Canadian gold miner New Gold has executed on its key priority of stabilising its operations and delivering consistent results throughout the year, CEO Patrick Godin said on Tuesday.

“2023 was a successful year for New Gold,” he said, reporting that the miner had achieved the top-end of its 2023 gold-equivalent production guidance and the mid-point of its all-in sustaining cost (AISC) guidance set out at the start of the year.

New Gold produced 423 517 gold-equivalent ounces at an AISC of $1 545/oz in 2023.

In the fourth quarter, the company also demonstrated its free cash flow potential, generating C$1-million in free cash flow after investing more than C$61-million in advancing growth projects.

The company believes 2024 is a free cash flow inflection point and that it is expected to enter a prolonged period of cash flow generation in the second half of the year.

“Last week we outlined our operational outlook for the next three years highlighting an approximately 35% increase in gold production and approximately 60% increase in copper production by 2026. As we work towards completing our growth projects this year, the reduction in operating costs and capital expenditures should see consistent free cash flow generation commencing in the second half of this year. This free cash flow growth is expected to increase over the next three years in line with our increasing production profiles. We have reached the free cash flow inflection point, and I look forward to sharing progress throughout the year," added Godin.

New Gold’s 2024 consolidated gold production is expected to be 310 000 oz to 350 000 oz, compared with 321 178 oz in 2023. Production is expected to strengthen in the second half of the year, with the second half of 2024 expected to represent about 60% of yearly production as waste stripping at Rainy River is sequenced in the first half of the year.

2024 copper production is expected to be 50-million to 60-million pounds, about 16% higher than 2023, driven by increased contribution from C-Zone at New Afton.

Total capital is expected to be C$290-million to C$330-million, as growth projects at both operations are completed in the year.