New Gold, Inc. (NYSE MKT:NGD) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 12:00 pm ET


New Gold, Inc. (NYSE MKT:NGD) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to New Gold Q4 Earnings Call and Technical Session. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Anne Day, Vice President, Investor Relations. Please go ahead.

Anne Day

Thank you, operator, and good morning, everyone. We appreciate you joining us today for New Gold's fourth quarter 2019 earnings conference call and webcast, as well as our Technical Session webcast where we will discuss the updated life of mine plans for both our Rainy River and New Afton Mines that we released this morning.

The order of events will be as follows. Rob Chausse, CFO, will present our Q4 and year-end financial results. Following which we will open the lines for a brief Q&A. Once we complete the call, we will pause for a brief five-minute period as we reset for the Technical Session. The Technical Session will be led by Renaud Adams, CEO, along with other members of the management team.

But before the team begins the presentation today, I'd like to direct your attention to our cautionary language related to forward-looking statements found in the presentations. 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 this presentation. You are cautioned that actual results and 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 the New Gold's latest MD&A and other filings on SEDAR, which set out certain material factors that could cause the actual results to differ. And please note that all amounts are presented in US dollars. In addition, included in the presentation, there are a number of end notes that provide important information and should be reviewed in conjunction with material presented.

I'll now turn the call over to Rob Chausse.

Robert J. Chausse

Good afternoon and welcome. I am going to touch on the 2019 year, and I'll do this in a brief fashion as the most important part of the day is looking to the future.

Slide 2 on our operating highlights shows details are consistent with our February press release, our pre-production press release. Both sites performed well with results within guidance for the year. And so, I'll spend more -- a little bit more time on Q4. Overall, our quarter was impacted by planned lower grades as we shifted and spent the entire quarter in Phase 2 of the open pit at Rainy River as we had exhausted Phase 1 of the pit. I mean, that was released with our Q3 results, and also higher sustaining capital. Our capital intensity for the quarter was planned, and it came in at around $80 million of sustaining capital. And I'll get into more details on