4 May 2017debt financing● Neutral
Launched a US$300 million senior note offering due 2025 and issued a conditional redemption notice for the US$300 million 7.00% notes due 2020, the redemption contingent on the new issue completing.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
4 May 2017debt financing▲ Good
Priced the offering at US$300 million of 6.375% senior notes due 2025, closing around 18 May, to repay the 7.00% 2020 notes. A 62.5 basis point saving and five extra years of maturity.
10 Mar 2017capital raising announcement● Neutral
Closed the bought deal at 61.64 million shares including the full over-allotment, for about US$173 million gross.
23 Feb 2017capital raising announcement▼ BadMajor
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.
What it means for a shareholder
53.6m new shares at US$2.80 to raise about US$150m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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8 Feb 2017asset acquisition disposition▲ GoodMajor
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.
30 Jan 2017production update▼ BadMajor
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.
28 Oct 2016joint venture update● Neutral
Signed an earn-in with Rimfire Pacific Mining over the Fifield project in New South Wales, with the option to take up to 70% by spending A$12 million over five years. The 673 square kilometre package sits on the same Lachlan Transverse Zone as Cadia and North Parkes, which New Gold compares geologically to its own New Afton mine.
7 Sept 2016production update● Neutral
Rainy River construction was 45% complete at the end of August 2016 and still guided to a mid-2017 start-up at an expected 325,000 ounces a year. Water management construction had only just restarted after a mid-August approval and the final tailings redesign was still with the Ontario ministry for review.
25 Nov 2015asset acquisition disposition▲ GoodMajor
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.
27 Aug 2015asset acquisition disposition▲ GoodMajor
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.
20 July 2015capital raising announcement● NeutralMajor
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.
27 Mar 2015resource reserve update● Neutral
Filed the NI 43-101 technical report on the New Afton mine in British Columbia, dated 23 March 2015 and prepared by Roscoe Postle Associates.
30 Dec 2014business combination● Neutral
Bayfield shareholders approved the arrangement, with the court hearing set for 30 December and effect expected around 1 January 2015.
10 Nov 2014business combination● Neutral
Agreed to buy Bayfield Ventures for 0.0477 New Gold shares each, valuing it at about C$16.6 million or 0.8% of New Gold's stock, a 50% premium. Bayfield holds 10 square kilometres next to Rainy River, including the Burns Block that sits between the planned open pit and the Intrepid underground zone.
11 Sept 2014drilling result▲ Good
Twenty more holes for 13,449 metres at the New Afton C-zone, below and along strike from the B-zone block cave being mined, returned intervals such as 126 metres at 1.47 g/t gold and 1.80% copper. The work was aimed at upgrading and widening the C-zone resource declared the previous July.
31 July 2013resource reserve update▲ GoodMajor
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.
5 July 2012production update▲ GoodMajor
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.