New Gold Inc.

Good morning. My name is Jean-Louis, and I will be your conference operator today. Welcome to the new Gold second quarter 2025 earnings call and webcast. 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 questions during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I would now like to hand the conference over to Anik Shah, Executive Vice President of Strategy and Business Development. Thank you.

Thank you, Jean-Louis, and good morning, everyone. We appreciate you joining us today for New Vault's second quarter 2025 earnings conference call and webcast. On the line today, we have Patrick Godin, President and CEO, Keith Murphy, CFO, and Travis Murphy, Vice President, Operations. In addition, we have Luke Buchanan, Vice President, Technical Services, and Jean-Francois Ravenel, Vice President, Geology, available to assist during the question and answer portion at the end of the call. Should you wish to follow along with the webcast, please sign in from our web homepage at newgold.com. Before the team begins the presentation, I would like to direct your attention to our cautionary language related to forward-looking statements found on slide two 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. You are cautioned that actual results in future events could differ materially from those expressed or implied in forward-looking statements. Slide 2 provides additional information and should be reviewed. We also refer you to the section entitled Risk Factors in NUGL's latest AIF, 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. Slide four highlights some of the key accomplishments during the second quarter. Through the first half of 2025, we have made excellent progress on advancing and completing many of the objectives presented at the beginning of the year. Safety, highlighted by a purge to care culture, continues to be a focus and strength for the company. During the quarter, we delivered a low total recordable injury frequency rate of 0.82, continuing the downward trend over the last three years. New Afton was awarded three safety awards during the second quarter for exemplary safety performance in 2024. The awards received included the J.T. Ryan Regional Award for British Columbia and Yukon, British Columbia's Safest Large Underground Mine, and British Columbia's Mine Safety Innovation Award. In the second quarter, New Afton also won British Columbia's Underground Mine Rescue Championship and the Rainy River Mine won Thunder Bay District Mine Rescue Championship, a true testament to our commitment to health and safety. During the quarter, the company produced approximately 78,600 ounces of gold and 13.5 million pounds of copper at an all-in sustaining cost of $1,393 per ounce. Gold production for the first half of the year was about 38% of the midpoint of the consolidated production guidance range of 325 to 365,000 ounces of gold, consistent with the planned 38% stated in the February outlook. The company generated more than $163 million in cash flow from operations and achieved a record of $63 million in free cash flow. Rainy River also recorded a quarterly record of $45 million in free cash flow. The company made significant progress on initiatives aligned with its three-year production growth and accomplished several key milestones during the quarter. At New Afton, C-Zone cave construction is now approximately 65% complete, supporting the progressive increase in processing rates towards the target of 16,000 tons per day by early 2026. An important development milestone was also achieved in May with the completion of undercutting, unlocking the remaining extraction drives for development and construction. At Rainy River, the PIP portal breakthrough was achieved in early April. Subsequently, completion of the ODM east ventilation loop and commissioning of the fresh air rays were accomplished later in the quarter. These key milestones are expected to facilitate increased underground development and production rates. Our exploration initiatives made significant progress during the quarter, highlighted by record activity at New Afton. Following the completion of the C-zone extraction level exploration drift, current efforts are concentrated on K-zones. At Rainy River, work is advancing on the Northwest trend open pit zone, as well as upgrading the underground ore inventory. We plan to provide an exploration update in September. In April, it was announced that Newgold would acquire the remaining 19.9% free cash flow interest at New Afton, consolidating our interest to 100%. In summary, we achieved the planned objectives for the first half of 2025 with a continued focus on generating meaningful value for our shareholders. With that, I will now turn the call over to Travis. Travis.

Thank you, Ankit. I'm on slide six, which has our operating highlights. As Ankit noted, Q2 delivered production and costs on plan. Production totaled approximately 78,600 gold ounces and 13.5 million pounds of copper. This increase in gold production compared to Q2 2024 was driven by planned higher feed grade at Rainy River, partially offset by lower plan fee grade at New Afton. Consolidated all-in sustaining costs for the quarter were $1,393 per gold ounce on a byproduct basis, in line with Q2 2024, but a substantial improvement over the first quarter of 2025. Costs will continue to trend down throughout the year as production increases. New Afton delivered an excellent order as the B3K continued to over-deliver compared to the plan set out at the beginning of the year. As a result, New Afton achieved an all-in sustaining cost of negative $537 per ounce after considering the copper credit. Rainy River delivered on plan as a mill transition from low-grade stockpile material to processing higher-grade open-pit ore. All-in sustaining costs were $1,696 per ounce in the quarter, a substantial improvement compared to the first quarter. Costs should continue to trend lower throughout the year as production ramps up. Our total capital expenditures for the quarter are approximately $92 million, with $34 million spent on sustaining capital and $58 million spent on growth capital. At New Afton, sustaining capital is primarily related to mobile equipment, while growth capital primarily related to construction, growth mine development, tailings, and machinery and equipment. At Rainy River, sustaining capital is primarily related to open pit stripping and tailings facility expansion, while growth capital related to underground development, machinery, and equipment.