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Update: New Gold Wraps Up 2014 And Provides An 8% Higher Production Guidance For This Year

New Gold (NGD), which is mainly depending on its ultra low-cost New Afton mine, is producing gold at a negative cash cost (as the revenue from the copper - which is a by-product - covers more than the entire production cost). The company reconfirmed its status as a relatively low-cost producer in 2014 as it produced just over 380,000 ounces of gold and 101.5 million pounds of copper at an all-in sustaining cost of $779/oz.

To put things in perspective, this is probably the lowest production cost in the company's segment as even the most senior producers are struggling to reduce the costs to a level below $1,000/oz. Things are looking good for 2015 as the company is expecting another 8% increase in its production rate as it's aiming to produce 390,000-430,000 ounces of gold at an AISC of $745-785/oz. This could have been expected as New Gold's fourth quarter… Read More …