Slides
Page 1
May 2025 Corporate Presentation
Page 2
2 Cautionary Notes Certain information contained in this presentation, including any information relating to New Gold’s future financial or operating performance are “forward-looking”. All statements in this presentation, other than statements of historical fact, which address events, results, outcomes or developments that New Gold expects to occur are “forward-looking statements”. Forward-looking statements 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”, “targeted”, “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 of such terms. Forward-looking statements in this presentation include, among others, statements with respect to: the Company’s expectations and guidance with respect to production, costs, capital investment and expenses on a mine-by-mine and consolidated basis, associated timing and accomplishing the factors contributing to those expectations; successfully achieving the expected positive impacts on costs, production and cash flow resulting from achieving the noted milestones; successfully delivering on the Company’s three-year guidance targets, plans, consolidated operational outlook, and operational objectives; expectations regarding exploration results having a positive impact on year- end reserves and resources; planned activities in 2025 and future years at Rainy River mine and New Afton mine, including planned development and exploration activities, and projected accuracy of timing and related expenses; successfully generating significant sustained free cash flow moving forward; successfully increasing production and decreasing costs over the next three-years; successfully continuing ramp-up of the C-Zone at New Afton mine in 2025 and processing a stable 14,000 tpd throughput; expectation for Rainy River mine to have strong free cash flow generation in second half of 2025 and successfully processing a stable 25,000 tpd throughput in 2025, the potential to successfully extend New Afton mine life to 2031 and Rainy River mine life to 2033, with minimal capital investment; the potential for finding and taking advantage of additional mining opportunities at Rainy River and New Afton and successfully advancing the Company’s strategic opportunities for mine life extension; expectations regarding the amount of free cash flow generation over the next three years; successful expansion of Phase 5 at Rainy River mine and the expectation that it will extend the open pit mine life and meet the Company's objectives; expectations of anticipated timing for Phase 4 and 5 waste stripping at Rainy River; projected Rainy River and New Afton mining sequences and processing schedules, and the Company’s ability to successfully accomplish such plans; the accuracy of expectations regarding processing and throughput rates at Rainy River and New Afton over the next three years; planned activities for 2025 and future years at the Rainy River and New Afton mines, including planned development and exploration activities, and the projected accuracy of timing; accuracy of expectations that capital costs will reduce significantly after 2026 and that operating costs will be stable over the next five years; the accuracy of the Company’s projections relating to underground and open pit mining and production at Rainy River, with Phase 4 being the source of the majority of gold production through 2026 and Phase 5 development starting at the end of 2025 through to 2028; successfully achieving the Company’s three year operational estimates and key performance indicators at New Afton and Rainy River; expectations regarding the final Rainy River tailings facility raise in 2026; expectation that gold feed grade will increase significantly over the next three years as underground production ramps up at Rainy River; anticipated exploration opportunities within Rainy River’s current land package and successfully accomplishing the 2025 exploration strategy and factors contributing thereto; successfully completing and ramping-up New Afton's C-Zone production while decreasing costs and capital over the next three years; successfully advancing development of East Extension at New Afton; expectations of a strong gold production profile at Rainy River over the next five years; and successfully delivering on the Company’s strategic goals. All forward-looking statements in this presentation are based on the opinions and estimates of management that, while considered reasonable as at the date of this presentation in light of management’s experience and perception of current conditions and expected developments, are inherently subject to important risk factors and uncertainties, many of which are beyond New Gold’s ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in this presentation, New Gold’s latest annual management’s discussion and analysis (“MD&A”), its most recent annual information form and technical reports on the Rainy River Mine and New Afton Mine filed on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this presentation are also subject to the following assumptions: (1) there being no significant disruptions affecting New Gold’s operations, including material disruptions to the Company’s supply chain, workforce or otherwise; (2) political and legal developments in jurisdictions where New Gold operates, or may in the future operate, being consistent with New Gold’s current expectations; (3) the accuracy of New Gold’s current Mineral Reserve and Mineral Resource estimates and the grade of gold, copper and silver expected to be mined; (4) the exchange rate between the Canadian dollar and U.S. dollar and commodity prices being approximately consistent with current levels and expectations for the purposes of guidance and otherwise; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) equipment, labour and material costs increasing on a basis consistent with New Gold’s current expectations; (7) arrangements with First Nations and other Indigenous groups in respect of the New Afton Mine and Rainy River Mine being consistent with New Gold’s current expectations; (8) all required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines and the absence of material negative comments or obstacles during any applicable regulatory processes; and (9) the results of the life of mine plans for the New Afton Mine and Rainy River Mine described herein being realized. 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 actual results, 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, the “Risk Factors” included in New Gold’s most recent annual information form, MD&A and other disclosure documents filed on and available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Forward looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All 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 accordance with applicable securities laws. Cautionary note regarding forward-looking statements All amounts in U.S. Dollars unless otherwise stated
Page 3
3 Location British Columbia Mine Type Underground block cave 2024 production Gold: 72,609 oz Copper: 54.0 Mlbs Reserve Mine life 2031 Significant Production Growth +35% gold production growth1, +90% copper production growth1 over next three-years Declining Cost Profile All-in sustaining cost1,2 reduction of 65% over next three-years leading to margin expansion of over $2,500 per ounce by 2027 Strong Free Cash Flow Profile Three-year cumulative free cash flow2 of approximately $2.2 billion3, translates to peer leading free cash flow yields Exploration 2025 budget of $30 million targeting 100,000m of drilling on key focus areas for mine life extension and high-grade growth Strong Balance Sheet $213 million in cash and $590 million liquidity position more than sufficient to deliver on 2025 objectives New Afton Rainy River Location Ontario Mine Type Open Pit/Underground 2024 production Gold: 225,694 oz Reserve Mine life 2033 Toronto Head Office 1. Based on mid-point of Guidance 2. This is a non-GAAP measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Refer to the “Non-GAAP Financial Performance Measures” section of this presentation. 3. Assumes $3,000/oz gold and $4.00/lb copper. Focus on Long-Term Shareholder Value Creation Investment Proposition
Page 4
4 SAFELY EXECUTING 2025 WITH Q1 RESULTS AS PLANNED Production and cost management as planned in the first quarter, highlighted by a TRIFR of 0.55, down 40% compared to Q1/24 FREE CASH FLOW GENERATION Generated $25 million of free cash flow during planned lower production quarter for 2025; New Afton generated $52 million in the quarter CRITICAL PATH ITEMS ACHIEVED, PRODUCTION RAMP UP ON-TRACK New Afton C-Zone cave construction progress more than 50% complete, Rainy River waste stripping largely complete and pit portal breakthrough achieved in early-April INCREASED FINANCIAL FLEXIBILITY Completed new 2032 Senior Notes offering, amended and extended revolving credit facility to 2029, both at a lower rate, increasing New Gold’s financial flexibility CONSOLIDATED 100% OF NEW AFTON FREE CASH FLOW In early-April, New Gold consolidated its interest in New Afton’s free cash flow to 100%, acquiring the remaining 19.9% interest from Ontario Teachers’ Q1/25 Key Accomplishments 1. Total Recordable Injury Frequency Rate (TRIFR) calculated as recorded incidents × 200,000 / total number of hours worked
Page 5
5 1. Based on mid-point of Guidance 2. This is a non-GAAP measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Refer to the “Non-GAAP Financial Performance Measures” section of this presentation. 0 100 200 300 400 500 2024 2025 2026 2027 Gold Production Growth of 38% 0 20 40 60 80 100 120 2024 2025 2026 2027 Copper Production Growth of 94% Avg ~400koz over 3-year period GROWTH PROFITABILITY 38% increase in gold production 94% increase in copper production over the next three years1 Gold production to average over 400,000 ounces over three-year period 64% reduction in AISC2 over the next three years1 +$2,500 per ounce margins by 2027 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2024 2025 2026 2027 AISC1,2 Reduction of 64% Leads to Margin Expansion Significant Production Growth and Expanding Margins Three -Year Guidance
Page 6
Attractive Returns With No Equity Dilution to Shareholders New Afton Buyback: A Strategic Success Transaction Summary Significant Benefits to Shareholders New Gold acquired the remaining 19.9% free cash flow interest in New Afton held by Ontario Teachers’ Pension Plan: – $300 million in cash consideration – New Gold consolidates 100% ownership of New Afton – All existing agreements will be terminated – Asset entering a period of significant free cash flow generation Acquisition funding via low-cost financing: i. $200 million credit facility and cash on hand ii. $100 million gold prepayment facility Consolidated 100% in a High-Quality Producing Operation Significant Cash Flowing Asset With No Diligence Risk Provides Growth and Maintains 100% Canadian Exposure Provides Full Exposure to New Afton Upside Accretive Transaction While Maintaining Financial Flexibility Fully Consolidated a Cash Flowing Core Asset on Attractive Terms 6
Page 7
7 FREE CASH FLOW1 GENERATION OVER THE NEXT THREE YEARS $- $200 $400 $600 $800 $1,000 $1,200 2025 2026 2027 $2,750/oz Au and $3.75/lb Cu $3,000/oz Au and $4.00/lb Cu $3,250/oz Au and $4.25/lb Cu Cumulative FCF 2025-20272 ~US$2.2 Billion Average Annual FCF 2025-20272 ~US$720 Million ~US$0.90/share Average Annual FCF Yield2 2025-2027 ~23% Free Cash Flow 1. Reflects New Gold’s 100% free cash flow at New Afton. Free cash flow is cash generated from operations, less capital expenditures on mining interests, lease payments, and settlement of the gold stream obligation. This is a non-GAAP measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Refer to the “Non-GAAP Financial Performance Measures” section of this presentation. 2. Assumes $3,000/oz gold and $4.00/lb copper.
Page 8
8 Environment, Social & Governance (ESG) Protecting People, Communities and the Environment Health and Safety • The Courage to Care campaign empowers employees and increases visible felt leadership • Crisis and emergency management training prioritized at sites and corporate office • New Afton received the 2023 BC Large Underground Mine Safety Award and J.T. Ryan Award for BC and Yukon Environment • Effort towards continual improvement of environmental performance with a focus on key risks • Strive for zero harm to people and the environment as a result of mining activities • Prioritize energy-efficient, low- consumption mining methods with small footprint Social • Our relationships with employees, communities, partners, rightsholders and stakeholders are essential for New Gold’s success • Agreements in place with local Indigenous Governments and Organizations • Local employment and procurement and community investment is prioritized Governance • Strong and transparent governance that is strategic and advances our company mission • Board oversight of ESG topics • Strategy Statements for Climate, Water, Tailings, and Indigenous Rights outlining New Gold priorities and actions 2023 Total Reportable Injury Frequency Rate: 0.801 25% Indigenous employees across operations 33% female representation on Board of Directors 8% reduction in Scope 1 and Scope 2 greenhouse gas emissions since 2020 1. Based on 200,000 hours
Page 9
New Afton 9 Underground Block Cave Mine 73koz / 54Mlb 2024 Production 100% Fully consolidated free cash flow interest $24M 2024 Free Cash Flow2 Gold Growth1 +90% Copper Growth1 2031 Reserve Mine Life Increased Exposure CopperGold +90% 1. Based on mid-point of Guidance. 2. This is a non-GAAP measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Refer to the “Non-GAAP Financial Performance Measures” section of this presentation.
Page 10
Operational Estimates Q1/25 Actual 2025 Outlook Tonnes processed (kt) 1,113 5,102 Gold feed grade (g/t) 0.57 0.48 Copper feed grade (g/t) 0.62 0.56 Gold recovery (%) 87 83 Copper recovery (%) 89 88 Gold production (koz) 18.01 60 – 70 Copper production (Mlb) 13.6 50 – 60 Sustaining capital2 ($M) 0.7 5 – 10 Growth capital2 ($M) 23.3 110 – 125 10 Generated $52 Million in Free Cash Flow in First Quarter New Afton 2025 Outlook Stable 14,000 tpd throughput Higher grades planned for H2 Relatively flat each quarter Total capital spend relatively constant by quarter. Minimum sustaining capex planned per quarter 1. New Afton Mine Only. Data is exclusive of gold ounces from ore purchase agreements. 2. This is a non-GAAP measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Refer to the “Non-GAAP Financial Performance Measures” section of this presentation.
Page 11
11 New Afton Three -Year Guidance C-Zone completion and ramp-up to drive increased production at decreasing costs and capital 0 20 40 60 80 100 120 140 160 2025 2026 2027 Gold Production1 Growth of 93% 0 20 40 60 80 100 120 2025 2026 2027 Copper Production1 Growth of 94% 2025 2026 2027 $0 $20 $40 $60 $80 $100 $120 $140 New Afton Total Capital Breakdown East Extension (New Project) Underground Development Tailings Management Infrastructure and Equipment Other 1. New Afton Mine Only. Data is exclusive of gold ounces from ore purchase agreements.
Page 12
12 New Afton Underground C-Zone Extension New Afton continues to deliver C-Zone milestones, positioning the operation to achieve commercial production on time C-Zone Extension • No additional capital required • Mineral reserves increase due to a revision raising the Best Height of Draw (BHOD) cap from 350m to 450m. • Life of mine change from 2030 to 2031 inclusive of an increase in throughput East Extension • Longitudinal stoping • Low tonnage, high grade mined concurrently with C- Zone • Ore will be trucked from East Extension to the C-Zone crusher • Waste will be backhauled from C-Zone extraction for stope backfilling Lift 1 B3 Block Cave C-Zone Block Cave East Extension Longitudinal View Looking North 0 100 200 300 400 500m C-ZONE EXTENSION
Page 13
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033+ 0 4000 8000 12000 16000 13 New Afton Processing Schedule C-Zone Ramping Up Production New Afton is at a pivotal moment, advancing into the C-Zone production ramp-up phase Tonnes Processed (tpd) C-ZONELIFT 1 B3 GUIDANCE PERIOD 2025-2027 EAST EXTENSION EXTENSION OPPORTUNITIES • Eastern Sector Targets • K-Zone • HW Zone • D-Zone
Page 14
14 2025 Strategic Outlook New Afton Exploration • Building on recent success, the 2025 exploration program at New Afton is strongly focused on K-Zone ($17 million budget) • The Company is developing a 700m exploration drift close to C-Zone extraction elevation to: • Improve drilling angles • Shorten the length of exploration holes • Accelerate exploration D-Zone C-Zone Lift 1 B3 K-Zone Target 2025 Exploration Focus Area 10% growth in end-of-year 2024 M&I Resources at HW 90% growth in end-of-year 2024 M&I Resources at D-Zone Optionality to further test K-Zone’s extent from surface 2025 strategy focuses on K-Zone growth Longitudinal section looking North Horizontal slice at 4500 Level West East N Planned Exploration Drift Main Zone 0.2% CuEq Domain Current Exploration Drift Planned Drift K-Zone Target Main (C-Zone) 500 m HW Zone
Page 15
15 Exploration Growth Projects • Commenced drilling from the 4500 Level exploration drift in April • Infill drilling will support mineral resource development at K-Zone • Exploration drilling from the drift and from surface will test K-Zone extensions to the east and at depth and test additional targets • Technical studies are underway to assess potential new mining zones, not currently included in the NI 43-101 LOM Plan: (K-Zone, HW Zone, and D-Zone) • Mining concepts aim to utilize the existing materials handling system and other infrastructure and assess potential synergies Longitudinal section looking North 4500L Exploration Drift 500 m D-ZONE HW ZONE K-ZONE New Afton Exploration and Growth Projects
Page 16
Rainy River 16 Open Pit and Underground Mine 226koz 2024 Gold Production ~50% Decrease in capital expenditures over next three-years $90M 2024 Free Cash Flow2 ~300koz Average Annual Production1 +30% Gold Growth1 (2025-2027) 2033 Reserve Mine Life Margin Expansion1 1. Based on mid-point of Guidance 2. This is a non-GAAP measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Refer to the “Non-GAAP Financial Performance Measures” section of this presentation.
Page 17
Operational Estimates Q1/25 Actual 2025 Outlook Total ex-pit tonnes (Mt) 6.3 30 Strip ratio 15.36 1.8 Underground ore (kt) 71 846 Tonnes processed (kt) 2,202 9,147 Gold feed grade (g/t) 0.54 1.06 Gold recovery (%) 89 91 Gold production (koz) 33.9 265 – 295 Sustaining capital1 ($M) 32.0 90 – 100 Growth capital1 ($M) 19.3 65 – 80 17 Critical Path Items Delivered Ahead of Production Ramp-Up Rainy River 2025 Outlook Higher strip ratio in H1 preparing the mine to release the Ore in H2 Stable 25,000 tpd throughput Stockpile reclaim in H1. Increased open pit and underground feed in H2 Higher stripping in H1 Reduced waste stripping in H2. Aligned with the increase in underground development 72% 49% 37% 45% 73% 65% 28% 51% 63% 55% 27% 35% OP Waste Mined Tonnes Processed Gold Production Operating Costs Sustaining Capital Growth Capital 2025 Outlook by Half H1 H2 1. This is a non-GAAP measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Refer to the “Non-GAAP Financial Performance Measures” section of this presentation.
Page 18
18 Rainy River Three -Year Guidance Increasing production and declining capital to drive significant margins and free cash flow in 2026 and 2027 2025 2026 2027 $0 $50 $100 $150 $200 Rainy River Total Capital Breakdown Phase 5 (New Project) Capitalized Stripping and Maintenance Phase 4 Remaining Capital Stripping Infrastructure, Equipment & Other Tailings Management Underground Development 0 50 100 150 200 250 300 350 400 2025 2026 2027 Gold production to average 300,000 ounces over three-year period
Page 19
19 Rainy River Open Pit Positioned to Deliver Low-Cost, Low-Risk Mill Feed Indicative Mining Sequence Schematic Section A-A’ PHASE 4 2025 2026 Phase 5 expansion extends the open pit mine life accomplishing our main objective Remaining Phase 4 average strip ratio post Q1 of 1:1 Phase 4 scheduled for completion by end of 2026 In-pit portal Complete 2026 2027 PHASE 5 Phase 5 scheduled for completion in 2028 Phase 5 overburden stripping scheduled for winter 2025/2026 Plan View Phase 4 Phase 5 Longitudinal View Looking North-East 0 500 metres
Page 20
20 Rainy River Underground Multiple Concurrent Mining Zones The development priority is to establish connection with the portal decline and access multiple mining zones INTREPID 17 EAST ODM EAST ODM MAIN ODM WEST CAP ODM LOWER 433 Capital Development (2025-2027) Complete 2025 2026 2027 0 100 200 300 400 500m Looking North
Page 21
0 5000 10000 15000 20000 25000 30000 21 Rainy River Processing Schedule Increasing Underground Production Gold feed grade is expected to increase significantly over the next three years as underground production ramps up 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035+ GUIDANCE PERIOD 2025-2027 UNDERGROUND STOCKPILE OPEN PITOPEN PIT AND STOCKPILE Tonnes Processed (tpd) FURTHER OPEN PIT EXTENSION OPPORTUNITIES PHASE 5 Extends open pit mining to 2028 and keeps the mill at full capacity until end of 2029 UNDERGROUND EXTENSION OPPORTUNITIES
Page 22
22 2025 Strategic Outlook Rainy River Near-Surface Exploration End-of-year 2024 NW Trend Resource Pit Outline End-of-year 2024 Main Reserve Pit Shell Phase 5 Phase 4 End-of-year 2024 Main Resource Pit Outline 2025 Near-Surface Exploration Target Area 2025 Exploration Focus Area N NW Trend 2025 Near-Surface Exploration is focused on Growing NW Trend and Phase 5 Plan view of Rainy River open pit opportunities 250 m 2024 EOY OP RESOURCE GROWTH NW Trend • +49K Au oz Indicated • +36K Au oz Inferred Main Open Pit • +556K Au oz Indicated • 2025 budget - $13 million • 2025 objective is to increase high-tonnage open pit ore to keep the processing plant operating at full capacity beyond 2029
Page 23
West East Phase 4 Phase 5 Gap Area ODM EastODM Main Longitudinal section looking North 17 East Intrepid 500 m 23 2025 Strategic Outlook Rainy River Underground Exploration End-of-year 2024 Mineral Reserve Stopes End-of-year 2024 Mineral Resource Stopes (Inf.) Mined out End-of-year 2024 Reserve Pit Shell 2025 strategy focuses on exploring for high-grade underground mineralization 114-Deep Target strike-extent growth Convert high-grade Inferred Resources, target strike and down-plunge growth Convert high-grade Inferred Resources Convert high-grade Inferred Resources, target down-plunge growth 2024 Exploration and new mine design increased UG Mineral Reserves to 1,344,000 gold ounces at the end of 2024, more than offsetting depletion from underground mining UG Main
Page 24
24 Exploration Growth Projects • Exploration drilling in Q1 focused on expansion of Mineral Resources at NW Trend, and on testing the down-plunge extension of ODM Main from surface • Underground drilling focused on delineation of underground Mineral Reserves at 17 East and ODM East zones to support the ramp-up in underground production • Open pit expansion studies advanced in Q1 on potential pushbacks to the south of the main pit and at NW Trend • Underground mine design and sequence optimization is ongoing • Tailings and waste storage trade-off studies are in progress NW Trend South Pushback UG Main Intrepid Longitudinal View Looking North Plan View NW Trend South Pushback Rainy River Exploration and Growth Projects
Page 25
Appendix 25
Page 26
0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Total Recordable Injury Frequency Rate1 (12-month rolling Average) 26 Industry leading health and safety performance Our Top Priority Health and Safety 2024 Achievements: • Rainy River achieved over four million hours Lost Time Injury free in the first half and New Afton exceeded over two million hours LTI free in the second half • New Afton recognized with J.T. Ryan Award for outstanding safety performance, BC Large Underground Mine Safety Award, and Mine Safety Technology Award 2025 Focus: • Strengthening our Courage to Care culture • Leading indicators • Critical Risk Management program implementation 2022 We stop work if it’s not safe We never compromise on safety We look out for one another 2023 2024 2025 1. Total Recordable Injury Frequency Rate (TRIFR) calculated as recorded incidents × 200,000 / total number of hours worked
Page 27
27 $590M Liquidity Position $213M Cash and Cash equivalents1 $377 Undrawn credit facility2 Face Value ($M) Maturity Interest Rate Revolving credit facility $400 March 2029 SOFR +2.00% - 3.25% Senior unsecured notes $400 April 2032 6.875% Senior unsecured notes $111 July 2027 7.50% April Gold Prepayment Financing Total Value Monthly Delivery Term Average Price $100 million 2,771 gold ounces July 2025 – June 2026 $3,157/oz Hedging Strategy 3 Q2 2025 ~75% of FX of AISC hedged at 1.40 and ~75% of fuel consumption hedged Q3 2025 ~50% of FX of AISC hedged at 1.41 and ~50% of fuel consumption hedged Completed new senior notes offering, extending term and reducing interest rate Financial Flexibility Enhanced Amended and extended revolving credit facility New Gold plans to redeem on or about July 15, 2025 Accordion feature added to increase principal by up to an additional $100M Strong Liquidity Position, Financial Flexibility Enhanced Balance Sheet 1. Based on cash and equivalents as at March 31, 2025. 2. $400 credit facility of which $23M in Letters of Credit outstanding related to mine closure cost 3. Includes hedges placed subsequent to Q1/25
Page 28
28 Consolidated Three -Year Guidance Increasing Production and Decreasing Costs Major projects nearing completion, de-risking our guidance outlook Operational Estimates 2024 Actual 2025 Guidance 2026 Guidance 2027 Guidance Gold production (thousand ounces) 298 325 – 365 435 – 490 375 – 445 Copper production (million pounds) 54.0 50 – 60 85 – 100 95 – 115 Cash costs per gold ounce sold (by-product) 1,3 769 600 – 700 200 – 300 125 – 225 All-in sustaining costs per gold ounce sold (by-product)1,3 1,239 1,025 – 1,125 675 – 775 400 – 500 Capital Investment Estimates 2024 Actual 2025 Guidance 2026 Guidance 2027 Guidance Total capital ($ million) 271 270 – 315 200 – 240 70 – 95 Sustaining capital3 ($ million) 87 95 – 110 140 – 160 40 – 55 Growth capital3 ($ million) 184 175 – 205 60 – 80 30 – 40 1. The calculation of consolidated total cash costs and all-in sustaining costs per gold ounce is net of by-product silver and copper sales revenue. 2. Re-calculated on a by-product basis 3. This is a non-GAAP measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Refer to the “Non-GAAP Financial Performance Measures” section of this presentation.
Page 29
29 2025 Site Level Guidance Operational Estimates 2025 Guidance Gold production (thousand ounces) 265 – 295 Cash costs per gold ounce sold (by-product) 1,2 $875 – $975 All-in sustaining costs per gold ounce sold (by- product)1,2 $1,250 – $1,350 Capital Investment Estimates 2025 Guidance Total capital ($ million) $155 – $180 Sustaining capital2 ($ million) $90 – $100 Growth capital2 ($ million) $65 – $80 1. The calculation of consolidated total cash costs and all-in sustaining costs per gold ounce is net of by-product silver and copper sales revenue. 2. This is a non-GAAP measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Refer to the “Non-GAAP Financial Performance Measures” section of this presentation. Operational Estimates 2025 Guidance Gold production (thousand ounces) 60 – 70 Copper production (million pounds) 50 – 60 Cash costs per gold ounce sold (by-product) 1,2 ($675 – ($575) Cash costs per gold ounce sold (co-product) 1,2 $725 – $825 Cash costs per copper pound sold (co-product) 1,2 $2.00 – $2.50 All-in sustaining costs per gold ounce sold (by-product)1,2 ($625) – ($525) All-in sustaining costs per gold ounce sold (co-product)1,2 $775 – $875 All-in sustaining costs per copper pound sold (co-product)1,2 $2.00 – $2.50 Capital Investment Estimates 2025 Guidance Total capital ($ million) $115 – $135 Sustaining capital2 ($ million) $5 – $10 Growth capital2 ($ million) $110 – $125 New Afton Rainy River
Page 30
New Afton 30 OVERVIEW • Low-cost copper and gold mine which began operating in 2012 • In-pit tailings performance is exceeding design expectations • With C-Zone nearing completion, minimal capital investment is required after 2025 for the remainder of the reserves life of mine to 2031 • 2024 production of 72,609 ounces of gold and 54 million pounds of copper at AISC of ($289)/oz UNDERGROUND • Currently transitioning from B3 cave to C-Zone • Mining of B3 expected to be complete mid-2025 • C-Zone commercial production occurred in October 2024, commissioning of crusher and conveyor occurred in October 2024 • East Extension added to Mineral Reserves, adding high-grade supplementary mill feed during C-Zone production period • C-Zone increase in draw height extended New Afton reserve life to 2031 RESERVES & RESOURCES • Copper and gold Mineral Reserves increased by 15% and 13%, respectively, compared to year-end 2023. Underground Block Cave Mine
Page 31
31 New Afton Block Caving Transitioning from B3 to C-Zone The continued transition from B3 to C-Zone in 2024 and 2025 is expected to result in increased gold and copper production C - ZONE Block Cave Height of Draw Lower-grade ore is planned in 2024 and 2025 to establish the cave footprint Increased dilution planned towards the top of B3 cave 0 500 m Looking North Year-end 2024 Year-end 2025 C-Zone Drawbell Construction 2024 2025 2026 2024 2025 B3 B3 cave is scheduled to be completed by the end of 2025, ahead of C-Zone cave interaction Cave footprint expanding from the centre outwards Hydraulic Radius expected in H2 2024
Page 32
32 New Afton Life of Mine Plan Mineral Reserves & Mineral Resources Copper and gold Mineral Reserves increased by 15% and 13%, respectively, compared to year-end 2023 EAST EXTENSION New mining zone +41 koz gold +35 Mlb copper Double C-Zone grades Provides platform for growth in the Eastern Sector Lift 1 B3 Block Cave C-Zone Block Cave East Extension C-ZONE Increased height of draw 27% increase in tonnes +122 koz gold +103 Mlb copper Extends mine life No additional capital MINERAL RESERVES +93 koz gold (109% Replacement) +80 Mlb copper (131% Replacement) M+I MINERAL RESOURCES EXCLUSIVE OF MINERAL RESERVES 1,352 koz gold 1,100 Mlb copper Including D-Zone & HW Zone Does Not Include K-Zone Longitudinal View Looking North 1. New Gold reports its Measured and Indicated Mineral Resources (“M+I Resources”) exclusive of Mineral Reserves. Resources are not Mineral Reserves and do not have demonstrated economic viability. 2. Proven and Probable Mineral Reserves as of December 31, 2024. 2024 year-end Mineral Reserve assumptions have been prepared assuming $1,650 per gold ounce, $3.50 per pound of copper and $20.00 per silver ounce, and a foreign exchange rate of $1.30. 3. Please refer to the "Mineral Reserves and Mineral Resources" and "Notes to the Mineral Reserves and Mineral Resources Estimates" sections at the end of this presentation for further information.
Page 33
33 Increased production profiles and mine life extension as a result of Mineral Reserves increases 66 119 144 133 104 77 5456 96 111 103 81 63 45 2025 2026 2027 2028 2029 2030 2031 Gold production (koz) Copper production (Mlb)East Extension First Production Development Complete New Afton Life of Mine Plan Gold & Copper Production Profiles 2026 to 2029 Average Yearly Production: 125 koz Gold & 98 Mlb Copper C-Zone Ramp-up Reserves Mine Life Extended to 2031 Upside Not Included in NI 43-101 Conversion of Mineral Resources: HW Zone D-Zone Exploration Potential: K-Zone Eastern Sector Targets Complete transition from B3 to C-Zone
Page 34
34 Minimal capital costs expected after 2026. Strong margins driven by low operating costs of ~$30/t New Afton Life of Mine Plan Capital Cost & Operating Cost Profiles 6 15 6 6 5 5 1 119 28 1 0 20 40 60 80 100 120 140 2025 2026 2027 2028 2029 2030 2031 New Afton Capital Costs (US$M) Sustaining Growth 11 14 13 13 12 12 9 12 11 10 10 9 9 9 7 6 7 7 7 6 8 31 30 30 29 28 27 26 0 5 10 15 20 25 30 35 2025 2026 2027 2028 2029 2030 2031 New Afton Operating Costs (US$/t processed) Mining Processing G&A / Other
Page 35
Rainy River 35 OVERVIEW • Focus on mine sequencing to optimize the open pit operation and reducing costs while underground operations continue to advance • 2024 gold production of 225,694 ounces at AISC of $1,524/oz OPEN PIT • Currently mining Phase 4 and waste stripping is well advanced • Phase 4 expected to be source of the majority of Rainy River’s gold production through 2026 • Phase 5 expansion extends the open pit, accomplishing our main mine plan objectives to push processing of the low-grade stockpile into the future and keep the mill full to the end of 2029 UNDERGROUND • Underground reserve grade three times higher than open pit • At full capacity, the underground mine alone is expected to produce 150,000 to 200,000 ounces of gold per year Open Pit and Underground Mine
Page 36
NW Trend ODM East Phase 4 Phase 5 Intrepid 36 Rainy River Life of Mine Plan Mineral Reserves & Mineral Resources Updated Mineral Reserves provide a solid foundation for the LOM Plan. Significant increase in Mineral Resources 1. New Gold reports its Measured and Indicated Mineral Resources (“M+I Resources”) exclusive of Mineral Reserves. Resources are not Mineral Reserves and do not have demonstrated economic viability. 2. Proven and Probable Mineral Reserves as of December 31, 2024. 2024 year-end Mineral Reserve assumptions have been prepared assuming $1,650 per gold ounce, $3.50 per pound of copper and $20.00 per silver ounce, and a foreign exchange rate of $1.30. 3. Please refer to the "Mineral Reserves and Mineral Resources" and "Notes to the Mineral Reserves and Mineral Resources Estimates" sections at the end of this presentation for further information. OPEN-PIT MINERAL RESERVES 589 koz gold Updated block model Optimized Phase 5 pit design Longitudinal View Looking North 0 500 metres OPEN-PIT MINERAL RESOURCES 506% Increase in contained gold M+I: 734 koz gold Inferred: 42 koz gold UNDERGROUND MINERAL RESERVES 1,344 koz gold +22 koz (net of depletion) Extensions of existing zones UNDERGROUND MINERAL RESOURCES 10% increase in contained gold M+I: 560 koz gold Inferred: 356 koz gold Potential South Pushback
Page 37
285 350 277 252 240 153 152 141 109 2025 2026 2027 2028 2029 2030 2031 2032 2033 37 Rainy River Life of Mine Plan Gold Production Profile Strong gold production profile, averaging approximately 280,000 ounces per year over the next five years Underground at full production (~5,800 tpd) 2025 to 2029: Mill at Full Capacity (Extended by 1 Year) Average Yearly Production of 280 koz Gold 2030 to 2033: Underground Only Average Yearly Production 139 koz Gold Commence stripping of Phase 5 Upside Not Included in NI 43-101: Conversion and Expansion of Open-pit Mineral Resources: NW Trend South Pushback Extension of Higher-grade Underground Zones Upside Not Included in NI 43-101 Continued Extension of Underground Zones & Near-surface Targets Reduced mill Throughput
Page 38
16 13 16 11 8 31 31 32 31 10 10 10 10 11 15 13 13 15 5 10 7 8 8 22 19 17 21 31 34 33 29 27 69 63 62 67 0 10 20 30 40 50 60 70 80 2025 2026 2027 2028 2029 2030 2031 2032 2033 Rainy River Operating Costs (US$/t processed) Mining Processing G&A / Other 95 137 43 25 27 14 12 20 7 73 43 34 42 53 45 41 0 20 40 60 80 100 120 140 160 180 200 2025 2026 2027 2028 2029 2030 2031 2032 2033 Rainy River Capital Costs (US$M) Sustaining Growth 38 Capital costs decrease significantly after 2026. Operating costs stable at $27-34/t over the next five years Rainy River Life of Mine Plan Capital Cost & Operating Cost Profiles
Page 39
39 Rainy River Open Pit Phase 4 waste stripping to be completed in H1 2025, followed by significant reduction in Phase 4 strip ratio Reserves Model Ore Blocks B’ B Section B-B’ Looking West Open Pit Reserves Model Ore Blocks Final Phase 4 Reserves Pit Pit Surface December 31, 2024 Phase 4 South Wall Waste Stripping Plan View Plan View 0 500 metres0 100 meters West View
Page 40
40 Mineral Reserves and Resources Year-end 2024 Highlights Mineral Reserve replacement of 39% for gold and 231% for copper in 2024 1. New Gold reports its Measured and Indicated Mineral Resources (“M+I Resources”) exclusive of Mineral Reserves. Resources are not Mineral Reserves and do not have demonstrated economic viability. 2. Proven and Probable Mineral Reserves as of December 31, 2024. 2024 year-end Mineral Reserve assumptions have been prepared assuming $1,650 per gold ounce, $3.50 per pound of copper and $20.00 per silver ounce, and a foreign exchange rate of $1.30. 3. Please refer to the "Mineral Reserves and Mineral Resources" and "Notes to the Mineral Reserves and Mineral Resources Estimates" sections at the end of this presentation for further information. 3,156 -332 130 2,954 Dec 2023 Depletion Net Changes Dec 2024 0 500 1,000 1,500 2,000 2,500 3,000 3,500 New Gold: Gold Mineral Reserves (koz) 39% replacement 551 -61 141 631 Dec 2023 Depletion Net Changes Dec 2024 0 100 200 300 400 500 600 700 New Gold: Copper Mineral Reserves (Mlb) 231% replacementMineral Reserves 2,954 koz gold 631 Mlb copper 7.8 Moz Silver M+I Mineral Resources 2,646 koz gold 1,100 Mlb copper 9.0 Moz Silver Inferred Mineral Resources 399 koz gold 1 Mlb copper 910 koz Silver
Page 41
41 Mineral Reserves and Mineral Resources New Gold Mineral Reserves as of December 31, 2024 Tonnes 000s Grade Contained Metal Gold g/t Silver g/t Copper % Gold koz Silver koz Copper Mlb RAINY RIVER Open Pit Proven - - - - - - - Probable 20,816 0.88 2.35 - 589 1,573 - P&P 20,816 0.88 2.35 - 589 1,573 - Underground Proven 250 3.69 29.67 - 30 238 - Probable 16,175 2.53 4.98 - 1,314 2,591 - P&P 16,424 2.54 5.36 - 1,344 2,829 - Stockpile Proven 15,685 0.38 2.25 - 194 1,133 - Probable - - - - - - - P&P 15,685 0.38 2.25 - 194 1,133 - Total Rainy River Proven 15,935 0.44 2.68 - 223 1,371 - Probable 36,991 1.60 3.50 - 1,903 4,164 - P&P 52,926 1.25 3.25 - 2,126 5,535 - NEW AFTON B3 Proven - - - - - - - Probable 941 0.49 1.08 0.57 15 33 12 P&P 941 0.49 1.08 0.57 15 33 12 C-Zone Proven - - - - - - - Probable 37,664 0.64 1.62 0.70 772 1,957 585 P&P 37,664 0.64 1.62 0.70 772 1,957 585 East Extension Proven Probable - - - - - - - 962 1.31 8.51 1.63 41 263 35 P&P 962 1.31 8.51 1.63 41 263 35 Total New Afton Proven - - - - - - - Probable 39,567 0.65 1.77 0.72 828 2,253 631 P&P 39,567 0.65 1.77 0.72 828 2,253 631 NEW GOLD P&P 2,954 7,778 631
Page 42
42 Mineral Reserves and Mineral Resources New Gold Mineral Resources as of December 31, 2024 Tonnes 000s Grade Contained Metal Gold g/t Silver g/t Copper % Gold koz Silver koz Copper Mlb RAINY RIVER Open Pit Measured - - - - - - - Indicated 25,216 0.90 3.28 - 734 2,659 - M+I 25,216 0.90 3.28 - 734 2,659 - Inferred 2,198 0.59 1.52 - 42 107 - Underground Measured 310 2.74 26.38 - 27 263 - Indicated 9,556 1.74 5.37 - 533 1,651 - M+I 9,866 1.77 6.03 - 560 1,914 - Inferred 5,465 2.03 4.56 - 356 800 - Total Rainy River Measured 310 2.74 26.38 - 27 263 - Indicated 34,772 1.13 3.86 - 1,267 4,310 - M+I 35,083 1.15 4.05 - 1,294 4,573 - Inferred 7,663 1.62 3.68 - 398 908 - NEW AFTON Underground (Bulk) Measured 51,195 0.58 1.81 0.67 958 2,976 758 Indicated 29,101 0.37 1.33 0.48 349 1,242 308 M+I 80,297 0.51 1.63 0.60 1,307 4,217 1,066 Inferred 132 0.19 0.54 0.19 1 2 1 Underground (Stope) Measured - - - - - - - Indicated 1,346 1.02 4.93 1.14 44 213 34 M+I 1,346 1.02 4.93 1.14 44 213 34 Inferred - - - - - - - Total New Afton Measured 51,195 0.58 1.81 0.67 958 2,976 758 Indicated 30,448 0.40 1.49 0.51 393 1,455 342 M+I 81,643 0.51 1.69 0.61 1,352 4,431 1,100 Inferred 132 0.19 0.54 0.19 1 2 1 NEW GOLD M+I 2,646 9,004 1,100 Inferred 399 910 1
Page 43
43 Mineral Reserves and Mineral Resources Reporting Notes 1. New Gold's Mineral Reserves and Mineral Resources have been estimated in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014). 2. Mineral Reserves and Mineral Resources have been estimated based on the following metal price assumptions and foreign exchange rate criteria: 3. Cut-offs for Mineral Reserves and Mineral Resources are outlined in the table below: 4. New Gold reports its Measured and Indicated Mineral Resources exclusive of Mineral Reserves. Resources are not Mineral Reserves and do not have demonstrated economic viability. Numbers may not add due to rounding. 5. Additional details regarding Mineral Reserve and Mineral Resource estimation, classification, reporting parameters, key assumptions and associated risks for each of New Gold’s material properties are provided in the respective NI 43-101 Technical Reports, which are available on SEDAR+ (www.sedarplus.ca) and EDGAR (www.sec.gov).The preparation of New Gold's Mineral Reserves and Mineral Resources has been completed under the review and oversight of the following New Gold employees, all of whom are "Qualified Persons" as defined by NI 43-101. 6. The preparation of New Gold's Mineral Reserves and Mineral Resources has been completed under the oversight and review of the following New Gold employees, all of whom are "Qualified Persons" as defined by NI 43-101. Gold Price $/ounce Silver Price $/ounce Copper Price $/pound Exchange Rate CAD:USD Mineral Reserves 1,650 20.00 3.50 1.30 Mineral Resources 1,980 24.00 4.20 1.30 Mineral Property Mineral Reserves Mineral Resources Rainy River Open Pit 0.30 g/t AuEq 0.3 g/t AuEq Underground 1.74 g/t AuEq 1.70 g/t AuEq New Afton Bulk Mining 24.00 $/t 0.33% CuEq Stoping 100.00 $/t 0.98% CuEq Mineral Reserves Mineral Resources Rainy River Open Pit Mr. Jason Chiasson, P .Eng Chief Open Pit Engineer, Rainy River Underground Mr. Alexander Alousis, P .Eng Manager, Underground Mine, Rainy River Open Pit Mr. Vincent Nadeau-Benoit, P .Geo Director, Mineral Resources, Geology, New Gold Mr. Jason Chiasson, P .Eng Chief Open Pit Engineer, Rainy River Underground Mr. Vincent Nadeau-Benoit, P .Geo Director, Mineral Resources, Geology, New Gold Mr. Alexander Alousis, P .Eng Manager, Underground Mine, Rainy River New Afton Mr. Joshua Parsons, P .Eng Principal Mine Engineer, New Afton Mr. Vincent Nadeau-Benoit, P .Geo Director, Mineral Resources, Geology, New Gold Mr. Joshua Parsons, P .Eng Principal Mine Engineer, New Afton
Page 44
44 Endnotes Disclosure regarding Mineral Reserve and Mineral Resource estimates included in this presentation was prepared in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. NI 43-101 differs significantly from the disclosure requirements of the United States Securities and Exchange Commission (“SEC”) generally applicable to U.S. companies. For example, the terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in NI 43-101. These definitions differ from the definitions in the disclosure requirements promulgated by the SEC. Accordingly, information contained in this presentation will not be comparable to similar information made public by U.S. companies reporting pursuant to SEC disclosure requirements. Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources Technical Information The scientific and technical information relating to the Mineral Reserves and Mineral Resources contained herein has been reviewed and approved by the following New Gold employees, all of whom are "Qualified Persons" for the purposes of NI 43-101. All other scientific and technical information has been reviewed and approved by Travis Murphy, Vice President, Operations of New Gold. Mr. Murphy is a Professional Geoscientist and a member of the Association of Professional Engineers and Geoscientists of British Columbia. Mr. Murphy is a "Qualified Person" for the purposes of NI 43-101. Additional information regarding the Company’s verification and quality assurance processes is set out in the New Afton and Rainy River NI 43-101 Technical Reports available on SEDAR+ at www.sedarplus.ca. For additional technical information on New Gold’s material properties, including a detailed breakdown of Mineral Reserves and Mineral Resources by category, as well as key assumptions, parameters and risks, refer to New Gold’s MD&A for the year ended December 31, 2023 available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Mineral Reserves Mineral Resources Rainy River Open Pit Mr. Jason Chiasson, P.Eng Chief Open Pit Engineer, Rainy River Underground Mr. Alexander Alousis, P.Eng Manager, Underground Mine, Rainy River Open Pit Mr. Vincent Nadeau-Benoit, P.Geo Director, Mineral Resources, Geology, New Gold Mr. Jason Chiasson, P.Eng Chief Open Pit Engineer, Rainy River Underground Mr. Vincent Nadeau-Benoit, P.Geo Director, Mineral Resources, Geology, New Gold Mr. Alexander Alousis, P.Eng Manager, Underground Mine, Rainy River New Afton Mr. Joshua Parsons, P.Eng Principal Mine Engineer, New Afton Mr. Vincent Nadeau-Benoit, P.Geo Director, Mineral Resources, Geology, New Gold Mr. Joshua Parsons, P.Eng Principal Mine Engineer, New Afton
Page 45
45 Non-GAAP Measures Non-GAAP Financial Performance Measures 1. Cash costs per gold ounce sold "Cash costs per gold ounce sold" is a common non-GAAP financial performance measure used in the gold mining industry but does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. New Gold reports cash costs on a sales basis and not on a production basis. The Company believes that, in addition to conventional measures prepared in accordance with IFRS Accounting Standards, this measure, along with sales, is a key indicator of the Company’s ability to generate operating earnings and cash flow from its mining operations. This measure allows investors to better evaluate corporate performance and the Company's ability to generate liquidity through operating cash flow to fund future capital exploration and working capital needs. This measure is intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. This measure is not necessarily indicative of cash generated from operations under IFRS Accounting Standards or operating costs presented under IFRS Accounting Standards. Cash cost figures are calculated in accordance with a standard developed by The Gold Institute, a worldwide association of suppliers of gold and gold products that ceased operations in 2002. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. Cash costs include mine site operating costs such as mining, processing and administration costs, royalties, and production taxes, but are exclusive of amortization, reclamation, capital and exploration costs and net of by-product revenue. Cash costs are then divided by gold ounces sold to arrive at the cash costs per gold ounce sold. The Company produces copper and silver as by-products of its gold production. The calculation of total cash costs per gold ounce for Rainy River is net of by-product silver sales revenue, and the calculation of total cash costs per gold ounce sold for New Afton is net of by-product copper sales revenue. New Gold notes that in connection with New Afton, the copper by-product revenue is sufficiently large to result in a negative total cash cost on a single mine basis. Notwithstanding this by-product contribution, as a Company focused on gold production, New Gold aims to assess the economic results of its operations in relation to gold, which is the primary driver of New Gold’s business. New Gold believes this metric is of interest to its investors, who invest in the Company primarily as a gold mining Company. To determine the relevant costs associated with gold only, New Gold believes it is appropriate to reflect all operating costs, as well as any revenue related to metals other than gold that are extracted in its operations. To provide additional information to investors, New Gold has also calculated total cash costs on a co-product basis, which removes the impact of other metal sales that are produced as a by-product of gold production and apportions the cash costs to each metal produced on a percentage of revenue basis, and subsequently divides the amount by the total gold ounces, silver ounces or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures. Unless indicated otherwise, all total cash cost information is net of by-product sales. 2. All-in sustaining costs per gold ounce sold “All-in sustaining costs per gold ounce sold” ("AISC") is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. New Gold calculates "all-in sustaining costs per gold ounce sold" based on guidance announced by the World Gold Council (“WGC”) in September 2013. The WGC is a non-profit association of the world’s leading gold mining companies established in 1987 to promote the use of gold to industry, consumers and investors. The WGC is not a regulatory body and does not have the authority to develop accounting standards or disclosure requirements. The WGC has worked with its member companies to develop a measure that expands on IFRS Accounting Standards measures to provide visibility into the economics of a gold mining company. Current IFRS Accounting Standards measures used in the gold industry, such as operating expenses, do not capture all of the expenditures incurred to discover, develop and sustain gold production. New Gold believes that "all-in sustaining costs per gold ounce sold" provides further transparency into costs associated with producing gold and will assist analysts, investors, and other stakeholders of the Company in assessing its operating performance, its ability to generate free cash flow from current operations and its overall value. In addition, the Human Resources and Compensation Committee of the Board of Directors uses "all-in sustaining costs", together with other measures, in its Company scorecard to set incentive compensation goals and assess performance. "All-in sustaining costs per gold ounce sold" is intended to provide additional information only and does not have any standardized meaning under IFRS Accounting Standards and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. The measure is not necessarily indicative of cash flow from operations under IFRS Accounting Standards or operating costs presented under IFRS Accounting Standards. New Gold defines all-in sustaining costs per gold ounce sold as the sum of cash costs, net capital expenditures that are sustaining in nature, corporate general and administrative costs, sustaining leases, capitalized and expensed exploration costs that are sustaining in nature, and environmental reclamation costs, all divided by the total gold ounces sold to arrive at a per ounce figure. To determine sustaining capital expenditures, New Gold uses cash flow related to mining interests from its unaudited condensed interim consolidated statement of cash flows and deducts any expenditures that are non-sustaining (growth). Capital expenditures to develop new operations or capital expenditures related to major projects at existing operations where these projects will materially benefit the operation are classified as growth and are excluded. The definition of sustaining versus non-sustaining is similarly applied to capitalized and expensed exploration costs. Exploration costs to develop new operations or that relate to major projects at existing operations where these projects are expected to materially benefit the operation are classified as non-sustaining and are excluded. Costs excluded from all-in sustaining costs per gold ounce sold are non-sustaining capital expenditures, non-sustaining lease payments and exploration costs, financing costs, tax expense, and transaction costs associated with mergers, acquisitions and divestitures, and any items that are deducted for the purposes of adjusted earnings. To provide additional information to investors, the Company has also calculated all-in sustaining costs per gold ounce sold on a co-product basis for New Afton, which removes the impact of other metal sales that are produced as a by-product of gold production and apportions the all-in sustaining costs to each metal produced on a percentage of revenue basis, and subsequently divides the amount by the total gold ounces, or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures. By including cash costs as a component of all-in sustaining costs, the measure deducts by-product revenue from gross cash costs.
Page 46
46 Non-GAAP Measures Non-GAAP Financial Performance Measures 3. Sustaining capital and sustaining leases "Sustaining capital" and "sustaining lease" are non-GAAP financial performance measures that do not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. New Gold defines "sustaining capital" as net capital expenditures that are intended to maintain operation of its gold producing assets. Similarly, a "sustaining lease" is a lease payment that is sustaining in nature. To determine "sustaining capital" expenditures, New Gold uses cash flow related to mining interests from its unaudited condensed interim consolidated statement of cash flows and deducts any expenditures that are capital expenditures to develop new operations or capital expenditures related to major projects at existing operations where these projects will materially increase production. Management uses "sustaining capital" and "sustaining lease" to understand the aggregate net result of the drivers of all-in sustaining costs other than cash costs. These measures are intended to provide additional information only and should not be considered in isolation or as substitutes for measures of performance prepared in accordance with IFRS Accounting Standards. 4. Growth capital "Growth capital" is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. New Gold considers non-sustaining capital costs to be “growth capital”, which are capital expenditures to develop new operations or capital expenditures related to major projects at existing operations where these projects will materially increase production. To determine "growth capital" expenditures, New Gold uses cash flow related to mining interests from its unaudited condensed interim consolidated statement of cash flows and deducts any expenditures that are capital expenditures that are intended to maintain operation of its gold producing assets. Management uses "growth capital" to understand the cost to develop new operations or related to major projects at existing operations where these projects will materially increase production. This measure is intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. 5. Free Cash Flow “Free cash flow” is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. New Gold defines "free cash flow" as cash generated from operations and proceeds of sale of other assets less capital expenditures on mining interests, lease payments, and settlement of non-current derivative financial liabilities which include the Rainy River gold stream obligation and the New Afton free cash flow interest obligation. New Gold believes this non-GAAP financial performance measure provides further transparency and assists analysts, investors and other stakeholders of the Company in assessing the Company's ability to generate cash flow from current operations. "Free cash flow" is intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. This measure is not necessarily indicative of operating profit or cash flows from operations as determined under IFRS Accounting Standards. The following tables reconcile this non-GAAP financial performance measure to the most directly comparable IFRS Accounting Standards measure on an aggregate and mine-by-mine basis. For additional information with respect to the non-GAAP measures used by the Company, including a reconciliation to the most directly comparable measure under IFRS Accounting Standards, refer to the detailed "Non-GAAP Financial Performance Measure" section disclosure in the MD&A for the three months and twelve months ended December 31, 2024 filed on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.