, 2012 16 16
  17. 17. Preliminary Economic Assessment (“PEA”) in review (1) Spot Case Base Case September 20, 2012 Gold Price (US$/oz) $1,275 $1,600 $1,775 $1,800 Silver Price (US$/oz) $22.50 $30.00 $34.50 $35.00 US$/CDN$ Foreign Exchange 0.94 0.97 1.00 1.00 5% NPV ($ billions) (2015) Pre-tax NPV 1.7 3.3 4.2 4.3 After-tax NPV 1.1 2.2 2.8 2.9 IRR (%) Pre-tax IRR 16.4 25.9 30.4 31.1 After-tax IRR 14.0 22.0 25.8 26.4 Payback period (years) Pre-tax payback period 4.7 3.0 2.6 2.5 After-tax payback Period 4.8 3.1 2.7 2.6 Highlights • Initial gold production targeted for 2017 • First five years – average annual gold production of 569,000 ounces at total cash costs(1) per ounce sold, net of by product sales, of $467 per ounce Blackwater expected to generate solid economic returns in current capital cost environment, even when using a long-term gold price assumption of US$1,275 per ounceNote: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. GMP Latin American Mining Conference | Panama | November 14-16, 2012 17 17
  18. 18. Blackwater – Area map ~112km to Vanderhoof Capoose Resource Blackwater ~160km to Project Prince George50km Current resource grid 80km GMP Latin American Mining Conference | Panama | November 14-16, 2012 18 18
  19. 19. Blackwater – Indicative timeline • Remains unchanged from mid-2011 targeted 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. GMP Latin American Mining Conference | Panama | November 14-16, 2012 19 19
  20. 20. A future of growth• El Morro and Blackwater expected to more than double New Gold’s gold production by 2017 at low cost 1,000 800 Gold production (thousand ounces) 600 ~450 - 500 405 - 445 400 387 200 2011A 2012E 2013E 2017E GMP Latin American Mining Conference | Panama | November 14-16, 2012 20 20
  21. 21. Net asset value per share appreciation Net Asset Value(1) $15.00 High Share price ~1.5x 6/1/09 Today NAVPS Closing of Current Richfield ~1.0x $13.00 P/NAV acquisition Mesquite, Cerro San Pedro, Peak $11.00 High ~ $875 $1,800 Completed $1.2bn ~1.5x US$ NAV and Share price business combination with Western Goldfields New Afton $9.00 High ~ $120 $1,462 ~1.5x $7.00 Low ~0.7x El Morro(2) High $5.00 ~1.5x ~ $40 $728 363% increase in NAVPS $3.00 Blackwater(3) 267% increase in share price $-- $1,454 $1.00 1-Jun-09 4-Mar-10 9-Jun-12 23-Jan-12 20-Jul-10 5-Dec-10 22-Apr-11 17-Oct-09 7-Sep-11 25-Oct-12 6-Nov-12Source: Broker Reports, Company Estimates and Announcements, Bloomberg.Notes: 1. Street consensus NAV. 2. Current street consensus NAV for El Morro; Includes $50mm cash payment received from Goldcorp as part of transaction consideration. 3. New Gold purchased Richfield for C$480 million and Silver Quest for C$110 million. The deals closed on June 1, 2011 and December 23, 2011, respectively. GMP Latin American Mining Conference | Panama | November 14-16, 2012 21 21
  22. 22. 2012 – A year of catalysts Blackwater resource update New Afton production start El Morro litigation decision Further Blackwater PEA resource update New Afton commercial production Blackwater PEA New Afton mill achieving design capacity El Morro engineering/development planning Blackwater/New Afton exploration GMP Latin American Mining Conference | Panama | November 14-16, 2012 22 22
  23. 23. The New Gold investment thesis EXPERIENCED BOARD AND MANAGEMENT FULLY FUNDED COMPANY WITH STRONG BALANCE SHEETDIVERSIFIED ASSET BASE IN MINING FRIENDLY JURISDICTIONS ORGANIC GROWTH OPPORTUNITIES/METAL OPTIONALITY PRODUCTION GROWTH/MARGIN EXPANSION INCREASING UNDERLYING ASSET VALUE MULTIPLE CATALYSTS COMPELLING INVESTMENT PROPOSITION GMP Latin American Mining Conference | Panama | November 14-16, 2012 23 23
  24. 24. Appendix Appendices Page 1. Financial information 25 2. Operating performance 31 3. New Afton 34 4. El Morro 39 5. Blackwater 42 6. Reserves and resource notes 61 7. Commodity price/foreign 66 exchange assumptions GMP Latin American Mining Conference | Panama | November 14-16, 2012 24 24
  25. 25. Appendix 1 Capitalization and liquidity April 2012 Senior Note Financing Average Daily Trading(3) • Completed $300 million 7% unsecured note financing on April 5th and announced 8 ~7.3mm redemption of C$187 million 10% senior ~7.0mm secured notes 7 • Multiple benefits 6 ~5.5mm – Lower interest rate – 7% vs. 10% 5 Million shares – Extended term – 2020 vs. 2017 4 – Enhanced flexibility – ability to institute dividend; notes are unsecured 3 – Additional $90 million cash on balance 2 sheet post redemption/costs ~1.0mm 1 Cash and equivalents - $148 million(1) 0 2008 2009 2010 2011 Debt - $398 million(1)(2)Notes: 1. Cash and debt positions as of September 30, 2012. 2. See Appendix 1 for detailed breakdown of components of debt. 3. Averages based on combination of all trading platforms including: TSX, Alpha, Pure and NYSE Amex. GMP Latin American Mining Conference | Panama | November 14-16, 2012 25 25
  26. 26. Appendix 1 Summary of debt Undrawn Credit Convertible Senior Notes El Morro Funding Loan Facility Debentures Face Value $150 million(1) $300 million C$55 million $56 million Maturity 3 years with annual April 15, 2020 June 28, 2014 n/a extensions permitted Interest Rate See ‘Key features’ 7% 5% 4.58% Payable Revolving credit Semi-annually Semi-annually Upon start of production Conversion price n/a n/a C$9.35 n/a Current trading value n/a ~106 ~$115 n/a Key features Normal financial • Senior unsecured Redeemable after New Gold to repay covenants • Redeemable after January 1, 2012 with Goldcorp out of 80% of April 15, 2016 at between 30 and 60 its 30% share of cash Interest Rate 103.5% down to days notice provided flow once El Morro starts • 3% over LIBOR based 100% of face after shares trading over production on ratios 2018 C$11.69 • Standby fee of 0.75% • Unlimited dividends if leverage ratio below 2:1Notes: 1. $30 million currently allocated for Letters of Credit. GMP Latin American Mining Conference | Panama | November 14-16, 2012 26 26
  27. 27. Appendix 1 Trend of expanding margins continues $1,800 $1,575 $1,560 $1,600 $1,460 $1,486 $1,032 $1,117 $1,400 $1,014 $1,014 Realized gold price $1,194 (US$/oz) $1,200 $987 $766 Margin (US$/oz) $1,000 $863 US$/oz $522 Cash Cost(1) $800 $297 (US$/oz) $600 $566 $543 $400 $465 $446 $472 $443 $428 $200 $0 2008A 2009A 2010A 2011A Q112 Q212 Q312Note: 1. Refer to Cautionary Statement and note on Total cash cost. GMP Latin American Mining Conference | Panama | November 14-16, 2012 27 27
  28. 28. Appendix 1 2012 third quarter financial highlights Earnings from Mine Operations Adjusted Net Earnings per Share ($ millions) ($ per share)$100 $0.15 $77 $76 $78 $76 $0.11 $75 $0.10 $0.10 $0.10 $0.09 $50 $0.05 $25 - - Q312 Q212 Q112 Q311 Q312 Q212 Q112 Q311Cash Generated from Operations before Working Capital Net Cash Generated from Operations ($ millions) ($ millions)$100 $91 $100 $80 $82 $80 $71 $75 $75 $47 $46 $50 $50 $37 $25 $25 - - Q312 Q212 Q112 Q311 Q312 Q212 Q112 Q311 GMP Latin American Mining Conference | Panama | November 14-16, 2012 28 28
  29. 29. Appendix 1 Track record of per share growth outperforming gold Average gold price increased by 62% from 2009 through 2011 Adjusted earnings per share Net cash generated from operations per share $0.44 267% 104% $0.53 $0.48 $0.30 $0.26 $0.12 2009 2010 2011 2009 2010 2011 Net asset value per share(1)(2) Measured & Indicated gold resource per 1,000 shares(3) $11.02 25% 348% 40.8 32.7 $6.68 $2.46 6/1/09 12/31/10 12/31/11 12/31/10 12/31/11Notes: 1. Net asset value as at June 1, 2009 based on New Gold and Western Goldfields business combination. 2. Based on average of consensus net asset value per share ascribed by analysts covering New Gold. 3. Measured and Indicated gold resource shown inclusive of reserves. GMP Latin American Mining Conference | Panama | November 14-16, 2012 29 29
  30. 30. Appendix 1 2012 guidance Gold production(1) Total cash cost(1) 405 - 445Koz $410 - $430/oz 2012 cash cost estimate assumes: 2012 Guidance • $30.00 per ounce silver Gold production Total cash cost(1) • $3.50 per pound copper (ounces) ($/oz) • Parity Australian dollar Mesquite 140,000 - 150,000 $710 - $730 • Parity Canadian dollar Cerro San Pedro 140,000 - 150,000 $250 - $270 Total company cash cost subject to following sensitivities: Peak Mines 90,000 - 100,000 $640 - $660 • +/- $1.00 per ounce silver ~ +/- $5 per ounce • +/- $0.25 per pound copper ~ +/- $25 per ounce New Afton 35,000 - 45,000 ($1,200) - ($1,300) • +/- $0.05 AUD FX ~ +/- $10 per ounce Total 405,000 - 445,000 $410 - $430 • +/- $0.05 CDN FX ~ +/- $5 per ounceNotes: 1. Refer to Cautionary Statement and note on Total cash cost. GMP Latin American Mining Conference | Panama | November 14-16, 2012 30 30
  31. 31. Appendix 2 Mesquite 2011 Actual & 2012 Guidance Gold production (ounces) 2011A 2012E 140,000 - 150,000 Tonnes processed 11,733 12,500 – 13,500 (000 tonnes) Tonnes mined 45,973 45,000 – 47,000 (000 tonnes) Total cash cost ($ per ounce) Grade - gold (g/t) 0.57 0.50 – 0.55 $710 - $730 Capital 19 ~14 ($ million) 2011A versus 2012E Key assumptions and sensitivities • Lower strip ratio to result in higher ore tonnes • Diesel comprises ~20% of Mesquite’s total costs processed • Rack diesel price most correlated to Brent oil price • Gold grade is expected to decline from 2011 − Brent oil price increased by 13% since levels beginning of 2011 • Increase in costs primarily driven by lower • Every 10% change in diesel price has ~$15 per gold production ounce impact on costsNotes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxide; ~35% for sulphides. GMP Latin American Mining Conference | Panama | November 14-16, 2012 31 31
  32. 32. Appendix 2 Cerro San Pedro 2011 Actual & 2012 Guidance Gold production (ounces) 2011A 2012E 140,000 - 150,000 Tonnes processed 16,763 14,000 – 15,000 (000 tonnes) Silver production (million ounces) Tonnes mined 33,276 31,000 – 33,000 1.9 - 2.1 (000 tonnes) Grade - gold (g/t) 0.48 0.55 – 0.60 Total cash cost ($ per ounce) Grade – silver (g/t) 24 20 – 25 $250 - $270 Capital 7 ~16 ($ million) 2011A versus 2012E Key assumptions and sensitivities • Expected production of gold and silver consistent • Silver price - $30 per ounce (2011A - $35.15/oz) with 2011 • Mexican Peso: U.S. foreign exchange – 13:1 • Decrease in tonnes processed offset by • $1.00 per ounce change in silver equals ~$15 per grade and recovery movements ounce change in Cerro San Pedro cash cost • Increase in costs primarily driven by lower silver • 1.0 change in Mexican Peso equals ~$15 per by-product price assumption ounce change in Cerro San Pedro cash costNotes: 1. Cerro San Pedro life-of-mine recovery continues to track at: Gold – ~60%, Silver – ~30%. GMP Latin American Mining Conference | Panama | November 14-16, 2012 32 32
  33. 33. Appendix 2 Peak Mines 2011 Actual & 2012 Guidance Gold production (ounces) 2011A 2012E Tonnes processed 90,000 - 100,000 783 780 – 800 (000 tonnes) Tonnes mined 755 780 – 800 Copper production (million pounds) (000 tonnes) 12 - 14 Grade - gold (g/t) 3.94 4.0 – 4.2 Grade – copper (%) 0.93 0.88 – 0.90 Total cash cost ($ per ounce) Recovery – gold (%) 89 88 – 90 $640 - $660 Recovery – copper (%) 82 85 - 87 Capital 50 ~60 ($ million)2011A versus 2012E Key assumptions and sensitivities• Increased gold production driven by increases in • Copper price - $3.50 per pound (2011A - $3.78/lb) tonnes processed, gold grades and recoveries • Australian dollar: U.S. foreign exchange – 1:1• Similar copper production a result of increased • $0.25 per pound change in copper equals ~$35 per tonnes processed and copper recoveries offset ounce change in Peak cash cost by lower copper grades • 0.01 change in Australian dollar equals ~$10 per ounce change in Peak cash cost GMP Latin American Mining Conference | Panama | November 14-16, 2012 33 33
  34. 34. Appendix 3Block cave mines GMP Latin American Mining Conference | Panama | November 14-16, 2012 34 34
  35. 35. Appendix 3 New Afton – 2012 production start-up • The combination of over six months of active underground mining and the existence of the ore stockpile led to an efficient mill start-up • Mill started on June 28, 2012 • Commercial production achieved on July 31, 2012Tonnes per day15,000 Period of drawdown of stockpile inventory Mill reaches 11,00012,500 tpd10,000 7,500 Mining/milling rate reach 11,000 tpd run- 5,000 rate level Mill starts in June and reaches 2,500 6,600 tpd commercial rate in August - January March May July September November January March 2012 2013 Mine tpd Mill feed tpd GMP Latin American Mining Conference | Panama | November 14-16, 2012 35 35
  36. 36. Appendix 3Production and sales New Afton 2012 Guidance Gold production (ounces) Tonnes processed (000 tonnes) 1,900 – 2,200 35,000 - 45,000 Grade - gold (g/t) 0.75 – 0.85 Grade - copper (%) 0.85 – 0.95 Copper production (million pounds) Recovery – gold (%) 88 – 90 30 - 35 Recover – copper (%) 88 – 90 Gold sales (ounces) • Difference between production and sales a result of pre-commercial production 20,000 - 30,000 commodity sales being net against capital costs and timing of certain concentrate sales Copper sales (million pounds) 20 - 25 GMP Latin American Mining Conference | Panama | November 14-16, 2012 36 36
  37. 37. Appendix 3 Operating costs • Operating costs ~$25 per tonne in first five months of commercial production(1) – Life-of-mine average ~$18 - $22 per tonne ~$6.20/t ~$4.60/t ~$9.20/t Processing Mining G&A 2012 co-product cash cost(3) 2012 by-product cash cost(2) $630 - $650 per ounce, ($1,200) - ($1,300) per ounce $1.35 - $1.45 per pound • Costs expected to be lower in future years as ‘per tonne’ cost reaches steady-state level – Life-of-mine average by-product cost ~($1,750)(4) – Life-of-mine average co-product costs(4) of ~$525 per ounce gold and ~$1.15 per pound copperNotes: 1. Includes treatment and refining charges and assumes parity Canadian/U.S. dollar foreign exchange rate. 2. Assumes $3.50 per pound copper price and parity Canadian/U.S. dollar foreign exchange rate. 3. Co-product costs calculated on a percentage of revenue basis and assume a gold price of $1,600 per ounce. 4. Based on assumption of $1,600 per ounce gold, $3.50 per pound copper and a parity foreign exchange rate. GMP Latin American Mining Conference | Panama | November 14-16, 2012 37 37
  38. 38. Appendix 3 New Afton – C Zone exploration• 3 phase underground core drilling program totaling 40,000 meters commencing Q3 2012• Phase 1: ~15,000 meters to delineate eastern limits of C-zone and assess potential to lower block cave extraction level for B3 reserve block - estimated completion by end Q1’13• Phases 2 & 3: ~25,000 meters to explore extensions to west and at depth - estimated completion Q4’13 C Zone Resource (2010) Tonnes Au Cu Gold Copper 000’s g/t % Koz Mlbs M&I 3,637 0.78 0.96 92 76 Inferred 11,317 0.60 0.75 218 186 Cross Long Section Section Looking South Looking East GMP Latin American Mining Conference | Panama | November 14-16, 2012 38 38
  39. 39. Appendix 4 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. Based on 2011 Feasibility Study. GMP Latin American Mining Conference | Panama | November 14-16, 2012 39 39
  40. 40. Appendix 4 Selected porphyry gold/copper deposits/mines(1) Gold Grade (g/t) 0.80 0.70 0.60 $38/t $42/t El Morro 0.50 $51/t 0.40 $27/t $40/t 0.30 $24/t $49/t 0.20 0.10 $29/t Copper -- Grade 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% (%) Agua Rica Alumbrera Cadia-Ridgeway (2) Cerro Casale Chapada Cobre Panama El Morro Mt. MilliganSource: Company disclosure.Notes: 1. Circle sizes are representative of contained metal value of the reserves per tonne of reserve. Contained metal value calculated using Street research consensus long-term commodity pricing. 2. Includes “Cadia East Underground” and “Ridgeway Underground” reserves as indicated in Newcrest’s February 10, 2012 press release; does not include “Other” Cadia province reserves. GMP Latin American Mining Conference | Panama | November 14-16, 2012 40 40
  41. 41. Appendix 4 El Morro relative positioning(1) El Morro within Goldcorp portfolio (2) Gold Reserves Gold Equivalent Asset Asset (Moz) (Moz) Penasquito 16.5 Penasquito 45.2 Pueblo Viejo 10.1 El Morro 15.4 Los Filos 7.8 Pueblo Viejo 11.8 El Morro 5.8 Los Filos 8.7 Cerro Negro 4.5 Cerro Negro 5.2Notes: 1. Based on Goldcorp’s December 31, 2011 year-end resource statements. 2. Gold equivalent calculated based on the following commodity prices: Gold - $1,595/oz; Silver - $28.75/oz; Copper - $3.50/lb; Lead - $0.88/lb; Zinc - $0.86/lb. GMP Latin American Mining Conference | Panama | November 14-16, 2012 41 41
  42. 42. Appendix 5Blackwater drill program Cumulative number Cumulative number Drilling cut-off date of holes of metres March 2011 December 31, 2010 77 24,563 Initial Resource September 2011 July 31, 2011 148 49,223 Resource update Year-end 2011 November 30, 2011 218 67,848 Resource update March 2012 December 31, 2011 261 89,460 Resource update April 2012 March 5, 2012 328 115,9502012 assays received July 2012 May 14, 2012 449 149,739 Resource update GMP Latin American Mining Conference | Panama | November 14-16, 2012 42 42
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