Good morning. My name is Michelle, and I will be your conference operator today. Welcome to the New Gold fourth quarter 2022 earnings conference call and webcast. All lines have been placed on mute to prevent any background noise. Please be advised that today's conference call and webcast is being recorded. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, then the one on your telephone keypad. If you would like to withdraw your question, please press star then the two. I would now like to hand the conference over to Ankit Shah, Vice President of Strategy and Business Development. Please go ahead. Thank you, Michelle. Good morning, everyone. We appreciate you joining us today for New Gold's fourth quarter and year-end 2022 earnings conference call and webcast. On the line today, we have Patrick Godin, President and CEO, and Rob Chausse, our CFO. Should you wish to follow along with the webcast, please sign in from our homepage at newgold.com. Before the team begins the presentation, I'd like to direct your attention to our cautionary language related to forward-looking statements found on slides two and three of the presentation. Today's commentary includes forward-looking statements relating to New Gold. In this respect, we refer you to our detailed cautionary note regarding forward-looking statements in the presentation. You are cautioned that actual results in future events could differ materially from those expressed or implied in forward-looking statements. Slides two and three provide additional information and should be reviewed. We also refer you to the section entitled Risk Factors in New Gold's latest Annual Information Form, MD&A, and other filings available on SEDAR, which set out certain material factors that could cause actual results to differ. In addition, at the conclusion of the presentation, there are a number of endnotes that provide important information and should be reviewed in conjunction with the material presented. I'll now turn the call over to Rob. Thanks, Ankit. Good morning. I'll start with slide five, which provides our operational highlights. The production details on this slide are consistent with our January production press release. During Q4, the company produced 97,800 gold equivalent ounces. Some out consisted of 6.9 million pounds of copper and approximately 69,700 gold ounces from Rainy River and 10,900 gold ounces from New Afton, totaling 80,700 gold ounces. The lower equivalent gold production as compared to the prior year quarter is primarily the lower tons mined and processed at New Afton. Our operating expense per equivalent ounce was higher than the prior year quarter, primarily due to lower production and therefore lower sales volume. Consolidated all-in sustaining costs for the quarter were $1,668 per equivalent ounce, higher than the prior-year quarter, primarily due to lower copper sales volume and higher sustaining capital spend. We continued to invest in sustaining capital at our operations during the fourth quarter, with the impact of sustaining capital spend per ounce being $360 per ounce in the quarter. Turning to our financial results Slide 6, fourth quarter revenue was $162.8 million, driven by sales of 78,500 gold ounces at an average realized price of $1,751 per ounce and sales of 6.8 million pounds of copper at $3.74 per pound. Q4 revenue was lower than the prior-year quarter, primarily due to lower copper sales volumes and prices. Our operating cash flow before working capital adjustments was $44.3 million or $0.06 per share for the quarter, lower than the prior year quarter. The prior year period included the sale of a Blackwater stream. The company recorded a net loss of $16.9 million or $0.02 per share during Q4, compared to net income of $0.22 per share in Q4 of 2021. Again, that prior year period included the Blackwater stream gain. After adjusting for other certain charges, net loss was $6.3 million or $0.01 per share in Q4 compared to net earnings of $0.04 per share in the fourth quarter of 2021. Net loss increases primarily due to lower revenues. Our Q4 adjusted earnings includes adjustments related to our gains and losses, which include unrealized adjustments on the Rainy River stream mark-to-market and the free cash flow royalty at New Afton. Our MD&A has further details on these non-GAAP measures. Our total CapEx and leases for the quarter was $74.3 million. $37.2 million was spent on sustaining capital and $37.1 million on growth capital. Sustaining spend was primarily related to the plant's tailings work, at both operating assets, capital stripping at Rainy River and B3 mine development at New Afton. Our growth capital was focused on our project development, specifically C-Zone at New Afton and the underground Intrepid Zone at Rainy River. Slide seven provides our capital structure. Cash on hand as at year-end was $201 million, and liquidity was $597 million. The decrease in cash from the prior year quarter is primarily due to continued capital investments at our operations. With that, I'll turn the call over to Pat. Thank you, Rob, and good morning, everyone. Slide nine provides a summary of our 2023 operational outlook. gold equivalent production is expected to increase by over 13% to 365,000 ounces-425,000 ounces. Similar to last year, we expect the production distribution to be more evenly weighted to the second half of the year at approximately 55%. All-in sustaining costs are also expected to decrease by over $50 an ounce to $1,500-$1,600 an ounce. Costs are lower than last year due to the lower sustaining capital expenditures in higher productions. We expect the cost to trend lower in the second half of the year, consistent with the production profile. Sustaining capital is expected to be $140 million-$170 million. As mentioned, Sustaining capital is expected to decrease versus last year, primarily as we complete B-three development at New Afton. Growth capital is expected to be $150 million-$155 million. This is an increase over last year and it's primarily referred to the C-zone development at New Afton and underground development at Rainy River. Slide 10 provide further details on Rainy River 2023 outlook. Gold equivalent production is expected to increase to 225,000 ounces-265,000 ounces, primarily due to an increase in gold grade, ton mines and process, as well as the ramp-up of the Intrepid zone. Similar to last year, we expect the production distribution to be more heavily weighted to the second half of the year at approximately 55%. All-in sustaining costs are also expected to decrease to $1,475-$1,575. Costs are lower than last year, primarily due to higher productions. Sustaining capital is expected to be $125 million-$125 million, primarily related to capital waste, annual tailing being raised, dam raise, maintenance program and other sustaining capital related to the Intrepid development. Growth capital is expected to be $20 million-$30 million and is primarily related to the development of the Intrepid zone and commencing development of the main underground zone below the pits. Slide eleven provides further details on New Afton 2023 outlook. Gold equivalent production is expected to increase by approximately 30% to 120,000 ounces-160,000 ounces as B-three production achieves steady-state mining rates and higher gold and copper grades. B-three mining rates are expected to average approximately 8,000 tons per day as all draw points are already completed. all-in sustaining costs are also expected to decrease to $1,300-$1,400. Costs are lower than last year, primarily due to the lower sustaining capital spend with B-three development completed and higher production. Sustaining capital is expected to be $50 million-$35 million, primarily related to the stabilization activities and tailing management. Growth capital is expected to be $130 million-$150 million and is primarily related to the continued advancement of the C-zone project will focus on, which will focus on mine development, infrastructure installation and stabilization. Slide 12 provides an update on the company's consolidated reserves. Consolidated gold mineral reserve decreased by approximately 285,000 ounces compared to last year, primarily due to the annual mine depletion from both assets, resource minability at Rainy River and ounces from sub-level cave and escape recovery at New Afton. In closing, I just want to spend a few minutes to discuss health and safety at New Gold. The health and safety is our highest priority as our employees are the heart and soul of our business. In 2022, our total recordable injury frequency rate or TRIR was 0.95 and significantly decreased by approximately 46% compared to 2021. We have implemented the Courage to Care campaign across our business to encourage and foster a safe culture for our over 1,500 employees across the company. We are extremely proud of this achievement, in 2023, the health and safety of our employees will continue to drive our success. This complete our presentation. I will now turn it back to the operator for the Q&A portion of the call. Michelle? Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session for analysts. If you would like to ask a question, please press star followed by one on your telephone keypad. If your question has been answered and you would like to withdraw from the queue, please press star followed by two. If you are using a speakerphone, please lift your handset before pressing any keys. Please stand by while we compile the Q&A roster. Ladies and gentlemen, once again, if you would like to ask a question, please press star one now. Mr. Shah, there are no questions. Oh, my apologies, we do have a question. Your first question will come from Mohamed Sidibé of CIBC. Please go ahead. Hi, Patrick and teammates. I'm Mohamed Sidibé from CIBC on behalf of Anita. Sorry, jumping in from conference call to conference call here, but I just wanted to ask on the production profile for 2023, if we should expect any sort of seasonality as we go through the year? Second question was just on your cost profile for 2023. I may have missed that part, but if you could touch about any inflationary impact that you've seen despite the that you incorporate in your guidance given the year-over-year lower guidance. I'm sure it's probably production. Thank you. Production profile is slanted more towards second half of the year, with basically 55% coming in the second half. It's mainly related to the grade year, not the tonnage, but the grade itself. Yeah, go ahead. I was gonna say, as far as inflation, we have incorporated some inflationary impacts primarily related to diesel and grinding media, which are the biggest increases. As being a Canadian company, we've also hedged and our CAD exposure, but also hedged some fuel. We're working hard to mitigate any inflationary pressures. Sounds good. Thank you so much. Pleasure. There are no other questions. At this time, I will turn the conference back to Ankit Shah for any closing remarks. Thank you, Michelle. Again, to everyone who joined us today, thanks again. If you have any follow-up questions, please reach out to us by phone or email. Have a great day. Ladies and gentlemen, this does conclude your conference call for this morning. We would like to thank everyone for participating and ask you to please disconnect your lines.
Loading workspace