New Gold Inc. Posted Muted Gold Output in Q2 This Year

SEATTLE (Scrap Monster): The Canadian mining major New Gold Inc. reported reduced output from its New Afton gold-silver-copper mine in British Columbia and the Rainy River gold-silver mine in Ontario, Canada during the second quarter 2020. The company blamed unprecedented Covi-19 impacts for the subdued results.

The total Q2 production was 98,079 gold equivalent ounces, comprising of 64,294 ounces of gold, 134,282 ounces of silver and 16.9 million pounds of copper. The company entered into a definitive agreement with Artemis Gold Inc. to divest its Blackwater Project. Also, it completed a $400 million senior note offering yielding 7.50% due in 2027. By mid-April this year, it had withdrawn the 2020 annual guidance. The updated guidance will now be released along with company’s second quarter financial results on 30^th July, 2020.

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The Rainy River Mine produced 49,633 gold equivalent ounces for the quarter. The mine operations had resumed on April 3^rd, following a 12-day voluntary shutdown on account of Covid-19. The New Afton Mine produced 48,446 gold equivalent ounces during the quarter. The mine reached a key safety milestone, achieving 3 million person-hours lost-time injury-free.

Renaud Adams, CEO stated that the company is excited to be fully exposed to the strengthened gold price. It will continue to ensure safety and well-being of its employees and all its stakeholders, he added.