New Gold has released its first three-year operational outlook along with an updated mineral reserve and mineral resources statement as of December 31, 2023. The company aims to significantly boost its free cash flow over the next three years, backed by a strategic plan that outlines increasing production while decreasing operational costs. Patrick Godin, President and CEO, emphasized the company’s readiness for substantial growth in production and cash flow, thanks to preparatory work in recent years.
The consolidated gold production is projected to surge by approximately 35% from 2023, reaching between 410,000 to 460,000 ounces by 2026. This increase is expected to be driven by growth at both Rainy River and New Afton mines, following the completion of near-term growth projects. Additionally, copper production is anticipated to grow by about 60% from 2023, amounting to 71 to 81 million pounds in 2026, primarily due to the C-Zone’s gradual ramp-up.
The company forecasts a significant reduction in all-in sustaining costs (on a by-product basis) to between $650 and $750 per ounce by 2026, marking a decrease of over 50% compared to the 2023 guidance midpoint. This improvement is attributed to higher production levels at both operations, a considerable drop in total capital, and reduced operating costs as the C-Zone crusher and conveyor become operational. Moreover, Rainy River is set to complete Phase 4 waste removal and start mining from the underground Main Zone, further contributing to cost efficiency.
New Gold’s strategic focus on increasing production, coupled with effective cost management and reduced capital expenditure, is poised to generate significant free cash flow for the company over the next three years. This outlook demonstrates New Gold’s commitment to enhancing shareholder value and its position in the gold and copper mining industry. 
