Q3 2025 New Gold Inc Earnings Call
Speaker #1: 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 .
Operator: 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. If you would like to withdraw your question, please press star one again. I would now like to hand the conference over to Ankit Shah, Executive Vice President and Chief Strategy Officer. Please go ahead.
Speaker #1: 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 .
Speaker #1: Then, the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. I would now like to hand the conference over to Ankit Shah, Executive Vice President and Chief Strategy Officer.
Speaker #1: Please go ahead .
Speaker #2: Thank you . Operator . And good morning , everyone . We appreciate you joining us today for New Gold's third quarter 2020 earnings conference call and webcast .
Ankit Shah: Thank you, Operator, and good morning, everyone. We appreciate you joining us today for New Gold Inc.'s third quarter 2025 earnings conference call and webcast. On the line today, we have Patrick Godin, President and CEO; Keith Murphy, CFO; Travis Murphy, Vice President Operations; and Jean-François Ravenelle, Vice President Geology. In addition, we have Luke Buchanan, Vice President Technical Services, available to assist during the Q&A portion of the call. 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 slide two of the presentation. Today's commentary includes forward-looking statements relating to New Gold Inc. In this respect, we refer you to our detailed cautionary note regarding forward-looking statements in the presentation.
Speaker #2: On the line today , we have Patrick Godin president and CEO Keith Murphy CFO Travis Murphy , Vice of Operations and Jean-Francois Ravenel , vice president , geology .
Speaker #2: In addition , we have Luke Buchanan , vice president , technical Services , available to assist during the Q&A portion of the call .
Speaker #2: Should you wish to follow along with the webcast , please sign in from our homepage at New Gold Inc. /FI . Before we begin the presentation , I'd like to direct your cautionary language related to forward looking statements found on slide two of the presentation .
Speaker #2: Today's commentary includes forward looking statements relating to new gold . In this respect , we refer you to our detailed cautionary note regarding forward looking statements in the presentation .
Speaker #2: You are cautioned that actual results and future events could differ materially from those expressed or implied in forward looking statements . Slide two provides additional information and should be reviewed .
Ankit Shah: You are cautioned that actual results and future events could differ materially from those expressed or implied in forward-looking statements. Slide two provides additional information and should be reviewed. We also refer you to the section entitled Risk Factors in New Gold Inc.'s latest AIF, MD&A, and other filings available on SEDAR Plus, 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 endnotes that provide important information and should be reviewed in conjunction with the material presented. The third quarter was an impressive one for New Gold Inc., and slide four highlights some of the key quarterly accomplishments. We had an excellent quarter operationally, with both production and cost making big improvements compared to the second quarter.
Speaker #2: We also refer you to the section entitled Risk Factors in Google's latest eyes . DNA and other filings available on the Kdr+ , which set out certain material factors that could cause actual results to differ .
Speaker #2: In addition , at the conclusion of the presentation , there are a number of endnotes that provide important information and should be reviewed in conjunction with the material presented .
Speaker #2: The third quarter was an impressive one for new gold , and slide four highlights some of the key quarterly accomplishments . We had an excellent quarter operationally , with both production and costs , making big improvements compared to the second quarter .
Speaker #2: This was highlighted by Rainy River's record quarterly production of over 100,000oz of gold , a 63% increase over the second quarter . At New Afton .
Ankit Shah: This was highlighted by Rainy River's record quarterly production of over 100,000 ounces of gold, a 63% increase over the second quarter. At New Afton, B3 continued to overperform during the third quarter, while Seazone remains on track to ramp up to full production in 2026. We remain well positioned to deliver on our 2025 guidance objectives we outlined at the start of the year. Importantly, these impressive quarterly results were achieved while maintaining focus on safe production, with a low total recordable injury frequency rate of 0.61, down from 0.82 in the second quarter and continuing the downward trend over the last three years. During the quarter, New Afton surpassed 1 million hours, and Rainy River surpassed 1.5 million hours worked without a lost time injury, marking a significant safety milestone at both sites.
Speaker #2: B3 continued to Overperform during the third quarter , while seasonal remains on track to ramp up to full production in 2026 . We remain well positioned to deliver on our 2025 guidance objectives .
Speaker #2: We outlined at the start of the year. Importantly, these impressive quarterly results were achieved while maintaining focus on safe production, with a low total recordable injury frequency rate of 0.61, down from 0.82 in the second quarter and continuing the downward trend over the last three years.
Speaker #2: During the quarter , New Athens surpassed 1,000,000 hours and rainy River surpassed 1.5 million hours . Worked without a lost time injury , marking a significant safety milestone at both sites .
Speaker #2: On a consolidated basis , the company produced approximately 115,200oz of gold and £12 million of copper in the quarter , all in sustaining costs reduced from the second quarter by $425 an ounce to $966 per ounce , with an average realized gold price of $3,458 per ounce .
Ankit Shah: On a consolidated basis, the company produced approximately 115,200 ounces of gold and 12 million pounds of copper in the quarter. All-in sustaining costs reduced from the second quarter by $425 an ounce to $966 per ounce. With an average realized gold price of $3,458 per ounce, this represents an impressive all-in sustaining cost margin of $2,492 per ounce. We expect all-in sustaining costs to reduce further through the fourth quarter. The company generated more than $300 million in cash flow from operations and achieved a record quarterly free cash flow of $205 million, highlighted by Rainy River's quarterly record of $183 million in free cash flow. The balance sheet was further strengthened in the quarter as we repaid a total of $260 million in debt, including the $150 million drawn on the credit facility earlier this year as part of the New Afton buyback.
Speaker #2: This represents an impressive , all in sustaining cost margin of $2,492 per ounce . We expect all in sustaining costs to reduce further through the fourth quarter .
Speaker #2: The company generated more than $300 million in cash flow from operations and achieved a record quarterly free cash flow of $205 million , highlighted by Rainy River's quarterly record of $183 million in free cash flow .
Speaker #2: The balance sheet was further strengthened in the quarter as we repaid a total of $260 million in debt , including the $150 million drawn on the credit facility earlier this year .
Speaker #2: As part of the New Afton buyback . And this was repaid one quarter ahead of plan . The company continued to advance initiatives aligned with our three year production growth and accomplished several key milestones during the quarter at New Afton season , cave construction is approximately 79% complete , supporting the progressive increase in processing rates towards the target of 16,000 tonnes per day by early 2026 .
Ankit Shah: This was repaid one quarter ahead of plan. The company continued to advance initiatives aligned with our three-year production growth and accomplished several key milestones during the quarter. At New Afton, Seazone Cave construction is approximately 79% complete, supporting the progressive increase in processing rates towards the target of 16,000 tons per day by early 2026. At Rainy River, the focus remained on increasing underground development and production rates, which Travis will speak to shortly. Lastly, our exploration initiatives made significant progress as outlined in our September news release, highlighted by the significant growth in New Afton's K-Zone and the ongoing exploration activities at Rainy River to offset mining depletion. In summary, we had a strong quarter, and we built on the results from the first half of the year, all on maintaining focus on generating meaningful value for our shareholders.
Speaker #2: At rainy River , the focus remained on increasing underground development and production rates , which Travis will speak to shortly . Lastly , our exploration initiatives made significant progress as outlined in our September news release , highlighted by the significant growth in new Afton , K-zone , and the ongoing exploration activities at rainy River to offset mining depletion .
Speaker #2: In summary , we had a strong quarter and we built on the results from the first half of the year , all on maintaining focus on generating meaningful value for our shareholders .
Speaker #2: With that , I will now turn the call over to Travis .
Ankit Shah: With that, I will now turn the call over to Travis.
Speaker #3: Thank you . Ankit I'm on slide six , which has our operating highlights . As Ankit noted , Q3 delivered strong production and costs .
Travis Murphy: Thank you, Ankit. I'm on slide six, which has our operating highlights. As Ankit noted, Q3 delivered strong production and costs. Production totaled approximately 115,200 gold ounces and 12 million pounds of copper. This increase in gold production compared to Q3 2024 was driven by planned higher feed grade at Rainy River, partially offset by lower planned feed grade at New Afton. Consolidated all-in sustaining costs for the quarter were $966 per gold ounce on a byproduct basis, 19% lower than Q3 2024, and a substantial improvement over the first two quarters of 2025. Costs are expected to continue to trend down in the fourth quarter. At New Afton, the B3 cave continued to overdeliver 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 $595 per ounce after considering copper credits.
Speaker #3: Production totaled approximately 115,200 gold ounces and £12 million of copper . This increase in gold production compared to Q3 2024 was driven by planned higher feed grade at rainy River , partially offset by lower planned fee grade at Afton Consolidated .
Speaker #3: All in sustaining costs for the quarter were $966 per gold ounce on a byproduct basis . 19% lower than Q3 2024 , and a substantial improvement over the first two quarters of 2025 .
Speaker #3: Costs are expected to continue to trend down in the fourth quarter at New Afton . The B3 cave continued to overdeliver compared to the planned set out at the beginning of the year .
Speaker #3: As a result , New Afton achieved an all in sustaining cost of -$595 per ounce after considering copper credits , rainy River delivered a strong quarter , a record quarter as the mill processed higher grade open pit or all in sustaining costs , were $143 per ounce in the quarter , a substantial 39% improvement compared to the second quarter .
Travis Murphy: Rainy River delivered a strong quarter, a record quarter. As the mill processed higher grade open pit ore, all-in sustaining costs were $143 per ounce in the quarter, a substantial 39% improvement compared to the second quarter. Costs should continue to trend lower in the fourth quarter with lower sustaining capital. Our total capital expenditures for the quarter were approximately $76 million, with $19 million spent on sustaining capital and $56 million on growth capital. At New Afton, sustaining capital is primarily related to mobile equipment, while growth capital is primarily related to construction and growth mine development, tailings, and machinery and equipment. At Rainy River, sustaining capital is primarily related to open pit stripping and the tailings dam raise, while growth capital is related to underground development and machinery and equipment. Turning to the assets, starting with New Afton on slide seven, New Afton delivered another quarter on plan.
Speaker #3: Costs should continue to trend lower in the fourth quarter , with lower sustaining capital . Our total capital expenditures for the quarter were approximately 76 million , with 19 million spent on sustaining capital and 56 million on growth capital at New Afton , sustaining capital was primarily related to mobile equipment , while growth capital is primarily related to construction and growth and development , tailings and machinery and equipment .
Speaker #3: At rainy River , sustaining capital is primarily related to open pit stripping and the tailings dam raise , while growth capital is related to underground development and machinery and equipment .
Speaker #3: Turning to the assets , starting with New Afton on Slide seven . New Afton delivered another quarter on plan B-3 contributed approximately 4300 tons per day during the quarter .
Travis Murphy: B3 contributed approximately 4,300 tons per day during the quarter. The additional tonnage from B3, above and beyond the previously planned April exhaustion, continues to provide excellent shareholder value as it comes with no additional capital. We expect the B3 cave will now exhaust in the middle of the fourth quarter, as the current contribution has reduced down to around 1,500 tons per day. Annual copper and gold production is expected to be in line with the guidance profile previously provided. During the third quarter, New Afton generated over $30 million in free cash flow while continuing to complete the construction of the Seazone Block Cave. Through the first nine months of 2025, New Afton has generated $115 million in free cash flow. In terms of development, Seazone Cave construction continues to advance on schedule, with cave construction progress at 79% complete as of the end of September.
Speaker #3: The additional tonnage from B3 above and beyond the previously planned April exhaustion continues to provide excellent shareholder value as it comes , with no additional capital .
Speaker #3: We expect the B3 will now exhaust in the middle of the fourth quarter as a current contribution has reduced down to around 1500 tons per day .
Speaker #3: Annual copper and gold production is expected to be in line with the guidance profile previously provided during the third quarter . New Afton generated over 30 million in free cash flow , while continuing to complete the construction of the season block cave to the first nine months of 2025 .
Speaker #3: New Afton has generated 115 million in free cash flow in terms of development season , cave construction continues to advance on schedule , with cave construction progress at 79% complete as of the end of September .
Speaker #3: Diesel remains on track to ramp up to full processing capacity of approximately 16,000 tonnes per day beginning in 2026 . Now turning to rainy River on slide eight .
Travis Murphy: Seazone remains on track to ramp up to full processing capacity of approximately 16,000 tons per day beginning in 2026. Now, turning to Rainy River on slide eight, gold production in the third quarter was 100,300 ounces of gold at an all-in sustaining cost of $1,043 per gold ounce sold. A 63% increase in gold production, and a 39% decrease in AISC compared to the second quarter. This excellent performance was driven by processing higher grade open pit material, in addition to processing and pouring the 5,900 ounces of gold in circuit as discussed at the end of the second quarter. The mill continued to perform well, with quarterly throughput averaging over 25,100 tons per day. Following the impressive third quarter results, Rainy River gold production is now expected to be above the midpoint of guidance of 265,000 to 295,000 ounces of gold.
Speaker #3: Gold production in the third quarter was 100,000 and 300oz of gold at an all in sustaining cost of $1,043 per gold ounce . Sold , an increase of 63% .
Speaker #3: Increase in gold production , and a 39% decrease in ASIC compared to the second quarter . This excellent performance was driven by processing higher grade open pit material .
Speaker #3: In addition to processing and pouring . The 5900oz of gold in circuit , as discussed at the end of the second quarter , the mill continued to perform well , with quarterly throughput averaging over 25,100 tonnes per day .
Speaker #3: Following the impressive third quarter results , rainy River gold production is now expected to be above the midpoint of guidance of 265,000 to 295,000oz of gold as a result of the strong Q3 results , rainy River generated a quarterly record $183 million in free cash flow .
Travis Murphy: As a result of the strong Q3 results, Rainy River generated a quarterly record $183 million in free cash flow. As Ankit mentioned, progress was made during the quarter in advancing underground operations with a focus on increasing underground development and production rates. We undertook a number of key initiatives during the quarter specifically designed to improve recruitment and retention of our people and contractors. These include camp facility upgrades and travel improvements. They also included contract modifications to incentivize and reward optimized development rates. While this has led to an increase in cash costs and certain growth capital items related to the underground, it is a significant step forward in securing the production growth expected in the coming years. We are seeing improvements in the continued ramp-up in daily underground development rates, which we expect to build on through the fourth quarter.
Speaker #3: As mentioned , progress was made during the quarter in advancing underground operations , with a focus on increasing underground development and production rates .
Speaker #3: We undertook a number of key initiatives during the quarter , specifically designed to improve recruitment and retention of our people and contractors . These include campus facility upgrades and travel improvements .
Speaker #3: They also included contract modifications to incentivize and reward optimized development rates. While this has led to an increase in cash costs and certain growth capital items related to the underground, it is a significant step forward in securing the production growth expected in the coming years.
Speaker #3: We are seeing improvements in the continued ramp up in daily underground development rates , which we expect to build on through the fourth quarter .
Speaker #3: To sum up , we made excellent progress in the third quarter and remain on track to deliver our 2025 production and cost goals , as well as longer term objectives .
Travis Murphy: To sum up, we made excellent progress in the third quarter and remain on track to deliver our 2025 production and cost goals, as well as longer-term objectives. With that, I'll turn it over to Keith. Keith?
Speaker #3: And with that, I'll turn it over to Keith. Keith.
Speaker #4: Thanks , Jarvis . Financial results can be found on slide ten . Third quarter revenue was $463 million higher than the prior year quarter , due to higher gold and copper prices and sales volumes .
Keith Murphy: Thanks, Travis. The financial results can be found on slide 10. Third quarter revenue was $463 million, higher than the prior year quarter due to higher gold and copper prices and sales volumes. Cash generated from operations before working capital adjustments was $296 million, or $0.37 per share for the quarter, higher than the prior year period, primarily due to higher revenues. New Gold Inc. generated record quarterly free cash flow of $205 million, as higher revenue was only partially offset by higher capital expenditures as key growth projects were advanced. The company recorded net earnings of approximately $142 million, or $0.18 per share during the third quarter. The increase in earnings for the quarter and year to date is primarily due to increase in revenues partially offset by higher share-based payments due to the increase in the company share price.
Speaker #4: Cash generated from operations before working capital adjustments was $296 million , or $0.37 per share , for the quarter , higher than the prior year period , primarily due to higher revenues .
Speaker #4: New gold generated record quarterly free cash flow of $205 million , as higher revenue was only partially offset by higher capital expenditures as key growth projects were advanced .
Speaker #4: The company recorded net earnings of approximately 142 million , or $0.18 per share , during the third quarter . The increase in earnings for the quarter and year to date is primarily due to increase in revenues , partially offset by higher share based payments .
Speaker #4: Due to the increase in the company's share price year to date . This has also impacted our consolidated all in sustaining costs by approximately $75 per gold ounce .
Keith Murphy: Year to date, this has also impacted our consolidated all-in sustaining costs by approximately $75 per gold ounce. After adjusting for certain other charges, net earnings was $199 million, or $0.25 per share in Q3. Our Q3 adjusted earnings include adjustments related to other gains and losses and non-recurring items. Turning to our balance sheet on slide 11. At the end of Q3, we had cash on hand of $123 million and a liquidity position of $500 million. In July, we redeemed the remaining $111 million of the 2027 senior notes paid for with cash on hand. During the quarter, we also repaid the full $150 million, which was drawn on the credit facility to fund the New Afton buyback transaction announced back in April. This was one quarter ahead of plan.
Speaker #4: After adjusting for certain other charges , net earnings was $199 million , or $0.25 per share , in Q3 . Our Q3 adjusted earnings include adjustments related to other gains and losses , and non-recurring items .
Speaker #4: Turning to our balance sheet on slide 11 . At the end of Q3 , we had cash on hand of $123 million and a liquidity position of 500 million .
Speaker #4: In July , we redeemed the remaining 111 million of the 2027 senior notes paid for with cash on hand during the quarter . We also repaid the full 150 million , which was drawn on the credit facility to fund the new buyback transaction announced back in April .
Speaker #4: This was one quarter ahead of plan . To sum up , we remain in a very healthy financial position with a significant free cash flow profile ahead of us .
Keith Murphy: To sum up, we remain in a very healthy financial position with a significant free cash flow profile ahead of us. With that, I'll turn the call to Jean-François to discuss exploration.
Speaker #4: With that , I'll turn the call to John to discuss exploration . Thanks , Keith . I'd like to touch on our exploration successes that were .
Jean-François Ravenelle: Thanks, Keith. I'd like to touch on our exploration successes that were released during the quarter. The exploration at New Afton continues to be at an all-time high. We currently have nine drills turning at K-Zone as we work to define and grow the deposit. We recently increased our exploration budget by $5 million, as previously announced, bringing us to a full-year budget of $22 million for approximately 63,000 meters of drilling. We also reported two significant exploration highlights at New Afton. First, in addition to confirming the width and the continuity of previously reported mineralization at K-Zone, we have discovered additional mineralization in the footwall of the zone, which has more than doubled the known extent of this system. The system now reaches an impressive 600 meters in strike length and 900 meters in vertical extent, with the horizontal thickness locally reaching up to 180 meters.
Speaker #5: Released during the quarter . Exploration at New Afton continues to be at an all time high . We currently have nine drills turning at K-zone as we work to define and grow the deposit .
Speaker #5: We recently increased our exploration budget by 5 million . As previously announced , bringing us to a full year budget of 22 million for approximately 63,000m of drilling .
Speaker #5: We also reported two significant exploration highlights at Afton . First , in addition to confirming the width and the continuity of previously reported mineralization at K-zone , we have discovered additionally , realization in the footwall of the zone , which has more than doubled the known extent of this system .
Speaker #5: The system now reaches an impressive 600m in strike length and 900m in vertical extent , with the horizontal thickness locally reaching up to 180m .
Speaker #5: Secondly , exploration drilling conducted from surface intersected season grade copper , gold mineralisation located 550m to the east of the current zone . Footprint as shown on slide 13 .
Jean-François Ravenelle: Secondly, exploration drilling conducted from surface intersected Seazone grade copper gold mineralization located 550 meters to the east of the current K-Zone footprint. As shown on slide 13, borehole 596E intersected 1.1% copper equivalent over 55 meters of core length, demonstrating the high potential for further growth in the eastern sector of the mine. We are continuing to work towards the maiden resource at K-Zone for end of year. Following that, we will work towards completing a feasibility study for the first half of 2027. Moving on to Rainy River on slide 14. The exploration strategy at Rainy River remains focused on sustaining the recent success in mineral reserve replacement. At the northwestern open pit zone, which is located immediately west of the phase five pushback, our drilling programs are expected to grow and upgrade the existing pit constraint resource to the indicated category.
Speaker #5: Borehole 596 intersected 1.1% copper equivalent over 55m of core length . Demonstrating the high potential for further growth in the eastern sector of the mine .
Speaker #5: We are continuing to work towards a maiden resource at K-zone for end of year . Following that , we will work towards completing a feasibility study for the first half of 2027 .
Speaker #5: Moving on to rainy River on slide 14 , the exploration strategy at rainy River remains focused on sustaining the recent success in mineral reserve replacement at the North trend open pit zone , which is located immediately west of the phase five pushback .
Speaker #5: Our drilling programs are expected to grow and upgrade the existing pit constrained resource to the indicated category . Engineering studies are currently underway to evaluate potential mineral reserves at underground main exploration drilling focused on converting inferred resources to indicated resources by growing the existing horizons down plunge and along strike , targeting the highest grade horizons that can provide additional mining flexibility and further improve the production profile .
Jean-François Ravenelle: Engineering studies are currently underway to evaluate potential mineral reserves. At Underground Main, exploration drilling focused on converting inferred resources to indicated resources while growing the existing ore zones downplunge and along strike, targeting the highest grade ore zones that can provide additional mining flexibility and further improve the production profile. Concurrently, engineering studies are advancing to support conversion of underground resources to mineral reserves. Looking forward, the next phases of drilling to be conducted in 2026 and 2027 will benefit from future underground platforms, which are expected to accelerate resource and reserve development over that period and beyond. In addition to growing the surface and underground footprints, we own a significant land package that has remained largely underexplored. This year, we plan to invest approximately $2 million to initiate the identification of additional exploration opportunities over our 31,000-hectare land package.
Speaker #5: Concurrently , engineering studies are advancing to support conversion of underground resources to mineral reserves . Looking forward , the next phases of drilling to be conducted in 2026 and 2027 will benefit from future underground platforms , which are expected to accelerate resource and reserve development over that period and beyond .
Speaker #5: In addition to growing the surface and underground footprints , we own a significant land package that has remained largely underexplored . This year , we plan to invest approximately $2 million to initiate the identification of additional exploration opportunities over our 31,000 hectare land package .
Speaker #5: With that , I'll turn the call to Pat for closing remarks . Thank you .
Jean-François Ravenelle: With that, I'll turn the call to Pat for closing remarks.
Speaker #3: Jean-Francois .
Patrick Godin: Thank you, Jean-François. As I have said previously, we expect continued and significant growth in gold and copper production over the next two years. Third quarter performance was an excellent indication of our potential production and free cash flow generation in the years ahead. As production volume increases, the unit cost per ounce of gold is projected to decrease substantively. As a result, we continue to expect to generate significant free cash flow over the next two years. We have left the pricing for this figure unchanged since the start of the year. It shows that we generate approximately $1.8 billion of free cash flow over that period. For 2025, we expect to be at the high end of this projection and with rising production and current spot price, the 2026 and 2027 free cash flow generation is substantially above those outlined in this figure.
Speaker #5: As I have said .
Speaker #3: Previously .
Speaker #5: We expect .
Speaker #3: Continued and significant .
Speaker #5: Growth in gold and copper production over .
Speaker #3: The next two years . Third quarter performance was an excellent indication .
Speaker #5: Of our .
Speaker #3: Potential production .
Speaker #5: And free .
Speaker #3: Cash flow generation in the years ahead.
Speaker #5: Production volumes .
Speaker #3: Increased , the .
Speaker #5: Unit cost per ounce of gold is projected to decrease.
Speaker #3: Subsequent .
Speaker #5: Substantially . As a result . we continue to expect to generate .
Speaker #3: Significant free cash flow over the next three years . We have left left the pricing .
Speaker #5: For this figure . unchanged since the start of .
Speaker #3: The year . It shows that we generate approximately .
Speaker #5: $1.8 billion of free cash flow over that period .
Speaker #3: For 2025 .
Speaker #5: We expect to be the high end of this .
Speaker #3: Projection .
Speaker #5: , and we have rising .
Speaker #3: Production in current spot price . The 2026 .
Speaker #5: And 2027 free cash flow .
Speaker #3: Generation .
Speaker #5: Substantially .
Speaker #3: Above those outlined in this figure. In closing.
Patrick Godin: In closing, the third quarter was really positive for New Gold Inc. as we continue to deliver on our stated strategic goals. We will continue to build on these goals from here. This includes delivering on 2025 production and cost guidance with the same attention to health and safety. Our continuous improvement with our total reportable incident frequency rate performance is a direct indicator of the support from all my teammates for the Courage to Care culture. At New Afton, we will ramp up Seazone and continue our aggressive exploration program at K-Zone with the goal of releasing a maiden resource in early 2026. At Rainy River, we will continue to ramp up the Underground Main and advance phase five open pit development, and we will continue our exploration efforts targeting offsetting mining depression. New Gold Inc.
Speaker #5: The third quarter was really . positive for gold as we continue to deliver on our stated goals , we will .
Speaker #3: Continue to build on these . goals from year . This includes delivering on .
Speaker #5: 2025 production and cost guidance with the same attention to .
Speaker #3: Health and safety .
Speaker #5: Our continuous improvement . With our total reportable incident pregnancy rate performance is a direct indicator of the support from all .
Speaker #3: My teammates .
Speaker #5: , from the courage for the courage to care culture at New Afton , we will ramp .
Speaker #3: Up season .
Speaker #5: And continue our aggressive exploration .
Speaker #3: Program at Key Zone .
Speaker #5: With the goal of releasing a maiden resources in .
Speaker #3: Early 26 at River . We will continue .
Speaker #5: To ramp up the underground mine and advanced phase five open pit development , and we will continue our exploration efforts . Targeting of setting mining , depletion .
Speaker #5: New gold offers a compelling investment opportunity with increasing production and symptom free cash flow for generation . Combined with our safe , well-established mining jurisdiction increasingly compelling exploration upside and exposure to what we view our preferred metal and gold and copper , we are confident in our ability to deliver additional upside from here .
Patrick Godin: offers a compelling investment opportunity with increasing production and significant free cash flow generation, combined with our safe, well-established mining jurisdiction, increasingly compelling exploration upside and exposure to what we view are preferred metals in gold and copper. We are confident in our ability to deliver additional upside from here. We will continue to build from here, both operationally as well as with project and exploration catalysts, which are expected to create meaningful value for our shareholders and provide increased financial flexibility and optionality for New Gold Inc. moving forward. This completes our presentation. I will now turn it back to the Operator for the Q&A portion of the call.
Speaker #5: We'll continue to build from here, both operationally as well as with project and exploration catalysts, which are expected to create meaningful value for our shareholders and provide increased financial flexibility and optionality for new gold moving forward.
Speaker #5: This complete our presentation , I will now turn it back to the operator for the Q&A portion of the call .
Speaker #1: Thank you . At this time , I would like to remind everyone if you would like to ask a question , please press star .
Operator: Thank you. At this time, I would like to remind everyone, if you would like to ask a question, please press star then the number one on your telephone keypad. Your first question will come from Anita Stoney with CIBC.
Speaker #1: Then the number one on your telephone keypad . Your first question will come from Anita Soni with CIBC .
Speaker #6: Hi . Good morning . Patrick and team . A couple of questions . So firstly , on the new Afton C zone and B zone , could you give us a breakout of how much came from the C and the and the B in terms of tonnes .
[Analyst 1]: Hi. Good morning, Patrick and team. A couple of questions. Firstly, on the New Afton C-Zone and B-Zone, could you give us a breakout of how much came from the C and the B in terms of tons?
Speaker #3: From tonnage the B-zone contributed 4300 tonnes per day over the quarter and C zone contributed the remainder of the tonnage . There . Anita .
Travis Murphy: From tonnage, the B-Zone contributed 4,300 tons per day over the quarter, and Seazone contributed the remainder of the tonnage there, Anita.
Speaker #6: Okay . All right . And would it be possible to also the grades were for those .
[Analyst 1]: Okay. All right. Would it be possible to also find out what the grades were for those?
Speaker #6: find out what For
Speaker #5: We are we are the for each .
Patrick Godin: We have the grade for each?
Speaker #3: Yeah , the grade for each .
Travis Murphy: Yeah, the grade for each.
Speaker #5: So I think we can get back to you on this . We
Patrick Godin: Can we get back to you on this?
Speaker #5: . Absolutely . And then what we have is , is a combined grade .
[Analyst 1]: Absolutely.
Patrick Godin: The other end, what we have is the combined grades for.
Speaker #3: .
Speaker #6: Yeah . Okay . Thanks . I would appreciate a call back on that one . And then just secondly , I wanted to say so that's an impressive free cash flow generation this quarter .
[Analyst 1]: Yeah. Okay. Thanks. I would appreciate a callback on that one. Just, secondly, I wanted to say, that's an impressive free cash flow generation this quarter. I think on slide 16, you have $2.2 billion for 2025 to 2027, and using a conservative gold price at $3,250, considering we're, you know, somewhat over that at spot. I think the question would be, you know, beyond paying down debt, what are your plans from a capital allocation standpoint with that free cash flow?
Speaker #6: And I think on slide 16 you have 2.2 billion for 2025 to 2027 . And using a conservative gold price at 3250 , considering we're , you know , somewhat over that at spot , I think the the question would be , you know , beyond paying down debt , what are your plans for from a capital allocation standpoint with that free cash flow ?
Speaker #2: I think it I think we previously said , you know , we take a very disciplined approach on capital allocation . And you're right , we generated good free cash flow this quarter and paid down debt .
Ankit Shah: Hi, Anita. It's Ankit. I think we previously said we take a very disciplined approach on capital allocation. You're right. We generated good free cash flow this quarter and paid down debt. We also increased our exploration budget on the strong results on the back end of our September release. I think from a capital allocation perspective, we have a pretty clear methodology. We want to maintain a strong balance sheet. Beyond that, we want to invest in exploration and also on organic opportunities because we see that as the most value. After that, we'll evaluate capital return to shareholders, all while balancing our evaluation on inorganic opportunities.
Speaker #2: We also increased our exploration budget on the strong results on the back end of our September release . I think we from a capital allocation perspective , we have a pretty clear methodology and we want to maintain a strong balance sheet .
Speaker #2: Beyond that , we want to invest in exploration and also on organic opportunities because we see that as the most value . And then after that , we'll evaluate capital , return to shareholders , all while balancing our evaluation on inorganic opportunities .
Speaker #6: Okay . And then .
[Analyst 1]: Okay. In terms of.
Speaker #2: Right now .
Speaker #7: We're .
Ankit Shah: Right now, we're.
Speaker #2: Sorry . Continue on the capital return . Front . We're currently evaluating options with our board right now . You know , we want to ensure we maintain financial flexibility and capitalize on the right opportunity as they come up .
[Analyst 1]: Sorry.
Ankit Shah: Continue?
[Analyst 1]: Go ahead.
Ankit Shah: I was going to say on the capital return front, we're currently evaluating options with our board right now. We want to ensure we maintain financial flexibility and capitalize on the right opportunity as they come up. From an M&A perspective, I think we've shown a very prudent and disciplined approach. We think we've done, we did our best deal of the year so far with consolidating New Afton. We'll continue to take a measured approach on M&A with a goal of increasing value on a per-share basis.
Speaker #2: And from an M&A perspective , I think we've you know , we've shown a very prudent and disciplined approach . And we think we've done we did our best deal of the year so far with consolidating new Afton .
Speaker #2: But we'll continue to take a measured approach on M&A with the goal of increasing value on a per share basis .
Speaker #6: Okay . So yeah , so my follow up was going to be on would the would a special dividend share buyback or you know , a more structured dividend be be the preferred route .
[Analyst 1]: Okay. My follow-up was going to be on, would the special dividend, share buyback, or a more structured dividend be the preferred route? It sounds like it's something that's more flexible, so probably one of the former two options.
Speaker #6: And that sounds like it's something that's more flexible . So probably one of the one of the former two options .
Speaker #2: Yeah . So we're actually as I just said , we're reviewing options with our board right now as we go through our budget process this quarter .
Ankit Shah: We're actually, as I just said, reviewing options with our board right now as we go through our budget process this quarter. We'll be able to provide a better update as we roll out our plans for 2026.
Speaker #2: And we'll be able to provide a better update as we roll out our plans for 2026 .
Speaker #6: Okay . And then finally , just on exploration . So on the K zone , could you just so this extension looks pretty good .
[Analyst 1]: Okay. Finally, just on exploration, on the K-Zone, could you just, this extension looks pretty good. Could you just sort of remind me what that would translate to once diluted? I know you're going to be putting out a resource update early in the new year, but I just wanted to try to get an idea in context of what Seazone grades are. Are you seeing them going to end up being similar or end up being higher than the current Seazone grades that you have?
Speaker #6: Could you just sort of remind me what that would translate to once diluted like on I know you're going to be putting out a resource update early in the in the new year , but I just wanted to try to get an idea in context of what the zone grades are you seeing them going to end up being similar or end up being higher than the current zone grades that you have ?
Speaker #5: I need to . Jeff here . So yeah , so on the K zone , it's still still have a lot of drilling to do this year .
Jean-François Ravenelle: Anita, Jeff here. On the K-Zone, we still have a lot of drilling to do this year, about 10,000 to 15,000 meters. Like you say, we still have to do our work, update our models to really know the total size and grade of that will be, and placement of concerning shapes as well. It's still early to say.
Speaker #5: About 10 to 15,000m . And you know like you say , we still have to do our work , update our models to to really know the total size and grade of that will be .
Speaker #5: And , and placement of concerning shapes as well . So it's still it's still early to say .
Speaker #6: Okay . Thanks . Congratulations on a solid quarter all around from exploration to to paying down debt and to to delivering on the ops .
[Analyst 1]: Okay, thanks. Congratulations on a solid quarter all around from exploration to paying down debt and to delivering on the ops. I'll pass it over to the next analyst.
Speaker #6: I’ll pass it over to the next analyst.
Speaker #5: Thank you .
Patrick Godin: Thank you.
Speaker #1: Your next question will come from Jeremy Hoy with Canaccord Genuity .
Operator: Your next question will come from Jeremy Hoy with Concord Annuity.
Speaker #8: Hi . Thanks for taking my questions . I need to address the first one on capital allocation . So maybe I'll focus a little bit more on some of the upside opportunities .
[Analyst 2]: Hi. Pat and team, thanks for taking my questions. I need to address the first one on capital allocation. Maybe I'll focus a little bit more on some of the upside opportunities in existing operations. You know, K-Zone, I think pretty excited about what we could see there. Good to hear we've got a study coming early 2027. Rainy River definitely looks like we're going to see more gold there, but just wondering, you know, the tailings management was a key part of potentially extending mine life there rather than just displacing the stockpiles in the production plan. Can you give us an update on how you're thinking about that and what the likely solutions to tailings management are there?
Speaker #8: Existing operations . You know , K-zone , I think pretty excited about what we could see there . Good to hear . We've got a study coming early .
Speaker #8: 2027 rainy River . Definitely looks like we're going to see more gold there . But just wondering you know the the tailings management was a key part of potentially extending mine life there rather than just displacing the the stockpiles in the production plan .
Speaker #8: Can you give us an update on on how you're thinking about that and what the likely solutions to to tailings management are ? There ?
Speaker #5: So thank you , Jeremy . Is first , you're clearly by your question , you explained why we are prudent in terms of capital shareholders .
Patrick Godin: Thank you, Jeremy. First, you're clearly, by your question, you explained why we are prudent in terms of return capital to shareholders. It's our intent to return capital to shareholders. The question is not if we're going to do it. The question is what we're going to return. For that, we need to assess exactly, first, what is going to be our long-term plan. We are drilling. We invest drastically in exploration. During the last two years, it's our intent to continue to invest because we create a lot of value for shareholders, and we believe in our two assets. We see a potential in our two assets. I think we need to assess the full potential of K-Zone. We're not there. It's a nice problem. We did not fix the boundaries of K-Zone no matter if we drill a significant amount of meters this year.
Speaker #5: It's our intent to return capital to shareholders . The question is not if we're going to do the question is what we're going to return .
Speaker #5: And for that we need to assess exactly . First , what is going to be our long term plan . So we are drilling .
Speaker #5: So we invest drastically in exploration . During the last two years . We it's our intent to continue to invest because we create a lot of value for shareholders .
Speaker #5: And we believe in our two assets . And we see a potential in our two assets . So and and for that , I think we need to assess the full potential of key zone .
Speaker #5: We're not there . So it's a it's a nice problem . So we we did not fix the boundaries of key zone no matter if we drill a significant amount of meters this year .
Speaker #5: And it's and also we have not restrained and we're looking to the possibilities . We have to do a pushback . It will be another pit extensions or a pit satellite .
Patrick Godin: Also, we have Northwest Trend, and we're looking to the possibilities. We are planning to do a pushback. It will be another and a pit extension or a pit satellite. We want to size our investment before to determine what we're going to return. That's the first approach. In terms of the tailing storage facility, if we have a satellite pit like Northwest Trend, it's becoming not only a source of ore, but it's an opportunity to store tailing storage. It's in our game plan here. We try as much as we can to stay away because the TME actually, we still have room to play in this, but we are close to the full capacity in the current design that we have. With Northwest Trend, I think for now, we're not seeing a need to have further significant investment in the TME.
Speaker #5: So and we want to size our investment before to determine what we're going to return . So that's that's that's the first approach in terms of the tailings storage facility .
Speaker #5: Again the if we have a satellite pit like North West and it's becoming not only a source of ore , but it's an opportunity to store tailings storage .
Speaker #5: So it's in our in our game plan here . We try as much as we can to stay away because the the tme actually we still have room to play in this , but we are close to the full capacity .
Speaker #5: If the current design that we have and and with not restaurant , I think for now we're not seeing a need to have further significant investment in the TME .
Speaker #5: So it's improving the return of the mining of the satellite pit . So so for now , we're not seeing additional investment in the TMA .
Patrick Godin: It's improving the return of the mining of the satellite pit. For now, we're not seeing additional investment in the TME with the plan that was presented to you and to the shareholders in February last year. With the addition of Northwest Trend, we're not seeing additional investment in the TME too.
Speaker #5: We have the plan that was presented to the to to you and to the shareholders . In February last year . And we have the addition of North West .
Speaker #5: And we're not seeing additional investment in the TMA two .
Speaker #8: Great . Thanks .
Ankit Shah: Great. Thanks. Thanks for clarifying.
Speaker #5: Thanks .
Speaker #8: So that's that's really helpful . Also on rainy River , you mentioned some of the the the things you've done to I guess probably improve retention rates .
Travis Murphy: That's really helpful. Also, on Rainy River, you mentioned some of the things you've done to, I guess, probably improve retention rates, flights, camp, incentivization, etc. Can you give us an idea of what turnover is now and what you're targeting with these improvements?
Speaker #8: Flights camp Incentivization etc. . Can you can you give us an idea of what turnover is now and what you're targeting with these improvements ?
Speaker #5: Yeah , maybe I can help . Travis on this in Ontario . Actually , we have a shortfall of miners . So as you know , don't many of of Red seals trade person .
Patrick Godin: Yeah. Maybe I can help Travis on this. In Ontario, actually, we have a shortfall of miners. As you know, so many of trade, of Red Seals, trade persons, so mechanics or quality miners. We have more people who are getting retired than people who are joining our industry. We want to make sure to be attractive to support our development. For that, we plan to attract more local people. We're not in a region where we are a certain mining camp, Rainy River. We maximize as much as we can the hiring of local people because it's where we're creating value for the local communities. We have a certain limit, and we had to increase and improve our camp capacity and the quality of the infrastructure. We did that. We proposed it's a pro because it's helping us to attract.
Speaker #5: So mechanics or quality miners . And so we have more people are getting retired and people are joining our industry . So we want to make sure to be attractive to support our , our development .
Speaker #5: So for that we have we plan to attract more local people . We're not in a region where we are not a mining camp .
Speaker #5: Rainy River . So we maximize as much as we can . The hiring of local people because it's where we're creating value for the local communities .
Speaker #5: But then we have certain limit . And so we had to increase our increase and improve the working capacity . And the quality of the of the infrastructure .
Speaker #5: So we we did that . It represents it's it's a pro because it's helping us to be to , to attract . Also we have to improve our facility at site to retain people and also we we work really hard with the contractor to provide an attractive and incentives to retain high quality performer to achieve the plan that we want to do .
Patrick Godin: Also, we have to improve our facility at site to retain people. We work really hard with the contractor to provide an attractive and incentives to retain high-quality performers to achieve the plan that we want to do. It's mainly what we did. We capitalize on infrastructures, we improve the quality of our infrastructures, and we implement incentives in the contract to retain quality miners.
Speaker #5: So it's mainly what we did . So we capitalized in infrastructures , we improved the quality of our infrastructures and also we implement incentives in the contract to retain quality miners .
Speaker #8: Okay . Got it . Thanks for the the color Pat I'll stop . Step back in the queue . Really nice to see the free cash flow thesis playing out .
Ankit Shah: Okay. Got it. Thanks for the color, Pat. I'll step back in the queue. Really nice to see the free cash flow thesis playing out.
Speaker #5: Thank you for that .
Patrick Godin: Thank you for that.
Speaker #1: Your next question will come from Eric Windmill with Scotiabank .
Operator: Your next question will come from Eric Wendmill with Scotiabank.
Speaker #9: Hi . Good morning Pat and team . Nice to see the free cash flow in the Q3 . I think some of my questions already been answered , but maybe just one here on rainy River .
[Analyst 3]: Hi. Good morning, Pat and team. Nice to see the free cash flow in the Q3. I think some of my questions have already been answered, but maybe just one here on Rainy River. You're into the higher grade now. I'm just wondering what we should expect for the balance of this year. Based on the photos, it looks like that secondary open pit egress has been completed. Just wondering any guidance for the Q4 would be helpful. Thanks.
Speaker #9: You're into the higher grade now . I'm just wondering what we should expect for the balance of this year . And based on the photos , looks like that secondary open pit egress has been completed .
Speaker #9: So yeah , just wondering any guidance for the for Q4 would be helpful . Thanks .
Speaker #3: Sure . It's Travis here . Thanks , Eric . Yeah . Generally we're we're seeing a continued trend in rainy River open pit phase for from what Q3 is .
Travis Murphy: Sure. It's Travis here. Thanks, Eric. Yeah, generally, we're seeing a continued trend in Rainy River open pit phase four from what Q3 is, and it's going to continue on into Q4. We're not seeing any real changes in our trajectory there. Phase four is working out very well for us.
Speaker #3: And it's going to continue on into Q4 . So we're not seeing any real changes in our trajectory . There . Phase four is working out very well for us .
Speaker #9: Okay , great . Thank you very much . Appreciate it . And then just on New often here in terms of calzone . So you're drilling like you said , about 66,000m this year .
[Analyst 3]: Okay. Great. Thank you very much. Appreciate it. Just on New Afton here in terms of K-Zone, so you're drilling, I think you said about 66,000 meters this year. Wondering if all that will make its way into the resource for next year. I know it's still early days, but any thoughts in terms of development here? Are you thinking about this as more of a traditional underground as opposed to a block cave or a sub-level cave? Any detail would be appreciated. Thanks.
Speaker #9: Wondering if all that will make its way into the resource for next year . And you know , I know still early days but any thoughts in terms of development here .
Speaker #9: Are you thinking about this ? As you know , more of a traditional underground as opposed to a block , cave or sublevel cave ?
Speaker #9: I'll be appreciated . Thanks .
Speaker #5: I think that the here is it's preliminary , so first , will the problem that the problem that we have with K-zone is to determine the size of the animal .
Patrick Godin: Here is its preliminary. The problem that we have with K-Zone is to determine the size of the underground, if I can say that, because we're still open and we still have drilling to do. For sure, what we like is we can, when Luke's needs with Jean-François to complete the feasibility study with the team, we have multiple factors that will determine if it's a cave shape or not. We have to deal with how the ore body is too. I can say to you that it's premature at this stage to confirm that it's going to be a cave or a more selective mining method. For that, we need to size it. I can say to you, Eric, that next year, we'll need to continue to drill to determine what we have on end because the limits are not, and we have two objectives.
Speaker #5: If I can say that because we're still open and we still have drilling to do . And so for sure what we like is we can when Luke's needs with Jean-Francois to complete the feasibility study with the team , we have multiple factors that will determine if it's a cave shape or not .
Speaker #5: And also we have to deal with how deep is is the ore body too . So I can say to you that it's premature at this stage to confirm that it's going to be a cave or a more selective mining method , but we are for that , we need to size it .
Speaker #5: And I can say to you, Eric, that next year we'll need to continue to drill to determine what we have on hand, because the limits are not.
Speaker #5: And we have two , we'll have two objectives . It's always the two objectives that Jean-Francois is having is to advance the resource to produce reserves , and also to look what's next .
Patrick Godin: It's always the two objectives that Jean-François is having, to advance the resource to produce reserves and also to look what's next. We at New Gold Inc. were not necessarily good to develop this area of projects to get to reserves because we were limited in our capacity to invest in exploration. Now that we are, and we demonstrate to shareholders that we're creating value for this, we want to be one step forward in advance. Our objective and our dream was as a team to bring New Afton beyond 2040. I think it was trending well, but we have work to do to confirm the feasibility of that. We are really thinking beyond 2040. Can we push that to 2050? It's what we're looking at now. It's premature for now to say what mining method we're going to have here.
Speaker #5: We have new gold . We were not necessarily good to develop this arrow of projects to get to reserves , because we were limited in our capacity to invest in exploration .
Speaker #5: Now that we are demonstrating to shareholders that we're creating value for this company, we want to take one step forward in advance.
Speaker #5: So is we are objective and our dream was as a team to bring new item beyond 2040 . I think it was trending well .
Speaker #5: But we need we have work to do to confirm the feasibility of that . But we are already thinking beyond 2040 . Can we push that to 2050 ?
Speaker #5: And it's what we're looking now , but it's premature for now to say what mining method we're going to have here .
Speaker #9: Okay , great . Thank you . Yeah , I really appreciate that . And obviously the second part you do expect all of the drilling for this year will make its way into the resource .
[Analyst 3]: Okay. Great. Thank you. I really appreciate that. Obviously, the second part, you do expect all of the drilling for this year will make its way into the resource, or are you seeing a lot of backlogs on the labs and getting the assays back?
Speaker #9: So are you seeing a lot of backlogs on the labs and getting the assays back ?
Speaker #5: Yeah that's right . We'll drill all the way to the holidays basically in December . And we we will include all of the drilling and the assays that we can in January when we update our models and , and , and define the resource .
Jean-François Ravenelle: Yeah, that's right. We'll drill all the way to the holidays, basically in December. We will include all of the drilling and the assays that we can in January when we update our models and define the resource.
Speaker #9: Okay . Fantastic . Thanks for that . Yeah . Congrats on the quarter . I'll hop back in the queue . Cheers .
[Analyst 3]: Okay. Fantastic. Thanks for that. Yeah, congrats on the quarter. I'll hop back in the queue. Cheers.
Speaker #5: You . .
Jean-François Ravenelle: Thank you.
Speaker #1: And once again , ladies and gentlemen , for any questions or comments please press star one . Now your next question will come from Mohammed Society with National Bank Capital Markets .
Operator: Once again, ladies and gentlemen, for any questions or comments, please press star one now. Your next question will come from Mohammed Society with National Bank Capital Markets.
Speaker #3: Good morning Pat .
Travis Murphy: Morning, Pat and team, and congrats on a great quarter and a free cash flow, positive free cash flow in the quarter. Most of my questions have been answered, but just maybe on New Afton, given the good performance from the B3 cave as it exhausts there, how should we think about the grades coming into 2026? I could receive maybe a little bit lower grade on the tech report there, or could you help me maybe provide some color on that one? Thank you.
Speaker #5: And Tim and congrats on a great quarter and a free cash flow . Positive free .
Speaker #10: Cash flow in the quarter . So most of my questions have been answered . But just maybe a new Afton , given the good performance from the B3 cave as it exists there , how should we think about the grades coming into 2026 ?
Speaker #10: I could see maybe a little bit lower grade on the tech report . There . Or could you help me ? Maybe provide some color on that one ?
Speaker #10: Thank you .
Speaker #4: Yeah , I think in 2026 , as we you know , had that great performance from B3 throughout the year . And we are now focusing on transitioning across to continuing that ramp up of C zone as we have previously disclosed .
Jean-François Ravenelle: I think in 2026, as we add that great performance from B3 throughout the year, we are now focusing and transitioning across to continuing that ramp-up of Seazone. As we have previously disclosed, the grades at the start of a cave will be a little bit lower as you continue to advance that healthy cave growth. We should see that transitioning up in line with our plan.
Speaker #4: You know , the grades at the start of a cave will be a little bit lower as you continue to advance that healthy cave growth .
Speaker #4: So what we should see that and transitioning open line with our plan . .
Speaker #10: Great . Thank you . And then you asked on with the positive progress at K zone and the additional exploration efforts that will continue during 2026 , we think about the CapEx there versus the tech report .
Travis Murphy: Great. Thank you. Still on New Afton, with the positive progress at K-Zone and the additional exploration efforts that you'll continue doing in 2026, how do we think about the CapEx there versus the tech report?
Speaker #5: I think we doing the CapEx for tech report , we'll get back to we can get back to you on this , but actually , as we're not , we're seeing not some some some extra I think we're trending in the same .
Patrick Godin: I think we're done on the CapEx for the tech report. We'll get back, we can get back to you on this, but actually, we're not seeing some extraordinary. I think we're trending in the same.
Speaker #10: Sounds good , but I think I lost you there . But I'll follow up post call . Congrats again on a good quarter .
Travis Murphy: Sounds good, Pat. I think I lost you there, but I'll follow up post-call. Congrats again on a good quarter. Thank you.
Speaker #10: Thank you .
Speaker #5: Thank you .
Patrick Godin: Thank you.
Speaker #1: And there are no further questions at this time . I'll turn the call back over to Ankit for any closing remarks .
Operator: There are no further questions at this time. I'll turn the call back over to Ankit for any closing remarks.
Speaker #2: Great . Thank you very much . And thank you to everybody who joined today . As always , should you have any additional questions , please do not hesitate to reach out to us by phone or email .
Ankit Shah: Great. Thank you very much. Thank you to everybody who joined today. As always, should you have any additional questions, please do not hesitate to reach out to us by phone or email. Have a great day.
Speaker #2: Have a great day .
Operator: Thank you for your participation. This does conclude today's conference. You may now disconnect.