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Update: New Gold Reports Q4 Production Results, Strong 2015 Guidance

New Gold (NGD) just released its 2014 production results and its 2015 production guidance. Q4 production was flat at 106,000 oz. while full-year production came down to 380,000 oz. from 398,000 oz. due to weak production at Cerro San Pedro.

Production costs came down year over year to $845/oz. for the quarter, but again my concern that the company's New Afton Mine is skewing the data comes into play:

Mine AISC/oz.
New Afton ($560)
Mesquite $1,090
Peak Mines $1,231
Cerro San Pedro $1,447

At the average realized gold price of $1,188/oz. only two of these mine generated cash-flow in the fourth quarter.

Guidance is for rising production to 390,000 oz. to 430,000 oz. as production will rise again at Cerro San Pedro. This also means that the company's costs will come down as AISC at Cerro San Pedro will decline.

Note that this is the last full year of production… Read More …