Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17, 2012

Transcription

1 Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17, 2012

2 Cautionary statement All monetary amounts in U.S. dollars unless otherwise stated CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information contained in this presentation, including any information relating to New Gold's future financial or operating performance 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. All such forward-looking statements 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. Forward-looking statements are necessarily based on estimates and assumptions (including that the business of various transactions will be integrated successfully in the New Gold organization) 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; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico and Chile; price volatility in the spot and forward markets for commodities; 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 licenses and permits and complying with the permitting requirements of each jurisdiction that New Gold operates, including, but not limited to, Mexico, where New Gold is involved with ongoing challenges relating to its environmental impact statement for the Cerro San Pedro Mine and to Chile where there are challenges related to the environmental permit for the El Morro Project; the lack of certainty with respect to the Mexican, Chilean and other 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 the company is or may become a party to, as well as the third party claim related to the El Morro transaction with respect to New Gold's exercise of its right of first refusal on the El Morro copper-gold project in Chile and its partnership with Goldcorp Inc., which transaction and third party claim were announced by New Gold in January 2010; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; 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. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as "Risk Factors" included in New Gold's disclosure documents filed on and available at Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

3 Cautionary statement (cont d) CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES Information concerning the properties and operations discussed in this presentation 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 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 December 11, While the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are recognized and required by Canadian 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 other economic 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 in this presentation has been reviewed by Mark Petersen, a Qualified Person under National Instrument and employee of New Gold. TOTAL CASH COST Total cash cost per ounce figures 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 cost 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 cost on a sales basis. Total cash cost includes mine site operating costs such as mining, processing, administration, royalties and production taxes, but is exclusive of amortization, reclamation, capital and exploration costs. Total cash cost is reduced by any by-product revenue and is 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 cost presented does not have a standardized meaning prescribed by 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 will be provided in the MD&A accompanying the quarterly financial statements. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

4 Overview History of accretive growth Leading intermediate gold producer Three producing assets Three fully-funded growth projects C$4.0 billion market capitalization $326 million in cash (1) Strong Board and Management Notes: 1. Cash balance as at March 31, 2012 adjusted for net proceeds of $300 million notes offering after redemption of senior secured notes and related costs. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

5 Management and Board of Directors EXECUTIVE MANAGEMENT TEAM Randall Oliphant, Executive Chairman BOARD OF DIRECTORS James Estey, Former Chairman UBS Securities Canada Robert Gallagher, President & CEO Robert Gallagher, President & CEO Brian Penny, Executive VP and CFO Vahan Kololian, Founder Terra Nova Partners Board and Management hold 15 million shares of Company ~$130 million investment Martyn Konig, Former Executive Chairman European Goldfields Pierre Lassonde, Chairman Franco-Nevada Randall Oliphant, Executive Chairman Raymond Threlkeld, CEO Rainy River Resources Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

6 Million shares Capitalization and liquidity April 2012 Senior Note Financing Completed $300 million 7% unsecured note financing on April 5 th and announced redemption of C$187 million 10% senior secured notes 8 7 Average Daily Trading (3) ~7.0mm ~7.3mm Multiple benefits Lower interest rate 7% vs. 10% Extended term 2020 vs ~5.5mm Enhanced flexibility ability to institute dividend; notes are unsecured 4 3 Additional $90 million cash on balance sheet post redemption/costs 2 ~1.0mm Cash and equivalents - $326 million (1) Debt - $382 million (1)(2) Notes: 1. Cash and debt positions as of March 31, 2012 adjusted for net proceeds of $300 million notes offering after redemption of senior secured notes and related costs. 2. See Appendix 1 for detailed breakdown of components of debt. 3. Averages based on combination of all trading platforms including: TSX, Alpha, Pure and NYSE Amex. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

7 Diversified asset portfolio (1) 7.9 Moz Gold Reserve Blackwater Canada 000s oz Au M&I 5,467 Inferred 2,282 New Afton Canada 000s oz Au 2P 986 M&I 1,742 Inferred Moz M&I Resource (1) Operating assets Development projects Mesquite United States 000s oz Au 2P 2,762 M&I 5,534 Inferred 512 Peak Mines Australia 000s oz Au 2P 606 M&I 948 Inferred 259 El Morro (2) Chile 000s oz Au 2P 2,503 M&I 2,954 Inferred 1,810 Cerro San Pedro Mexico 000s oz Au 2P 1,006 M&I 1,812 Inferred 956 Notes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. Measured and Indicated Resources inclusive of Reserves, and Capoose Indicated Resources of 384koz. 2. Represents New Gold s attributable share of Reserves and Resources. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

8 Operational execution Gold production (1) (000s ounces) Actual 2009 Guidance 2009 Actual 2010 Guidance 2010 Actual Guidance Actual 2012 Guidance Total cash cost (1)(2) ($/oz) $600 $500 $566 $400 $465 $418 $446 $ $300 $200 $100 $ Actual 2009 Guidance 2009 Actual 2010 Guidance 2010 Actual 2011 Guidance 2011 Actual 2012 Guidance Notes: 1. Refer to Cautionary Statement and note on Total cash cost and 2008 costs shown based on Canadian GAAP. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

9 Cost trends: New Gold versus industry (1)(2) $700 $643 Total Cash Costs (US$/oz) (2) $600 $500 $400 $566 $464 $478 $465 $557 $418 $446 $410-$430 $ E New Gold provides leverage to gold price Margin (US$/oz) Gold price (US$/oz) $297 $ % +69% $1,014 $1,460 Notes: 1. Industry data per GFMS reports calculated net of by-product credits. 2. Refer to Cautionary Statement and note on Total cash cost. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

10 Track record of per share growth outperforming gold Average gold price increased by 62% from 2009 through 2011 Adjusted earnings per share Net cash generated from operations per share $ % 104% $0.30 $0.48 $0.53 $0.12 $ Net asset value per share (1)(2) Measured & Indicated gold resource per 1,000 shares (3) 348% $ % 40.8 $ $2.46 6/1/09 12/31/10 12/31/11 12/31/10 12/31/11 Notes: 1. Net asset value as at June 1, 2009 based on New Gold and Western Goldfields business combination. 2. Based on average of consensus net asset value per share ascribed by analysts covering New Gold. 3. Measured and Indicated gold resource shown inclusive of reserves. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

11 First quarter 2012 highlights First quarter gold production of 99,274 ounces of gold Averaged realized margin of $1,032 per ounce Earnings from mine operations of $78 million New Afton remains on schedule for June 2012 production start Updated Blackwater mineral resource estimate Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

12 2012 guidance Gold production (1) Koz Total cash cost (1) $410 - $430/oz 2012 cash cost estimate assumes: $30.00 per ounce silver $3.50 per pound copper Parity Australian dollar Parity Canadian dollar Total company cash cost subject to following sensitivities: +/- $1.00 per ounce silver ~ +/- $5 per ounce +/- $0.25 per pound copper ~ +/- $25 per ounce +/- $0.05 AUD FX ~ +/- $10 per ounce +/- $0.05 CDN FX ~ +/- $5 per ounce Gold production (ounces) 2012 Guidance Total cash cost (1) ($/oz) Mesquite 140, ,000 $710 - $730 Cerro San Pedro 140, ,000 $250 - $270 Peak Mines 90, ,000 $640 - $660 New Afton 35,000-45,000 ($1,200) - ($1,300) Total 405, ,000 $410 - $430 Notes: 1. Refer to Cautionary Statement and note on Total cash cost. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

13 New Afton Underground production started New Afton(100%) Remaining Capital (5) ~ $60 million Commercial Production August 2012 Location Canada Mine type Underground Reserves 1 Gold/Copper (Moz/Mlbs) 1.0/954 Resources 1 Gold/Copper (Moz/Mlbs) 1.7/1,586 Estimate mine life 12 years 2012E production/yr (Au koz/cu Mlbs) k/30-35m 2012E cash cost/oz by-product 3 ($1,200)-($1,300) 2012E cash cost/oz co-product (Au/Cu) 4 $630-$650/$1.35-$1.45 Average Annual Cash Flow (6) ~ $250 million Development capital over 90% spent Team with significant block cave experience Underground operations running well ~705,000 tonnes stockpiled Production to start in June 2012 Mining and milling rate to reach full 11,000 tpd capacity in early 2013 Life-of-mine average co-product costs ~$525 per ounce and ~$1.15 per pound Underground exploration program to start in Q3 12 Notes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. 2. Production includes all production including the gold and copper produced prior to commercial production. 3. Refer to Cautionary Statement and note on Total cash cost. 4. Co-product cash cost calculated based on relative percentage of gold and copper revenue, respectively. 5. Development capital estimate from April 1, 2012 through commercial production adjusted for offsetting revenue between production and commercial production. 6. Using spot commodity prices. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

14 El Morro (30%) A world class project El Morro (30%) Gold Reserve (1) 2.5 Moz Copper Reserve (1) 1.9 Blbs Location Chile Mine type Open Pit Reserves 1 Gold/Copper (Moz/Mlbs) 2.5/1,868 Resources 1 Gold/Copper (Moz/Mlbs) 3.0/2,193 Estimate mine life 17 years LOM production/yr (Au koz/cu Mlbs) 2 90/85 LOM cash cost/oz co-product (Au/Cu) 3 $550/$1.45 Current Resource entirely within La Fortuna deposit 1.2 Moz inferred gold resource at higher gold and copper grades in deeper portion of La Fortuna deposit Neighbouring El Morro deposit underexplored Capital fully-funded by 70% partner Goldcorp Addressing recent temporary suspension of environmental permit Notes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. Measured and Indicated Resources inclusive of Reserves. El Morro Reserves and Resources shown on attributable 30% basis. 2. Refer to Cautionary Statements. 3. Refer to Cautionary Statements and note on Total cash cost. Life of mine co-product costs based $1,200/oz gold and $2.75/lb copper. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

15 Blackwater An exciting new discovery Blackwater Indicated Gold Resource (1) 5.5 Moz at 0.98 g/t Inferred Gold Resource (1) 2.3 Moz at 0.78 g/t Latest resource included drilling through December 2011 and is based on total of 261 holes totaling 89,460 metres Currently 11 drills active at site Location Canada Proposed mine type Open Pit M&I Resources 1 Gold/Silver (Moz) 5.5/25.8 Inferred Resources 1 Gold/Silver (Moz) 2.3/11.2 Targeted production Further consolidated land position (900km 2 ) Year-round accessibility for drilling/ development Central British Columbia near infrastructure Ability to fund continued exploration/development internally Tax synergies with New Afton Notes: 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 continued exploration success, environmental approvals and the determination that the deposit is economically viable. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

16 Blackwater Area map ~100km to Vanderhoof Capoose Resource Blackwater Project ~160km to Prince George 50km Gold/Silver Resources (Moz) M&I: 0.4/26.6 Inferred: 0.4/29.5 Gold/Silver Resources (Moz) M&I: 5.5/25.8 Inferred: 2.3/ km Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

17 Blackwater 2012 exploration program $55 million program focused on combined infill and step-out drilling Targeting ~500 holes totaling ~210,000 metres 60-70% infill 30-40% step-out $4 million additional exploration program at Capoose April 17th, 2012 News Release March 7 th, 2012 News Release 2012 PEA Resource Includes assays received through April 17, 2012 Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

18 Blackwater 2012 year-to-date drilling highlights Year-to-date 2012 drilling of 112 holes totaling 44,334 metres Assays received for 67 holes totaling 26,490 metres Hole ID Northern Half of Blackwater Deposit From (metres) To (metres) Interval (metres) Blackwater 2012 Drill Program Highlights Weighted Average Gold Grade (g/t) BW BW BW Hole ID BW-315 Southern Half of Blackwater Deposit From (metres) To (metres) Interval (metres) Weighted Average Gold Grade (g/t) BW BW BW BW-344 BW BW BW BW BW BW Drill results per March 7 th 2012 news release Drill results per April 17 th 2012 news release Notes: 1. For complete summary of 2012 assay results, refer to New Gold website at Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

19 Blackwater 2012 drill results April 17, Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

20 Gold grade (g/t) Blackwater Overview of potential project parameters PEA considerations 60,000 tpd operation 1 Conventional open pit truck and shovel operation 2 Good existing road access Several viable options for powerline access to BC Hydro grid ($0.04/KwH) Non-refractory ore Recoveries by conventional direct cyanidation and/or flotation process ~90% Process plant capacity of 60,000 tpd Several viable options identified for tailings and waste disposal Targeting completion of PEA in third quarter Gold production (thousand ounces) 85% 86% 87% 88% 89% 90% Gold recovery (%) ~4.6 g/t silver at 50% recovery would yield ~1.7 million ounces silver annually Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

21 Blackwater Indicative timeline The below provides a preliminary indicative targeted timeline through exploration, development and into production (1) New Gold will continue to refine this timeline Development activity First Nations & Public Consultation Drilling Preliminary Economic Assessment Base Line Environmental Studies Terms of Reference Environmental Assessment Reports Provincial Approval Federal Approval Feasibility Study Engineering Procurement Construction Production Target H H H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Reflects critical path in timeline Notes: 1. Indicative timeline is dependent on continued exploration success, permit approvals and the determination that the deposit is economically viable. There is no assurance this timeline will be achieved nor that the deposit will ever reach the production stage. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

22 US$/oz Near-term production and cash flow increases $1,750 $1,600 $1, $1,400 $1,050 $700 $350 $1,460 $1,180 $1, $446 $410 - $430 ~$1,425 ~ Gold production (thousand ounces) ~$150 - $200 $0 2011A 2012E 2013E 0 Cash Cost (1) (US$/oz) Margin (US$/oz) Realized gold price (US$/oz) Gold production Notes: 1. Refer to Cautionary Statement and note on Total cash cost. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

23 Gold production (thousand ounces) and a future of growth El Morro and Blackwater expected to more than double New Gold s gold production by 2017 at low cost 1, ~ A 2012E 2013E 2017E Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

24 1-Jun Sep Jan May Sep Jan May-11 5-Sep-11 1-Jan Apr-12 9-May-12 US$ NAV and Share price Net asset value per share appreciation Net Asset Value 6/1/09 Today Operating Portfolio (1) ~ $875 $1,977 New Afton ~ $120 $1,243 El Morro (2) ~ $40 $756 $15.00 $13.00 $11.00 $9.00 $7.00 $5.00 Share Price NAVPS Completed $1.2bn business combination with Western Goldfields Exercised El Morro Right of First Refusal and announced partnership with Goldcorp Resource update at Blackwater Higher El Morro Reserves and Resources New Afton analyst tour Closing of Richfield acquisition Closing of Silver Quest & Geo Minerals El Morro Feasibility Update 2011 Results and 2012 Guidance New Afton/ Blackwater analyst tour Blackwater (3) $-- $1,135 $3.00 Development Projects $ % increase in NAVPS 191% increase in share price ~ $160 $3,134 Source: Notes: Broker Reports, Company Estimates and Announcements, Bloomberg. 1. Street consensus NAV for Mesquite, Cerro San Pedro and Peak Mines. 2. Current street consensus NAV for El Morro; Includes $50mm cash payment received from Goldcorp as part of transaction consideration. 3. New Gold purchased Richfield for C$480 million and Silver Quest for C$110 million. The deals closed on June 1, 2011 and December 23, 2011, respectively. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

25 2012 A year of catalysts Blackwater PEA resource update New Afton production start El Morro litigation decision New Afton commercial production Blackwater PEA El Morro engineering/development planning Blackwater/New Afton exploration Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

26 The New Gold investment thesis EXPERIENCED BOARD AND MANAGEMENT FULLY FUNDED COMPANY WITH STRONG BALANCE SHEET DIVERSIFIED ASSET BASE IN MINING FRIENDLY JURISDICTIONS ORGANIC GROWTH OPPORTUNITIES/METAL OPTIONALITY PRODUCTION GROWTH/MARGIN EXPANSION INCREASING UNDERLYING ASSET VALUE MULTIPLE CATALYSTS COMPELLING INVESTMENT PROPOSITION Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

27 Appendix Appendices Page 1. Financial information Operating performance New Afton El Morro Blackwater Reserves and resource notes Commodity price/foreign 61 exchange assumptions Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

28 Appendix 1 Summary of debt Undrawn Credit Facility Senior Notes Convertible Debentures El Morro Funding Loan Face Value $150 million (1) $300 million C$55 million $36 million Maturity 3 years with annual extensions permitted April 15, 2020 June 28, 2014 n/a Interest Rate See Key features 7% 5% 4.58% Payable Revolving credit Semi-annually Semi-annually Upon start of production Conversion price n/a n/a C$9.35 n/a Current trading value n/a ~103.3 ~$111 n/a Key features Normal financial covenants Interest Rate 3% over LIBOR based on ratios Standby fee of 0.75% 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 Redeemable after January 1, 2012 with between 30 and 60 days notice provided shares trading over C$11.69 Previous C$187 million 10% Senior Secured Notes were redeemed on May 7, 2012 New Gold to repay Goldcorp out of 80% of its 30% share of cash flow once El Morro starts production Notes: 1. $30 million currently allocated for Letters of Credit. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

29 US$/oz Appendix 1 Trend of expanding margins continues $1,600 $1,460 $1,575 $1,032 $1,400 $1,194 $1,014 $1,200 $987 $766 Realized gold price (US$/oz) $1,000 $863 $522 Margin (US$/oz) $800 $297 Cash Cost (1) (US$/oz) $600 $400 $566 $465 $428 $446 $543 $200 $0 2008A 2009A 2010A 2011A Q1'12A Notes: 1. Refer to Cautionary Statement and note on Total cash cost. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

30 Appendix 2 Mesquite Gold production (ounces) 140, ,000 Total cash cost ($ per ounce) $710 - $730 Tonnes processed (000 tonnes) Tonnes mined (000 tonnes) 11,733 12,500 13,500 45,973 45,000 47,000 Grade - gold (g/t) Capital ($ million) 2011 Actual & 2012 Guidance 2011A 2012E 19 ~ A versus 2012E Lower strip ratio to result in higher ore tonnes processed Gold grade is expected to decline from 2011 levels Increase in costs primarily driven by lower gold production Key assumptions and sensitivities Diesel comprises ~20% of Mesquite s total costs Rack diesel price most correlated to Brent oil price Brent oil price increased by 13% since beginning of 2011 Every 10% change in diesel price has ~$15 per ounce impact on costs Notes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxide; ~35% for sulphides. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

31 Appendix 2 Cerro San Pedro Gold production (ounces) 140, ,000 Silver production (million ounces) Total cash cost ($ per ounce) $250 - $270 Tonnes processed (000 tonnes) Tonnes mined (000 tonnes) 16,763 14,000 15,000 33,276 31,000 33,000 Grade - gold (g/t) Grade silver (g/t) Capital ($ million) 2011 Actual & 2012 Guidance 2011A 2012E 7 ~ A versus 2012E Expected production of gold and silver consistent with 2011 Decrease in tonnes processed offset by grade and recovery movements Increase in costs primarily driven by lower silver by-product price assumption Key assumptions and sensitivities Silver price - $30 per ounce (2011A - $35.15/oz) Mexican Peso: U.S. foreign exchange 13:1 $1.00 per ounce change in silver equals ~$15 per ounce change in Cerro San Pedro cash cost 1.0 change in Mexican Peso equals ~$15 per ounce change in Cerro San Pedro cash cost Notes: 1. Cerro San Pedro life-of-mine recovery continues to track at: Gold ~60%, Silver ~30%. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

32 Appendix 2 Peak Mines 2011 Actual & 2012 Guidance Gold production (ounces) 90, ,000 Copper production (million pounds) Total cash cost ($ per ounce) $640 - $660 Tonnes processed (000 tonnes) Tonnes mined (000 tonnes) 2011A 2012E Grade - gold (g/t) Grade copper (%) Recovery gold (%) Recovery copper (%) Capital ($ million) 50 ~ A versus 2012E Increased gold production driven by increases in tonnes processed, gold grades and recoveries Similar copper production a result of increased tonnes processed and copper recoveries offset by lower copper grades Key assumptions and sensitivities Copper price - $3.50 per pound (2011A - $3.78/lb) Australian dollar: U.S. foreign exchange 1:1 $0.25 per pound change in copper equals ~$35 per ounce change in Peak cash cost 0.01 change in Australian dollar equals ~$10 per ounce change in Peak cash cost Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

33 Appendix 3 Block cave mines Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

34 Appendix 3 New Afton development capital cost breakdown 2011A 2012E (1) $43m $174m $40m $56m $74m $54m Total capital spend during 2011 of $291 million, excluding capitalized interest Total remaining development capital of $150 million through start of commercial production Total project capital to be within 8% of 2009 capital estimate of C$700 million at C$765 million Underground Development Surface/Mill Construction Owners Costs/ Construction Indirects Notes: 1. As of January 1, 2012, assumes a parity USD/CDN foreign exchange rate and includes offsetting revenue related to pre-commercial production sales of inventory that has been netted against Underground Development costs. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

35 Appendix 3 Drawbell continuity schedule Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

36 Number of drawbells Appendix 3 New Afton 2012 drawbell development rate On track with 2012 monthly drawbell development Currently meeting targeted drawbell development rate 21 drawbells completed as of April 30, drawbells to support 6,600 tpd from underground On track for 26 drawbells by the end of June 20 ~50 drawbells to support 11,000 tpd mining rate 10 - End of 2011 January February March April May June Actual 2012 Estimated Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

37 Ore stockpile (thousand tonnes) Appendix 3 New Afton Build-up of ore stockpile On track with 2012 monthly ore stockpile targets Combination of additional drawbells and commissioning of conveyor system has led to exponential increase in ore stockpile 705,000 tonnes stockpiled on surface at April 30, , Average grade comparison Gold g/t Copper % New Afton reserves (1) Ore stockpile ~3 months of production at full capacity Stockpile to provide additional flexibility during ramp-up of mining and milling rates Ore grade above reserve grade and reconciling with block models December 2011 January February March April May June Actual 2012 Estimated Notes: 1. As at December 31, Refer to Reserve and Resource Notes in Appendix 6. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

38 Appendix 3 New Afton 2012 production start-up The combination of over six months of active underground mining and the existence of the ore stockpile should lead to an efficient mill start-up Mill start-up scheduled for June 2012 Targeting two month period to reach commercial production rate (6,600 tonnes per day) August 2012 Tonnes per day 15,000 12,500 Mill reaches 11,000 tpd Period of drawdown of stockpile inventory 10,000 7,500 5,000 2,500 Mill starts in June and reaches 6,600 tpd commercial rate in August Mining/milling rate reach 11,000 tpd runrate level - January March May July September November January March Mine tpd Mill feed tpd Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

39 Appendix 3 Production and sales Gold production (ounces) 35,000-45,000 Copper production (million pounds) New Afton 2012 Guidance Tonnes processed (000 tonnes) 1,900 2,200 Grade - gold (g/t) Grade - copper (%) Recovery gold (%) Recover copper (%) Gold sales (ounces) 20,000-30,000 Copper sales (million pounds) Difference between production and sales a result of pre-commercial production commodity sales being net against capital costs and timing of certain concentrate sales Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

40 Appendix 3 Operating costs Operating costs ~$25 per tonne in first five months of commercial production (1) Life-of-mine average ~$18 - $22 per tonne ~$6.20/t ~$4.60/t ~$9.20/t Processing Mining G&A 2012 by-product cash cost (2) ($1,200) - ($1,300) per ounce 2012 co-product cash cost (3) $630 - $650 per ounce, $ $1.45 per pound Costs expected to be lower in future years as per tonne cost reaches steady-state level Life-of-mine average by-product cost ~($1,750) (4) Life-of-mine average co-product costs (4) of ~$525 per ounce gold and ~$1.15 per pound copper Notes: 1. Includes treatment and refining charges and assumes parity Canadian/U.S. dollar foreign exchange rate. 2. Assumes $3.50 per pound copper price and parity Canadian/U.S. dollar foreign exchange rate. 3. Co-product costs calculated on a percentage of revenue basis and assume a gold price of $1,600 per ounce. 4. Based on assumption of $1,600 per ounce gold, $3.50 per pound copper and a parity foreign exchange rate. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

41 Appendix 3 New Afton C Zone exploration 3 phase underground core drilling program totaling 40,000 meters commencing Q Phase 1: ~ 15,000 meters to delineate eastern limits of C-zone and assess potential to lower block cave extraction level for B3 reserve block - estimated completion by end Q1 13 Phases 2 & 3: ~ 25,000 meters to explore extensions to west and at depth - estimated completion Q4 13 C Zone Resource (2010) Tonnes 000 s Au g/t Cu % Gold Koz Copper Mlbs M&I 3, Inferred 11, Cross Section Looking East Long Section Looking South Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

42 Appendix 4 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% Notes: 1. Based on 2008 Feasibility Study. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

43 Appendix 5 Blackwater drill program Assay cut-off date Cumulative number of holes Cumulative number of metres March 2011 Initial Resource December 31, ,563 September 2011 Resource update July 31, ,223 Year-end 2011 Resource update November 30, ,848 March 2012 Resource update December 31, ,460 April assays received March 5, ,950 Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

44 Appendix 5 Blackwater benchmarking comparable projects The below provides high level benchmarking of various other Canadian bulk tonnage operations (1) Range Targeted throughput (tpd) 55,000 60,000 Strip ratio (2) (waste:ore) Development capital per 1,000 tpd (2) (million) $18 - $26 Mining cost (per tonne mined) $ $1.83 Processing cost (2) (per tonne milled) $ $6.66 G&A (per tonne milled) $ $1.22 Power cost (Kwh) ~$0.044 Notes: 1. Benchmark group includes: Canadian Malartic, Detour Lake, and Mount Milligan. Figures from company disclosures including news releases and investor presentations related to project parameters. 2. Includes only Canadian Malartic and Detour Lake as gold-focused projects. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

45 Appendix 5 Blackwater Resource Growth - March 2011 March 2011 Indicated Inferred Mt Au g/t Mt Au g/t Moz 2.3 Moz Cumulative Drilling Holes Metres 77 24,563 $1000 pit shell Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

46 Appendix 5 Blackwater Resource Growth - September 2011 September 2011 Indicated Inferred Mt Au g/t Mt Au g/t Moz 1.2 Moz Cumulative Drilling Holes Metres ,223 $1000 pit shell $1200 pit shell Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

47 Appendix 5 Blackwater Resource Growth Year-end 2011 Year-end 2011 Indicated Inferred Mt Au g/t Mt Au g/t Moz 1.9 Moz Cumulative Drilling Holes Metres ,848 $1000 pit shell $1200 pit shell $1300 pit shell Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

48 Appendix 5 Blackwater Resource Growth March 2012 March 2012 Indicated Inferred Mt Au g/t Mt Au g/t Moz 2.3 Moz Cumulative Drilling Holes Metres ,460 $1000 pit shell $1200 pit shell $1300 pit shell Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

49 Appendix 5 Blackwater Resource Growth April 2012 April 17th, 2012 News Release March 7 th, 2012 News Release 2012 PEA Resource Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

50 Appendix 5 Blackwater Block Model March 2012 Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

51 Appendix 5 BW Section 5 892,800N March 12 PEA Block Model $1300/oz Au pit shell Looking North Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

52 Appendix 5 BW Section 5 892,800N Geology & Drilling Glacial Till Rhyolite $1300/oz Au pit shell Volcanic Breccia Sediments Andesite Andesite Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

53 Appendix 5 BW Section 375,500E PEA Block Model Looking West Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

54 Appendix 5 BW Section 375,500E Geology & Drilling Volcanic Breccia Andesite 2012 holes labeled in Red Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

55 Appendix 5 Blackwater regional exploration 17 Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

56 Appendix 6 Reserves and resource notes Mineral Reserves statement as at December 31, 2011 Metal grade Contained metal Mesquite Tonnes 000's Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Proven 14, Probable 138, , Mesquite P&P 153, , Cerro San Pedro Proven 23, ,091 - Probable 35, ,352 - Cerro San Pedro P&P 59, ,006 30,443 - Peak Proven 1, Probable 1, Peak P&P 3, New Afton Proven Probable 47, , New Afton P&P 47, , El Morro 100% 30% Proven 308, ,716-1,153 Probable 212, El Morro P&P 520, ,503-1,868 Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

57 Appendix 6 Reserves and resource notes (cont d) Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2011 Tonnes 000's Gold g/t Metal grade Silver g/t Copper % Mesquite Measured - oxide 19, Indicated - oxide 269, , Mesquite M&I - oxide 289, , Measured - non oxide 4, Indicated - non oxide 79, , Mesquite M&I - non oxide 84, , Total Mesquite 373, , Cerro San Pedro Measured - open pit oxide 25, , Indicated - open pit oxide 55, , CSP M&I - open pit oxide 81, , Measured - open pit sulphide 13, , Indicated - open pit sulphide 46, , CSP M&I - open pit sulphide 60, , Total CSP M&I - open pit 1,812 55,860 Peak Measured 3, Indicated 3, Peak M&I 6, , New Afton Measured 36, ,058 3,194 1, Indicated 33, , New Afton M&I 69, ,742 5,470 1, Blackwater Blackwater Indicated 174, ,467 25, Capoose Indicated 31, , El Morro Measured - open pit 343, % ,836-30% 1, Indicated - open pit 333, , El Morro M&I - open pit 676, ,954-2, Zinc % Lead % Gold Koz Silver Koz Contained metal Copper Mlbs Zinc Mlbs Lead Mlbs Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

58 Appendix 6 Reserves and resource notes (cont d) Inferred Resource statement as at December 31, 2011 Metal grade Contained metal Tonnes 000's Gold g/t Silver g/t Copper % Zinc % Lead % Gold Koz Silver Koz Copper Mlbs Zinc Mlbs Lead Mlbs Mesquite 38, Cerro San Pedro Inferred - open pit oxide 40, , Inferred - open pit sulphide 24, , , Manto Underground sulphides 6, , Peak 3, New Afton 29, , Blackwater Blackwater 91, ,282 11, Capoose 37, , % 30% El Morro Open pit 637, , Underground 128, , El Morro Inferred 1,810 1,705 Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

59 Appendix 6 Reserves and resource notes (cont d) 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. 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 CIM Standards and National Instrument , or the AusIMM JORC equivalent. 1) Mineral Reserves for the company s mining operations and development projects 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 $1,200 $ US$3.49/t NSR Peak Mines $1,300 $25.00 $2.75 A$ /t NSR New Afton $1,200 $20.00 $2.50 US$24/t NSR El Morro $1,200 - $ % Cu Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

60 Appendix 6 Reserves and resource notes (cont d) 2) Mineral Resources for the company s mining operations and development projects have been calculated based on the following metal prices and lower cut-off criteria: Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Zinc (US$/lb) Lead (US$/lb) Lower Cut-off Mesquite $1, g/t Au Oxide resources 0.22 g/t Au Non-oxide resources Cerro San Pedro $1,300 $ $1.00 $ g/t AuEq Oxide resources 0.4g/t AuEq Open pit Sulphide resources 2.5g/t AuEq Underground manto resources Peak Mines $1,300 $24.00 $2.75 $0.85 $0.65 A$ /t NSR New Afton $1,300 $24.00 $ % CuEq All resources El Morro $1,350 - $ % Cu Open pit resources 0.20% Cu Underground resources Blackwater $1, g/t Au All resources Capoose $1, g/t AuEq All resources Mineral resources have been estimated and reported in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument , or the AusIMM JORC equivalent. 3) 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 extraction and mineral processing. Where different mining and/or processing methods might be applied to different portions of a mineralized system or metal deposit, the designators open pit and underground have been applied to indicate likely mining method. Likewise the designators oxide, non-oxide and sulfide have been applied to indicate the type of mineralization as it applies 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 mines and projects are provided in the respective NI Technical Reports and available on SEDAR. 4) Qualified Person: The preparation of New Gold s mineral reserve and resource statements has been done by Qualfied Persons as defined under Canadian under National Instrument under the oversight and review of Mark Petersen, a Qualified Person under National Instrument and employee of New Gold. Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

61 Appendix 7 Commodity price/foreign exchange assumptions Guidance/consensus: Gold price ($/oz) 1,730 1,760 1,600 Silver price ($/oz) Copper price ($/oz) USD/AUD USD/CAD USD/MXN Spot: Spot Gold price ($/oz) 1,600 Silver price ($/oz) Copper price ($/oz) 3.70 USD/AUD 1.00 USD/CAD 0.99 USD/MXN Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,

62 Contact information Investor Relations Hannes Portmann Vice President, Corporate Development Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference Florida May 15-17,