Canaccord Genuity Global Resource Conference 2013 October 2013

Transcription

1 Canaccord Genuity Global Resource Conference 2013 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 Inc ( New Gold) 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 and expected future production costs (including cash costs). 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; 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 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 endnotes can be found at the conclusion of the presentation and should be reviewed. 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 Portfolio of assets in top-rated jurisdictions Growing gold resource base in Canada GOLD RESERVES (Moz) 11.8 NEW GOLD PRO FORMA GOLD M&I RESOURCES (Moz) (1) 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 of M&I resources in Canada 84% increase in M&I resources per share since 2009 Canada = +62% (1) Measured and Indicated Resources inclusive of Reserves. 5

6 Invested and experienced team Significantly invested 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 ~$70 million invested in New Gold 6

7 Among lowest-cost producers with established track record Lower costs driving margin expansion (1) 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 Among lowest-cost producers with established track record 2013 COST GUIDANCE TOTAL CASH COSTS (1) ALL-IN SUSTAINING COSTS (1)(2) ~$350/oz ~$875/oz By-product price assumptions: Copper ~$3.25 per pound; Silver ~$22.50 per ounce. 8

9 Among lowest-cost producers with established track record New Afton hitting its stride GOLD COPPER GRADE (g/t) GRADE (%) Mining and milling rates averaged more than 11,000 tonnes per day in Q2 a 19% increase over Q % % +21% 0.96% Targeting throughput of 12,000 tonnes per day by year-end 2013 Q Q Q Q RECOVERY (%) RECOVERY (%) +4% 87% +7% 88% 83% 81% Q Q Q Q PRODUCTION (Koz) +46% PRODUCTION (Mlbs) +58% 19 Q Q Q Q

10 Among lowest-cost producers with established track record Evaluating further throughput expansion potential Design capacity 11,000 tonnes per day 2013 year-end target 12,000 tonnes per day Additional expansion potential 50 drawbells needed to support 11,000 tonnes per day 68 completed as of mid-2013 Crusher capacity 20,000 tonnes per day (commissioned January 2013) Conveyor capacity 14,500 tonnes per day Record daily mill throughput 15,504 tonnes 10

11 Among lowest-cost producers with established track record New Afton C-Zone exploration program May 2013 update increased resources by more than 300% C-Zone remains open down plunge Far East Extension / Hanging Wall Lens Targets B-Zone Reserve 4,900m EA-35 EA-9 C-Zone EA-33 EA-37* EA-32 EA-36 EA-34 EA-31 Drilled Planned C-ZONE RESOURCE SUMMARY HIGHLIGHTS POST C-ZONE RESOURCE UPDATE Measured and Indicated Inferred Drill Hole From (m) To (m) Interval (m) Gold (g/t) Copper (%) EA GOLD 0.3 Moz at 0.77 g/t 0.4 Moz at 0.62 g/t COPPER 211 Mlbs at Mlbs at 0.68% EA EA EA

12 Among lowest-cost producers with established track record New Afton successful start with continued upside potential Achieved commercial and full production ahead of schedule in mid exploration work led to two-year mine life extension from 12 to 14 years +300% increase in C-Zone resources in May 2013 Targeting throughput of 12,000 tonnes per day by end of 2013 Evaluating potential for further throughput increases in 2014 and beyond 12

13 Peer-leading growth pipeline Industry leading organic growth profile Growth projects expected to increase gold production by ~1.75 times over current operations Blackwater and Rainy River acquisitions increased shares outstanding by 25% for potential +150% increase in production Four current operations Three organic projects +800 Koz El Morro Blackwater (1) Projecting below current industry average cash costs at each project Rainy River 2013 Gold Production Annual Production Potential of Growth Assets 13

14 Peer-leading growth pipeline Three world-class projects Rainy River Blackwater El Morro (30%) Significant Gold M&I 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 14

15 Peer-leading growth pipeline Control of two underexplored districts +169 km 2 land package RAINY RIVER Multiple targets including recently discovered Intrepid Zone Existing resource Exploration targets Two drills active Off Lake Western Zone Son of Intrepid Rainy River Intrepid Extension Intrepid 15

16 Peer-leading growth pipeline Control of two underexplored districts +1,000 km 2 land package Initial resource at Capoose ~25 km from main Blackwater resource Multiple regional targets Existing resource Exploration targets Capoose BLACKWATER Five drills active Van Tine Fawnie Blackwater Auro 10km 16

17 Peer-leading growth pipeline Limited capital required to advance projects to construction-ready status 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

18 A history of value creation Increasing Net Asset Value drives share price growth March 2009 Net Asset Value (1) October 2013 PRICE PERFORMANCE SINCE BUSINESS COMBINATION WITH WESTERN GOLDFIELDS IN MARCH 2009 (5) Mesquite, Cerro San Pedro, Peak Mines ~$875 $1, % New Afton ~$120 $1,519 El Morro (2) ~$40 $416 40% Blackwater (3) $ $796 Rainy River (4) $ $491 (44%) S&P/TSX Global Gold Index (34%) FTSE Gold Mines Index (22%) HUI Index Gold Price New Gold 18

19 A history of value creation 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 19

20 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

21 Appendix Appendices Page 1. Financial information Consolidated operating performance Rainy River Blackwater El Morro Reserves and resource notes Commodity price/foreign exchange assumptions 49 21

22 Appendix 1 Capitalization and liquidity Cash and Equivalents (1) Undrawn Credit Facility (2) Liquidity Position $563mm $100mm $663mm All corporate debt due in 2020 or beyond (3) 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, Cash and equivalents as at June 30, $50 million of total $150 million currently used for Letters of Credit. 3. See Appendix 1 Summary of debt for detailed breakdown of components of debt. 22

23 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 $72 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 ~103 ~98 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. $50 million currently allocated for Letters of Credit. 23

24 Appendix and 2013 capital expenditures by site New Gold s 2013 estimated capital expenditures are $315 million Capital includes costs related to ongoing annual sustaining capital as well as investments for future production Capital estimate includes recently acquired Rainy River project Capital estimates by site are shown below: TOTAL 2012 ACTUAL CAPITAL EXPENDITURES: $499 MILLION TOTAL 2013 CAPITAL EXPENDITURE ESTIMATE: $315 MILLION Cerro San Pedro $11mm Mesquite $11mm Peak Mines $47mm Rainy River $25mm Mesquite $20mm Cerro San Pedro $40mm New Afton $110mm Blackwater $128mm New Afton $302mm Peak Mines $60mm Blackwater $60mm 24

25 Appendix capital expenditures by category The below breaks down capital expenditures at each site into two categories annual sustaining capital and direct investments for future production growth and mine life extension New Afton - $110 million 18% 82% Blackwater - $60 million 100% $90 million continued cave and drawbell development as well as related technical services Total of ~90 drawbells expected to be completed by end of 2013 Annual drawbell development to decrease over mine life with commensurate decrease in capital $15 million capitalized exploration $45 million Feasibility and related engineering studies, permitting, camp facilities/operation Peak Mines - $60 million 50% 50% $30 million underground development and capitalized exploration $30 million equipment, mine and mill projects/maintenance Direct investment for future production Annual sustaining capital 25

26 Appendix capital expenditures by category Cerro San Pedro - $40 million 25% 75% $30 million final leach pad expansion and capitalized stripping for phase 5 development $10 million site maintenance/processing improvements Rainy River - $25 million 100% $20 million engineering, studies, environmental and other $5 million ongoing exploration Mesquite - $20 million 40% 60% $12 million two additional trucks and construction of new welding and tire shops $8 million equipment components/site maintenance Direct investment for future production Annual sustaining capital New Gold s 30% share of estimated El Morro capital cost of $23 million fully carried by Goldcorp Inc. 26

27 Appendix exploration program overview New Gold s estimated exploration budget for 2013 is $50 million Capitalized: $20 million Expensed: $30 million Additional $5 million of exploration at Rainy River post acquisition Capitalized: $5 million Expensed: $5 million Peak Mines 33,000 metres Blackwater 40,000 metres Capitalized: $15 million Expensed: $15 million New Afton 40,000 metres Expensed: $10 million 27

28 Appendix estimated all-in sustaining costs Total cash costs (1) General and administrative Exploration expense Sustaining capital (2) ~$350/oz ~$60/oz ~$70/oz ~$395/oz ALL-IN SUSTAINING COSTS (3) ~$875/oz 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Sustaining capital based on New Gold s total 2013 estimated capital expenditures excluding expenditures related to growth-related initiatives. 3. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 28

29 Appendix 2 Lower costs driving margin expansion New Gold offers shareholders potential for over $375 per ounce (1) of incremental margin $800 $738 (3) $643 Total Cash Costs (US$/oz) (2) $600 $400 $478 $465 $557 $418 Incremental Margin to New Gold Shareholders $446 $421 $350 $ E 1. Calculated based on YE 2012 GFMS industry average less mid-point of New Gold 2013 cost guidance. 2. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 3. Industry data per GFMS reports calculated net of by-product credits as at YE

30 Appendix 3 Rainy River Location Mining friendly Northwestern Ontario 65 km northwest of Fort Frances 80 km south of Kenora Within 25 km of rail and power Local skilled labour force Kenora Rainy River Gold Project Thunder Bay Fort Frances HWY 600 Site Topography 30

31 Appendix 4 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 Consolidated significant land position 1,000 km 2 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. 2. Blackwater start date based on indicative timeline which is dependent on permit approvals. 31

32 Appendix 4 Blackwater Indicative timeline Development activity H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 First Nations & Public Consultation Drilling Preliminary Economic Assessment Base Line Environmental Studies Project Description/Terms of Reference Environmental Assessment Reports Provincial Approval Federal Approval Feasibility Study Engineering Procurement Construction Production Target Reflects critical path in timeline 1. Indicative timeline is dependent on permit approvals. There is no assurance this timeline will be achieved nor that the deposit will ever reach the production stage. 32

33 Appendix 4 Blackwater Project overview Start of production in 2017 Conventional truck and shovel open pit mine with 60,000 tonnes per day processing plant Life-of-mine strip ratio of ~2.4 to 1 Low grade stockpiling strategy Simple, conventional flowsheet using whole ore leach process Life-of-mine gold and silver recoveries of 87% and 53%, respectively Conventional waste rock and Tailings Storage Facility Power supply from the hydroelectric power grid, via 133 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 33

34 Appendix 4 Blackwater PEA costs Capital Project Development Capital Costs Description Cost ($ million) Project is located 112 kilometres southwest from Vanderhoof and has access to low cost hydroelectric power Direct Costs Mining & Pre-production Development $208 On Site Infrastructure $181 Process $539 Tailing and Water Reclaim $74 Infrastructure (Power, Water, Road) $85 Total Direct Costs $1,087 Owner's and Indirect Costs Owner's Costs $54 EPCM $112 Other Indirects $215 Total Owner's and Indirect Costs $381 Subtotal $1,468 Contingency (24%) $346 Total Project $1,814 Development capital estimate of $1.8 billion is inclusive of a 24% or $346 million contingency Development capital estimated based on the current cost environment A parity foreign exchange rate was assumed and the capital estimate was held constant in the economic analysis Sustaining capital of $537 million, reclamation and closure costs of $95 million and $72 million in equipment salvage value Total development and sustaining capital estimated at $294 per recoverable gold ounce 34

35 Appendix 4 Blackwater PEA costs Operating Project Operating Costs Area Unit Cost (C$/t milled) $ per gold ounce produced Mining $6.21 $259 Processing $7.59 $317 General and Administrative $0.95 $40 Royalty (0.6%) $0.18 $8 Refining $0.23 $9 Silver by-product sales at $22.50 per ounce silver ($2.16) ($90) Total cash costs (1) net of by-product sales $13.01 $543 Mining Costs 4% 2% Hauling 4% Auxiliary 4% Blasting 6% G&A 9% Drilling 59% 11% Loading Processing Costs 17% 8% 1% 6% 44% General Maint. General Mine Reagents Grinding Media/Liners Electricity Labour 24% Maint. Materials Water Supply Blackwater s location near infrastructure, low stripping ratio, access to low cost power and silver by-product revenue expected to result in the Project having well below industry average cash costs 1. Refer to Endnotes on total cash costs under the heading Non-GAAP Measures and Technical Information. 35

36 Appendix 5 El Morro (30%) 2.9 Moz Gold Reserve (1) 2.1 Blbs Copper Reserve (1) Goldcorp 70% partner and project operator 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) 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 1. New Gold s attributable 30% share. Refer to Appendix 6 for detailed disclosure on reserve and resource calculations. 2. Refer to Endnote 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. 36

37 Appendix 5 El Morro overview of updated Feasibility Study El Morro Feasibility Study was updated in December 2011 Key parameters for New Gold include: 30% share of estimated development capital, or $1.2 billion, carried by Goldcorp Receive cash flow from start of production Interest rate fixed at 4.58% Base 17-year mine life 30% share of annual production: ~90,000 ounces of gold and ~85 million pounds of copper Estimated total cash costs (1), net of by-products ($700) per ounce Co-product gold ~$550 per ounce Co-product copper ~$1.45 per pound 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 37

38 Appendix 5 La Fortuna deposit 2012 open pit Proven and Probable reserves and Measured and Indicated resources Underground Inferred resource with block cave potential 500 metres 38

39 Appendix 5 El Morro (30%) Funding structure (1) Total Capital 100% ~ $3.9 billion 100% Average annual 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. 39

40 Appendix 5 Selected porphyry gold/copper deposits/mines (1) Au Grade (g/t) 0.80 New Afton El Morro % 0.40% 0.60% 0.80% 1.00% 1.20% Cu Grade (%) Producing Development Chapada Alumbrera New Prosperity Mt. Milligan El Morro Cadia-Ridgeway (1) New Afton Cobre Panama Cerro Casale Agua Rica Company disclosure. 1. Includes Cadia East Underground and Ridgeway Underground reserves as indicated in Newcrest s February 8, 2013 press release; does not include Other Cadia province reserves. 40

41 Appendix 5 El Morro relative positioning (1) EL MORRO WITHIN GOLDCORP PORTFOLIO Asset Gold Reserves (Moz) Asset Gold Equivalent (2) (Moz) Penasquito 15.7 Penasquito 43.9 Pueblo Viejo 10.0 El Morro 17.4 Los Filos 7.4 Pueblo Viejo 11.7 El Morro 6.7 Los Filos 8.4 Cerro Negro 5.7 Cerro Negro Based on Goldcorp s December 31, 2012 year-end resource statements. 2. Gold equivalent calculated based on the following commodity prices: Gold - $1,600/oz; Silver - $30.00/oz; Copper - $3.50/lb; Lead - $0.90/lb; Zinc - $0.90/lb. 41

42 Appendix 6 Reserves and resources summary Mineral Reserves and Resources Summary Current (1) Year End 2011 (2) Gold Koz Silver Koz Copper Mlbs Gold Koz Silver Koz Copper Mlbs Proven and Probable Reserves 11,783 41,571 3,282 7,863 34,347 2,888 Measured and Indicated Resources (inclusive of Reserves) 29, ,585 4,223 18, ,268 3,946 Inferred Resources 6,822 88,359 1,187 6,323 76,856 2,202 M&I Resources (inclusive of Reserves) Mesquite 5, , Cerro San Pedro 1,703 57,980-1,812 55,860 - Peak Mines 880 1, , New Afton 2,224 7,292 1,980 1,742 5,470 1,586 Blackwater 9,497 70,128-5,423 25,774 - Capoose 196 9, ,594 - Rainy River (3) 6,167 13,338 - n/a n/a n/a El Morro 2,891-2,097 2,954-2,193 Total M&I 29, ,585 4,223 18, ,268 3, Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C-Zone update on May 1, Year end 2011 Mineral Resources presented at Investor Day on February 2, Rainy River shown on a 100% basis. 42

43 Appendix 6 Reserves and resources summary (cont d) Mineral Reserves statement as at December 31, 2012 (1) Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Mesquite Proven 13, Probable 114, , Mesquite P&P 127, , Cerro San Pedro Proven 21, ,600 - Probable 26, ,800 - CSP P&P 47, ,400 - Peak Mines Proven 2, Probable 2, Peak P&P 4, New Afton Proven Probable 52, ,100 3,880 1,080 New Afton P&P 52, ,100 3,880 1,080 Rainy River (2) Proven 27, ,015 1,728 - Probable 88, ,017 8,587 - Rainy River P&P 116, ,031 10,315 - El Morro 100% Basis 30% Basis Proven 307, ,705-1,135 Probable 335, , El Morro P&P 643, ,891-2, Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C-Zone update on May 1, Rainy River shown on a 100% basis. 43

44 Appendix 6 Reserves and resources summary (cont d) Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2012 (1) Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Mesquite Measured - oxide 19, Indicated - oxide 274, , Meqsuite M&I - oxide 293, , Measured - non oxide 4, Indicated - non oxide 96, , Mesquite M&I - non oxide 100, , Total Mesquite M&I 394, , Cerro San Pedro Measured - oxide 27, ,100 - Indicated - oxide 49, ,480 - CSP M&I - oxide 76, ,580 - Measured - sulphide 15, ,800 - Indicated - sulphide 60, ,600 - CSP M&I - sulphide 75, ,020 24,400 - Total CSP M&I 151, ,703 57,980 - Peak Mines Measured 2, Indicated 3, Peak M&I 5, , Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C-Zone update on May 1,

45 Appendix 6 Reserves and resources summary (cont d) Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2012 (1) Tonnes 000s Gold g/t Metal grade Silver g/t Copper % Gold Koz Contained metal Silver Koz Copper Mlbs New Afton A&B Zones Measured 33, , Indicated 45, , A&B Zone M&I 79, ,913 6,690 1,769 C-Zone Measured 1, Indicated 11, C-Zone M&I 12, Total New Afton M&I 91, ,224 7,292 1,980 Blackwater Direct processing material Measured 116, ,896 21,057 - Indicated 189, ,729 36,467 - M&I (direct processing) 305, ,624 57,524 - Stockpile material Measured 26, ,496 - Indicated 64, ,108 - M&I (stockpile) 90, ,604 - Total Blackwater M&I 396, ,497 70,128 - Capoose Indicated 14, ,497 - Rainy River (2) Measured 27, ,182 1,689 - Indicated 130, ,985 11,649 - Total Rainy River M&I 158, ,167 13,338 - El Morro 100% Basis 30% Basis Measured 307, ,705-1,135 Indicated 335, , El Morro M&I 643, ,891-2, Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C-Zone update on May 1, Rainy River shown on a 100% basis. 45

46 Appendix 6 Reserves and resources summary (cont d) Inferred Resource statement as at December 31, 2012 (1) Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Mesquite Oxide 35, Non oxide 15, Mesquite Inferred 50, Cerro San Pedro Oxides 53, ,400 - Sulphides 50, ,800 - CSP Inferred 103, ,200 - Peak Mines 1, New Afton A&B-Zone 14, C-Zone 20, New Afton Inferred 35, , Blackwater Direct processing 13, ,821 - Stockpile 3, Blackwater Inferred 17, ,263 - Capoose 64, ,789 - Rainy River (2) 93, ,280 6, % Basis 30% Basis El Morro 137, , Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C-Zone update on May 1, Rainy River shown on a 100% basis. 46

47 Appendix 6 Reserves and resources notes Mineral reserves are contained within Measured and Indicated mineral resources. Measured and Indicated mineral resources that are not mineral reserves do not have demonstrated economic viability as defined by a technical Feasibility Study. New Gold reports its Measured and Indicated mineral resources inclusive of its mineral reserves. Inferred mineral resources are not known with the same degree of certainty as Measured and Indicated resources, do not have demonstrated economic viability, and are exclusive of mineral reserves. Mineral reserves have been estimated and reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ( CIM ) definition standards and guidelines and Canadian National Instrument ( NI ). 1) Mineral Reserves for the company s mineral properties have been calculated based on the following metal prices and lower cut-off criteria: Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Lower Cut-off Mesquite $1, g/t Au Oxide reserves 0.41 g/t Au Non-oxide reserves Cerro San Pedro $1,300 $ US$4.33 /t NSR Peak Mines $1,300 $24.00 $3.00 A$ /t NSR New Afton $1,300 - $3.00 US$24/t NSR El Morro $1,350 - $ % CuEq Rainy River $1,250 $ g/t AuEq Open Pit 3.5 g/t AuEq - Underground 47

48 Appendix 6 Reserves and resources notes (cont d) 2) Mineral Resources for the company s mineral properties have been calculated based on the following metal prices and lower cut-off criteria: Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Lower Cut-off Mesquite $1, g/t Au Oxide resources 0.24 g/t Au Non-oxide resources Cerro San Pedro $1,400 $ g/t AuEq Open pit oxide resources 0.4g/t AuEq Open pit sulphide resources Peak Mines $1,400 $28.00 $3.25 A$97-137/t NSR New Afton $1,400 $28.00 $ % CuEq All resources El Morro $1,500 - $ % Cu Open pit resources 0.20% Cu Underground resources Blackwater $1, g/t AuEq Capoose $1, g/t AuEq Rainy River $1,100 $ g/t AuEq Open Pit 2.5 g/t AuEq Underground Mineral resources have been estimated and reported in accordance with CIM definition standards and guidelines and Canadian NI ) Mineral resources are classified as Measured, Indicated and Inferred resources and are reported based on technical and economic parameters consistent with the methods most suitable for their potential commercial exploitation. Where different mining and/or processing methods might be applied to different portions of a mineral resource, the designators open pit and underground have been applied to indicate envisioned mining method. Likewise the designators oxide, non-oxide and sulphide have been applied to indicate the type of mineralization as it relates to appropriate mineral processing method and expected payable metal recoveries. Additional details regarding mineral resource estimation, classification and reporting parameters for each of New Gold s mineral properties are provided in the respective NI Technical Reports which are available on SEDAR. 4) Blackwater April 4, 2013 update: 1. Mineral resources are reported within a conceptual open pit shell based on metal prices of $1,400/oz gold and $28.00/oz silver. The March 2013 mineral resource estimate utilizes average metallurgical recoveries of 88.0% gold and 64.0% silver for oxide mineralization, 85.0% gold and 58.0% silver for transitional oxide/sulfide mineralization and 85.0% gold and 44.0% silver for sulfide mineralization. The 2012 year-end mineral resource estimate utilizes average metallurgical recoveries of 86% gold and 44.9% silver for all material types. 2. Total contained metal is calculated based on Tonnes*Grade / grams per troy ounce. 3. Gold-equivalent cut-off grade estimates are based on $1,400/oz gold and $28.00/oz silver and average metal recoveries as described in Note 1 above. 4. Direct processing material is defined as mineralization above a 0.40 g/t AuEq cut-off and likely to be mined and processed directly. 5. Stockpile material is defined as mineralization between a 0.30 g/t AuEq and a 0.40 AuEq cut-off that is suitable for stockpiling and future processing based on average metallurgical recoveries as described in Note 1 above. 5) Qualified Person: The preparation of New Gold s mineral reserve and resource statements has been done by or under the supervision of Qualified Persons as defined under Canadian NI and they were reviewed and approved by Mark Petersen, a Qualified Person under NI and an officer of New Gold. 48

49 Appendix 7 Commodity price/foreign exchange assumptions Guidance assumptions (1) 2013 Gold price ($/oz) ~1,350 Silver price ($/oz) ~22.50 Copper price ($/oz) ~3.25 USD/AUD 1.00 USD/CAD 1.00 USD/MXN Spot: Spot Gold price ($/oz) 1,270 Silver price ($/oz) Copper price ($/oz) 3.25 USD/AUD 0.95 USD/CAD 0.97 USD/MXN Based on year-to-date average realized prices through June 30, 2013 and prevailing prices at time of second quarter results release on July 31,

50 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. Measured and Indicated Resources inclusive of Reserves. 2. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Measured, Indicated and Inferred Resources and Technical Information. 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 Endnote on total cash costs under the heading Non-GAAP Measures. 3. Refer to Endnote 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. Refer to Endnote 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 Endnote on all-in sustaining costs under the heading Non-GAAP Measures. Page Blackwater s potential is not supported by a feasibility study. See Endnote Blackwater PEA Additional Cautionary Note. Page Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. 2. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Measured, Indicated and Inferred Resources and Technical Information. 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 detailed breakdown of Reserve and Resource information. 3. Refer to Endnote 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. 50

51 Notes continued Page For period from August through December For period from July through December Includes both capitalized and expensed exploration. Page 18 Source: Broker Reports, Company Estimates and Announcements, Bloomberg; all amounts in USD. 1. New Gold s average analyst consensus NAV. 2. New Gold s average analyst 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 Rainy River on October 15, New Gold share price appreciation calculated using a base price of US$1.79 from the March 3, 2009 close. 6. S&P/TSX Global Gold Index includes 54 gold companies in various stages of development/production. 7. FTSE Gold Mines Index includes 26 gold producing companies. 8. HUI Index includes 15 of the major global gold producers. 51

52 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, 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. 52

53 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. 53