New Gold (TSX:NGD, NYSE:NGD), an intermediate gold producer with mines in Canada, the United States, Mexico, Chile and Australia, said on Tuesday that it achieved its lowest quarterly costs of gold production in the company’s history.
New Gold said its total cash costs in the third quarter were $280 per ounce, compared to $443 per ounce in the year-ago quarter. All-in costs were $779 per ounce. Gold production in Q3, however, was less than in Q3 2012, at 94,038 ounces versus 104,577 ounces. Copper production for the quarter increased 67 percent to 23.7 million pounds from 14.2 million pounds.
As quoted in the press release:
“The strong performance of New Afton, our largest cash flow generator, and the successful acquisition of Rainy River during the quarter were very important milestones for our company,” stated Randall Oliphant , Executive Chairman. “We are, however, disappointed that the operational challenges at Cerro San Pedro and Mesquite led us to update our outlook for the first time in the company’s history. Importantly, our foundation of low costs, a solid balance sheet, and organic growth pipeline in favourable jurisdictions continues to be strong. As originally scheduled, the fourth quarter should be our highest production quarter of the year and we look forward to a strong finish to 2013.”