New Gold, Inc. (NYSE MKT:NGD) Q3 2018 Earnings Conference Call Transcript
Oct 25, 2018 • 10:00 am ET
Good morning. My name is Krista, and I'm going to be your conference operator today. At this time, I would like to welcome everyone to the New Gold Incorporated Third Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. And after the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.
I will now turn the call over to your host, Anne Day, VP, IR. You may begin.
Thank you, operator, and good morning, everyone. We appreciate that you joined us today for New Gold 2018 third quarter earnings results conference call and webcast. On the line today, we have Renaud Adams, President and CEO; as well as Paula Myson, our CFO. Other members of the management team have also joined us and will be available during the Q&A period at the end of the call.
Should you wish to follow along with the webcast, please sign in from our homepage at newgold.com. If you are participating in the webcast, you may type your questions online through the interface.
(Forward-Looking Cautionary Statements)
In addition, at the conclusion of this presentation, there are a number of end notes that provide important information and should be reviewed in conjunction with the material presented.
I will now turn the call over to Renaud Adams.
Thank you, Anne. Good morning, everyone. And thank you for joining us for our third quarter 2018 review. I'm very pleased to join this Company. I've joined the Company on September 12 at the very critical time, as the Company is repositioning itself as a leading Canadian-focused gold producer. With nearly 14 million ounces and nearly 1 billion pounds of copper, two operating assets and one exceptional optionality (ph) in the Blackwater project, the Company is well positioned in Canada to turn the corner and readdress value creation for our shareholders. Key to this repositioning is surely the addition of Mr. James Gowans to our Board of Directors, enhancing significantly our technical expertise at the Board level.
In the short term, the sale of the Mesquite Mine improved significantly our short-term liquidity and financial flexibility, while simplifying our operational structure and supporting our new vision of repositioning New Gold as a Canadian focus based on long-life assets. Using our improved performance in September at Rainy River as a new baseline, we are now more than focused and committed to continue to improve the performance to eventually meet the spec of Rainy River.
New Afton delivered another exceptional quarter and is surely well positioned to meet or even exceed our guidance in 2018. The short-term focus is to complete in optimizing the B3 and the C-zone development scenarios, focusing on a potential internally-funded, while supporting a strong cash flow over the next short term. The decision is expected in the late 2018 to potentially advance the development in early 2019.
We are also actively engaged in improving the outcome of our Blackwater technical study. We call it the de-risking opportunity, where