Investor day presentation february 2014 v final

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<ul><li>1.Investor Day 2014 February 6, 2014</li></ul><p>2. Agenda February 6, 201410:00 11:30amInvestor Day Presentation including Q&amp;A11:30 12:00pmAdditional discussion and Q&amp;A12:00 1:00pmLunch2 3. Discussion topicsIntroduction and company overviewRandall Oliphant2013 operational resultsErnie Mast2014 outlookErnie Mast/ Brian PennyDevelopment projectsRobert GallagherHealth, safety and corporate social responsibilityRobert Gallagher2013 year-end reserves, resources and explorationMark PetersenNew Afton performance review, expansion project details and C-zone updateKurt Keskimaki/ Mark PetersenConclusionRandall Oliphant3 4. Cautionary statements All monetary amounts in U.S. dollars unless otherw ise stated Total cash costs shown net of by-product sales unless otherwise stated CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information contained in this presentation, including any information relating to New Golds future financial or operating performance are forward looking. All statements in this presentation, other than statements of historical fact, which address events 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, 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: guidance for production, cash costs and all-in sustaining costs (and its components) and for growth capital expenditures, including the expected drivers of those figures and the nature and amount of particular expected expenditures; the expected throughput and recovery rates at New Afton; planned modifications to the New Afton Mine and mill, the expected timeline, outcomes, cost and payback period of any such modifications; planed modifications to other operations; expected future mining activities; planned exploration expenditures (and their accounting treatment) and drilling activities and costs; exploration potential and the goals and expected results of future exploration activities; the estimation of mineral reserves and resources and the realization of such estimates; the results of the Rainy River and Blackwater feasibility studies, including the expected production, costs, stripping ratio, mining and processing method and rate, stockpiling plan, recovery rates, mine life, infrastructure, NPV, IRR and payback period (and related sensitivities associated with each project; the potential annual production, cash costs and capital costs, and the potential for a block cave, at the El Morro project; the timing of permitting activities and environmental asse ssment processes; and the timeline for development of Rainy River, including targeted timing for commissioning and full production.All forward-looking statements in this presentation are based on the opinions and estimates of 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. Certain material assumptions regarding our forward-looking statements are discussed in this presentation, New Golds MD&amp;A, its Annual Information Form and its Technical Reports filed at 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 Golds operations; (2) political and legal developments in jurisdictions where New Gold operates, or may in the future operate, being consistent with New Golds current expectations; (3) the accuracy of New Golds current mineral reserve and resource estimates; (4) the exchange rate between the Canadian dollar, Australian dollar, Mexican Peso and U.S. dollar being approximately consistent with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) labour and material costs increasing on a basis consistent with New Golds current expectations; (7) permitting and arrangements with First Nations and other Aboriginal groups in respect of Rainy River and Blackwater being consistent with New Golds current expectations; (8) all environmental approvals (including the environmental asse ssment process for the Blackwater and Rainy River projects), required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines; and (9) the results of the feasibility studies for the Rainy River and Blackwater projectsbeing 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: significant capital requirements; price volatility in the spot and forward markets for commodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico and Chile; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation 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 and political 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 of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction in which New Gold operates, including, but not limited to: in Canada, obtaining the necessary permits for the Blackwater and Rainy River projects; in Mexico, where Cerro San Pedro has a history of ongoing legal challenges related to our environmental authorization (EIS); and in Chile, where the courts have temporarily suspended the approval of the environmental permit for El Morro; the lack of certainty with respect to foreign legal systems, which may not 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 New Gold is or may become a party to; diminishing quantities or grades of reserves and resources; competition; loss of key employees; additional funding requirements; rising costs of labour, supplies, fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies including the feasibility studies for Rainy River and Blackwater; 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 mineral properties; unexpected delays and costs inherent to consulting and accommodating rights of First Nations and other Aboriginal groups; uncertainties with respect to obtaining all necessary surface and other land use rights or tenure for Rainy River; risks, uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorizations and complying with permitting requirements, including those associated with the environmental assessment processe s for Blackwater and Rainy River. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental events and hazards, industrial accidents, unusual or 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) a s well as Risk Factors included in New Golds disclosure documents filed on and available at 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 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 accordance with applicable securities laws. The preliminary information provided for production, sales, total cash costs(1) and all-in sustaining costs(2) are approximate figures and may differ from the final results in the 2013 annual audited financial statements and managements discussion and analysis. The footnotes to this presentation contain important information, refer to appendices and endnotes found at the end of the presentation. For those viewing the webcast, the full presentation including appendices and endnotes isavailable on New Golds website at 5. New Gold investment thesisPortfolio of assets in top-rated jurisdictionsInvested and experienced teamAmong lowest-cost producers with established track recordPeer-leading growth pipelineA history of value creation18.5 Moz gold reserves~$80 million investment by Board &amp; ManagementTargeting ~$825/oz all-in sustaining costs(1)~900 Koz annual production potential from growth projects+300% increase in share price since 20091. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures.5 6. 2013 highlightsOPERATIONS$44/oz REDUCTION IN TOTAL CASH COSTS(1)EXPLORATION/DEVELOPMENT+127% Gold Reserves PER SHARE New Afton achieved ramp-up ahead of schedule+22% Lowest total cash costs(1) in company historyGold M&amp;I Resources(2) PER SHARE Achieved updated production outlookLargest Gold Reserve in New Golds HistoryCORPORATE DEVELOPMENTCOMPLETED RAINY RIVER ACQUISITION Minimal dilution - 5.5% increase in shares outstanding Increased Canadian footprintBALANCE SHEET$414 million in cash at end of 2013 Prioritizing lower capital cost Rainy River project 325 Koz annual production potential at low cost Continued exploration potential1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. For a detailed breakdown of Mineral Resources and Reserves by category, refer to Appendix 2. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estim ates of Mineral Reserves and Mineral Resources and Technical Inform ation. Measured and Indicated Resources are inclusive of Reserves.6 7. Collectively ~$80 million invested in New GoldBOARD OF DIRECTORS David EmersonFormer Canadian Cabinet MinisterJames EsteyFormer Chairman, UBS Securities CanadaRobert GallagherPresident &amp; Chief Executive OfficerVahan KololianFounder, Terra Nova PartnersMartyn KonigFormer Executive Chairman, European GoldfieldsPierre LassondeChairman, Franco-NevadaRandall OliphantExecutive ChairmanRaymond ThrelkeldMining Consultant7 8. Portfolio of assets in top-rated jurisdictions Mining investment country rankings (1)BlackwaterMine Life: 17 yearsNew AftonMine Life: 10 yearsRainy River#2Mine Life: 14 yearsMesquiteMine Life: 8+ yearsCerro San PedroMine Life: 2+ yearsEl MorroMine Life: 17 yearsPeak MinesMine Life: 6+ yearsCANADA#6 UNITED STATES#5 MEXICO#3 CHILE#1 AUSTRALIAOPERATING DEVELOPMENT1. Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report 2013 Ranking of Countries for Mining Investm ent: Where Not to Invest.8 9. Lowest costs in companys history FOURTH QUARTER AND FULL YEAR 2013 Fourth quarter was the highest production quarter of 2013 Met full year production and cost outlook 2013 lowest total cash costs (1) in New Golds historyFourth quarter and full year total cash costs (1) and all-in sustaining costs (2) further establish companys low cost profileGOLD PRODUCTION (Koz)398107 Q4'13FY 2013TOTAL CASH COSTS(1) ($/oz)$377 $316Q4'13FY 2013ALL-IN SUSTAINING COSTS(2) ($/oz)$883Q4'13 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures.$899FY 2013 9 10. Significant increase in gold reserves per shareGold reserves increased by 10.7 million ounces during the yearAttributable to establishing Blackwater reserves and accretive acquisition of Rainy RiverGOLD RESERVES(1) (Moz)18.5+127% per share 7.8 YE 2012Silver reserves increased by 58.8 million ounces and copper reserves remained significant at 3.0 billion poundsYE 2013GOLD M&amp;I RESOURCES(1) (Moz)+22% per share27.5 21.4YE 2012YE 20131. For a detailed breakdown of Mineral Resources and Reserves by category, refer to Appendix 2. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estim ates of Mineral Reserves and Mineral Res ources and Technical Inform ation. Measured and Indicated Resources are inclusive of Reserves.10 11. Strong balance sheetFace value $878 million in long-term debt(3) Undrawn Credit Facility (2)Liquidity Position$414 mmFace value $500 million, 6.25% notes due in 2022Cash and Equivalents (1)Face value $300 million, 7.00% notes due in 2020$78 million in carried El Morro loan, payable out of El Morro project cash flow$100 mm$514 mm1. Cash and equivalents as at Decem ber 31, 2013. 2. $50 m illion of total $150 m illion at year-end used for Letters of Credit. 3. See Appendix 1 Sum ary of debt for detailed breakdown of com m ponents of debt.11 12. 2014 consolidated guidance 2013 ACTUAL Continued gold production increases at New Afton offset by lower production forecast at Cerro San Pedro2014 GUIDANCE Gold production(1)380 420 Koz398 KozCopper production to increase by approximately 12 percent Total cash costs(2)Depreciation of Canadian and Australian dollars benefits New Gold costs$320 $340/oz$377/ozTotal cash costs (2) and all-in sustaining costs (3) well below industry average All-in sustaining costs(3)$899/oz$815 $835/oz1. Gold sales expected to be in the sam range as production. e 2. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. All total cash cost estim ates (excluding historical am ounts) in this presentation assum com odity price assum e m ptions of: Gold - $1,300 per ounce, Silver - $20.00...</p>