Corporate Presentation May 2016

Transcription

1 Corporate Presentation May 2016

2 Cautionary statements ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information contained in this presentation, including any information relating to New Gold s future financial or operating performance are forward looking. All statements in this presentation, other than statements of historical fact, which address events, results, outcomes or developments that New Gold expects to occur are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as plans, expects, is expected, budget, scheduled, targeted, estimates, forecasts, intends, anticipates, projects, potential, believes or variations of such words and phrases or statements that certain actions, events or results may, could, would, should, might or will be taken, occur or be achieved or the negative connotation of such terms. Forward-looking statements in this presentation include, among others, statements with respect to: guidance for production, total cash costs and all-in sustaining costs, and the factors contributing to those expected results, as well as expected capital and other expenditures; planned activities for 2016 and beyond at the Company s projects, as well as planned exploration activities and expenses; the expected production, costs, economics and operating parameters of the Rainy River project; targeting timing for development and other activities related to the Rainy River project; expected sequencing for the Blackwater project; and statements with respect to the payment of the remaining $75 million from Royal Gold. All forward-looking statements in this presentation are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Gold s ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in this presentation, New Gold s annual and quarterly management s discussion and analysis ( MD&A ), its Annual Information Form and its Technical Reports filed at In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this presentation are also subject to the following assumptions: (1) there being no significant disruptions affecting New Gold s operations; (2) political and legal developments in jurisdictions where New Gold operates, or may in the future operate, being consistent with New Gold s current expectations; (3) the accuracy of New Gold s current mineral reserve and mineral resource estimates; (4) the exchange rate between the Canadian dollar, Australian dollar, Mexican peso and U.S. dollar being approximately consistent with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) equipment, labour and materials costs increasing on a basis consistent with New Gold s current expectations; (7) arrangements with First Nations and other Aboriginal groups in respect of the Rainy River and Blackwater projects being consistent with New Gold s current expectations; (8) all required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines; (9) the results of the feasibility study for the Rainy River project being realized; (10) in the case of all-in sustaining cost outlooks at the Rainy River project, the assumed exchange rate being C$1.25/US$; and (11) conditions to the payment of the remaining $75 million from Royal Gold being satisfied mid Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: significant capital requirements and the availability and management of capital resources; additional funding requirements; price volatility in the spot and forward markets for metals and other commodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia and Mexico; discrepancies between actual and estimated production, between actual and estimated mineral reserves and mineral resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Canada, the United States, Australia and Mexico or any other country in which New Gold currently or may in the future carry on business; taxation; controls, regulations and political or economic developments in the countries in which New Gold does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction in which New Gold operates, including, but not limited to: in Canada, obtaining the necessary permits for the Rainy River, New Afton C-zone and Blackwater projects; and in Mexico, where Cerro San Pedro has a history of ongoing legal challenges related to our environmental authorization; the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the uncertainties inherent to current and future legal challenges New Gold is or may become a party to; diminishing quantities or grades of reserves and resources; competition; loss of key employees; rising costs of labour, supplies, fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies including the feasibility studies for the Rainy River, New Afton C-zone and Blackwater projects; the uncertainty with respect to prevailing market conditions necessary for a positive development decision at Blackwater; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties; unexpected delays and costs inherent to consulting and accommodating rights of First Nations and other Aboriginal groups; risks, uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorizations and complying with permitting requirements, including those associated with the environmental assessment process for Blackwater. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as Risk Factors included in New Gold s disclosure documents filed on and available at Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. The footnotes, endnotes and appendices to this presentation contain important information. The endnotes and appendices are found at the end of the presentation. 2

3 New Gold investment thesis Portfolio of assets in top-rated jurisdictions Invested and experienced team Among lowest-cost producers with established track record Peer-leading growth pipeline A history of value creation 15.0 Moz gold reserves (1), >85% located in Canada C$45 million investment by Board & Management 2015 gold production exceeded guidance, 2015 all-in sustaining costs (2) of $809/oz ~800 Koz annual production potential from growth projects (3) Share price outperformed S&P/TSX Global Gold Index by >250% since beginning of For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s news release dated February 17, 2016 titled New Gold Announces 2015 financial results with record gold production leading to strong cash flow. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 3. Based on 325Koz annual production from Rainy River and ~485Koz annual production from Blackwater, as outlined in the feasibility studies for the projects. 3

4 Portfolio of assets in top-rated jurisdictions All Assets Ranked in Top 5 Global Mining Jurisdictions (1) Mineral Reserves (2) # 1 CANADA Blackwater New Afton Rainy River Mine Life: 17 years Mine Life: 12+ years Mine Life: 14 years # 3 UNITED STATES Mesquite Mine Life: 7 years + residual leach # 5 MEXICO Cerro San Pedro Mine Life: Final year + residual leach # 2 AUSTRALIA Peak Mines Mine Life: 6+ years OPERATING DEVELOPMENT 1. Source: 2015 Behre Dolbear Report 2015 Ranking of Countries for Mining Investment. 4

5 Experienced and invested team Executive Management Team Randall Oliphant Executive Chairman Robert Gallagher President & Chief Executive Officer Board of Directors David Emerson Former Canadian Cabinet Minister James Estey Chairman, PrairieSky Royalty Robert Gallagher President & Chief Executive Officer David Schummer Executive Vice President & Chief Operating Officer Vahan Kololian Founder, TerraNova Partners Martyn Konig Chief Investment Officer, T Wealth Management Brian Penny Executive Vice President & Chief Financial Officer Randall Oliphant Executive Chairman Ian Pearce Partner, X2 Resources Hannes Portmann Executive Vice President, Business Development Kay Priestly Former Chief Executive Officer, Turquoise Hill Resources Raymond Threlkeld Chairman, Newmarket Gold 5

6 2016 first quarter highlights Production Costs Margin 90,811 oz Gold $ 354 per oz $ 852 per oz Total cash costs (1) Total cash costs margin (3) mlbs Copper 25.4 $ 758 per oz All-in sustaining costs (2) $ 448 per oz All-in sustaining costs margin (3) Financial Balance Sheet Rainy River $ 62 million Cash generated from operations $ 0.12 Cash flow per share $ 298 million Cash balance at March 31, 2016 Further enhanced financial flexibility and increased revenue certainty with gold option contracts Overall construction currently 35% complete Plant site earthworks over 90% complete and assembly of initial mine fleet complete $82 million in capital expenditures during quarter 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 3. Refer to Endnote on margin under the heading Non-GAAP Measures. Margin per ounce is equal to realized gold price per ounce during the period less costs (being cash costs or all-in sustaining costs, as the case may be) per ounce. 6

7 2016 consolidated guidance GOLD PRODUCTION (Koz) Cerro San Pedro transition to residual leaching SILVER PRODUCTION (Moz) In line with 2015 COPPER PRODUCTION (Mlbs) Lower copper grade at New Afton Peak Mines focusing on more gold-rich ore bodies TOTAL CASH COSTS (1) ($/oz) $435-$475 In line with 2015 despite lower by-product revenues ALL-IN SUSTAINING COSTS (2) ($/oz) $825-$865 Lower gross sustaining costs allocated across a lower gold production base KEY INPUT ASSUMPTIONS Copper $2.00/lb Silver $14.00/oz CDN/USD $1.40 AUD/USD $1.40 MXN/USD $ Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 7

8 Strong balance sheet Cash and cash equivalents (1) $298 million Undrawn Credit Facility (2) $178 million Liquidity Position $ 551 million Ongoing Sustaining Free Cash Flow Generation 2016E All-in Sustaining Cost Margin (4) ~$ 355 /oz Remaining proceeds Rainy River stream (3) $75 million 1. Cash and cash equivalents as at March 31, $122 million of $300 million facility used for Letters of Credit at March 31, Second instalment of $75 million to be paid when 60% of development capital spent and other customary conditions are satisfied. 4. Refer to Endnote on margin under the heading Non-GAAP Measures. Margin per ounce is equal to $1,200 per ounce gold price less mid-point of 2016E all-in sustaining costs per ounce. 8

9 Reinvesting free cash flow generation Rainy River +75% of expected 2016 company production at lower all-in sustaining costs (2) 2016E All-in Sustaining Cost Margin (1) ~$ 355 /oz New Afton C-zone Opportunity to extend mine life of New Gold s most significant cash flow generator Blackwater +120% of expected 2016 company production at lower all-in sustaining costs (2) Investing in longer-lived, larger-scale, lower-cost assets 1. Refer to Endnote on margin under the heading Non-GAAP Measures. Margin per ounce is equal to $1,200 per ounce gold price less mid-point of 2016E all-in sustaining costs per ounce. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 9

10 Rainy River project summary Jurisdiction Resource Scale (2) Ontario, Canada # 1 Underground 0.7Moz at 5.0g/t Gold Reserves 3.8 Moz Open Pit 3.1Moz at 1.0g/t 17km tie-in to power and close to regional infrastructure Land package over 190 square kilometres Supportive local government and community Underground 0.6Moz at 3.7g/t Open Pit 2.0Moz at 0.8g/t Gold M&I Resources 2.6 Moz Secured low power rates through Source: Based on 2015 Behre Dolbear Report 2015 Ranking of Countries for Mining Investment. 2. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s news release dated February 17, 2016 titled New Gold Announces 2015 financial results with record gold production leading to strong cash flow. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources and Technical Information. Mineral resources are exclusive of reserves. 10

11 Rainy River overview Overall Construction 35% complete Through April 2016 April 2015 August 2015 Capital Spent Project to Date $ 394 million Through March 2016 November 2015 April Capital Spend Estimate $ 500 million $82 million spent in first quarter 2016 Start-up planned for mid

12 Rainy River project economics Project Economics (1) Gold Price ($/oz) $1,200 Silver Price ($/oz) $15.00 CDN/USD ($) $1.40 After-tax 5% NPV ($mm) $760 $100 per ounce change in gold price equals ~$190 million change in after-tax NAV and 4.0% change in IRR $0.05 change in exchange rate equals ~$55 million change in after-tax NAV and 1.3% change in IRR IRR (%) 15.3 Payback (years) year base case mine life Grade, Production and Cost Profiles Capital and operating costs benefit from a depreciation of Canadian dollar ~80% of costs denominated in Canadian dollars In addition, operating costs expected to benefit from: proximity to infrastructure, lower power costs, ~1.5 g/t average head grade (2) and silver by-product GOLD PRODUCTION (Koz) 325 TOTAL CASH COSTS (3) ALL-IN SUSTAINING COSTS (4) $ 570 /oz $ 670 /oz 1. Net present value discounted to March 31, 2016 and excludes historical project development costs. IRR and payback period inclusive of all project development costs. $100 million initial stream deposit not included as a net reduction to capital costs in calculating net present value. Assumes second instalment of stream proceeds of $75 million paid in mid First five years. 3. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. First nine years. 4. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. First nine years. 12

13 New Afton C-zone opportunity Feasibility Study Highlights Feasibility Study outlined plan to mine/process 25 million tonnes of material from C-zone and potential to extend mine life by over five years Added 583 thousand ounces of gold and 430 million pounds of copper to reserves Main Zone Extraction Level Development capital of $402 million, includes $41 million provision for capital escalation and $88 million for contingency Open to West C-zone C-zone Block Cave Volume 1,180m Additional drilling planned in 2016 to further expand C-zone Resource remains open at depth and to the west Open at depth Measured Indicated Inferred Based on the feasibility study, during the years of full production, average annual pre-tax cash flow of ~$200 million 13

14 Blackwater highlights Gold Reserves (2) 8.2 Moz Development Capital (1) ~$ 1,576 million Annual Production (3) Life-of-Mine Revenue($B) (4) Gold Silver 485 Koz 1.8 Moz Gold Silver $ 8.4 $ Plan: Complete Federal Environmental Assessment process by late 2016/early 2017 Sustaining Cost Margin (5) Regional Upside $610 /oz ~$295 million ~1,100 km Land Package 2 Flagship asset already in portfolio 1. Development capital assumes $1.25 CDN/USD exchange rate. 2. Mineral resources are exclusive of reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s news release dated February 17, 2016 titled New Gold Announces 2015 financial results with record gold production leading to strong cash flow. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources and Technical Information. 3. First nine years. 4. Gold revenue at $1,200 per ounce, silver revenue at $15 per ounce. 5. Refer to Endnote on margin under the heading Non-GAAP Measures. Margin per ounce equal to $1,200 per ounce less all-in sustaining costs of $590 per ounce. Margin in millions (pre-tax) equal to margin per ounce multiplied by average annual gold production of 485Koz. 14

15 Strong Canadian presence Our Footprint in Canada Top global mining jurisdiction (1) >85% gold reserves (2) in Canada Significant Canadian dollar exposure ~70% of cash flow generated from Canadian operations ~25% gold production from Canadian assets >55% with Rainy River in full production New Afton (production) 1.2 Moz Gold Reserve (2) 1.1 Blb Copper Reserve (2) 2015 operating margin: $187 million Blackwater (permitting) 8.2 Moz Gold Reserve (2) 60.8 Moz Silver Reserve (2) >1,100km 2 land package Rainy River (construction) 3.8 Moz Gold Reserve (2) 9.4 Moz Silver Reserve (2) >190km 2 land package OPERATING DEVELOPMENT New Gold has multiple organic growth options in its portfolio 1. Source: 2015 Behre Dolbear Report 2015 Ranking of Countries for Mining Investment. 2. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s news release dated February 17, 2016 titled New Gold Announces 2015 financial results with record gold production leading to strong cash flow. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 15

16 New Gold looking forward Average Mine Life Average Annual Gold Production Per Asset All-in Sustaining Costs (3) Weighted Average Current Portfolio ~7 years (1) ~100 Koz ~$845 /oz >2x 4x ($225)/oz Organic Growth Projects (2) 15 + years ~400 Koz ~$620 /oz Investing in longer-lived, larger-scale, lower-cost assets 1. Based on 12 years at New Afton (including C-zone), seven years at Mesquite, six years at Peak Mines and one year at Cerro San Pedro. 2. Based on 325Koz annual production from Rainy River (first nine years) and ~485Koz annual production from Blackwater (first nine years) as outlined in the feasibility studies and all-in sustaining costs for the projects as outlined in the feasibility studies. 3. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 16

17 A history of value creation Performance since beginning of 2009 Compound Annual Growth Rate 17.9% 5.3% (6.3%) 216 % New Gold (NYSE MKT) 44 % Gold Price New Gold/Western Goldfields business combination announced in March 2009 (37 % ) S&P/TSX Global Gold Index (1) 1. S&P/TSX Global Gold Index includes 35 gold companies in various stages of development/production. 17

18 Catalysts Announce strong 2015 results Complete New Afton C-zone feasibility study Advance Rainy River construction Exploration drilling on C-zone Peak Mines regional exploration Rainy River regional exploration Blackwater permitting 18

19 New Gold investment thesis Establishing the leading intermediate gold company Portfolio of assets in top-rated jurisdictions Invested and experienced team Among lowest-cost producers with established track record Peer-leading growth pipeline A history of value creation 19

20 Appendices Appendices Page 1. Corporate New Afton Other Operations Mesquite, Peak Mines, Cerro San Pedro Rainy River Blackwater Exploration and Reserves and Resources 52 20

21 Appendix 1 Summary of debt Undrawn Credit Facility Senior Unsecured Notes (April 2012) Senior Unsecured Notes (November 2012) Face Value $300 million (1) $300 million $500 million Maturity 4 years with annual extensions permitted April 15, 2020 November 15, 2022 Interest Rate See Key features 7.00% 6.25% Payable Revolving credit Semi-annually Semi-annually Conversion price n/a n/a n/a Current trading value n/a ~97 ~92 Key features See Credit Facility overview Senior unsecured Redeemable after April 15, 2016 at 103.5% down to 100% of face after 2018 Unlimited dividends if leverage ratio below 2:1 Senior unsecured Redeemable after November 15, 2017 at par plus half coupon, declining ratably to par Unlimited dividends if leverage ratio below 2:1 1. $122 million of $300 million facility used for Letters of Credit at March 31,

22 Appendix 1 Credit facility overview At current gold, silver and copper prices, New Gold remains below the original Net Debt/EBITDA ratio through the Rainy River construction period Considering the recent volatility in metal prices, for additional flexibility New Gold has negotiated a higher Net Debt/EBITDA covenant Revolving Credit Facility at March 31, 2016 ($mm) Revolving credit facility (expires August 14, 2019) $300 Letters of credit issued $122 Undrawn credit facility $178 Credit Facility Financial Covenants Prior Terms Current Terms At Mar 31, 2016 EBITDA/Interest > 3.0x > 3.0x 5.0x Maximum Net Debt/EBITDA 3.5x Q x Q4 16-Q x Thereafter 3.5x 2.3x Current covenant terms provide greater flexibility to access credit facility in the event of lower metal prices 22

23 Appendix 1 Mine-by-mine operating results 2016 First Quarter GOLD PRODUCTION (oz) 90,811 TOTAL CASH COSTS (1) ($/oz) $354 ALL-IN SUSTAINING COSTS (2) ($/oz) $758 Gold production (Koz) Total cash costs (1) ($/oz) All-in sustaining costs (2) ($/oz) $626 $780 $934 $1,101 $1,024 $ ($268) ($641) 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 3. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. New Afton co-product cash costs: First quarter: Gold - $487/oz, Copper - $0.87/lb. 4. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. New Afton co-product all-in sustaining costs: First quarter: Gold - $631/oz, Copper - $1.12/lb. 23

24 Appendix 1 Consolidated financial summary Average Realized Prices (1) Financial Summary GOLD ($/oz): (2%) Three months ended March 31 $1,229 $1,206 (in millions of U.S. dollars, except per share amounts) Revenues $155 $169 Operating margin (2) COPPER ($/lb): (17%) Adjusted net (loss) (3) nil (5) $2.59 $2.14 Adjusted net (loss) per share (3) nil (0.01) Net earnings/(loss) 27 (44) SILVER ($/oz): $16.65 (12%) $14.72 Net earnings/(loss) per share 0.05 (0.09) Cash generated from operations before changes in non-cash operating working capital (4) Cash generated from operations Refer to Endnote on average realized prices under the heading Non-GAAP Measures. 2. Refer to Endnote on operating margin under the heading Non-GAAP Measures. 3. Refer to Endnote on adjusted net earnings under the heading Non-GAAP Measures. 4. Refer to Endnote on net cash generated from operations before changes in working capital under the heading Non-GAAP Measures. 24

25 Appendix 1 Detailed operating results and assumptions New Afton Mesquite Peak Mines 2015A 2016E 2015A 2016E 2015A 2016E Tonnes processed (000 tonnes) 5,097 5,400-5,600 19,987 13,900-14, Total tonnes mined (000 tonnes) 5,255 6,900-7,100 58,778 56,500-60, Strip ratio Gold grade (g/t) Silver grade (g/t) Copper grade (%) 0.90% 0.80% % % 0.60% % Gold recovery (1) (%) 82.5% 79.0% % 61.7% ~65% 93.0% 91.0% % Silver recovery (%) Copper recovery (%) 84.9% 81.0% % % 87.0% % Production Gold production (Koz) Silver production (Koz) Copper production (Mlbs) Reserve Grade at December 31, 2015 Gold grade (g/t) Silver grade (g/t) Copper grade (%) 0.82% % 1. Represents implied recoveries. 25

26 Appendix all-in sustaining costs sensitivities NEW GOLD 2016 ALL-IN SUSTAINING COSTS (1) - KEY SENSITIVITIES Category Copper Price Silver Price CDN/USD AUD/USD MXN/USD Base Assumption $2.00 $14.00 $1.40 $1.40 $18.00 Sensitivity +/-$0.25 +/-$1.00 +/-$0.05 +/-$0.05 +/-$1.00 COST PER OUNCE IMPACT New Afton +/-$ /-$ Mesquite Peak Mines +/-$ /-$35 -- Cerro San Pedro -- +/-$ /-$30 New Gold Total +/-$55 +/-$5 +/-$20 +/-$10 +/-$5 1. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 26

27 Appendix guidance Sustaining exploration expense ~$ 30 General and administrative and other (4) Sustaining capital (3) ~$ 80 ~$ 280 All-in Sustaining Costs (1) $ 825- $ 865 /oz Total cash costs (2) $ 435- $ 475 Gold Production (Koz) 1. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 2. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 3. Sustaining capital based on New Gold s 2016 estimated capital expenditures including capitalized exploration and excluding expenditures related to growth-related initiatives. 4. General and administrative and other includes stock-based compensation and asset retirement obligation. 27

28 Appendix capital expenditures by category Total Capital Expenditures ~$ 615 million Sustaining Capital: ~$105 million Growth Capital: ~$510 million New Afton $5 million Peak Mines $12 million Blackwater $5 million New Afton $38 million Mesquite $55 million Rainy River $500 million 28

29 Appendix capital expenditures by category (cont d) Rainy River Mesquite New Afton Peak Mines Blackwater $500 million $55 million $43 million $12 million $5 million $405 million mining, infrastructure and process facilities $95 million owners costs, indirects and other $35 million capitalized stripping $12 million plant and equipment $8 million complete leach pad expansion $38 million mine development, plant and equipment $5 million C-zone studies, C-zone capitalized exploration $12 million plant and equipment and capitalized exploration $5 million permitting, environmental studies and site support Sustaining capital 29

30 Appendix corporate developments July 2015 Sale of $175 million Rainy River stream to Royal Gold November 2015 Sale of 30% interest in El Morro to Goldcorp The two transactions collectively increased our liquidity position by ~$235 million and eliminated $94 million of debt (1) ~$330 million improvement in financial position without equity issuance 1. Assumes receipt of second instalment of $75 million from Royal Gold. Second instalment of $75 million is to be paid when 60% of development capital spent and other customary conditions are satisfied. 30

31 Appendix 1 Stream comparison El Morro Stream Retained Rainy River Stream Sold (gold portion) (1) Initial gold stream percentage 4% 6.5% Average annual stream ounces (Koz) >16 ~16 Total gold reserves (2) (Moz) Reserves subject to stream (Koz) Transfer price pre-threshold ($ per ounce) $400 25% of spot gold price Ounce threshold (Koz) Gold stream percentage post-threshold 4% 3.25% M&I gold resources subject to stream (exclusive) (Koz) Inferred resources subject to stream (Koz) Transfer price post-threshold ($ per ounce) $ % inflation factor 25% of spot gold price 1. Does note include portion of stream attributable to silver. New Gold to deliver 60% of the project's silver production up to a total of 3.1 million ounces of silver, and 30% of the project's silver production thereafter. Royal Gold to pay 25% of the average silver spot price. 2. M&I resources are exclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s news release dated February 17, 2016 titled New Gold Announces 2015 financial results with record gold production leading to strong cash flow. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 31

32 Appendix total liquidity Indicative Cash Continuity Schedule ($mm) $184 ($52) ~$45 ~$135 ~($500) $75 $336 ~($10) Approximately $213 YE2015 Cash RGLD Stream (1) Deposit (2) AISC Margin (3) Working Capital Credit Facility Interest Rainy River Capital Other Growth Capital YE2016 Total Liquidity $100 change in gold price equals ~$38 million change in AISC Margin 1. Assumes receipt of second instalment of $75 million from Royal Gold. Second instalment of $75 million is to be paid when 60% of development capital spent and other customary conditions are satisfied. 2. Refer to Endnote on all-in sustaining costs margin under the heading Non-GAAP Measures. Based on $1,200 per ounce gold price. Assumes mid-point of production guidance range and all-in sustaining costs guidance range, and commodity price and exchange rate assumptions used for all-in sustaining costs estimates. 3. $116 million of $300 million facility used for Letters of Credit at December 31,

33 Appendix 2 New Afton 2016 guidance Gold Production (Koz) Copper Production (Mlbs) Overview Gold and copper production decreases due to lower gold and copper grades Higher costs due to lower by-product revenues Key Sensitivities Total Cash Costs (1) ($/oz) All-in Sustaining Costs (2) ($/oz) ($335)-($295) $95-$135 $0.25 per pound change in copper price equals ~$210 per ounce change in New Afton all-in sustaining costs (2) $0.05 change in Canadian dollar exchange rate equals ~$55 per ounce change in New Afton all-in sustaining costs (2) 2017 Outlook Gold production of ~85,000 ounces and copper production of ~80 million pounds 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. Co-product cash costs guidance: Gold - $505-$545 per ounce, Copper - $0.90-$1.05 per pound. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. Co-product all-in sustaining costs guidance: Gold - $660-$700 per ounce, Copper - $1.20-$1.35 per pound. 33

34 Appendix 2 New Afton value creation $1,259 VALUE CREATION ($mm) $873 $1,153 $557 $466 $940 Current NAV $ 940 million $ 11 million Net Investment (1) $ 333 million $701 $396 $441 $596 $793 $607 Value Creation (2) NAV ($mm) $336 $90 $219 $246 Capital Spend ($mm) $305 $432 Achieved commercial production $333 $ 607 million / $ 1.19 per sh. Early 2010 Mid-2010 Early 2011 Mid-2011 Early 2012 Mid 2012 Mar 2016 ~$1,100 ~$3.25 $1.05 Gold Price ($/oz) Copper Price ($/lb) Foreign Exchange (CDN/USD) $1,230 $2.25 $1.27 Significant value creation realized months prior to start-up 1. Net investment equal to total development capital of $793 million plus sustaining and growth capital of $322 million (mid-2012 to March 31, 2016) less total operating margin of $782 million (mid-2012 to March 31, 2016). Operating margin calculated as revenue less operating expenses. 2. Value creation equal to current New Afton analyst consensus net asset value less net investment. 34

35 Appendix 2 New Afton C-zone update Main Zone Extraction Level Measured Indicated Inferred Open to West Open at depth C-zone 1,180m C-zone Block Cave Volume 35

36 Appendix 2 New Afton C-zone reserves and resources Added 583 thousand ounces of gold and 430 million pounds of copper C-zone originally identified through limited deep holes drilled from surface prior to 2007 Since July 2012 have completed 138 holes totaling 85,585 metres and continually updated resource Additional drilling planned in 2016 to further expand C-zone 2015 Year-End C-zone Reserves and Resources (1) Tonnes (000s) Gold (g/t) Copper (%) Gold (Koz) Copper (Mlbs) Proven Probable 25, Total P&P 25, Measured 2, Indicated 15, Total M&I 17, Inferred 6, Resource remains open at depth and to the west 1. M&I resources exclusive of reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s news release dated February 17, 2016 titled New Gold Announces 2015 financial results with record gold production leading to strong cash flow. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources and Technical Information. 36

37 Appendix 2 New Afton C-zone Scoping study versus feasibility study The below table compares the 2015 scoping study to the current feasibility study results C-zone: Scoping Study versus Feasibility Study (1) 2015 Scoping Study 2016 Feasibility Study Total tonnes mined/processed (Mt) % increase in ore tonnes Average gold grade (g/t) Average copper grade (%) Contained metal Gold (Koz) Contained metal Copper (Mlbs) % increase in contained gold 14% increase in contained copper Mine life (years) Average full-year gold production (Koz) Average full-year copper production (Mlbs) Development capital ($mm) Sustaining capital ($mm) Average operating cost ($/t) Increase primarily driven by the inclusion of a $41 million provision for capital escalation given six year development timeline 1. CDN/USD exchange rate of $

38 Appendix 2 New Afton C-zone indicative timeline Based on market conditions and the receipt of permits, development of the C-zone could begin after the start-up of Rainy River Targeted milestones Rainy River start-up + 1 year + 2 years + 3 years + 4 years + 5 years + 6 years COMPLETE MAIN ACCESS RAMP DEVELOP BLOCK CAVE PRODUCTION LEVELS FIRST PRODUCTION Over 70% of $402 million development capital expected to be spent in the final 3.5 years Significant capital spending to begin well after Rainy River start-up 38

39 Appendix 2 New Afton C-zone Feasibility study economics C-zone: Project Economics C-zone: Key Sensitivities Gold price ($/oz) $1,200 Copper price ($/lb) $2.75 $0.25 per pound change in copper price ~$34 million in after-tax NPV and 1.9% change in IRR CDN/USD ($) $ Scoping Study 2016 Feasibility Study After-tax 5% NPV ($mm) $0.05 change in exchange rate ~$24 million in after-tax NPV and 1.5% change in IRR After-tax IRR (%) After-tax Payback (years) $100 per ounce change in gold price ~$18 million in after-tax NPV and 1.0% change in IRR Based on the feasibility study, during the years of full production, average annual pre-tax cash flow of ~$200 million 39

40 Appendix 3 Mesquite 2016 guidance Gold Production (Koz) Overview 2016 production expected to remain in line with 2015 Decrease in costs attributable to continued operational efficiencies and lower diesel prices Total Cash Costs (1) ($/oz) All-in Sustaining Costs (2) ($/oz) 2017 Outlook Production expected to increase to over 150,000 ounces as gold grade should continue to increase Higher production is scheduled to be coupled with lower costs $590-$630 $1,015-$1, Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 40

41 Appendix 3 Peak Mines 2016 guidance Gold Production (Koz) Copper Production (Mlbs) Overview Gold production expected to remain in line with 2015 Copper production expected to decrease as 2016 mine plan intentionally focuses on mining more gold-rich ore bodies Key Sensitivities Total Cash Costs (1) ($/oz) All-in Sustaining Costs (2) ($/oz) $800-$840 $1,020-$1,060 $0.25 per pound change in copper price equals ~$20 per ounce change in Peak Mines all-in sustaining costs (2) $0.05 change in Australian dollar exchange rate equals ~$35 per ounce change in Peak Mines all-in sustaining costs (2) 2017 Outlook Gold-copper production mix will be optimized to maximize cash flow and profitability for Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 41

42 Appendix 3 Cerro San Pedro 2016 guidance Gold Production (Koz) Silver Production (Moz) Overview Decrease in production as mine transitions to residual leaching Costs to decrease relative to 2015 Key Sensitivities Total Cash Costs (1) ($/oz) All-in Sustaining Costs (2) ($/oz) $755-$795 $765-$805 $1.00 per ounce change in silver price equals ~$20 per ounce change in Cerro San Pedro all-in sustaining costs (2) $1.00 change in Mexican peso exchange rate equals ~$30 per ounce change in Cerro San Pedro all-in sustaining costs (2) 2017 Outlook Gold production from residual leaching expected to be approximately 25 thousand ounces Silver production expected to be approximately one million ounces 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 42

43 Appendix 4 Rainy River site layout 43

44 Appendix 4 Rainy River plant site construction photos April 2015 August

45 Appendix 4 Rainy River plant site construction photos (cont d) October 2015 November

46 Appendix 4 Rainy River plant site construction photos (cont d) December 2015 February

47 Appendix 4 Rainy River first quarter 2016 update Rainy River Overall construction currently 35% complete Precast foundations for preleach thickener Plant site earthworks over 90% complete Concrete placement over 50% complete Grinding building fully enclosed with steel erection in progress on process building Installation of mechanical, piping, electrical and instrumentation in grinding building began in April Power line construction 85% complete Aerial view of west side of the mill Construction of water and tailings management facilities impacted by ground conditions Assembly of initial mine fleet complete Material moved for mine development on target No Lost Time incidents since New Gold acquired the project in

48 Appendix 4 Rainy River 2016 capital expenditures and program 2016 Capital Expenditure Details 2016 Program Description ($mm) Advance overall construction to 75% Mining $47 On-Site Infrastructure 59 Process Plant 204 Tailings Facilities 71 Access Corridor 10 Off-Site Facilities 14 Indirect Costs 63 Owners Costs 32 Total $500 Ramp-up of pre-production mining activities Continued commissioning of mobile fleet Process plant construction Complete concrete and structural steel work by mid-year Advance mechanical, piping, electrical and instrumentation installation to 50% completion Water management pond complete; commence storage of water for start-up Transmission line complete and energized Advance tailings dam construction to 60% 48

49 Appendix 4 Rainy River timeline Targeted milestones Q1 Q2 Q3 Q4 Q1 Q2 POWER LINE CONSTRUCTION PROCESS PLANT CONSTRUCTION TAILINGS & WATER MANAGEMENT FACILITIES CONSTRUCTION PRE-STRIP & PIT DEVELOPMENT Z COMMISSIONING Start-up planned for mid

50 Appendix 5 Blackwater project summary Jurisdiction and Regional Upside 2013 Feasibility Study # 1 Country Ranking (1) British Columbia, Canada ~1,100 km 2 Land Package ~$ 1,576 million Development Capital (2) 17-year Mine Life First nine years: 485 Koz Annual Gold Production 1.8 Moz Annual Silver Production $590/oz All-in Sustaining Costs (3) Significant Gold and Silver Resource (4) 2016 Plan 8.2 Moz Gold Reserves 1.3 Moz Gold M&I Resources 60.8 Moz Silver Reserves 7.8 Moz Silver M&I Resources Complete Federal Environmental Assessment process by late 2016/ early Source: 2015 Behre Dolbear Report 2015 Ranking of Countries for Mining Investment. 2. Development capital assumes $1.25 CDN/USD exchange rate. 3. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 4. Mineral resources are exclusive of reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s news release dated February 17, 2016 titled New Gold Announces 2015 financial results with record gold production leading to strong cash flow. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources and Technical Information. 50

51 Appendix 5 Blackwater Project economics Gold Price ($/oz) Silver Price ($/oz) CDN/USD ($) $1,200 $15.00 $1.25 After-tax 5% NPV ($mm) $680 IRR (%) 11.9 Payback (years) year base case mine life Assumes construction begins in 2018 $0.05 change in exchange rate equals ~$100 million change in after-tax NAV and 1.2% change in IRR $100 per ounce change in gold price equals ~$240 million change in after-tax NAV and 2.3% change in IRR 51

52 Appendix exploration program overview Sustaining exploration Growth exploration New Afton Expensed - $4 million New Afton $ 12 million Capitalized - $2 million $ 4 million Peak Mines Capitalized - $2 million Expensed - $6 million Rainy River Expensed - $2 million 52

53 Appendix exploration program overview 2016 Program New Afton Test potential to extend C-zone block cave resource to west Underground and surface reconnaissance drilling to test newly identified satellite targets Main Zone Extraction Level 10,000 metre drill program C-zone C-zone Block Cave Volume Open to West 1,180m Measured Indicated Open at depth Inferred 53

54 Appendix exploration program overview (cont d) 2016 Program Rainy River Continue to advance district reconnaissance and target identification Peak Mines Chronos underground diamond drilling to expand inferred status and upgrade central gold lens to M&I status Anjea surface diamond drilling to delineate resource to inferred status Mine Corridor surface and underground drilling to test newly identified mine corridor targets at Burrabungie, Dapville, Gladstone, Mt. Pleasant, Young Australian 2016: 10,000 metres of drilling Positive results from initial reconnaissance drilling 2016: 10,000 metres of drilling 54

55 Appendix 6 Reserves and resources summary MINERAL RESERVES AND RESOURCES SUMMARY TABLE As at December 31, 2015 As at December 31, 2014 Gold Koz Silver Moz Copper Mlbs Gold Koz Silver Moz Copper Mlbs Proven and Probable reserves 14, ,193 17, ,821 New Afton 1, , Mesquite 1, , Peak Mines Cerro San Pedro Rainy River 3, , Blackwater 8, , El Morro (30%) - Sold interest during ,675-1,951 Measured and Indicated resources (exclusive of reserves) 6, ,065 8, ,728 Inferred resources 1, , , information per Annual Information Form dated March 27,

56 Appendix 6 Reserves and resources summary (cont d) Mineral Reserves estimate as at December 31, 2015 Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs NEW AFTON A&B Zones Proven Probable 36, , C Zone Proven Probable 25, , Total New Afton P&P 61, ,228 4,212 1,112 MESQUITE Proven 8, Probable 75, , Total Mesquite P&P 84, , PEAK MINES Proven 1, Probable 1, Total Peak Mines P&P 2, CERRO SAN PEDRO Proven Probable Total CSP P&P 1,

57 Appendix 6 Reserves and resources summary (cont d) Mineral Reserves estimate as at December 31, 2015 Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs RAINY RIVER Direct processing material Open Pit Proven 17, ,075 - Probable 52, ,003 4,690 - Open Pit P&P (direct processing) 69, ,766 5,765 - Underground Proven Probable 4, ,709 - Underground P&P (direct processing) 4, ,709 - Stockpile material Open Pit Proven 5, Probable 23, ,701 - Open Pit P&P (stockpile) 28, ,959 - Total P&P Proven 22, ,333 - Probable 80, ,987 8,100 - Total Rainy River P&P 103, ,814 9,433 - BLACKWATER Direct processing material Proven 124, ,790 22,100 - Probable 169, ,730 22,300 - P&P (direct processing) 294, ,520 44,400 - Stockpile material Proven 20, ,300 - Probable 30, ,100 - P&P (stockpile) 50, ,400 - Total Blackwater P&P 344, ,170 60,800 - Total P&P 14,985 75,504 1,193 57

58 Appendix 6 Reserves and resources summary (cont d) Measured and Indicated Mineral Resource estimate (exclusive of Reserves) as at December 31, 2015 Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs NEW AFTON A&B zones Meas ured 16, , Indicated 10, A&B Zone M&I 27, , C-zone Meas ured 2, Indicated 15, , C-zone M&I 17, , HW Lens Measured Indicated 10, HW Lens M&I 10, Total New Afton M&I 55, ,175 3, MESQUITE Meas ured 4, Indicated 50, Total Mesquite M&I 55, PEAK MINES Meas ured 2, Indicated 2, Total Peak Mines M&I 4, CERRO SAN PEDRO Measured Indicated Total CSP M&I

59 Appendix 6 Reserves and resources summary (cont d) Measured and Indicated Mineral Resource estimate (exclusive of Reserves) as at December 31, 2015 Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs RAINY RIVER Direct processing material Open Pit Measured 3, Indicated 37, ,391 4,189 - Open Pit M&I (direct processing) 40, ,518 4,374 - Underground Measured Indicated 4, ,952 - Underground M&I (direct processing) 4, ,952 - Stockpile material Open Pit Measured 1, Indicated 36, ,942 - Open Pit M&I (stockpile) 37, ,993 - Total M&I Measured 4, Indicated 78, ,472 9,083 - Total Rainy River M&I 83, ,613 9,319 - BLACKWATER Direct processing material Measured Indicated 41, ,135 5,950 - M&I (direct processing) 41, ,147 6,012 - Stockpile material Measured Indicated 14, ,809 - M&I (stockpile) 14, ,809 - Total Blackwater M&I 55, ,292 7,821 - CAPOOSE Indicated 17, ,562 - Total M&I 6,659 34,491 1,065 59

60 Appendix 6 Reserves and resources summary (cont d) Inferred Resource estimate as at December 31, 2015 Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs NEW AFTON A&B-zones 6, C-zone 6, HW Lens Total New Afton Inferred 14, MESQUITE 4, PEAK MINES 2, CERRO SAN PEDRO RAINY RIVER Direct processing Open Pit 10, Underground 2, Total Direct Proces s ing 13, ,267 - Stockpile Open Pit 9, Total Rainy River Inferred 23, ,606 - BLACKWATER Direct proces s ing 10, ,235 - Stockpile 2, Total Blackwater Inferred 12, ,483 - CAPOOSE 23, ,948 - Total Inferred 1,844 24,