Q3 2022 New Gold Inc Earnings Call

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In person will ramp up over the coming months develop.

With love in advance of that shovel hit under the.

<unk> during the quarter with the main decline ramp reaching the 200 meter level ahead of plan.

During the final quarter of the year, our focus at rainy River will be ramping up open pit mining on the on demand.

On demand ODM zone, and getting the I agreed underground material fed into the mill.

Slide 12 provides a summary of third quarter highlights for our new Afton mine during the quarter. The underground mine average 660 500 tonnes per day.

This decrease over the prior year due to the planned completion of Miss one mining activities and the closure of the recoveries level or <unk>.

As planned the mill averaged approximately 700 700 tonnes per day, and we come through the processing of lower grade surplus stockpile discipline entertainment is really in the beginning of the third quarter.

Military development and global construction is now complete.

We're currently extracting ore solely from history and expect mining rates to reach a target of 8000 tonnes per day early in 2023 season development advanced an additional 9900 998 meters during the quarter and we continue remain on track for first oil from season in the second half of 2023.

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Ramping ramping up <unk> and continuing to develop seasonal non time remains new app and key priorities for the remainder of the year.

I will now pass it back to Renaud.

Thank you Pat.

I'm on slide 13, which provides a summary of our key priorities.

In concluding this presentation, so building up on the significant progress and milestones achieved in the third quarter. We continued to work very hard to assess all possibilities to increase the underlying value of our asset base and we're focused on achieving all of our key catalyst, but the remaining update yes.

The remainder of the year. This completes our presentation and I will now turn it back to the operator for the Q&A portion of the call operator.

Thank you, Sir ladies and gentlemen, let me now begin the question answer session.

I have a question. Please press star followed by the one Touchtone phone.

We will hear three Tom Brad <unk> question. Your question is will be Paul.

They receive.

Should the collapsing the polling process. These best stifle a bite too if you are using a speaker phone lift the handset before pressing any keys.

One moment. Please for your first question. Your first question comes from Trevor Jumbo with Scotiabank. Please go ahead.

Yes. Thank you I just wanted to ask for a little bit of clarification on the guidance.

Mentioned at rainy the glacial material that youre stripping would be about $2 $2 4 million tonnes and it seem like that would imply more like a one to one strip ratio, but then in the commentary you had said something about the strip ratio stained.

Below three to one and I'm, just wondering if I'm mixing something up there.

So I think as the strip ratio going forward.

It will be three to one.

And what is remaining to strip from the overburden is mostly the tonnages talked about three to four to 5 million tonnes.

That will be completed.

If I'm just.

I think it will be around the second half of the year next year is something that we are pushing back as we are getting there with an ongoing forward.

More important for us.

All the all the crawler equivalent or working on rux, So basically if the conditions of extraction of the above.

Overburden is three.

Straightforward for us and we are a lower risk score totally.

Clearly, we need to compare to the <unk>.

Last year, we were struggling with Florida and stuff. So basically as we are still having to $42 4 million tons of <unk>.

Forward Burger material to NGO part of the stripping ratio that is incorporated in our forecast.

Alright. Thanks.

Just to complete on death is like.

I think I think your question goes along.

The glacier probably is not the haul waste of course.

I think the highlight here of the $2 4 million out there battling yet unlike out over four or five years and know and binding that material is almost gone.

Of course, it's not the only and so our carryout waste materials, so moving forward.

You know that's that's that's that their friends here.

Right and so kind of the tonnes of ore mined is going to remain roughly consistent with what you've been doing.

Yeah, Yeah, Yeah, yeah, yeah, okay.

Okay.

And then just one other quick question.

With respect to the copper copper.

Copper output.

As we close out the year in Q4.

Is it correct to assume that now that the <unk> zone is starting to ramp up production.

Reduction should start to trend a bit higher or are there great considerations that are potentially going to keep.

Copper from from being higher in Q4.

So the copper production workforce will increase because actually we will.

We are ramping up from 65 to 8000 tonnes per day.

And you know in a block cave in the block cave, usually when you start we are looking on the reserve is based on the.

From the mining dilution that is coming from the restructuring of the cave, but when we start caving methods usually the agreed is much better because the division is coming from the external wall.

In addition to that.

Efrain.

During the presentation.

Totally.

The stockpile the low grade stockpile that we had on surplus in the industry actually all albeit no matter at all that there is going to the mill as well as the material.

Understood Okay. Thank.

Thank you very much.

Measure for me thanks.

Thank you, ladies and gentlemen, as a reminder, if you have any questions. Please press star. One. Your next question comes from Mike Parkin with National Bank. Please go ahead.

Hi, guys. Thanks for taking my question, sorry to hear about the needs of the serious.

With respect to new Afton.

Noticing that like your goal as well as your copper recovery rate.

For Q3.

Have been better than they've been.

For at least two plus years is that something that we could expect to continue.

<unk> fourth quarter and 2023.

Well, if you recall in mic.

One of the one thing that we liked about the fees on that as we move forward. The noise is how clean is VR and so forth. So we continue to believe that has we move forward with more material from <unk>, but also in the switching eventual J C zone.

I think the guys have been doing an absolute liberty ball job there at the mill and yes. We continue to believe that we will benefit for any increase increase recovery as we move forward.

And with that is that anything to do with a function of the lower.

Throughput as you penetrate this thing through this lower tonnage period, and then as you ramp up season with that.

Ease off in that recovery or would you expect that to actually sustain that.

The memorial elevated levels versus where you have average kind of in the last couple of years.

Yes.

Definitely not pushing as you mentioned another mill.

Capacity, but to be very frankly, if you compare where they lost a couple of years and now we're run not necessarily pushing the mail that midway through it has to do with the weather.

With the mineralogy of Dr that it will keep improving as we move forward and and also the fact that the.

The dystrophin gene as well.

We'll be reducing as you are actually going forward.

Okay Super that's it for me guys. Thanks, so much.

Thank you.

Thank you.

There are no further questions at this Jan you May proceed.

Great. Thank you very much and thanks to everybody who joined us today.

Should you have any additional questions. Please do not hesitate to reach out to us by phone or email have a great day.

Ladies and gentlemen, this concludes your conference call for today, we thank you <unk> and ask that you. Please disconnect your lines have a great day.