UPDATE: New Gold Shares Down 3%; Company Announced Record Financial Results in 2011 with 212% Increase in Earnings, 23% Increase in Net Cash Generated from Ops
New Gold Inc. (NGD.TO) announced financial and operational results for the fourth quarter and year ended 2011, with record annual earnings and cash flow. The company, once again, met its production guidance achieving record annual production of 387,155 ounces during 2011 at a total cash cost per ounce sold, net of by-product sales, of $446 per ounce. The combination of increased gold production, well below industry average total cash cost and continued strength in commodity prices led New Gold to the strongest financial performance in the company's history. When compared to 2010, earnings from mine operations increased by 54% to $315 million, net earnings increased by 212% to $179 million, or $0.42 per share, and net cash generated from operations increased by 23% to $230 million. New Gold is also pleased to reiterate its guidance for 2012 with the targeted start of the New Afton Mine in June set to increase gold production further to 405,000 to 445,000 ounces at a lower annual total cash cost per ounce sold, net of by-product sales, of $410 to $430 per ounce.
However, New Gold fourth quarter revenue and earnings from mine operations were down compared to the prior year quarter primarily due to production of gold, silver and copper in the fourth quarter of 2010 all being benefitted by above average grades due to mine sequencing. The company benefitted from higher average realized gold and silver prices during the fourth quarter of 2011.
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