New Gold Inc.

Good morning, my name is Sylvie and I will be your conference operator today. Welcome to the New Gold's second quarter 2021 earnings conference call. All lines have been placed on mute to prevent any background noise. Please be advised that today's conference call and webcast is being recorded. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. And if you would like to withdraw your question, please press star, then the number two. And I would like to turn the conference over to Nkit Shah, VP of Strategy and Business Development. Please go ahead, sir.

Thank you, Sylvie, and good morning, everyone. We appreciate you joining us today for New Gold's second quarter 2021 earnings conference call and webcast. On the line today, we have Renaud Adams, President and CEO, and Rob Chauvet, our CFO. Should you wish to follow along with the webcast, please sign in from our homepage at newgold.com. Before we begin the presentation, I'd like to direct your attention to our cautionary language related to forward-looking statements found on slides two and three of the presentation. Today's commentary includes forward-looking statements relating to Newgold. In this respect, we refer you to our detailed cautionary note regarding forward-looking statements in the presentation. There are caution that actual results in future events could differ materially from those expressed or implied in forward-looking statements. Slides two and three provide additional information and should be reviewed. We also refer you to the section entitled Risk Factors in NUGLE's Latest MD&A and Other Filings available on CDAR, which set out certain material factors that could cause actual results to differ. In addition, at the conclusion of the presentation, there are a number of end notes that provide important information and should be reviewed in conjunction with the material presented. I'll now turn the call over to Rob. Rob? Thanks. Good morning.

Slide 5 provides our operating highlights for Q2. Production details are consistent with our July production press release. During Q2, the company produced approximately 105,700 gold equivalent ounces. The amount consisted of 18.2 million pounds of copper, 52,900 gold ounces from Rainy River, and 14,088 gold ounces from New Afton, totaling approximately 66,900 gold ounces. Higher equivalent gold production as compared to the prior year quarters, primarily due to higher tons and grades at Rainy River and higher copper production at New Afton. Operating expense per equivalent ounce was higher than the prior year quarter due to planned higher costs at New Afton, a strengthening Canadian dollar, and the Canadian weight subsidy received in the prior period. Consolidated all-in sustaining costs for the quarter were $15.51 per equivalent ounce, higher than the prior year quarter, primarily due to the higher operating expense, as previously noted, and increase in sustaining capital at New Afton. Turning to our financial results on slide six, second quarter revenue was $198 million, driven by sales of 68,000 gold ounces at an average realized gold price of $18.17 per ounce, and sales of 16.9 million pounds of copper at 4.43 per pound. Q2 revenue was 54% higher than the prior quarter, primarily due to higher sales volumes and metal prices. Operating cash flow before working capital adjustments was 84.7 million or 12 cents per share for the quarter, higher than the prior quarter, primarily due to higher sales volumes and metal prices. The company recorded a net loss of 15.8 million or two cents per share during the quarter, compared to a loss of $0.07 per share in the prior year quarter. After adjusting for other certain items, net earnings were $26.7 million or $0.04 per share in Q2, compared to a net loss of $3.3 million or $0.00 per share in the second quarter of 2020. The difference is driven by higher sales volumes and metal prices. Our Q2 adjusted earnings include adjustments related to unrealized adjustments on our Rainy River stream, mark to market, and the free cash flow royalty at New Afton. Our MD&A has additional details on the non-GAAP measures discussed here. Next slide covers, or sorry, on the bottom of this slide covers the capital expenditures. Our total capital expenditures for the quarter were 82.4 million, 49.2 million was spent on sustaining capital, and 33.2 million on growth capital. Sustaining spend was primarily related to planned tailings work at both operating assets, and B3 mine development at New Afton. Growth capital was focused on project development, specifically in the sea zone and the thicken and amended tailings project at New Afton and the underground intrepid zone at Rainy River. Slide seven provides details of our capital structure. At June 30th, 2021, we had $138 million in cash and $464 million in liquidity. Adding to liquidity will be the receipt this month of the remaining $50 million CAD payment related to the Blackwater sale. With that, I'll turn the call over to Renaud.