Annual Guidance Tracking to Plan, Growth Projects Make Meaningful Strides Towards Completion (All amounts are in U.S. dollars unless otherwise indicated) TORONTO, April 30, 2024 /CNW/ - New Gold Inc. ("New Gold" or the "Company") (TSX:NGD) (NYSE:NGD) reports first quarter 2024 results. First quarter 2024 production totaled 70,898 gold ounces and 13.3 million pounds of copper as planned at an operating expense of $1,106 per gold ounce sold (co-product basis)3 and all-in sustaining costs1 of $1,396 per gold ounce sold (by-product basis). Another solid quarterly performance that delivered on plan, as the Company approaches a sustained free cash flow generation period, expected to commence in the second half of 2024. Solid Operating Performance in the First Quarter Positions Rainy River and New Afton to Deliver on Planned Production Improvements Throughout the Year "The first quarter of 2024 went as planned for New Gold as outlined in our operational outlook from early-February," stated Patrick Godin, President and CEO. "New Afton delivered another strong operating quarter, while Rainy River made excellent progress sequencing waste stripping in order to secure the substantial increase in production expected in the second half of the year. We exit the first quarter as planned, and are well positioned to meet our guidance targets."  First quarter consolidated production of 70,898 ounces of gold and 13.3 million pounds of copper at all-in sustaining costs1 of $1,396 per gold ounce sold (by-product basis). New Afton had a strong first quarter, producing 18,179 ounces of gold and 13.3 million pounds of copper at all-in sustaining costs1 of $241 per gold ounce sold (by-product basis). First quarter gold and copper production were in-line with plan. The B3 cave continues to perform according to plan, and C-Zone ore production is ramping up concurrent with construction of the cave footprint. Commercial production from C-Zone and crusher commissioning remains on-track for the second half of the year. Rainy River's first quarter delivered to plan, producing 52,719 ounces of gold at all-in sustaining costs1 of $1,638 per gold ounce sold (by-product basis). The transition from Phase 3 to Phase 4 pushback is complete, and waste stripping activities of the upper benches of Phase 4 advanced according to plan in the first quarter, positioning the pit to release additional higher grade ore in the second half of the year. The second half of 2024 is expected to represent approximately 60% of annual production. The Company is on-track to achieve 2024 consolidated production guidance of 310,000 to 350,000 ounces of gold and 50 to 60 million pounds of copper at all-in sustaining costs1 of $1,240 to $1,340 per gold ounce sold (by-product basis). Growth Projects Remain On-Track to Drive Increasing Production Profile Over Next Three Years "The first quarter saw significant progress from our two major growth projects, the Rainy River underground Main project and the New Afton C-Zone block cave project. Rainy River remains on track to achieve first ore from underground Main Zone by the end of this year while New Afton expects to achieve commercial production at C-Zone in the second half of 2024. These projects are expected to drive production growth of 35% gold and 60% copper over the next three years compared to 2023," added Mr. Godin. At Rainy River, underground Main Zone remains on-track for first ore in the fourth quarter of 2024. The priority for 2024 is to establish the primary ventilation circuit and access multiple mining zones, facilitating a ramp-up in underground production to approximately 5,500 tonnes per day by 2027. With an average gold grade approximately three times higher than the open pit, Rainy River gold production is expected to increase significantly with increasing underground mill feed over the next three years. During the quarter, Rainy River achieved a record quarterly development advance rate of 950 metres. With the opening of additional headings and delivery of additional underground mining equipment, development rates are expected to increase throughout the year. Additionally, raiseboring of a 5 metre diameter, 420 metre long fresh air raise, is on track to commence in the second quarter. At New Afton, the Company expects to commission the C-Zone gyratory crusher and conveyor system on time, with the cave achieving hydraulic radius in the second half of 2024. These two milestones are expected to facilitate a return to previously achieved processing rates of more than 14,500 tonnes per day while significantly reducing unit operating costs per tonne. C-Zone development and cave construction is on track to achieve the required 18 draw bells for hydraulic radius in the second half of 2024. Significant progress was made in construction of the new C-Zone gyratory crusher in the first quarter, and concrete work is on track for completion in the second quarter. With the expected commissioning of the gyratory crusher and conveyor system in the second half of 2024, C-Zone will be set up for high-capacity, low-cost, low-emission materials handling for the life-of-mine. Exploration Efforts Continue to Ramp Up in Pursuit of Sustainable Production Objectives "Exploration efforts at both operations continue to advance the pipeline of opportunities to extend mine lives well into the next decade with modest capital investment, in-line with our stated strategic objective of targeting a sustainable production platform of approximately 600,000 gold equivalent ounces per year with a line of sight until at least 2030. We will be in a better position to accelerate our exploration efforts at New Afton in the second quarter with the completion of the exploration drift," stated Mr. Godin. At Rainy River, exploration drilling from both surface and underground is progressing as scheduled, testing the down-plunge extension of ODM Main and 17 East Zones at depth, and exploring the Gap zone located between the Intrepid and Main Zones. In addition, the Company has identified two new underground exploration targets located close to existing infrastructure which would likely require minimal capital investment to bring into production. These include the114-Deep target located below ODM West, and the Intrepid Strike-Extension target located between the 300 and 600 Levels. To test these opportunities, the Company will allocate an additional $4 million in 2024. Rainy River's priority remains to sustain mill throughput beyond 2029, and as such, infill drilling of near-surface targets with potential for open pit extraction, including NW-Trend and ODM East, is scheduled to commence in the second quarter. At New Afton, the Company continues to focus exploration on near-mine zones located above the C-Zone extraction level, prioritizing opportunities with the potential to extend mine life with minimal capital investment. An exploration drift is currently being developed from the base of the Lift 1 cave to provide ideal drill platforms for the K-Zone and AI-Southeast targets. The exploration drift is advancing as planned, with drilling expected to commence in May. Exploration drilling to extend the D-Zone resource envelope is ongoing and is expected to be completed in the second quarter. Consolidated Financial Highlights Q1 2024 Q1 2023 Revenue ($M) 192.1 201.6 Operating expenses ($M) 106.8 117.2 Net loss ($M) (43.5) (31.8) Net loss, per share ($) (0.06) (0.05) Adj. net earnings ($M)1 13.1 18.4 Adj. net earnings, per share ($)1 0.02 0.03 Cash generated from operations ($M) 54.7 60.6 Cash generated from operations, per share ($) 0.08 0.09 Cash generated from operations, before changes in non-cash operating working capital ($M)1 72.5 75.7 Cash generated from operations, before changes in non-cash operating working capital, per share ($)1 0.11 0.11 Revenue decreased over the prior-year period primarily due to lower gold sales volumes partially offset by higher metal prices and higher copper sales. Operating expenses decreased over the prior-year period due to lower production and sales and an inventory write-up gain of $8 million at Rainy River. Net loss increased over the prior-year period primarily due to a decrease in revenues resulting from lower gold sales and higher unrealized losses on the revaluation of the Rainy River gold stream obligation and the New Afton free cash flow interest obligation. The net loss was partially offset by lower operating costs and lower exploration and development expenses. Adjusted net earnings1 decreased over the prior-year period due to lower revenues, higher depreciation and depletion expenses, and higher adjusted income tax expense, partially off-set by lower operating expenses and lower exploration expenses. Cash generated from operations decreased over the prior-year period primarily due to lower revenue. March 31, 2024 cash and cash equivalents of $157 million. Consolidated Operational Highlights Q1 2024 Q1 2023 Gold production (ounces)2 70,898 82,477 Gold sold (ounces)2 70,077 87,206 Copper production (Mlbs)2 13.3 10.3 Copper sold (MIbs)2 12.0 9.5 Gold revenue, per ounce ($)3 2,061 1,864 Copper revenue, per pound ($)3 3.64 3.79 Average realized gold price, per ounce ($)1 2,090 1,890 Average realized copper price, per pound ($)1 3.86 4.10 Operating expenses per gold ounce sold ($/ounce, co-product)3 1,106 1,000 Operating expenses per copper pound sold ($/ounce, co-product)3 2.44 3.17 Depreciation and depletion per gold ounce sold ($/ounce) 897 636 Cash costs per gold ounce sold (by-product basis) ($/ounce)1 874 922 All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)1 1,396 1,357 Sustaining capital ($M)1 25.9 26.3 Growth capital ($M)1 35.1 36.8 Total capital ($M) 61.1 63.1 Rainy River Mine Operational Highlights Rainy River Mine Q1 2024 Q1 2023 Gold production (ounces)2 52,719 66,201 Gold sold (ounces)2 53,097 71,891 Gold revenue, per ounce ($)3 2,085 1,882 Average realized gold price, per ounce ($)1 2,085 1,882 Operating expenses per gold ounce sold  ($/ounce)3 1,223 1,035 Depreciation and depletion per gold ounce sold ($/ounce) 792 553 Cash costs per gold ounce sold (by-product basis) ($/ounce)1 1,165 998 All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)1 1,638 1,375 Sustaining capital ($M)1 22.2 22.3 Growth capital ($M)1 7.4 5.7 Total capital ($M) 29.6 28.0 Operating Key Performance Indicators Rainy River Mine Q1 2024 Q1 2023 Open Pit Only Tonnes mined per day (ore and waste) 91,587 118,481 Ore tonnes mined per day 16,476 36,380 Operating waste tonnes per day 51,486 60,360 Capitalized waste tonnes per day 23,626 21,741 Total waste tonnes per day 75,111 82,101 Strip ratio (waste:ore) 4.56 2.26 Underground Only Ore tonnes mined per day 878 765 Lateral development (metres) 950 876 Open Pit and Underground Tonnes milled per calendar day 25,023 22,400 Gold grade milled (g/t) 0.83 1.12 Gold recovery (%) 91 91 First quarter gold production was 52,719 ounces, a decrease over the prior-year period as planned primarily due to lower gold grade, partially offset by higher tonnes processed. Production is expected to strengthen in the second half of the year and represent approximately 60% of annual production, as lower grade ore is processed and waste stripping activities continue in the first half of the year, allowing access to higher grade ore from the Phase 4 open pit in the second half of the year. Operating expense per gold ounce sold increased over the prior-year period due to lower gold grade and lower sales volumes, partially offset by an increase in the net realizable value of the low grade stockpile with an impact of approximately $150 per gold ounce sold in the first quarter. All-in sustaining costs1 per gold ounce sold (by-product basis) increased over the prior-year period due to higher operating expenses and lower sales volumes. All-in sustaining costs are expected to decrease throughout 2024 as the processing of lower grades in the first half of the year due to increased stripping activities are completed, and higher grade ore is accessed in the second half of the year. Total capital increased over the prior-year period due to higher growth capital spend. Sustaining capital1 is primarily related to capitalized waste, capital components, and tailings management and construction. Growth capital1 is related to the underground development as the underground Main Zone continues to advance. Free cash flow1 for the quarter was a net outflow of $3 million (net of a $7 million stream payment), a decline over the prior-year period primarily due to a decrease in revenues, but in-line with the planned open pit sequence for the first half of the year as outlined in the Company's guidance. New Afton Mine Operational Highlights New Afton Mine Q1 2024 Q1 2023 Gold production (ounces)2 18,179 16,276 Gold sold (ounces)2 16,980 15,316 Copper production (Mlbs)2 13.3 10.3 Copper sold (Mlbs)2 12.0 9.5 Gold revenue, per ounce ($)3 1,988 1,782 Copper revenue, per ounce ($)3 3.64 3.79 Average realized gold price, per ounce ($)1 2,108 1,928 Average realized copper price, per pound ($)1 3.86 4.10 Operating expenses ($/oz gold, co-product)3 740 839 Operating expenses ($/lb copper, co-product)3 2.44 3.17 Depreciation and depletion ($/ounce) 1,216 1,013 Cash costs per gold ounce sold (by-product basis) ($/ounce)1 (34) 568 Cash costs per gold ounce sold ($/ounce,co-product)1 811 930 Cash costs per copper pound sold ($/pound, co-product)1 2.67 3.52 All-in sustaining costs per gold ounce sold (by-product basis) ($/ounce)1 241 872 All-in sustaining costs per gold ounce sold ($/ounce, co-product)1 894 1,021 All-in sustaining costs per copper pound sold ($/ounce, co-product)1 2.94 3.86 Sustaining capital ($M)1 3.7 4.0 Growth capital ($M)1 27.7 31.1 Total capital ($M) 31.4 35.0 Operating Key Performance Indicators New Afton Mine Q1 2024 Q1 2023 New Afton Mine Only Tonnes mined per day (ore and waste) 10,734 9,185 Tonnes milled per calendar day 10,153 8,1424 Gold grade milled (g/t) 0.68 0.784