New Gold Inc. /FI

The Coeur arrangement closed. New Gold shareholders received 0.4959 Coeur shares for each New Gold share, and New Gold was delisted from the TSX and NYSE American and will cease to be a reporting issuer. Fourteen years of cached history end here, with holders carried into Coeur stock rather than cashed out.

business combination

New Gold shareholders approved the Coeur arrangement with 99.22% of votes cast in favour, 476.1 million for against 3.7 million against, with the same result among minority holders under MI 61-101. Coeur shareholders approved at their own meeting the same day.

business combination

Met 2025 production guidance across every operation, with fourth-quarter output of 107,778 ounces of gold and 11.0 million pounds of copper generating US$240 million of quarterly free cash flow and over US$532 million for the year. The recordable injury frequency rate fell 10% to 0.65, the company's lowest.

production update

Coeur Mining agreed to acquire New Gold in an all-share plan of arrangement at 0.4959 Coeur shares per New Gold share, implying US$8.51 a share and about US$7 billion of equity value, a 16% premium to the 31 October close. The combined company would hold seven North American operations with roughly US$3 billion of expected 2026 EBITDA. After thirteen years of selling assets to fund Rainy River and New Afton, New Gold itself is the asset being sold.

business combination

Exploration more than doubled the known extent of the K-Zone system at New Afton, now about 600 metres of strike and 900 metres vertically, with new mineralisation 550 metres further east from surface holes. At Rainy River, surface drilling extended the NW Trend and infill work was converting inferred resources ahead of the year-end reserve statement.

drilling progress report

Called the remaining US$111 million of 7.50% 2027 notes for redemption on 15 July, funded from the March issue proceeds and cash, completing the refinancing. New Gold's only debt issue is now the US$400 million 6.875% due 2032.

debt financing

Closed the buy-back of Ontario Teachers' last 19.9% free cash flow interest in New Afton and terminated all agreements with them, leaving New Gold with 100% of the mine's cash flow.

asset acquisition disposition

Agreed to buy Ontario Teachers' remaining 19.9% free cash flow interest in New Afton for US$300 million, funded from cash, the revolver and a gold prepayment, taking New Gold to 100%. With the US$255 million paid in May 2024, New Gold has now committed US$555 million to unwind a partnership that raised US$300 million in 2020, just as C-Zone reaches full production.

asset acquisition disposition

Priced the new notes at US$400 million of 6.875% due 2032, closing about 18 March, refinancing the 7.50% 2027 notes at a 62.5 basis point saving and five years further out.

debt financing

Extended the mine life at both New Afton and Rainy River, filed updated technical reports for each and published reserves and resources as at 31 December 2024, alongside a three-year operational outlook and free cash flow profile.

resource reserve update

The New Afton technical report as at 31 December 2024 puts proven and probable reserves at 39.6 million tonnes at 0.65 g/t gold, 1.8 g/t silver and 0.72% copper, for 828,000 ounces of gold, 2.253 million ounces of silver and 631 million pounds of copper. Almost all of it, 37.7 million tonnes, is C-Zone; East Extension carries only 962,000 tonnes but at 1.31 g/t gold and 1.63% copper.

resource reserve update

The Rainy River technical report as at 31 December 2024 puts proven and probable reserves at 52.9 million tonnes at 1.25 g/t gold and 3.25 g/t silver, for 2.126 million ounces of gold and 5.535 million ounces of silver, priced at US$1,650 gold. Of that, 20.8 million tonnes at 0.88 g/t is open pit, 16.4 million tonnes at 2.54 g/t is underground and 15.7 million tonnes at 0.38 g/t is stockpile.

resource reserve update

Further drilling extended K-Zone and found new high-grade mineralisation at the HW Zone in the eastern part of the New Afton mine, which management described as a possible new high-grade mining area alongside the existing East Extension resource, again above the C-Zone extraction level and close to infrastructure.

drilling result

Drilling from C-Zone infrastructure hit bornite-rich copper-gold porphyry in the K-Zone at New Afton, including 217 metres of core at 2.01% copper and 1.79 g/t gold, with an estimated true width of 40 metres. The zone sits above the C-Zone extraction level, which is what makes it interesting: existing infrastructure could reach it.

drilling result

Closed the bought deal at 100,395,000 shares including the full over-allotment, at US$1.72 for gross proceeds of US$172.7 million, to help fund the Ontario Teachers' buy-back.

capital raising announcement

Agreed to buy back most of the Ontario Teachers' Pension Plan interest in New Afton, cutting the pension fund's free cash flow share from 46.0% to 19.9% for US$255 million, funded from cash, the revolver and a concurrent US$150 million bought deal. New Gold paid US$255 million to reverse most of a partnership that had brought in US$300 million four years earlier, timed just before C-Zone production.

capital raising announcement

New Afton completed the first draw bell at C-Zone on time and commissioned the last two of 29 dewatering wells at the tailings facility, the main work of the tailings stabilisation project. C-Zone, the fourth block cave at New Afton, stayed on track and on budget for commercial production in the second half of 2024.

production update

Completed the redemption of the last US$100 million of 6.375% notes due 2025, leaving about US$326 million of cash and roughly US$702 million of liquidity, of which about US$24 million of the US$400 million facility is used for letters of credit.

debt financing

Called the last US$100 million of the 6.375% 2025 notes for redemption on 15 May, funded from cash, retiring that issue entirely. New Gold's only remaining notes are the US$400 million 7.50% due 2027.

debt financing

The updated Rainy River technical report, effective 28 March 2022, extends the mine life to 2031 by converting a further 569,000 ounces in the underground main zones to reserves, and switches the remaining open pit to selective mining with stockpile blending before a batch-processing underground operation. Prepared at US$1,400 gold and US$19.00 silver.

resource reserve update

Closed the sale of the Blackwater gold stream to Wheaton Precious Metals for US$300 million, ending New Gold's remaining economic interest in the project it sold to Artemis in August 2020 apart from its Artemis shareholding.

asset acquisition disposition

Agreed to sell the Blackwater gold stream to Wheaton Precious Metals for US$300 million cash, sixteen months after taking it as part-payment from Artemis for the project itself. Together with the C$190 million of cash from the 2020 sale, New Gold has now converted Blackwater largely into cash while Artemis carries the build.

asset acquisition disposition

A mud rush at New Afton at about 1:40am on 2 February 2021 injured two employees and left a contract driller presumed dead. All activity was suspended pending investigation by the company, the RCMP and provincial safety authorities.

production update

Closed the Blackwater sale to Artemis, receiving C$140 million cash with C$50 million due August 2021, the 8% gold stream, and 7,407,407 Artemis shares then worth about C$34.4 million.

asset acquisition disposition

Priced the offering at US$400 million of 7.50% senior notes due 2027 to repay the 6.25% 2022 notes. The coupon is 125 basis points higher than the debt being refinanced, and higher than either of New Gold's two previous issues.

debt financing

Agreed to sell the Blackwater project in British Columbia to Artemis Gold for C$190 million in cash split C$140 million at closing and C$50 million a year later, plus an 8% gold stream stepping down to 4% after about 280,000 ounces delivered, C$20 million of Artemis shares, and C$28 million payments on each of the seventh, eighth and ninth anniversaries if production targets are missed.

asset acquisition disposition

Closed a strategic partnership with the Ontario Teachers' Pension Plan at the New Afton mine for US$300 million of upfront cash, taking total available liquidity to about US$590 million including US$390 million of cash. Ontario Teachers' took a free cash flow interest in the mine rather than lending against it.

capital raising announcement

Agreed to sell Ontario Teachers' Pension Plan a 46.0% free cash flow interest in New Afton for US$300 million upfront, with an option after four years for Ontario Teachers' to convert to a 46.0% joint venture interest or stay at a reduced 42.5% free cash flow share. New Gold keeps operating control and used the money to cut net debt while developing C-Zone.

capital raising announcement

Announced a bought deal of 93.75 million shares at C$1.60 for C$150 million, to be used for balance-sheet repair including debt repayment. The price is well below the US$2.80 raised in March 2017.

capital raising announcement

Closed the Mesquite sale to Equinox for US$158 million gross, leaving New Gold with Rainy River, New Afton and the Cerro San Pedro residual leach.

asset acquisition disposition

Agreed to sell the Mesquite heap-leach mine in California to Equinox Gold for US$158 million cash. Mesquite had averaged more than 135,000 ounces a year for a decade, and New Gold described the sale as crystallising several years of future free cash flow to manage its balance sheet.

asset acquisition disposition

The Rainy River technical report, effective 30 June 2018, puts combined open pit and underground proven and probable reserves at 120.5 million tonnes at 1.09 g/t gold and 3.2 g/t silver, for 4.220 million ounces of gold and 12.398 million ounces of silver. The 2013 feasibility had contemplated producing 3.645 million ounces over sixteen years.

resource reserve update

Agreed to sell the Peak Mines at Cobar in New South Wales to Aurelia Metals for US$58 million cash, after 25 years of operation, to shore up liquidity and concentrate on the Americas.

asset acquisition disposition

Rainy River reached commercial production about two weeks early, having processed roughly 457,000 tonnes in its first 30 days at an average 15,200 tonnes a day, 72% of the 21,000 tonne nameplate, and 19,000 tonnes a day over 1-18 October. New Gold's own definition of commercial production is 60% of nameplate over 30 days.

production update

Completed the redemption of the US$300 million 7.00% 2020 notes, and separately amended the US$400 million revolver to push its maturity out a year to August 2020 and to raise the maximum net debt to EBITDA covenant from 4.0 to 4.5 times for the third quarter of 2017. The covenant change is relief granted while Rainy River was still being built, not a tightening.

debt financing

Announced a bought deal of 53.6 million shares at US$2.80 for about US$150 million, with a 15% over-allotment, to finish building Rainy River. Equity raised for a project whose cost estimate had risen five weeks earlier.

capital raising announcement

Sold the El Morro gold stream, retained only eighteen months earlier, to Goldcorp for US$65 million cash to help fund Rainy River construction. New Gold said total expenditure on El Morro by it and its predecessors had been under US$7 million against US$205 million of proceeds realised over seven years.

asset acquisition disposition

Hit the mid-point of 2016 gold guidance at 381,663 ounces and beat copper guidance by 10% at 102 million pounds, with all-in sustaining costs of US$692 an ounce, a record low and well under the US$750-790 guided. The same release pushed Rainy River first production back three months to September 2017, put the remaining capital to commercial production at US$515 million including US$40 million of contingency, and announced Randall Oliphant stepping down as Executive Chairman with President Hannes Portmann becoming CEO.

production update

Closed the El Morro sale to Goldcorp. New Gold banked US$60 million net of taxes and costs from the US$90 million headline, had US$94 million of carried funding loan cancelled, and kept a 4% life-of-project gold stream over reserves of 8.9 million ounces.

asset acquisition disposition

Agreed to sell its 30% of the El Morro project in Chile to Goldcorp for US$90 million cash, a 4% life-of-project gold stream over the 417 square kilometre property, and cancellation of New Gold's US$93 million carried funding loan. El Morro then held 8.9 million ounces of gold reserves in 599 million tonnes at 0.46 g/t, so New Gold kept exposure without the funding obligation.

asset acquisition disposition

Sold a stream on Rainy River to Royal Gold's RGLD Gold AG for a US$175 million deposit, US$100 million at signing and US$75 million once 60% of development capital is spent. In exchange Royal Gold takes 6.50% of gold production to 230,000 ounces and 3.25% thereafter, plus 60% of silver to 3.1 million ounces and 30% thereafter. Development capital raised by selling future metal rather than equity or debt.

capital raising announcement

The Rainy River feasibility study in northwestern Ontario set out a 16-year mine producing about 3.645 million ounces of gold and 6.615 million ounces of silver, for US$713 million of initial capital plus US$484 million sustaining, at a life-of-mine total cost of US$544 an ounce and a 23.7% after-tax return with a 3.2-year payback. This is the baseline against which everything Rainy River later did should be read.

resource reserve update

First ore went through the New Afton mill on 28 June 2012, on the timeline originally stated, with 28 drawbells completed against a target of 26 and underground mining running at or ahead of plan since late 2011. Commercial production, defined as 30 days at 60% of capacity or 6,600 tonnes a day, was still targeted for August 2012.

production update