NEW GOLD REPORTS THIRD QUARTER 2025 RESULTS
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New Gold announced its third-quarter 2025 financial results, reporting record performance across key metrics. - Production: Gold production was 115,213 ounces, a 63% increase over the second quarter, driven by over 100,000 ounces from the Rainy River mine. Copper production was 12.0 million pounds. - Costs: All-in Sustaining Costs (AISC) were $966 per gold ounce, significantly below the company's annual guidance range. - Financials: The company generated a record $204.7 million in free cash flow, leading to revenue of $462.5 million and net earnings of $142.3 million. - Balance Sheet: New Gold repaid $260 million in debt obligations, including a $150 million credit facility draw, one quarter ahead of schedule. - Guidance: The company confirmed it is on track to meet its full-year 2025 production and cost guidance.
The third-quarter results are highly positive and represent a significant operational and financial beat against expectations. This release confirms the company's turnaround narrative, which was predicated on a back-half weighted 2025 as major capital projects came online.
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Execution on Promises: After a weaker first half of 2025 (Q1 AISC: $1727/oz, Q2 AISC: $1393/oz), the market was waiting for proof that the company could deliver on its guidance of lower costs and higher production. These Q3 results provide that proof decisively. The AISC of $966/oz is not just an improvement; it is an exceptional result that falls below the low end of the full-year guidance range ($1,025 - $1,125/oz).
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Rainy River Turnaround: The standout performer was the Rainy River mine, producing over 100,000 ounces. This asset has historically faced challenges, and its strong performance indicates that the operational improvements and access to higher-grade open-pit material are having a material impact. This is a crucial de-risking event for the company.
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Free Cash Flow Generation: The record $204.7 million in free cash flow is a pivotal moment. The company has clearly transitioned from a period of heavy capital investment to a phase of significant cash generation.
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Deleveraging: Management's decision to immediately apply this cash flow to repay $260 million in debt is a strong signal of financial discipline. This rapid deleveraging strengthens the balance sheet, reduces future interest payments, and lowers the company's overall risk profile.
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Context of Historical News: In February 2025, the company laid out a three-year plan for higher production and lower costs. The Q1 and Q2 results showed incremental progress, but this Q3 report is the first to fully deliver on that promise in a spectacular fashion. It also validates the strategic moves made earlier in the year, such as consolidating the New Afton ownership, which is now set to contribute 100% of its free cash flow. The positive exploration update from September 2025 further enhances the long-term outlook, which is now supported by a very strong financial position.
In conclusion, these results materially exceed expectations and confirm the investment thesis that New Gold is an operationally improving, rapidly deleveraging, cash-generating producer.
New Gold is an intermediate gold mining company with a focus on its two core producing assets in Canada. - Rainy River Mine: A large open-pit and underground gold mine located in Ontario. This asset was the primary driver of the Q3 2025 outperformance, delivering over 100,000 ounces of gold as it accessed higher-grade ore from the open pit. The underground portion is ramping up to provide a supplementary source of high-grade ore. - New Afton Mine: An underground gold-copper block cave mine in British Columbia. The mine is transitioning from the B3 cave to the new, larger C-Zone, which is a key growth project for the company. Recent exploration success at the nearby K-Zone has highlighted significant potential for mine life extension and future growth.