Deutsche Bank 21 st Annual Leveraged Finance Conference October 2013

Transcription

1 Deutsche Bank 21 st Annual Leveraged Finance Conference October 2013

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 as well as information respecting Rainy River and its assets, may be deemed forward looking. All statements in this presentation, other than statements of historical fact that 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. Without limiting the foregoing, examples of forward-looking information in this presentation include, among others, statements with respect to: New Gold s guidance for production, cash costs, all-in sustaining costs, expenditures and cash flows, modifications to operations, the timing of development decisions, the estimation of mineral reserves and resources and the realization of mineral reserves and resources, the timing and amount of estimated future production (including mining and milling rates), the expected life of New Gold s mines, expected future production costs (including cash costs) and the timing of completion of the acquisition of Rainy River. All such forward-looking statements are based on the reasonable 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. Forward-looking statements are necessarily based on estimates and assumptions. In addition to assumptions specifically identified in this presentation, the key assumptions and estimates are discussed in New Gold s most recent interim management discussion and analysis and technical reports filed at The estimates and assumptions upon which the forward-looking statements in this presentation are based 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; impact of any hedging activities, including margin limits and margin calls; 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 licences 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 Blackwater and the Rainy River Gold Project; 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; 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 PEA for Blackwater and the Rainy River Feasibility Study for the Rainy River Gold Project; 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; New Gold may be unable to successfully complete the acquisition of all of the securities of Rainy River or the completion of such acquisition may be delayed or more costly than anticipated; uncertainties with respect to the successful integration of the business of Rainy River within the business of New Gold; unexpected delays and costs inherent to consulting and accommodating rights of First Nations; and uncertainties with respect to obtaining all necessary surface rights for the Rainy River Project. 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 (and, in respect to information related to the acquisition of Rainy River Resources Ltd. ( Rainy River ), Rainy River and/or the Rainy River Gold Project, in Rainy River 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. All footnotes and endnotes have been shown at the conclusion 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 3

4 Portfolio of assets in top-rated jurisdictions Mining investment country rankings (1) # 2 CANADA Blackwater New Afton Rainy River Mine Life: 15+ years Mine Life: 14 years Mine Life: 15+ years # 6 UNITED STATES Mesquite Mine Life: 10+ years # 5 MEXICO Cerro San Pedro Mine Life: 4+ years # 3 CHILE El Morro Mine Life: 17 years # 1 AUSTRALIA Peak Mines Mine Life: 8 years 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. 4

5 Growing gold resource base in Canada GOLD RESERVES (Moz) 11.8 NEW GOLD PRO FORMA GOLD M&I RESOURCES (Moz) (1)(2) 7.8 = +44% per share 2.9 Chile 1.7 Mexico 0.9 Australia New Gold New Gold & Rainy River (3) GOLD M&I RESOURCES (Moz) (1)(2) 5.7 USA = +20% per share 18.0 Canada New Gold New Gold & Rainy River (3) 18 million ounces in Canada 84% increase in M&I resources per share since 2009 Canada = +62% Measured and Indicated Resources inclusive of Reserves. 5

6 Invested and experienced team EXECUTIVE MANAGEMENT TEAM BOARD OF DIRECTORS Randall Oliphant Executive Chairman David Emerson Former Canadian Cabinet Minister Robert Gallagher Brian Penny Ernie Mast President & CEO Executive VP & CFO VP Operations James Estey Robert Gallagher Vahan Kololian Former Chairman, UBS Securities Canada President & CEO Founder, Terra Nova Partners Martyn Konig Former Executive Chairman, European Goldfields Pierre Lassonde Chairman, Franco-Nevada Randall Oliphant Executive Chairman Raymond Threlkeld Mining Consultant Collectively ~$85 million invested in New Gold 6

7 Among lowest-cost producers with established track record (1) Lower costs driving margin expansion Generating ~$200 per ounce incremental margin 2013 GUIDANCE ALL-IN SUSTAINING COSTS ($/OZ) (3) More than $100 per ounce decrease in cash costs (2) from 2009 to 2013E ~$1,050 ~$1,100 Copper and silver create effective hedge $875 New Gold Mid-Tier Average (4) Senior Average (5) 7

8 2013 consolidated guidance 2012 ACTUAL 2013 GUIDANCE Gold production 412 Koz Gold production (1) Koz 2013 GUIDANCE 2013 Total cash costs (2) ~$350/oz 2013 All-in sustaining costs (2)(3) ~$875/oz By-product price assumptions: Copper ~$3.25 per pound; Silver ~$22.50 per ounce. 8

9 Capitalization and liquidity Cash and Equivalents (1) Undrawn Credit Facility (2) Liquidity Position $563mm $100mm $663mm All corporate debt due in 2020 or beyond Two senior unsecured note offerings during 2012 ($300 million at 7.00%, $500 million at 6.25%) Total common shares outstanding of 502 million Paid $66 million to eliminate legacy gold hedges on May 15, 2013 Pro forma cash balance of ~$440 million post Rainy River transaction 9

10 Bonds outstanding Senior Unsecured Notes (April 2012) Face Value $300 million $500 million Senior Unsecured Notes (November 2012) Maturity April 15, 2020 November 15, 2022 Interest Rate 7.00% 6.25% Payable Semi-annually Semi-annually Current trading value ~103.0 ~97.5 Initial offering of $300 million unsecured notes in April 2012, with an additional offering of $500 million unsecured notes in November 2012 Corporate debt ratings of BB- / B1 (1) Yield to worst 6.2% 6.6% Rating (1) BB-/B2 BB-/B2 Key features Senior unsecured Redeemable after April 15, 2016 at 103.5% down to 100% of face after 2018 Senior unsecured Redeemable after November 15, 2017 at % down to 100% of face after

11 Strong financial position REVENUE AND ADJUSTED EBITDA (1) ($MM) CASH POSITION ($MM) $900 $800 $700 $600 $500 $400 $300 $200 $100 $324 Revenue Adjusted EBITDA $530 $696 $791 $832 $700 $600 $500 $400 $300 $200 $100 Cash $262 $491 $309 $688 $563 $ LTM (6/30/2013) $ LTM (6/30/2013) (2) TOTAL DEBT METRICS (3) Strong credit metrics and cash position 2.5x 2.0x 1.5x 1.0x 0.5x Total Debt/Adjusted EBITDA Total Debt/Total Capitalization 2.0x 18% 14% 11% 0.9x 0.6x 2.1x 19% 2.2x 20% 30% 25% 20% 15% 10% 5% Continued growth in revenue LTM EBITDA/Interest ratio of 8.0x Net Debt (2) /LTM EBITDA (1) ratio of 0.7x 0.0x LTM (6/30/2013) (3) 0% 11

12 2012 actuals versus 2013 guidance Gold Production (Koz) Silver Production (Moz) Copper Production (Mlbs) Total Cash Costs (1)(2) ($/oz) 2012A 2013E 2012A 2013E 2012A 2013E 2012A 2013E Mesquite $690 $830-$850 Cerro San Pedro $232 $375-$395 Peak Mines $764 $670-$690 New Afton ($1,043) ($1,410)- ($1,390) (3) $421 ~$350 By-product price assumptions: Copper ~$3.25 per pound; Silver ~$22.50 per ounce. 12

13 Mesquite Measured and Indicated Gold Resource (1) 5.7 Moz Location United States Mine type Open Pit Reserves (1) Gold (Moz) 2.3 Resources (1) Gold (Moz) E production/yr (Au Koz) E cash cost/oz by-product (2) $830-$ E capital expenditures ($mm) $20 Located in Imperial County, California 70km northwest of Yuma Open pit, run-of-mine heap leach operation Mine acquired in 2009 through successful business combination with Western Goldfields Mesquite recommenced production in January performance 142Koz gold production at total cash costs (2) of $690 per ounce 13

14 Cerro San Pedro Measured and Indicated Gold Resource (1) 1.7 Moz Measured and Indicated Silver Resource (1) 58.0 Moz Location Mexico Mine type Open Pit Reserves (1) Gold/Silver (Moz) 0.7 / 26.4 Resources (1) Gold/Silver (Moz) 1.7 / E production/yr (Au Koz/Ag Moz) / E cash cost/oz by-product (2) $ E capital expenditures ($mm) $40 Located in the state of San Luis Potosi in central Mexico Gold-silver, open pit, run-of-mine heap leach operation 2012 performance 138Koz gold production, 1.9 million ounces of silver production at total by-product cash costs (2) of $232 per ounce 14

15 Peak Mines Measured and Indicated Gold Resource (1) 880 Koz Measured and Indicated Copper Resource (1) 146 Mlb Location Australia Mine type Underground Reserves (1) Gold/Copper (Moz/Mlb) 0.6 / 101 Resources (1) Gold/Copper (Moz/Mlb) 0.9 / E production/yr (Au Koz/Cu Mlb) / E cash cost/oz by-product (2) $ E capital expenditures ($mm) $60 Located in Cobar, New South Wales, Australia Gold-copper underground mine Track record of continually replacing annual resources mined 2012 performance 96Koz gold production, 14.4 million pounds of copper production at total by-product cash costs (2) of $764 per ounce 15

16 New Afton Measured and Indicated Gold Resource (1) 2.0 Moz Measured and Indicated Copper Resource (1) 1.8 Blb Location Canada Mine type Underground Reserves (1) Gold/Copper (Moz/Mlb) 1.1 / 1,080 Resources (1) Gold/Copper (Moz/Mlb) 2.0 / 1, E production/yr (Au Koz/Cu Mlb) / E cash cost/oz by-product (2) ($1,390) ($1,410) Located 10 kilometres from Kamloops, British Columbia Dedicated labour force Commercial and full production achieved ahead of schedule 2013E capital expenditures ($mm) $110 16

17 New Afton hitting its stride Successful mill start-up GOLD COPPER July 31, 2012 achieved commercial production ahead of schedule September 21, 2012 achieved full production (11,000 tonne per day design capacity) over one month ahead of schedule Mining and milling rates averaged more than 11,000 tonnes per day in Q2 a 19% increase over Q1 Targeting throughput of 12,000 tonnes per day by year-end 2013 GRADE (g/t) GRADE (%) +21% +16% % % Q Q Q Q RECOVERY (%) RECOVERY (%) +4% 87% 83% 81% % Q Q Q Q PRODUCTION (Koz) PRODUCTION (Mlbs) +46% +7% +58% 19 Q Q Q Q

18 Three world-class projects Rainy River (97%) Blackwater El Morro (30%) Significant Gold Resource Base (1)(2) 6.2 Moz 8.6 Moz 2.9 Moz Exploration Potential Intrepid Zone/Multiple Regional Targets Capoose/Multiple Regional Targets El Morro Zone/ Block Cave Potential Jurisdiction Ontario, Canada British Columbia, Canada Chile Robust Production/ Low Cash Costs (3) ~225 Koz at below average cash costs ~500 Koz at below average cash costs ~90 Koz Au/85 Mlbs Cu at ~($700) cash costs (4) RAINY RIVER BLACKWATER EL MORRO 18

19 Blackwater A robust project Measured and Indicated Gold Resources (1) Direct Processing Material 8.6 Moz Additional Measured and Indicated gold resources stockpile material of 0.9 million ounces Central British Columbia near infrastructure Year-round accessibility for drilling/ development Total 2012 drilling over 270,000 metres project wide Ability to fund continued exploration/ development internally Tax synergies with New Afton PEA completed September 2012 Targeting annual gold production of ~500,000 ounces Targeting completion of Feasibility Study by late 2013 Targeting production in 2017 (2) Consolidated significant land position 1,000 km 2 19

20 Rainy River Additional 2.3 million ounces of Inferred gold resources Site Topography Measured and Indicated Gold Resources (1) 6.2 Moz EXPLORATION POTENTIAL Relatively underexplored region of Northwestern Ontario Current resource situated on a trend measuring 6 kilometres along strike Near-term exploration upside at newly discovered Intrepid Zone Located approximately 2 kilometres east of current pit and open at depth Zone hosts multiple high grade shoots Potential for underground development 20

21 Project development considerations RAINY RIVER SECOND HALF 2013 BLACKWATER SECOND HALF 2013 PROJECT SPENDING (1) PROJECT SPENDING (2) Exploration (3) $5mm Exploration (3) $20mm Engineering/Studies/ Environment/Other $20mm Engineering/Studies/ Environment/Other $30mm Simultaneously advancing Rainy River and Blackwater through remaining technical and economic studies and permitting Regional exploration continues at both projects Project development and sequencing decision expected in second half of

22 El Morro (30%) 2.9 Moz Gold Reserve (1) 2.1 Blbs Copper Reserve (1) Location Chile Mine type Open Pit Reserves (1) Gold/Copper (Moz/Mlbs) 2.9 / 2,097 Resources (1) Gold/Copper (Moz/Mlbs) 2.9 / 2,097 Estimate mine life 17 years LOM production/yr (Au Koz/Cu Mlbs) 90 / 85 LOM cash costs/oz by-product (2) ($700) Goldcorp 70% partner and project operator New Gold s 30% share of capital fully funded by Goldcorp Current resource entirely within La Fortuna deposit Neighbouring El Morro deposit underexplored 2012 year end update added 0.4 million ounces of gold and 229 million pounds of copper to reserves (1) Addressing recent temporary suspension of environmental permit Chile evaluating various alternatives for a power source to northern Chilean development projects 22

23 El Morro (30%) Funding structure Total capital 100% ~ $3.9 billion (1) 30% 70% 100% average annual cash flow 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% 23

24 A history of value creation Increasing Net Asset Value drives share price growth Net Asset Value (1) March 2009 October 2013 Mesquite, Cerro San Pedro, Peak Mines ~$875 $1,119 PRICE PERFORMANCE SINCE BUSINESS COMBINATION WITH WESTERN GOLDFIELDS IN MARCH % New Afton ~$120 $1,519 El Morro (2) ~$40 $416 45% Blackwater (3) $ $796 Rainy River (4) $ $491 (39%) S&P/TSX Global Gold Index (27%) FTSE Gold Mines Index (14%) HUI Index Gold Price New Gold 24

25 Near-term catalysts 2013 guidance increased resources, production growth and lower costs Blackwater resource update New Afton C-Zone exploration update Completion of Rainy River acquisition Blackwater/Rainy River/New Afton exploration updates Completion of Blackwater Feasibility Study New Afton mill to reach 12,000 tonnes per day/results of throughput increase evaluation Resolution of El Morro temporary permit suspension 25

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

27 Notes Page 4 1. Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report 2013 Ranking of Countries for Mining Investment: Where Not to Invest. Page 5 1. Refer to Endnotes and note under the heading Cautionary note to U.S. readers concerning estimates of Measured, Indicated and Inferred Resources. 2. Measured and Indicated Resources inclusive of Reserves. 3. Pro forma figures include Rainy River and assume 100% ownership of Rainy River. 4. For a detailed breakdown of Reserves and Resources, refer to: New Gold s Annual Information Form for the Financial Year Ended December 31, 2012 dated March 27, 2013; news release dated April 4, 2013 New Gold Announces Increased Gold Resources at Blackwater Project ; news release dated May 1, 2013 New Gold Announces 2013 First Quarter Results Increases Gold and Copper Resources at New Afton C-Zone by Over 300 Percent ; and news release dated July 31, 2013 New Gold Second Quarter Delivers Increased Production at Lower Costs - Second Half of 2013 Remains on Track to Provide Strong Finish to the Year. Page 7 1. Based on comparison with costs published by issuers listed in notes 4 and 5. The manner in which costs are determined may vary from one issuer to another. 2. Refer to Endnotes and note on total cash costs under the heading Non-GAAP Measures. 3. Refer to Endnotes and note on all-in sustaining costs under the heading Non-GAAP Measures. 4. Mid-tier average includes: Alamos, Eldorado, Agnico Eagle, Aurico and IAMGOLD. 5. Senior average includes: Barrick, Goldcorp, Kinross and Newmont. Page 8 1. Gold sales expected to be in same general range as production. 2. Refer to Endnotes on total cash costs under the heading Non-GAAP Measures. Guidance for total cash costs and all-in sustaining costs incorporates realized prices and foreign exchange rates to June 30, 2013 and assumes commodity prices and exchange rates consistent with those at July 30, 2013 for the balance of Refer to Endnotes on all-in sustaining costs under the heading Non-GAAP Measures. Page 9 1. Cash and equivalents as at June 30, 2013 and represent pro forma cash balance post-rainy River transaction. 2. $50 million of total $150 million currently used for Letters of Credit. Page Ratings are not a recommendation to buy, sell, or hold securities and may be subject to revision or withdrawal at any time by the rating organization. Page Refer to Endnotes on EBITDA under the heading Non-GAAP Measures. 2. Cash and equivalents and net debt as at June 30, 2013 and represent pro forma balances post-rainy River transaction. 3. Total debt excludes El Morro. 27

28 Notes continued Page Refer to Endnotes on total cash costs under the heading Non-GAAP Measures. 2. By-product price assumptions: Silver - ~$22.50/oz; Copper - ~$3.25/lb. 3. New Afton co-product cost estimates: Gold - $570-$590/oz; Copper - $1.20-$1.30/lb. Page For a detailed breakdown of Reserves and Resources, refer to: New Gold s Annual Information Form for the Financial Year Ended December 31, 2012 dated March 27, Refer to Endnotes on total cash cost under the heading Non-GAAP Measures. Page For a detailed breakdown of Reserves and Resources, refer to: New Gold s Annual Information Form for the Financial Year Ended December 31, 2012 dated March 27, Refer to Cautionary Statements and note on total cash cost under the heading Non-GAAP Measures. Page For a detailed breakdown of Reserves and Resources, refer to: New Gold s Annual Information Form for the Financial Year Ended December 31, 2012 dated March 27, Refer to Cautionary Statements and note on total cash cost under the heading Non-GAAP Measures. Page For a detailed breakdown of Reserves and Resources, refer to: New Gold s Annual Information Form for the Financial Year Ended December 31, 2012 dated March 27, 2013; and news release dated May 1, 2013 New Gold Announces 2013 First Quarter Results Increases Gold and Copper Resources at New Afton C-Zone by Over 300 Percent. 2. Refer to Cautionary Statements and note on total cash cost under the heading Non-GAAP Measures. Page Refer to New Gold website for detailed disclosure on Reserve and Resource calculations. 2. Refer to Endnotes and note under the heading Cautionary note to U.S. readers concerning estimates of Measured, Indicated and Inferred Resources. Measured and Indicated Resources are inclusive of Reserves. At Blackwater, the 8.6 million ounces of Resources referred to above excludes 0.9 million ounces of material to be stockpiled which has been classified as Measured and Indicated Resource. Refer to note 4 on page 5 for Reserve and Resource source information. 3. Refer to Endnotes on total cash costs under the heading Non-GAAP Measures. Cash costs have been compared to industry data per GFMS reports which calculated an average, net of by-product credits, cash cost of $738 per ounce for the YE El Morro production and cash costs based on updated December 2011 Feasibility Study. Page For a detailed breakdown of Reserves and Resources, refer to: New Gold s Annual Information Form for the Financial Year Ended December 31, 2012 dated March 27, 2013; and news release dated April 4, 2013 New Gold Announces Increased Gold Resources at Blackwater Project. 2. Blackwater start date based on indicative timeline which is dependent on permit approvals. Page For a detailed breakdown of Reserves and Resources, refer to: New Gold s news release dated July 31, 2013 New Gold Second Quarter Delivers Increased Production at Lower Costs -Second Half of 2013 Remains on Track to Provide Strong Finish to the Year. 2. Measured and Indicated Resources inclusive of Reserves. 28

29 Notes continued Page For period from August through December For period from July through December Includes both capitalized and expensed exploration. Page New Gold s attributable 30% share. For a detailed breakdown of Reserves and Resources, refer to: New Gold s Annual Information Form for the Financial Year Ended December 31, 2012 dated March 27, Refer to Endnotes on total cash cost under the heading Non-GAAP Measures. Life of mine co-product costs estimated at $550/oz gold and $1.45/lb copper at commodity price assumptions of $1,200/oz gold and $2.75/lb copper. Page Capital estimates based on December 2011 Feasibility Study Page 24 Source: Broker Reports, Company Estimates and Announcements, Bloomberg; all amounts in USD. 1. Street consensus NAV. 2. Current street consensus NAV for El Morro; includes $50 million cash payment received from Goldcorp as part of transaction consideration. 3. New Gold acquired Richfield and Silver Quest on June 1, 2011 and December 23, 2011, respectively. 4. New Gold acquired 97.5% of Rainy River on August 9, S&P/TSX Global Gold Index includes 54 gold companies in various stages of development/production. 6. FTSE Gold Mines Index includes 26 gold producing companies. 7. HUI Index includes 15 of the major global gold producers. 29

30 Endnotes CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES Information concerning the properties and operations of New Gold has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be comparable to similar information for United States companies. The terms Mineral Resource, Measured Mineral Resource, Indicated Mineral Resource and Inferred Mineral Resource used in this presentation are Canadian mining terms as defined in accordance with National Instrument ( NI ) under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ( CIM ) Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on November 27, While the terms Mineral Resource, Measured Mineral Resource, Indicated Mineral Resource and Inferred Mineral Resource are recognized and required by Canadian securities regulations, they are not defined terms under standards of the United States Securities and Exchange Commission. Under United States standards, mineralization may not be classified as a Reserve unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the Reserve calculation is made. As such, certain information contained in this presentation concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission. An Inferred Mineral Resource has a great amount of uncertainty as to its existence and as to its economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies. Readers are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into Mineral Reserves. Readers are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. In addition, the definitions of Proven Mineral Reserves and Probable Mineral Reserves under CIM standards differ in certain respects from the standards of the United States Securities and Exchange Commission. TECHNICAL INFORMATION The scientific and technical information contained in this presentation relating to the Rainy River Gold Project has been reviewed and approved by Garett Macdonald and Kerry Sparkes, both Qualified Persons under NI and officers of Rainy River. The other scientific and technical information contained in this presentation has been reviewed and approved by Mark Petersen, a Qualified Person under NI and an officer of New Gold. Mineral Reserves and Mineral Resources The estimates of Mineral Reserves and Mineral Resources discussed in this presentation may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing and other relevant issues. In addition to our February 5, 2013, April 4, 2013 and July 31, 2013 news releases, further details regarding Mineral Reserve and Resource estimates, including classifications, key assumptions and parameters used in such estimates and other related information for each of New Gold's mineral properties are provided in the respective NI Technical Reports and in New Gold s Annual Information Form dated March 27, 2013, all of which are available at BLACKWATER PEA ADDITIONAL CAUTIONARY NOTE This note regarding the preliminary economic assessment ( PEA ) is in addition to cautionary language already included in this presentation as required under NI The Blackwater PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This presentation includes information on New Gold s PEA with respect to the Blackwater Project, which was outlined in the PEA Technical Report filed on October 10, As disclosed in the presentation, New Gold has, since the date of the PEA, completed several non-material updates of the mineral resource estimate for the Blackwater Project. Although the PEA represents useful, accurate and reliable information based on the information available at the time of its publication, and provides an important indicator as to the economic potential of the Blackwater Project, the PEA is based on mineral resources estimates with an effective date of July 27, 2012, which do not reflect drilling conducted since their effective date, and the PEA does not reflect the latest mineral resource estimate discussed in subsequent presentation. Certain assumptions used in the PEA, some of which relate to the July 27, 2012 mineral resource estimate, may have changed from those used for the new resource estimate, causing a variation of parameters. Moreover, the updated mineral resource estimate may impact how New Gold intends to develop the deposit, including pit outlines, production rates and mine life. 30

31 Endnotes continued NON-GAAP MEASURES TOTAL CASH COSTS Total cash costs per ounce figures are non-gaap measures which are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is widely accepted as the standard of reporting cash costs of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. New Gold reports total cash costs on a sales basis. Total cash costs include mine site operating costs such as mining, processing, administration, royalties and production taxes, but are exclusive of amortization, reclamation, capital and exploration costs. Total cash costs are reduced by any by-product revenue and are then divided by ounces sold to arrive at the total by-product cash cost of sales. The measure, along with sales, is considered to be a key indicator of a company s ability to generate operating earnings and cash flow from its mining operations. This data is furnished to provide additional information and is a non-ifrs measure. Total cash costs presented do not have a standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative of operating costs presented under IFRS. A reconciliation to the nearest IFRS measure is provided in the MD&A accompanying New Gold s most recent interim financial statements. ALL-IN SUSTAINING COSTS Consistent with the recently announced guidance from the World Gold Council, an association of various gold mining companies from around the world of which New Gold is a member, New Gold defines all-in sustaining costs as the sum of mine site operating costs net of copper and silver by-product sales, general & administrative costs, accretion and amortization, capitalized and expensed exploration, mine development expenditures and sustaining capital expenditures. New Gold believes this non-gaap measure will provide further transparency into costs associated with producing gold. All-in sustaining costs constitute a non-gaap measure and are intended to provide additional information only and do not have any standardized meaning under IFRS. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently. A reconciliation to the nearest IFRS measure will be provided in the MD&A accompanying New Gold s most recent interim financial statements. EBITDA EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) is a common financial performance measure but with no standard meaning under IFRS. This measure is intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. 31

32 Contact information Martin Wallace Treasurer