European Gold Forum May 2014

Transcription

1 European Gold Forum May 2014

2 Cautionary statements All monetary amounts in U.S. dollars unless otherwise stated Total cash costs shown net of by-product sales 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 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, 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 those on the slide entitled 2014 Consolidated Guidance and also include, among others, statements with respect to: guidance for production, total cash costs, all-in sustaining costs and capital expenditures; mine life at various mines and projects; the expected throughput and recovery rates at New Afton; planned modifications to the New Afton mine and mill and related timing, costs, return and payback period; expected future mining activities; exploration potential; the estimation of Mineral Reserves and Resources and the realization of such estimates; the results of the Rainy River and Blackwater Feasibility Studies, including expected production and costs; the timing of permitting activities and environmental assessment processes; expected timing of project development and construction activities and; the potential annual production and cash costs, and the potential for a block cave, at the El Morro project. 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 our forward-looking statements are discussed in this presentation, New Gold s MD&As, its Annual Information Form and its Technical Reports filed at In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forwardlooking statements in this presentation are also subject to the following assumptions: (1) there being no signification 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 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) labour and material costs increasing on a basis consistent with New Gold s current expectations; (7) permitting and arrangements with First Nations and other Aboriginal groups in respect of Rainy River and Blackwater being consistent with New Gold s current expectations; (8) all environmental approvals (including the environmental assessment process for the Blackwater and Rainy River projects), required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines; and (9) the results of the feasibility studies for the Rainy River and Blackwater projects being realized. 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; price volatility in the spot and forward markets for commodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico and Chile; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Canada, the United States, Australia, Mexico and Chile 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 Blackwater and Rainy River projects; in Mexico, where Cerro San Pedro has a history of ongoing legal challenges related to our environmental authorization (EIS); and in Chile, where the courts have temporarily suspended the approval of the environmental permit for El Morro; 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; additional funding requirements; 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 Rainy River and 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; uncertainties with respect to obtaining all necessary surface and other land use rights or tenure for Rainy River; 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 processes for Blackwater and Rainy River. 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 forwardlooking 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 and endnotes to this presentation contain important information. The endnotes 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 18.5 Moz gold reserves (1) ~$75 million investment by Board & Management Q1 14 all-in sustaining costs (2) $674/oz ~900 Koz annual production potential from growth projects (3) 185% increase in share price since March For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s Annual Information Form for the financial year ended December 31, 2013 dated March 28, 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, ~485Koz annual production from Blackwater and ~90Koz annual production from El Morro, as outlined in the feasibility studies for the projects. 3

4 Portfolio of assets in top-rated jurisdictions Mining investment country rankings (1) Mineral Reserves (2) # 2 CANADA Blackwater New Afton Rainy River Mine Life: 17 years Mine Life: 10 years Mine Life: 14 years Gold 18.5 Moz # 6 UNITED STATES Mesquite Mine Life: 8+ years # 5 MEXICO Cerro San Pedro Mine Life: 2+ years Silver 90.1 Moz # 3 CHILE El Morro Mine Life: 17 years # 1 AUSTRALIA Peak Mines Mine Life: 6+ years Copper 3.0 Blbs OPERATING DEVELOPMENT 1. Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report 2013 Ranking of Countries for Mining Investment: Where Not to Invest. 2. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s Annual Information Form for the financial year ended December 31, 2013 dated March 28, Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 4

5 Collectively ~$75 million invested in New Gold EXECUTIVE MANAGEMENT TEAM Randall Oliphant Robert Gallagher Brian Penny Executive Chairman President & Chief Executive Officer Executive Vice President & Chief Financial Officer BOARD OF DIRECTORS David Emerson James Estey Robert Gallagher Vahan Kololian Martyn Konig Pierre Lassonde Randall Oliphant Raymond Threlkeld Former Canadian Cabinet Minister Former Chairman, UBS Securities Canada President & Chief Executive Officer Founder, Terra Nova Partners Former Executive Chairman, European Goldfields Chairman, Franco-Nevada Executive Chairman Chairman, Newmarket Gold 5

6 2014 first quarter operational highlights Gold Production Costs New Afton 91,317 oz $ per oz 674 All-in sustaining costs (1) $ per oz 254 Total cash costs (2) New Afton achieved record quarterly gold and copper production 27,364oz - Gold 22mlbs - Copper New Afton Expansion Rainy River Blackwater On-time (mid-2015), onbudget ($45 million) Vertimill and equipment ordered Successfully completed Rainy River Feasibility Study and advanced project Environmental Assessment being finalized (to be submitted in second quarter) 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. 6

7 2014 first quarter financial highlights Revenues Operating Margin (1) Adjusted Net Earnings (2) $ 191 million $ 92 million Consistent with Q1 13 despite lower commodity prices $ 18 million $ per share 0.04 Net Cash Generated from Operations $ 81 million + versus Q % Cash and Equivalents +$ 24 million Increase cash balance during quarter $ 438 million Cash balance at March 31, Refer to Endnote on operating margin under the heading Non-GAAP Measures. 2. Refer to Endnote on adjusted net earnings under the heading Non-GAAP Measures. 7

8 2014 consolidated guidance GOLD PRODUCTION (Koz) SILVER PRODUCTION (Moz) COPPER PRODUCTION (Mlbs) TOTAL CASH COSTS (1) ($/oz) ALL-IN SUSTAINING COSTS (2) ($/oz) $320 $340 $815 $ Refer to Endnote on total cash costs under the heading Non-GAAP Measures total cash costs assume: Gold - $1,300/oz, Silver - $22.00/oz, Copper - $3.25/lb, USD/CDN - $0.90, USD/AUD - $ Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures all-in sustaining costs assume: Gold - $1,300/oz, Silver - $22.00/oz, Copper - $3.25/lb, USD/CDN - $0.90, USD/AUD - $

9 Among lowest-cost producers Lower costs driving higher margins (1) 2014E all-in sustaining costs (2) to decrease by over $70 per ounce versus E GUIDANCE ALL-IN SUSTAINING COSTS ($/OZ) (2) Costs benefiting from depreciating Canadian and Australian dollars Expect to generate over $200 per ounce incremental margin versus average of peer-companies (3) that have provided 2014 guidance 2014 Reported Average (4) ~$1,030/oz ~$825 New Gold ~$825 ~$825/oz 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. Based on comparison with costs published by issuers listed in note 4. The manner in which costs are determined may vary from one issuer to another. 4. Average includes: Agnico-Eagle, Alamos, Aurico, Barrick, Detour, Eldorado, Goldcorp, IAMGOLD, Kinross, Newmont and Yamana. The manner in which costs are determined may vary from one issuer to another. 9

10 New Afton A special asset Jurisdiction Current Production Country Ranking (1) # 2 British Columbia, Canada Gold (Koz) Copper (Mlbs) E to benefit further from mill expansion E NEW AFTON Near-Term Upside Future Upside Mill Expansion - $45mm Throughput: 12,500 14,000 Recoveries: 85-86% 88-89% Return (3) : Payback: +50% <2 years C-Zone M&I Resource (2) 26 Million Tonnes GOLD 0.83 g/t 0.7Moz COPPER 0.91% 0.5Blbs 1. Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report 2013 Ranking of Countries for Mining Investment: Where Not to Invest. 2. Mineral Resources are inclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s Annual Information Form for the financial year ended December 31, 2013 dated March 28, Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 3. Return calculation assumes: Gold - $1,300/oz, Silver - $22.00/oz, Copper - $3.25/lb, USD/CDN - $

11 C-zone overview Isometric view looking NE YEAR-END 2013 C-ZONE RESOURCES (1) Tonnes (000 s) Gold (g/t) Copper (%) Gold (Koz) Copper (Mlbs) Measured Indicated 25, Total M&I 25, B-zone Inferred 11, C-zone Measured and Indicated Resources Inferred Resources 1. Mineral Resources are inclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s Annual Information Form for the financial year ended December 31, 2013 dated March 28, Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 11

12 Case study New Afton value enhancement Both gold and copper production already exceed 2009 technical report estimates Mill expansion and C-zone potential to further increase New Afton annual cash flow and mine life GOLD PRODUCTION (THOUSAND OUNCES) COPPER PRODUCTION (MILLION POUNDS) E 2015E E 2015E 2009 Technical Report (1) Actual/Guidance (2) 2009 Technical Report (1) Actual/Guidance (2) C-ZONE RESOURCE Only 14 holes drilled into C-zone at time of New Afton production start In two years, M&I resource up to 26 million tonnes (3) MEASURED AND INDICATED RESOURCES (3) B-ZONE C-ZONE Tonnes (Mt) Gold grade (g/t) Copper grade (%) New Afton Project technical report dated December 31, New Afton production estimate assumes successful completion of New Afton mill expansion of 14,000 tonnes per day by mid Mineral Resources are inclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s Annual Information Form for the financial year ended December 31, 2013 dated March 28, Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 12

13 Rainy River Jurisdiction Country Ranking (1) Ontario, Canada # 2 Situated for Mine Development Flat terrain Close to infrastructure 17km tie-in to power ~$840 million Development Capital (2) RAINY RIVER +169 km 2 Land Package Multiple regional targets 2014 Feasibility Study First nine years: 325 Koz (1.44 g/t) Annual Production $613/oz Total Cash Costs (3) $736/oz All-in Sustaining Costs (4) $0.05 change in exchange rate ~$141 million in pre-tax NAV Gold Resource/Upside +3.8 Moz Reserves (5) +6.2 Moz M&I Resources (5) 1. Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report 2013 Ranking of Countries for Mining Investment: Where Not to Invest. 2. Development capital assumes $0.90 USD/CDN exchange rate. 3. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. Total cash costs assume: Gold - $1,300/oz, Silver - $22.00/oz, USD/CDN - $ Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. All-in sustaining costs assume: Gold - $1,300/oz, Silver - $22.00/oz, USD/CDN - $ Mineral Resources are inclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s Annual Information Form for the financial year ended December 31, 2013 dated March 28, Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 13

14 Rainy River Progress milestones Targeted milestones Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Complete Feasibility Study Submit Environmental Assessment Report Order Long Lead Equipment Award EPCM Contract Detailed Engineering & Procurement Provincial Environmental Assessment Approval Federal Environmental Assessment Approval Construction/Other Permits Arrival of Mobile Equipment Begin Construction - Water Management Facility Pour First Concrete for Mill Building Commence Pre-Strip Arrival of Mill Equipment Complete Enclosure of Mill Building Targeting commissioning in late 2016 with first year of full production in Near-term milestones based on company plans which are consistent with timelines presented in the Rainy River Technical Report, entitled Feasibility Study of the Rainy River Project, Ontario, Canada dated February 14, 2014 and available on SEDAR. 14

15 Rainy River Progress update Purchase orders completed for: Project Development Capital Costs Description Cost ($ million) Mobile equipment Primary crusher SAG mill Ball mill EPCM partner engaged Direct Costs Process Equipment $127 Process Facilities Construction $170 Site Development $111 Open Pit Mine Equipment $81 Overburden and Waste Stripping $80 Tailings and Water Management $48 Power Line and Roads $21 Total Direct Capital Costs $638 Owner's and Indirect Costs Owner's Costs $76 EPCM $48 Other Indirects $53 Total Owner's & Indirect Capital Costs $177 Subtotal $815 Contingency $70 Total Project (at US$/C$ ) $885 21% of pricing being locked in 98% of pricing being locked in EPCM engaged 1. Project development capital costs based on Rainy River Technical Report, entitled Feasibility Study of the Rainy River Project, Ontario, Canada dated February 14, 2014 and available on SEDAR. 15

16 Blackwater Jurisdiction British Columbia, Canada ~$1,760 million Development Capital (2) 2013 Feasibility Study First nine years: 485 Koz Annual Production Country Ranking (1) # 2 Significant Gold Resource GOLD RESOURCE 8.2 Moz Reserves (5) 9.5 Moz M&I Resources (5) 17-year Mine Life BLACKWATER $555/oz Total Cash Costs (3) Regional Upside UPSIDE ~1,100 km2 Land Package Initial resource at Capoose Multiple newly identified targets $685/oz All-in Sustaining Costs (4) $0.05 change in exchange rate ~$270 million in pre-tax NAV 1. Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report 2013 Ranking of Countries for Mining Investment: Where Not to Invest. 2. Development capital assumes $0.90 USD/CDN exchange rate. 3. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. Total cash costs assume: Gold - $1,300/oz, Silver - $22.00/oz, USD/CDN - $ Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. All-in sustaining costs assume: Gold - $1,300/oz, Silver - $22.00/oz, USD/CDN - $ Mineral Resources are inclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s Annual Information Form for the financial year ended December 31, 2013 dated March 28, Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 16

17 El Morro Jurisdiction 2011 Feasibility Study (30%) Chile Life of mine: 90 Koz Annual Gold Production Country Ranking (1) # 3 85 Mlbs Annual Copper Production ($700/oz) Total Cash Costs (2) EL MORRO Gold/Copper Reserve (30%) + Upside 2.7 Moz Gold Reserve (3) 2.0 Blbs Copper Reserve (3) Higher Grade Block Cave Potential Unique Joint Venture Structure Goldcorp 70% partner Funds 100% of capital New Gold retains portion of cash flow from mine start-up 1. Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report 2013 Ranking of Countries for Mining Investment: Where Not to Invest. 2. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. Total cash costs assume: Gold - $1,200/oz, Copper - $2.75/lb, Chilean Peso/USD - $ For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s Annual Information Form for the financial year ended December 31, 2013 dated March 28, Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 17

18 GOLD PRODUCTION Organic pipeline Existing low cost production base to be further enhanced by our lower cost development projects (1) Mesquite return to run rate (2015+) New Afton expansion (mid-2015) Rainy River development (2015/2016) CSP to residual leaching (2016) Sequence Blackwater development El Morro advanced 2014 (2) 2017 (3) Future Potential (4) 1. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. Rainy River and Blackwater life-of-mine all-in sustaining costs are estimated to be $736/oz and $685/oz, respectively, based on their respective Feasibility Studies. 2. Based on mid-point of 2014 guidance. 3. Based on expected annual production from current operations according to their respective mine plans, including positive production impact of New Afton s mill expansion targeted for mid-2015, Mesquite mine plan moving into grades more in line with reserve grade, which is partially offset by Cerro San Pedro ceasing active mining and moving into residual leaching, and includes the first year of full production from Rainy River. Assumes on-time completion of Rainy River. 4. Based on ~325Koz annual production from Rainy River, ~485Koz annual production from Blackwater and ~90Koz annual production from El Morro as outlined in the Feasibility Studies for these projects, and production contribution from New Afton, Mesquite and the Peak Mines according to their respective mine plans. Assumes the timely development of Blackwater and El Morro. 18

19 Cash flow growth and value NET CASH FROM OPERATIONS ($ MILLIONS) $700 $600 $500 $400 $300 $200 $100 $0 ~$600 ~$400 ~$400 $287 $230 $236 $249 $182 $ E 2015E 2016E 2017E (1) (2) (3) (3) (3) Enterprise Value Consensus Blackwater and El Morro Value (4) Enterprise Value (excluding Blackwater and El Morro) $3.0 billion $0.7 billion $2.3 billion Trading at ~3.8x 2017E cash flow at 2014 guidance prices 1. For 2013, figure shown is Adjusted net cash generated from operations. Net cash generated from operations in the 2013 period included certain non-recurring cash flows. Net cash generated from operations in 2013 was $172 million E based on Bloomberg consensus CFPS of $0.57 multiplied by 504 million basic shares outstanding to 2017 estimates based on the following price and exchange rate assumptions (which were also used for 2014 guidance): Gold - $1,300/oz, Silver - $22.00/oz, Copper - $3.25/lb, USD/CDN - $0.90, USD/AUD - $ estimated cash flow assumes: successful mill expansion to 14,000 tonnes per day at New Afton in mid-2015, Mesquite moving into mining of higher grade areas of the open pit in 2015 in accordance with the current mine plan, Peak s copper production increasing from 2014 levels in accordance with the current mine plan, and Cerro San Pedro mining higher grade material in its final year of active mining in accordance with the current mine plan estimated cash flow assumes: New Afton processing for a full year at 14,000 tonnes per day, Mesquite remaining in higher grade areas in accordance with the current mine plan, Peak further increasing its copper production in accordance with the current mine plan, and Cerro San Pedro moving into its first year of residual leaching in accordance with the current mine plan estimated cash flow assumes: Rainy River commercial production is achieved on schedule and Rainy River has its first full year of production in 2017 with a production level consistent with the project s feasibility study, New Afton processing 14,000 tonnes per day, Mesquite remaining in higher grade areas in accordance with the current mine plan, Peak further increasing its copper production in accordance with the current mine plan, and Cerro San Pedro continuing its residual leaching in accordance with the current mine plan. Assumes no non-recurring cash flows in 2014, 2015, 2016 and Based on the average of the estimates by research analysts for the net asset values of the Blackwater and El Morro assets. 19

20 Catalysts 2014 costs declining versus 2013 New Afton production and cash flow continues to increase New Afton C-zone exploration Rainy River regional exploration Blackwater regional exploration Rainy River and Blackwater permitting New Afton mill expansion Cash flow growth 20

21 A history of value creation New Gold (NYSE) Gold Price S&P/TSX Global Gold Index (1) 185% 40% (16%) Performance since March 2009 New Gold/Western Goldfields merger announcement 1. S&P/TSX Global Gold Index includes 37 gold companies in various stages of development/production. Assumes re-investment of dividends. 21

22 New Gold investment thesis Establishing the leading intermediate gold company Peer-leading growth pipeline A history of value creation Among lowest-cost producers with established track record Invested and experienced team Portfolio of assets in top-rated jurisdictions 22

23 Appendices Appendices Page 1. Financial information Consolidated operating performance New Afton Mesquite, Peak Mines, Cerro San Pedro Rainy River Blackwater El Morro Exploration Reserves and Resources notes Commodity price/foreign exchange assumptions 66 23

24 Appendix 1 Strong balance sheet Cash and Equivalents (1) Undrawn Credit Facility (2) Liquidity Position $438 mm $107 mm $545 mm Face value $881 million in long-term debt (3) Face value $300 million, 7.00% notes due in 2020 Face value $500 million, 6.25% notes due in 2022 $81 million in carried El Morro loan, payable out of El Morro project cash flow 1. Cash and equivalents as at March 31, $43 million of total $150 million at March 31, 2014 used for Letters of Credit. 3. See Appendix 1 Summary of debt for detailed breakdown of components of debt. 24

25 Appendix 1 Summary of debt Undrawn Credit Facility Senior Unsecured Notes (April 2012) Senior Unsecured Notes (November 2012) El Morro Funding Loan Face Value $150 million (1) $300 million $500 million $81 million Maturity 1 year with annual extensions permitted April 15, 2020 November 15, 2022 n/a Interest Rate See Key features 7.00% 6.25% 4.58% Payable Revolving credit Semi-annually Semi-annually Upon start of production Conversion price n/a n/a n/a n/a Current trading value n/a ~106 ~103 n/a Key features Normal financial covenants Interest Rate % over LIBOR based on ratios Standby fee of % 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 New Gold to repay Goldcorp out of 80% of its 30% share of cash flow once El Morro starts production 1. $43 million of total $150 million at March 31, 2014 used for Letters of Credit. 25

26 Appendix capital expenditures by category Total Capital ~$340 million Sustaining Capital: ~$145 million Growth Capital: ~$195 million Peak Mines Cerro San Pedro New Afton Blackwater Cerro San Pedro Rainy River New Afton Mesquite Q $28 million Q $29 million 26

27 Appendix capital expenditures by category Set out below is a breakdown of expected 2014 capital expenditures at each site divided into two categories sustaining capital and growth capital (future production growth and mine life extension) New Afton - $115 million 52% 48% $60 million ~2,500 metre development, two new trucks, dam raise and surface ventilation upgrade $35 million mill expansion $20 million C-zone scoping level engineering and capitalized exploration Rainy River - $105 million 100% $60 million property, plant and equipment $35 million detailed engineering, studies, environmental monitoring and permitting $10 million capitalized exploration Mesquite - $40 million 100% $28 million four new trucks and leach pad expansion $12 million major components/building and tank construction Growth capital Sustaining capital 27

28 Appendix capital expenditures by category Peak Mines - $40 million 100% $20 million two haul trucks and site maintenance $20 million capitalized development and capitalized exploration Cerro San Pedro - $28 million 29% 71% $20 million capitalized stripping $8 million leach pad expansion Blackwater - $15 million 100% $10 million permitting $5 million engineering studies Growth capital Sustaining capital New Gold s 30% share of estimated 2014 El Morro capital costs of $6 million fully carried by Goldcorp Inc. 28

29 Appendix full year mine-by-mine operating results New Afton throughput higher in each consecutive quarter during the year 5% increase in gold production at Peak Mines versus previous year Lowest total cash costs (1) in company s history 2013 FULL YEAR Gold production (Koz) Total cash costs (1) ($/oz) All-in sustaining costs (2) ($/oz) New Afton 87 ($1,196) ($133) Mesquite 107 $907 $1,108 Peak Mines 101 $850 $1,331 Cerro San Pedro 103 $676 $ $377 $ FULL YEAR New Afton co-product cash costs (1) Gold ($/oz) $486 Copper ($/lb) $1.19 New Gold co-product cash costs (1) Gold ($/oz) $712 Copper ($/lb) $1.86 Silver ($/oz) $ 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. 29

30 Appendix first quarter mine-by-mine operating results Gold sales (000s ounces) 2014 FIRST QUARTER Cash costs (1) ($/oz) All-in Sustaining costs (2) ($/oz) New Afton 27 ($1,283) ($664) Mesquite 28 $893 $1,069 Peak Mines 20 $757 $1,102 Cerro San Pedro 19 $947 $1, $254 $674 New Afton co-product costs (1) NEW AFTON 2014 FIRST QUARTER Co-product cash costs (1) Co-product all-in sustaining costs (2) Gold ($/oz) $413 $630 Copper ($/lb) $0.93 $ 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. 30

31 Appendix 2 Among lowest cost producers in industry New Gold versus Industry Average Total Cash Costs (1) $766 $767 (2) Industry $643 $478 $557 Incremental Benefit to NGD Shareholder $465 $418 $446 $421 $377 New Gold $320 - $ E 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. New Gold total cash costs based on 2014 guidance. 2. Industry data per GFMS reports calculated net of by-product credits for the year ended December 31,

32 Appendix first quarter financial summary 2014 FIRST QUARTER 2013 FIRST QUARTER Revenues ($ million) $191 $202 Operating margin (1) ($ million) $92 $96 Adjusted net earnings (2) ($ million) $18 $21 Adjusted net earnings per share (2) ($/share) $0.04 $0.04 Net earnings ($ million) ($2) $36 Net earnings per share ($/share) ($0.00) $0.08 Net cash generated from operations ($ million) $81 $59 1. Refer to Endnote on operating margin under the heading Non-GAAP Measures. 2. Refer to Endnote on adjusted net earnings under the heading Non-GAAP Measures. 32

33 Appendix 2 Detailed operating results and assumptions Mesquite Cerro San Pedro Peak Mines New Afton 2013A 2014E 2013A 2014E 2013A 2014E 2013A 2014E Tonnes processed (000 tonnes) 14,297 13,000-13,300 13,463 13,400-13, ,087 4,500-4,700 Tonnes mined (000 tonnes) 48,206 56,000-58,000 31,018 33,000-35,000 1,100 1,300-1,320 4,226 4,600-4,800 Strip ratio Gold grade (g/t) Silver grade (g/t) Copper grade (%) % 0.86% % 0.93% 0.93% % Gold recovery (%) 63.0% ~65% 51.0% ~50% 92.9% 91.0% % 85.1% 85.0% % Silver recovery (%) % ~15% Copper recovery (%) % 91.0% % 85.9% 86.0% % Production Gold production (Koz) Silver production (Koz) , , , Copper production (Mlbs) Reserve grade Gold grade (g/t) Silver grade (g/t) Copper grade (%) % 0.84% 33

34 Appendix total cash cost sensitivities Category Copper Price Silver Price AUD/USD CDN/USD MXN/USD Diesel Base Assumption $3.25 $20.00 $1.14 $1.11 $13.00 $3.25 Sensitivity +/- $0.25 +/- $1.00 +/- $0.05 +/- $0.05 +/- $1.00 +/- $0.25 Total Cash Costs (1) - Impact Total Cash Costs (1) - Sensitivities New Afton +/-$ /-$ Mesquite /-$15 Peak Mines +/-$40 - +/-$ Cerro San Pedro - +/-$ /-$50 - New Gold Consolidated +/-$60 +/-$5 +/-$15 +/-$15 +/-$10 +/-$5 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 34

35 Appendix estimated all-in sustaining costs Total cash costs (1) General and administrative (2) Exploration expense Sustaining capital (3) ~$330/oz ~$90/oz ~$35/oz ~$370/oz ALL-IN SUSTAINING COSTS (4) ~$825/oz 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. General and administrative includes stock-based compensation and asset retirement obligation. 3. Sustaining capital based on New Gold s total 2014 estimated capital expenditures excluding expenditures related to growth-related initiatives. 4. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 35

36 Appendix 3 New Afton 2014 guidance GOLD PRODUCTION (Koz) COPPER PRODUCTION (Mlbs) OVERVIEW Gold and copper production expected to increase due to: TOTAL CASH COSTS (1) ($/oz) ALL-IN SUSTAINING COSTS (2) ($/oz) Increase in average annual throughput rate Increase in gold grades Costs benefit from targeted increase in copper production, depreciating Canadian dollar and decrease in sustaining capital costs ($1,260) ($1,240) Co-Product Gold ($/oz) $440 $460 TOTAL CASH COSTS (1) ($620) ($600) Co-Product Copper ($/lb) $1.10 $1.20 KEY ASSUMPTIONS AND SENSITIVITIES Copper price - $3.25 per pound (2013A - $3.23 per pound) Canadian dollar: U.S. dollar exchange $1.11 $0.25 per pound change in copper equals ~$200 per ounce change in New Afton total cash costs $0.01 change in Canadian dollar equals ~$15 per ounce change in New Afton total cash costs 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. 36

37 Appendix 3 New Afton Mill schematic To Tailings Surface Stockpile New Facilities 37

38 Appendix 3 New Afton Expansion timeline H1 14 H2 14 H1 15 EPCM contract award Geotechnical and detailed engineering Early works Buried services relocation Reagent tank relocation Excavation Foundations Building construction Building services Vertimill delivery Piping/electrical Instrumentation Commissioning 38

39 Appendix 3 Mill expansion capital estimates Below is a summary of the key capital estimates for the expansion project Engineering, Construction and Equipment Building and Site Works Owner s Costs Contingency $26 million $12 million $2 million $5 million ESTIMATED EXPANSION CAPITAL $45 MILLION $35 million of capital to be spent in 2014 with remainder in 2015 Target: 14,000 tonnes per day at higher metal recoveries 39

40 Appendix 3 Value creation through mill expansion 2014 TARGETED AVERAGES RUN RATE TARGETED AVERAGES WITH MILL EXPANSION Throughput +12% 12,500 14,000 Gold recovery +2-3% ~85% ~87-88% Copper recovery +2-3% ~86% ~88-89% IRR of +50% and payback period of less than two years 40

41 Appendix 3 New Afton C-zone resource expansion C-zone originally identified through limited deep holes drilled from surface YEAR-END 2012 C-ZONE (1) Tonnes (000 s) Gold (g/t) Copper (%) Gold (Koz) Copper (Mlbs) Drilling from underground commenced in second half of 2012 During 2013 completed 41 holes totaling 26,800 metres Increased tonnes and grade of Measured and Indicated resource resulting in 10-fold increase in contained gold and copper Incremental increase to Inferred resource Measured Indicated 2, Total M&I 3, Inferred 13, YEAR-END 2013 C-ZONE (2) Tonnes (000 s) Gold (g/t) Copper (%) Gold (Koz) Copper (Mlbs) Measured Indicated 25, Total M&I 25, Inferred 11, information per Annual Information Form dated March 27, For a detailed breakdown of Mineral Resources and Reserves by category, refer to Appendix 2. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 41

42 Appendix 3 New Afton 2014 C-zone program Convert Inferred resource to Measured and Indicated Expand resource laterally to east and west as well as vertically Underground delineation and infill 30,000 to 35,000 metres 42

43 Appendix 3 Mine development Creating options New Gold has a track record of successful mine development Cerro San Pedro (April 2007) ~35,000 tonne per day open pit/heap leach Mesquite (January 2008) ~40,000 tonne per day open pit/heap leach New Afton (June 2012) 11,000 tonne per day block cave/process facility Once mines are in production multiple options to further enhance value Mine life extension (Mesquite (1), Peak Mines (2), New Afton C-zone) Increased production rate (Cerro San Pedro (3), New Afton) 1. Mesquite s mine life has been extended beyond the 9.5 years that were estimated when the mine re-started production in January The Peak Mines originally began production in 1992 with an approximate eight year life and have operated continuously since then and continue to have six or more years of mine life. 3. During 2011 and 2012, Cerro San Pedro operated at a rate above its design capacity to increase its annual gold and silver production. 43

44 Appendix 4 Mesquite 2014 guidance GOLD PRODUCTION (Koz) OVERVIEW Production increase driven by planned mining of higher grades versus Increase in costs attributable to increase in total tonnes mined Peak year for sustaining capital at Mesquite TOTAL CASH COSTS (1) ($/oz) $930 $950 ALL-IN SUSTAINING COSTS (2) ($/oz) $1,310 $1,330 KEY ASSUMPTIONS AND SENSITIVITIES Diesel comprises ~25% of Mesquite s total costs Rack diesel price most correlated to Brent oil price Diesel price - $3.25 per gallon Every $0.25 per gallon change in diesel price has ~$15 per ounce impact on total cash costs 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. 44

45 Appendix 4 Peak Mines 2014 guidance GOLD PRODUCTION (Koz) COPPER PRODUCTION (Mlbs) OVERVIEW Gold production in line with 2013 Increase in copper production a result of increased copper grade and recovery Decrease in total cash costs a result of increased copper by-product revenue, depreciating Australian dollar and increased productivity through lower turnover TOTAL CASH COSTS (1) ($/oz) $630 $650 ALL-IN SUSTAINING COSTS (2) ($/oz) $1,065 $1,085 KEY ASSUMPTIONS AND SENSITIVITIES Copper price - $3.25 per pound (2013A - $3.29 per pound) Australian dollar: U.S. dollar exchange $1.14 $0.25 per pound change in copper equals ~$40 per ounce change in Peak Mines total cash costs $0.01 change in Australian dollar equals ~$10 per ounce change in Peak Mines total cash costs 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. 45

46 Appendix 4 Cerro San Pedro 2014 guidance GOLD PRODUCTION (Koz) SILVER PRODUCTION (Moz) OVERVIEW Decrease in production reflects the increased strip ratio for Phase 5 pushback and mining of lower grade ore Increase in costs primarily driven by lower gold production, lower silver byproduct revenue and increased volume of processing reagents TOTAL CASH COSTS (1) ($/oz) $1,030 $1,050 ALL-IN SUSTAINING COSTS (2) ($/oz) $1,125 $1,145 KEY ASSUMPTIONS AND SENSITIVITIES Silver price - $20.00 per ounce (2013A $23.61 per ounce) Mexican peso: U.S. dollar exchange $13.00 $1.00 per ounce change in silver equals ~$15 per ounce change in Cerro San Pedro total cash costs $1.00 change in Mexican peso equals ~$50 per ounce change in Cerro San Pedro total cash costs 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. 46

47 Appendix 5 Rainy River Project overview 21,000 tonne per day process plan with conventional crushing, grinding, leaching and carbon-in-pulp technology Targeted commissioning in 2016 with first year of full production in year mine life with direct processing of open pit and underground ore for first nine years and processing of a combination of stockpile and underground ore thereafter Development capital of $885 million inclusive of $70 million contingency (at $1.05 CDN/USD) ~$840 million at $1.11 CDN/USD Life-of-mine gold and silver recoveries of 91% and 64% Open pit mining schedule incorporates an elevated cut-off grade strategy during first nine years Pre-tax Economics Gold Price ($/oz) 1,150 1,300 1,300 1,450 1,600 US$/C$ exchange % NPV ($mm) ,009 IRR (%) Payback (years) After-tax Economics Gold Price ($/oz) 1,150 1,300 1,300 1,450 1,600 US$/C$ exchange % NPV ($mm) IRR (%) Payback (years)

48 Appendix 5 Rainy River Indicative timeline Project Schedule Feasibility Study First Nations & Public Consultation Engineering/Procurement Environmental Assessment Permitting Construction Production Ongoing consultation Final construction during commissioning 1. Indicative timeline is dependent on permit approvals and other variables. There is no assurance this timeline will be achieved or that the deposit will ever reach the production stage. 48

49 Appendix 6 Blackwater Project overview Conventional truck and shovel open pit mine with 60,000 tonne per day processing plant Simple, conventional flowsheet using whole ore leach process Low grade stockpiling strategy Development capital of $1,865 million inclusive of $190 million contingency (at $1.05 CDN/USD) ~$1,760 million at $1.11 CDN/USD Life-of-mine operational strip ratio of 1.88 to 1 Life-of-mine gold and silver recoveries of 87% and 49% Conventional waste rock and Tailings Storage Facility Power supply from the hydroelectric power grid, via 140-kilometre transmission line Minimal off-site infrastructure required Good existing access road; water supply within 15 kilometres Low environmental risk and facility designed for closure Pre-tax Economics Gold Price ($/oz) 1,150 1,300 1,300 1,450 1,600 US$/C$ exchange % NPV ($mm) ,209 1,582 2,120 IRR (%) Payback (years)

50 Appendix 7 El Morro (30%) Funding structure Total Capital 100% Average 100% annual ~ $3.9 billion (1) cash flow 30% 70% Funded by $1.2 billion interest at 4.58% ~ $2.7 billion 30% 70% 20% 80% Carried funding repayment New Gold s 30% share of development capital 100% carried Interest fixed at 4.58% 1. Capital estimates based on December 2011 Feasibility Study. 50

51 Appendix 7 La Fortuna deposit 2012 open pit Proven and Probable reserves and Measured and Indicated resources Reserve Grade Gold: 0.46 g/t Copper: 0.49% Underground Inferred resource with block cave potential 500 metres Inferred Grade Gold: 0.97 g/t Copper: 0.78% 51

52 Appendix 7 El Morro relative positioning (1) EL MORRO WITHIN GOLDCORP PORTFOLIO Asset Gold Reserves (Moz) Asset Gold Equivalent (2) (Moz) Penasquito 11.6 Penasquito 30.6 Los Filos 8.0 El Morro 18.0 El Morro 6.7 Los Filos 8.9 Pueblo Viejo 6.5 Pueblo Viejo 7.5 Cerro Negro 5.7 Cerro Negro All reserve information taken from Goldcorp s December 31, 2013 year-end resource statements. 2. Gold equivalent calculated based on the following commodity prices: Gold - $1,300/oz; Silver - $22.00/oz; Copper - $3.00/lb; Lead - $0.90/lb; Zinc - $0.90/lb. 52

53 Appendix exploration program overview New Gold s estimated exploration budget for 2014 is $50 million Capitalized: $30 million (included in sustaining capital total shown previously) Expensed: $20 million (approximately 70% related to current operations) Peak Mines 45,000 metres Rainy River 35,000-40,000 metres Blackwater 10,000-15,000 metres New Afton 30,000-35,000 metres 1. Circle proportions are representative of both capitalized and expensed exploration for each respective asset. 53

54 Appendix 8 Rainy River exploration 2013 ACHIEVEMENTS Intrepid resource drilled off and incorporated into Feasibility Study Condemnation drilling program approximately 40% complete by year end Improved ability to predict prospective ore horizons beneath surface cover 2014 PROGRAM Targeting resource expansion in near-mine environment Complete condemnation drilling program Test potential to expand open pit resource to west Explore prospective trends south of main mine area and extending from Intrepid Zone Intrepid Zone 54

55 Appendix 8 Blackwater exploration 2013 Achievement Expanded exploration targeting coverage to ~50% of claim block 14 prospective target areas identified to date Seven new targets drill tested with favorable geology intercepted on six and gold mineralization intercepted on three Acquired Key property immediately south of Blackwater deposit area 2014 Program Follow up favorable results at Van Tine, Fawn and earlier stage prospects Initiate exploration at Key 55

56 Appendix 8 Peak Mines exploration 2013 ACHIEVEMENTS Near-mine exploration and resource conversion partially offset mine depletion Advanced earlier stage targets along regional Rookery fault trend 2014 PROGRAM Focus on reserves replacement in near-mine environment Convert Measured and Indicated resources to reserves to extend mine life Test newly emerging targets along mine corridor Continue to advance earlier stage regional targets 56

57 Appendix 9 Reserves and resources summary Mineral Reserves and Resources Summary Gold Koz As at December 31, 2013 As at December 31, 2012 (1) Silver Koz Copper Mlbs Gold Koz Silver Koz Copper Mlbs Proven and Probable Reserves 18,538 90,080 2,953 7,752 31,256 3,282 Measured and Indicated Resources (inclusive of Reserves) 27, ,499 4,353 21, ,847 4,061 Inferred Resources 4,161 30,360 1,821 4,383 84,620 1,114 M&I Resources (inclusive of Reserves) New Afton 2,297 7,786 1,988 1,979 6,830 1,818 Mesquite 4, , Peak Mines 810 1, , Cerro San Pedro ,948-1,703 57,980 - Rainy River 6,236 14,635 - n/a n/a n/a Blackwater 9,500 70,130-8,070 56,190 - Capoose , ,497 - El Morro 3,041-2,207 2,891-2,097 Total M&I 27, ,499 4,353 21, ,847 4, information per Annual Information Form dated March 27,

58 Appendix 9 Reserves and resources summary (cont d) New Afton Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Proven Probable 48, , , ,100 3,880 1,080 Total New Afton P&P 48, , , ,100 3,880 1,080 Mesquite Proven 3, , Probable 112, , , , Total Mesquite P&P 115, , , , Peak Mines Proven 1, , Probable 1, , Total Peak Mines P&P 3, , Cerro San Pedro Mineral Reserves statement as at December 31, 2013 Copper Mlbs Tonnes 000's Gold g/t Mineral Reserves statement as at December 31, 2012 Metal grade Contained metal Metal grade Contained metal Proven 12, ,311-21, ,600 - Probable 13, ,239-26, ,800 - Total CSP P&P 26, ,550-47, ,400 - Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs information per Annual Information Form dated March 27,