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Print version corporate presentation - february 6, 2013

  1. 1. Corporate PresentationFebruary 2013
  2. 2. 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 cause actualresults, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: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 and Chile;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 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. 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, 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 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 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 voluntary andthe 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 costs such asmining, 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 dividedby 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 miningoperations. 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 comparable tosimilar 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 of operatingcosts 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. Thismetric 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. 3
  4. 4. 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 4
  5. 5. 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. 5
  6. 6. 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) explorationMeasured and Indicated resources Increase resources organically atincreased by 10% per share; New Blackwater, New Afton C-Zone andAfton extended mine life by two Peak MinesyearsSuccessfully completed Blackwater Focus on Feasibility Study andPreliminary Economic Assessment Permitting 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 Pierre Lassonde, Chairman Franco-Nevada Collectively over $125 million invested in New Gold Randall Oliphant, Executive Chairman Raymond Threlkeld, CEO Rainy River Resources 7
  8. 8. Growing resource base in solid jurisdictions Measured & Indicated Gold Resources per 1,000 shares M&I Resources(2): 21.4 Moz 50 40 Blackwater 30 New Afton 20 Cerro San Pedro Mesquite 10 - YE 2009 (1) YE 2010 YE 2011 YE 2012 El Morro(3) Track record of increasing M&I gold resources on a ‘per share’ basis Operating assets Peak Mines Development projectsNotes: 1. Excludes resources from Amapari which was sold in April 2010. 2. Refer to New Gold website for detailed disclosure on reserve and resource calculations. Measured and Indicated resources inclusive of reserves, and Capoose Indicated resources of 196Koz. 3. New Gold holds a fully carried 30% interest in the El Morro project. 8
  9. 9. Fourth quarter leads to strong 2012 Fourth Quarter and Full Year 2012 Gold Production (thousand ounces) • Fourth quarter was the strongest of 2012 and 450 412 among the best in New 300 Gold’s history 150 113 • New Afton started to hit - Q412 FY2012 its stride Fourth Quarter and Full Year 2012 Total Cash Costs ($/ounce)(1) • Mining of higher grade $600 areas at Peak Mines $421 $400 $254 • Fourth quarter total cash $200 costs(1) demonstrate company’s low costs - Q412 FY2012 • Highest ever quarterly and Fourth Quarter and Full Year 2012 Average Realized Margin ($/ounce)(2) annual average realized $1,400 $1,324 margin $1,130 $1,100 $800 $500 Q412 FY2012Notes: 1. Refer to Cautionary Statement and note on Total cash costs. 2. Average realized margin per ounce calculated as average realized gold price in fourth quarter and full year 2012 less total cash costs per ounce during fourth quarter and full year 2012. 9
  10. 10. Operational execution Gold production(1) (thousand ounces) 412 383 387 302 2009 2009 2010 2010 2011 2011 2012 2012 Guidance Actual Guidance Actual Guidance Actual Guidance Actual Total cash costs(1)(2) ($/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. 10
  11. 11. 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. 11
  12. 12. 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. 12
  13. 13. 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. 13
  14. 14. New Afton – Looking to unlock additional value• Exploration work starting mid-2012 led to two year mine life extension • Additional positive results from C-Zone drilling• Mill throughput averaged 11,706 tonnes per day in fourth quarter 2012 • Daily record – 13,840 tonnes• 65 drawbells targeted by mid-2013 to increase ore access points• Excess capacity – Gyratory crusher (20,000 tonnes per day); Conveyor (14,500 tonnes per day)• Working to optimize mill for sustained higher throughput• First step – Targeting sustainable 12,000 tonnes per day by end of 2013Simultaneously evaluating additional resource potential of C-Zone and optimizing mill forthroughput increases with goal of extending 14-year mine life at higher production rates 14
  15. 15. 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 New Gold website for detailed disclosure on reserve and resource calculations. 15
  16. 16. Blackwater – A robust project • Central British Columbia near infrastructure Measured and Indicated Gold Resources(1) • Year-round accessibility for drilling/ development 8.1 million ounces • Total 2012 drilling over 270,000 metres project wide • Ability to fund continued exploration/ development internally • Tax synergies with New Afton • PEA completed September 2012 • Targeting completion of Feasibility Study by late 2013 • Targeting production in 2017 • Consolidated significant land position – 1,000km2Notes: 1. Refer to website for detailed disclosure on Reserve and Resource calculations. 2. Blackwater start date based on indicative timeline which is dependent on permit approvals and the determination that the deposit is economically viable. 16
  17. 17. Blackwater – Area map ~112km to Vanderhoof Capoose Resource Blackwater ~160km to Project Prince George 50km Blackwater Resource 80km 17
  18. 18. 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. 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. Net asset value and relative performance Net Asset Value(1) NGD Gold Price S&P/TSX Gold Index FTSE Gold Mines Index 500% HUI Index 6/1/09 Today Closing of 450% Richfield acquisition Mesquite, Cerro San Pedro, Peak Mines 400% ~ $875 $1,775 350% +236% Completed $1.2bn business New Afton 300% combination with Western Goldfields 250% ~ $120 $1,491 200% +72% El Morro(2) 150% 2% ~ $40 $697 100% (12%) 50% (16%) Blackwater(3) 0% $-- $1,502 25-Aug-10 13-Sep-12 1-Jun-09 18-Nov-11 28-Mar-10 22-Jan-11 21-Jun-11 16-Apr-12 29-Oct-09 6-Feb-13Source: Broker Reports, Company Estimates and Announcements, Bloomberg, all amounts in USD.Notes: 1. Street consensus NAV. 2. Current street consensus NAV for El Morro; Includes $50 million cash payment received from Goldcorp as part of transaction consideration. 3. New Gold purchased Richfield and Silver Quest with the deals closing on June 1, 2011 and December 23, 2011, respectively. 4. S&P/TSX Gold Index includes 54 gold companies in various stages of development/production. 20 5. FTSE Gold Mines Index includes 26 gold producing companies. 6. HUI Index includes 15 of the major global gold producers.
  21. 21. 2013 catalysts 2013 guidance – increased resources, production growth and lower costs Blackwater regional exploration update New Afton C-Zone exploration update Completion of Blackwater Feasibility Study New Afton mill to reach 12,000 tonnes per day Resolution of El Morro temporary permit suspension Results of New Afton throughput increase evaluation 21
  23. 23. Appendix Appendices Page 1. Financial information 24 2. Consolidated operating performance 29 3. Mesquite, Cerro San Pedro, Peak Mines 34 4. New Afton 38 5. El Morro 47 6. Blackwater 53 7. Reserves and resource notes 58 8. Commodity price/foreign exchange assumptions 63 23
  24. 24. Appendix 1 Summary of debt Undrawn Credit Senior Unsecured Notes Senior Unsecured Notes El Morro Facility (April 2012) (November 2012) Funding Loan Face Value $150 million(1) $300 million $500 million $65 million Maturity 1 year with annual April 15, 2020 November 15, 2022 n/a extensions permitted Interest Rate See ‘Key features’ 7.00% 6.25% 4.58% Payable Revolving credit Semi-annually Semi-annually Upon start of production Conversion price n/a n/a n/a n/a Current trading n/a ~107 ~105 n/a value Key features Normal financial • Senior unsecured • Senior unsecured New Gold to covenants • Redeemable after April • Redeemable after repay Goldcorp 15, 2016 at 103.5% November 15, 2017 at out of 80% of its Interest Rate down to 100% of face par plus half coupon, 30% share of • 3.00-4.25% over after 2018 declining ratably to par cash flow once El LIBOR based on • Unlimited dividends if • Unlimited dividends if Morro starts ratios leverage ratio below 2:1 leverage ratio below 2:1 production • Standby fee of 0.75-1.06%Notes: 1. $50 million currently allocated for Letters of Credit. 24
  25. 25. Appendix 12012 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 25
  26. 26. Appendix 12013 capital expenditures by category•The below breaks down capital expenditures at each site into two categories – annual sustaining capital anddirect 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 26
  27. 27. Appendix 12013 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 27
  28. 28. Appendix 12013 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: $10 million 28
  29. 29. Appendix 2 Fourth quarter and full year 2012 operating asset overview Mesquite Cerro San Pedro Peak Mines New Afton Total Q412 2012 Q412 2012 Q412 2012 Q412 2012 Q412 2012 Gold production (Koz) 29 142 32 138 29 96 23 37 113 412 Gold sales (Koz) 30 142 31 134 26 89 23 30 110 396 Silver production (Koz) -- -- 401 1,939 -- -- -- -- 401 1,939 Silver sales (Koz) -- -- 420 1,926 -- -- -- -- 420 1,926 Copper production (Mlbs) -- -- -- -- 3.6 14.4 17.3 28.5 20.9 42.8 Copper sales (Mlbs) -- -- -- -- 3.0 13.0 16.8 22.6 19.8 35.6 Total cash costs (1) ($/oz) $787 $690 $320 $232 $743 $764 ($1,067) ($1,043) $254 $421Notes: 1. Refer to Cautionary Statement and note on Total cash costs. 29
  30. 30. Appendix 2 Trend of expanding margins continues $1,551 $1,600 $1,460 $1,130 $1,400 $1,014 $1,194 $1,200 Realized gold price $766 (US$/oz) $987 $1,000 $863 $522 Margin (US$/oz) US$/oz $800 $297 Cash Cost(1) (US$/oz) $600 $566 $400 $465 $446 $428 $421 $200 $0 2008A 2009A 2010A 2011A 2012ANote: 1. Refer to Cautionary Statement and note on Total cash cost. 30
  31. 31. Appendix 2 2013 guidance 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 $30.00 per ounceNotes: 1. Gold sales range forecast to be 440,000 to 480,000 ounces. 2. Refer to Cautionary Statement and note on Total cash costs. 31
  32. 32. Appendix 2 2012 actuals versus 2013 guidance Gold Production (Koz) Total Cash Costs(1) ($/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-$1.30/lb. 32
  33. 33. Appendix 2 Detailed operating results/assumptions Mesquite Cerro San Pedro Peak Mines New Afton 2012A 2013E 2012A 2013E 2012A 2013E 2012A 2013E Tonnes processed (000 tonnes) 14,503 14,250-14,750 16,531 12,250-12,750 778 815-835 1,970 4,000-4,200 Tonnes mined (000 tonnes) 45,666 46,000-48,000 30,905 36,000-38,000 786 1,310-1,330 903 4,300-4,500 Gold grade (g/t) 0.46 0.41-0.45 0.47 0.58-0.63 4.18 4.1-4.3 0.73 0.67-0.71 Silver grade (g/t) -- -- 21.43 13.0-17.0 -- -- -- -- Copper grade (g/t) -- -- -- -- 0.97% 0.80-0.84% 0.78% 0.86-0.90% Gold recovery (%) (1) (1) (2) (2) 91.3% 90.0-92.0% 78.8% 88.0-90.0% Silver recovery (%) -- -- (2) (2) -- -- -- -- Copper recovery (%) -- -- -- -- 86.0% 89.0-91.0% 84.5% 88.0-90.0% Capital expenditures ($mm) $11 $20 $15 $40 $47 $60 $297 $110Notes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxides; ~35% for sulphides. 2. Cerro San Pedro life-of-mine recovery: Gold – ~60%; Silver – ~25%. 33
  34. 34. Appendix 3 Mesquite Gold Production(1) (Koz) Total Cash Costs(2) ($/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 ~$20 per and lower production base ounce impact on costsNotes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxides; ~35% for sulphides. 2. Refer to Cautionary Statement and note on Total cash costs. 34
  35. 35. Appendix 3 Cerro San Pedro Gold Production(1) (Koz) Silver Production(1) (Moz) Total Cash Costs(2) ($/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 • ~$95 per ounce of increase in costs ounce change in Cerro San Pedro cash costs attributable to lower silver by-product revenue • Silver grades decreasing by ~25%Notes: 1. Cerro San Pedro life-of-mine recovery continues to track at: Gold – ~60%; Silver – ~25%. 2. Refer to Cautionary Statement and note on Total cash costs. 35
  36. 36. Appendix 3 Peak Mines Gold Production (Koz) Copper Production (Mlbs) Total Cash Costs(1) ($/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 ~$10 per increased gold production and lower foreign ounce change in Peak Mines cash costs exchange rate assumption versus average 2012 exchange rateNotes: 1. Refer to Cautionary Statement and note on Total cash costs. 36
  37. 37. Appendix 3Peak corridor map Great Cobar ~9 kilometres 37
  38. 38. Appendix 4 New Afton Gold Production (Koz) Copper Production (Mlbs) 74 85 66 75 37 28 2012A 2013E 2012A 2013E2012A versus 2013E• New Afton entering first full year of production in 2013 after successful 2012 start-up• Increased gold production driven by a full year of operations as well as continued recovery improvements, partially offset by lower gold grade• Copper production expected to more than double, driven by full year of production as well as increases in copper grades and recoveries 38
  39. 39. Appendix 4 New Afton (cont’d) Total Cash Costs(1) ($/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. 39
  40. 40. Appendix 4 Overview of New Afton mill start-up• Successful mill start-up 2012 Mill Ramp-Up • June 28, 2012 – first ore through mill meeting targeted start date 14,000 • July 31, 2012 – achieved commercial production ahead 11,661 12,252 11,682 12,000 11,183 of schedule Nameplate Capacity 9,734 • September 21, 2012 – achieved full production (11,000 10,000 tonne per day design capacity) over one month ahead 8,000 7,428 of schedule 6,000 • November/December 2012 – scheduled throughput 3,799 decrease to manage stockpile/feed inventory in 4,000 advance of permanent crusher installation in January 2,000 2013 -• Throughput averages 11,706 tonnes per day in fourth Jun Jul Aug Sep Oct Nov Dec quarter 2012 Daily average throughput by month (tonnes per day)• Record daily throughput of 13,840 tonnes 40
  41. 41. Appendix 4Ore access/drawbell development/mining rate• Drawbell development has been progressing at a faster rate than planned• 50 active drawbells required to source 11,000 tonnes per day of ore feed • Completed 50th drawbell on November 22, 2012 – At December 31, 2012 – 54 drawbells had been completed Drawbell Development• As a result of accelerated drawbell development, 100 ~90 took the opportunity to develop the East Cave, 80 ~65 the benefits of which include: 60 54 40 • Additional ore access points 20 • More consistent annual production profile 0 December 31, 2012 June 30, 2013 December 31, 2013 Target Target • Added flexibility It is expected approximately 65 active drawbells would ultimately provide ~25-30% more ore, resulting in potential for similar increase in mining rate 41
  42. 42. Appendix 4New Afton drawbell development and ore columns Copper resource grades Height of Draw Accelerating East Cave development for added flexibility/more ore sources 54 drawbells in production at end of 2012 Central Cave to be activated Final 11 drawbells later in mine life East Cave in West Cave production to begin mid-year Planned development 42 in 2013
  43. 43. Appendix 4Mining rate increase timeline • Commission gyratory crusher • Increase underground mining rate to 11,000 tonnes per day Q1’2013 • Complete VR7 rehab and implement push/pull ventilation • Ventilation study to increase overall system capacity • Increase mining rate to 11,500 tonnes per day • Ore haulage studies to optimize scoops and trucks Q2’2013 • Begin mining in East Cave • Total 65 completed drawbells Q3’2013 • Continued drawbell development • Step up mining rate to 12,000 tonnes per day Q4’2013 • Total 90 completed drawbells 43
  44. 44. Appendix 4 Mill capacity• Record daily throughput of 13,840 tonnes • 12,250 tonnes per day sustained in October 2012 with no significant optimization efforts• Key considerations for increased mill throughput include: • SAG Mill: Flexibility to optimize mill power and burden level for finest possible product size distribution over a wide range of ore conditions • Ball Mill: Optimize SAG screen deck and hydrocyclone cluster configurations for SAG/Ball Mill circuit balance; optimal Ball Mill feed size and classification efficiency • Flotation: Capacity is adequate for substantial increase in throughput • Concentrate Filtration: Existing capacity for incremental production increase; ample space for installation of third filter • Tailings Pumping Capacity: Three stage variable speed pumps currently running well below maximum capacities 44
  45. 45. Appendix 4Mill throughput increase timeline • Optimize crushing and conveying with gyratory crusher Q1’2013 • Hold mill at 11,000 tonnes per day average, build-up live stockpile • Crushing and conveying output achieves steady-state – mill matching at Q2’2013 11,500 tonnes per day average • Target completion of several efficiency improvements including: cyclones, Q3’2013 Ball Mill trommel, pebble crusher, screen deck, expert system • Increase crushing and conveying output as experience is gained Q4’2013 • Target of mill throughput increase to 12,000 tonnes per day 45
  46. 46. Appendix 4New Afton C-Zone exploration program - Highlights A-Zone A-Zone 5,400m 5,400m B-Zone East Extension B-Zone 4,900m 4,900m EA-2 EA-2 EA-9 EA-9 EA-11 EA-21 C-Zone EA-21 EA-11 C-Zone EA-19 EA-19 * EA-24 * * EA-24 * * Historic “Deep C-Zone” Intercepts AF-125: 122m @ 1.01 g/t Au, 1.23% Cu * Holes completed - Assays pending AF-139: 92m @ 1.09 g/t Au, 1.36% Cu Fourth Quarter 2012 C-Zone Drilling Highlights Drill Hole From (m) To (m) Interval (m) Au g/t Cu % EA12-7 424 494 70 1.23 1.19 Drilling highlights not EA12-9 286 444 158 0.88 0.94 EA12-11 418 528 110 1.05 0.90 included in 2012 year EA12-19 460 626 166 1.23 1.28 end resource update EA12-21 488 597 109 1.06 0.95 EA12-24 574 730 156 1.01 1.02 46
  47. 47. Appendix 5 El Morro 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. 47
  48. 48. Appendix 5El Morro project – Plan view 48
  49. 49. Appendix 5La Fortuna deposit 2012 open pit Proven and Probable reserves and Measured and Indicated resources Underground Inferred resource with block cave potential 500 metres 49
  50. 50. Appendix 5 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. 50
  51. 51. Appendix 5 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. 51
  52. 52. Appendix 5 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 - $0.86/lb. 52
  53. 53. Appendix 6Blackwater – Project overview• Start of production in 2017• Conventional truck and shovel open pit mine with 60,000 tonnes per day processing plant• Life-of-mine strip ratio of 2.4 to 1• Low grade stockpiling strategy• Simple, conventional flowsheet using whole ore leach process• Life-of-mine gold and silver recoveries of 87% and 53%, respectively• Conventional waste rock and Tailings Storage Facility• Power supply from the hydroelectric power grid, via 133 kilometre transmission line• Minimal off-site infrastructure required • Good existing access road; water supply within 15 kilometres• Low environmental risk and facility designed for closure 53
  54. 54. Appendix 6Blackwater PEA costs – CapitalProject Development Capital Costs • Project is located 112 kilometres southwestDescription Cost ($ million) from Vanderhoof and has access to low cost hydroelectric powerDirect CostsMining & Pre-production Development $208 • Development capital estimate of $1.8 billion is inclusive of a 24% or $346 millionOn Site Infrastructure $181 contingencyProcess $539 • Development capital estimated based on theTailing and Water Reclaim $74 current cost environmentInfrastructure (Power, Water, Road) $85Total Direct Costs $1,087 • A parity foreign exchange rate was assumed and the capital estimate was held constant inOwners and Indirect Costs the economic analysisOwners Costs $54 • Sustaining capital of $537 million, reclamationEPCM $112 and closure costs of $95 million and $72 millionOther Indirects $215 in equipment salvage valueTotal Owners and Indirect Costs $381Subtotal $1,468 Total development and sustainingContingency (24%) $346 capital estimated at $294 perTotal Project $1,814 recoverable gold ounce 54