New Gold Announces 62% Increase in Gold Production in Second Quarter of 2010
(All figures are in US dollars unless otherwise indicated)
July 20, 2010 – New Gold Inc. (“New Gold”) (TSX and NYSE AMEX:NGD) today announces an update on
the second quarter performance of the company’s three operating assets with 2010 second quarter gold sales of
82,402 ounces at a total cash cost (1) of $490 per ounce, net of by-product sales. The preliminary production,
sales and total cash cost (1) information provided are approximate figures and may differ slightly from the second
quarter earnings results.
Second Quarter Highlights
Results presented below are for the period of ownership of the Mesquite Mine (June 1, 2009).
All three of the company’s operating mines, Mesquite, Cerro San Pedro and Peak, had strong production
quarters with gold, silver and copper production all contributing meaningfully to the company’s cash flow. Cerro
San Pedro’s results continue to demonstrate the flexibility of the operation and the ability of the mine to ramp-up
production quickly and efficiently. The Cerro San Pedro mine is currently fully operational and New Gold will
continue to pursue all avenues necessary such that the mine remains in continuous operation for the benefit of our
shareholders, the mine’s local employees and surrounding communities.
“We are very pleased with the operating performance at all of our mines during the first half of 2010,” stated
Robert Gallagher, President and Chief Executive Officer. “With further increases in gold production and
decreases in cash cost anticipated, we expect the second half of 2010 to be an exciting one for New Gold.”
§ Gold production increased 62% to 89,919 ounces from 55,633 ounces in the same period in 2009
§ Gold sales increased by 56% to 82,402 ounces from 52,890 ounces in the same period in 2009
§ Cash balance increased by $32 million from the end of the first quarter to $376 million at June 30