FIRST QUARTER 2008 FINANCIAL RESULTS
(All amounts are in Canadian $)
May 13, 2008, Toronto, Ontario -- New Gold Inc. (the “Company” or “New Gold”) (NGD:
TSX/AMEX) is pleased to provide the 2008 first quarter financial results and an update on its New Afton
Copper Gold Project (the “Project”) situated 10 kilometres west of Kamloops, British Columbia.
2008 First Quarter End Results
The Company incurred a loss of $9.2 million or $0.25 per share in the first quarter as compared to a loss of $0.5
million or $0.02 per share in the first quarter of 2007. The increase in the loss is primarily related to the expensing
of $9.4 million related to interest and accretion charges which do not qualify for capitalization.
During the first quarter of 2008, the Company invested approximately $20.1 million on its mineral properties as
compared to $5.9 million in the comparative quarter in 2007. During the current quarter, expenditures on the
New Afton project included $18.0 million on underground development and infrastructure and $1.3 million on
surface exploration in and around the New Afton project and $0.8 million on the Company’s Ajax claims. In the
comparative quarter of 2007, the Company spent $3.7 million on development activities, principally related to the
construction of a new pit road, $1.8 million on the feasibility study and $0.3 million on surface exploration
programs in and around the current resource.
In addition, during the first quarter of 2008, the Company spent $11.0 million on property, plant and equipment
in the first quarter as compared to $1.3 million in the comparative quarter in 2007. The significant increase relates
to the acquisition of the initial mine development fleet plus sundry capital assets required for the development of
the New Afton Mine. In 2007, the acquisitions related to the acquisition of the underground equipment acquired
from the former underground mining contractor.
As at March 31,