New Gold Corporate Fact Sheet by newgoldinc


									                                                                                                                                                           FEBRUARy 2010

All figures in this publication are in US dollars unless otherwise specified.                                                 EXECUTiVE ProfilES

New Gold Inc. is an intermediate gold producer with operating assets in the United States, Mexico and Australia,             Randall Oliphant, Executive Chairman
and development projects in Canada and Chile. The company continues to pursue a disciplined growth strategy,                 Mr. Oliphant is also the President and CEO of Silver Bear
having successfully combined four junior gold companies in the last 18 months.                                               Resources Inc. Mr. Oliphant is on the Advisory Board of
                                                                                                                             Metalmark Capital LLC (formerly Morgan Stanley Capital
New Gold finished 2009 with a cash position 2 of $272 million (including $9 million in restricted cash), and is poised       Partners), and serves on the boards of WesternZagros Ltd.
to add an additional ~$140 million in cash upon closing of New Gold’s three most recently announced transactions.            and Franco-Nevada Corporation. Since 2003, Mr. Oliphant
In 2009, the company achieved a 29% increase in gold production, coupled with an 18% reduction in total cash cost1           has served on the boards of a number of public and private
compared to 2008. At December 31, 2009, New Gold’s attributable Proven and Probable gold reserves was 8.2                    companies and not-for-profit organizations. From 1999
million ounces. Measured and Indicated gold resources, inclusive of reserves, was 13.5 million ounces.                       to 2003, he was the President and CEO of Barrick Gold
                                                                                                                             Corporation. Mr. Oliphant is a Chartered Accountant.
New Gold is pleased to provide 2010 annual guidance of 330,000 to 360,000 ounces of gold at a total cash cost1
per gold ounce sold, net of by-product sales, of $445 – $465.

New Gold has consistently delivered on guidance and further strengthened the balance sheet to provide additional
flexibility to execute on its corporate strategy. With a strong portfolio of mining and development assets with               Robert Gallagher, Chief Executive Officer & Director
exploration upside, New Gold is well positioned to continue to deliver on its value enhancing growth strategy.                Mr. Gallagher has been President and CEO of New Gold
                                                                                                                              since June 2008 and was previously President and CEO of
                                                                                                                              Peak Gold from February 2008. Before that time, he spent
exeCuting on our strategy                                                                                                     15 years with Placer Dome from June 1977 to October
                                                                                                                              1993 and seven years with Newmont Mining Corporation
Disciplined growth                                                                                                            from August 2000 to December 2007, most recently as
  • Successfully combined four junior gold companies over last 18 months                                                      Vice President Operations, Asia Pacific. Mr. Gallagher is a
  • Developing two solid organic growth assets                                                                                mining engineer who has worked in the mining industry for
                                                                                                                              over 30 years.
  • Pursuing accretive external growth opportunities

Delivering on operations
  • Exceeded production guidance in 2009
  • Total cash cost 1 per ounce below guidance in 2009
                                                                                                                             Trading SymbolS informaTion
  • Projecting further growth in production at lower costs in 2010
                                                                                                                             TSX / NYSE AMEX   NGD
  • New Afton remains on schedule to commence production in 2012

Maintaining a strong Financial position                                                                                      WarranTS - TSX
 • Significantly enhanced financial flexibility in 2009                                                                      NGD.WT.A     NGD.WT.B                      NGD.WT.C
 • Q4/09 strongest cash flow quarter
 • Surfacing additional cash from undervalued assets                                                                         SHarE CaPiTal (as at February 3, 2010)
                                                                                                                             Basic 389 million
enhancing Value                                                                                                              Market Cap. C$1.9 billion (share price C$4.77)
  el Morro (transaction announced January 7, 2010)
  • Maintain 30% interest in project                                                                                         CaSH balanCE (as at December 31, 2009) 2
  • Strong strategic partner with development a priority at Goldcorp                                                         $272 million (incl. $9 million in restricted cash)
  • Superior economics - $50 million upfront payment, 100% development capital funded,
  significantly reduced interest rate                                                                                        rESErVES
                                                                                                                             8.2 million ounces
  additional initiatives
  • Sold a total of C$139 million of Asset Backed Notes for cash proceeds of C$81 million
                                                                                                                             inVESTor inQUiriES
  • Amapari sale price of $63 million, above analysts’ expectations
                                                                                                                             +1 888 315 9715 (Toll Free)

Corporate responsibility                                                                                                     HEad offiCE
                                                                                                                             Park Place, 3110-666 Burrard Street,
New Gold’s commitment to principled growth as we pursue our strategy of becoming a million-ounce, low-cost                   Vancouver, BC, Canada V6C 2X8
producer is embodied in the phrase “growing responsibly”. It underlies our belief that economic achievement,                 T. +1 604 696 4100 F. +1 604 696 4110
environmental performance and social contributions are indivisible components in the success of the company.

New Gold strives to ensure a workplace free from injury and has achieved a rate of lost-time injury that was significantly   CorPoraTE offiCE
less than those recorded as international industry averages. The company also actively engages in meaningful                 Royal Bank Plaza, South Tower
dialogue with local community residents and organizations to identify economic, training, social and development             3120-200 Bay Street,
priorities and contributes significantly to the development of the communities surrounding our operations.                   Toronto, Ontario, Canada M5J 2J4
                                                                                                                             T. +1 416 324 6000 F. +1 416 324 9494
New Gold’s objectives are to prevent pollution, minimize the impact its operations may cause to the environment
and practice the progressive rehabilitation of areas impacted by its activities. The company has a history of operating
in a socially and sustainable manner meeting international standards in the three countries where it operates mines.

New Gold is a member of Canadian Business for Social Responsibility and is a partner of the United Nations
Global Compact.
Mesquite is a gold mining operation in Imperial County, California, which commenced
production in 2008. It is an open pit, run-of-mine heap leach operation. The mine was
                                                                                                   Properties & Quick Facts
operated between 1985–2001 by Goldfields Mining Corporation, subsequently Sante
Fe Minerals Corporation, and finally Newmont Mining Corporation with Western
Goldfields acquiring the mine in 2003. The mine resumed production on time and on                   Mesquite (100%)
budget in 2008. In 2010, Mesquite is forecast to produce 145,000 to 155,000 ounces of               California, USA
gold at total cash cost of $540 to $560 per ounce sold1.                                            2010 production (guidance)1
                                                                                                    Gold                        145-155 thousand oz
Cerro san pedro                                                                                     2010 total Cash Cost/oz (guidance) $ 540-560
Cerro San Pedro is a gold–silver, open pit, run-of-mine heap leach operation located in             reserves
                                                                                                    Gold                               3.1 million oz
central Mexico, 20 kilometers outside the state capital of San Luis Potosí. Cerro San
Pedro is forecast to produce 95,000 to 105,000 ounces of gold and 1.4 to 1.6 million
                                                                                                    Gold                               4.9 million oz
ounces of silver in 2010. Total cash cost, net of by-product revenues, are forecast to be
$390 to $410 per ounce sold1. In recognition of its exemplary safety record in 2007
and 2008, Cerro San Pedro was awarded the highest safety award granted from the                    Cerro san pedro (100%)
Mexican Chamber of Mines (“CAMIMEX”). It also achieved ISO 14001 re-certification                  Mexico
of its environmental management system. New Gold’s Cerro San Pedro Mine has an                     2010 production (guidance)1
enviable record of compliance with Mexican and international environmental                         Gold                        95-105 thousand oz
standards and enjoys overwhelming local support as a valuable corporate citizen.                   Silver                        1.4-1.6 million oz
                                                                                                   2010 total Cash Cost/oz (guidance) $ 390-410
peak Mines                                                                                         reserves
Peak Mines is an underground mine/mill operation located in New South Wales,                       Gold                              1.4 million oz
                                                                                                   Silver                             52 million oz
Australia that commenced production in 1992. The operation has consistently
                                                                                                   resources3 (oxide)
replaced annual depletion over the last 16 years. Upon production start-up, Peak                   Gold                              1.4 million oz
had one million ounces in reserves. In 2008 it achieved a milestone, producing its                 Silver                           51.5 million oz
two millionth ounce of gold since production start-up. With continued infill drilling              resources3 (sulphide)
to convert resources to reserves, it is expected that the mine life will be extended               Gold                           897 thousand oz
beyond eight years. In 2010, Peak is forecast to produce 90,000 to 100,000 ounces                  Silver                           26.3 million oz
of gold and 15 to 17 million pounds of copper. Total cash cost, net of by-product
revenues, are forecast to be $360 to $380 per ounce sold1.                                         peak Mines (100%)
                                                                                                   2010 production (guidance)1
Development Projects                                                                               Gold
                                                                                                                               90-100 thousand oz
                                                                                                                                  15-17 million lbs
                                                                                                   2010 total Cash Cost/oz (guidance)1 $ 360-380
new afton
New Afton is an exciting project currently under construction in western Canada, near
                                                                                                   Gold                           570 thousand oz
Kamloops, BC. The project is a large underground copper-gold deposit, which will                   Copper                            67 million lbs
produce an annual estimated average of 85,000 ounces of gold and 75 million pounds                 resources3
of copper over a 12 year mine life. In the fourth quarter of 2009, underground crews               Gold                           850 thousand oz
achieved their highest quarterly advance, completing 643 meters, for a total of 1,708              Copper                           127 million lbs
meters of underground development completed in 2009. The New Afton project
schedule involves continued underground development through to 2012, with
undercutting of the ore body and surface construction resuming in 2011. At today’s                 new afton project (100%)
gold and copper prices, New Afton is expected to more than double the cash flow
                                                                                                   annual production 4
generated by the company.
                                                                                                   Gold                                                 85 thousand oz
                                                                                                   Silver                                              214 thousand oz
el Morro                                                                                           Copper                                            75 million lbs (est.)
El Morro is a copper gold-project in Chile. New Gold has a 30% interest with Xstrata               reserves
Copper, which owns the remaining 70%. On January 7, 2010, New Gold announced                       Gold                                                     1.05 million oz
the exercise of its right of first refusal (“ROFR”) to acquire 70% of the El Morro project         Silver                                                   3.09 million oz
for $463 million. The ROFR came into effect on October 12, 2009, when Barrick Gold                 Copper                                                   993 million lbs
announced its offer to purchase 70% of El Morro from Xstrata for $465 million.                     resources3
Goldcorp will loan $463 million to New Gold to fund the exercise of the ROFR. After                Gold                                                     1.67 million oz
                                                                                                   Silver                                                   5.28 million oz
acquisition of the 70% interest by a New Gold subsidiary, New Gold will sell that                  Copper                                                   1.54 billion lbs
subsidiary to Goldcorp. Concurrent with the sale of the 70% interest to Goldcorp,
Goldcorp will make a $50 million payment to New Gold and the parties will amend the
terms of the existing El Morro Shareholders Agreement to further increase the value                el Morro project 5 (30%)
of New Gold’s 30% interest in the El Morro project including: Goldcorp carrying 100%               Chile
of New Gold’s share of development capital, a more favourable interest rate charge on              reserves
the carried funding and a construction delay penalty in the event certain construction             Gold                                                     2.01 million oz
timelines are not met. On January 13, 2010, Barrick commenced legal proceedings to                 Copper                                                   1.72 billion lbs
attempt to challenge New Gold’s exercise of its right of first refusal to acquire Xstrata’s        resources3
interest in the El Morro project. New Gold is unaware of any fact or circumstance that             Gold                                                     2.66 million oz
would support any of the allegations and believes the Barrick claim to be without merit.           Copper                                                   2.02 billion lbs

                                                                                              1. Cash costs are net of copper/silver by-product sales. 2. Includes gross proceeds of $107 million from the bought deal financing,
                                                                                              assuming a USD/CAD exchange rate of $0.93. 3. Measured and Indicated Resources are inclusive of Proven & Probable Mineral
                                                                                              Reserves. 4. Production start-up expected in Q2, 2012. 5. For the calculation of estimated total reserves and resources, the El Morro
                                                                                              Project has been calculated at 30% of the total reserves and resources, to reflect New Gold’s interest in the El Morro Project. Mineral
                                                                                              reserves have been estimated at prices of $1.25/lb copper, $500/oz gold and are reported at a 0.3% copper equivalent cut-off. Mineral
                                                                                              reserve and resources have been reported as of December 31, 2008 in accordance with CIM Standards or the JORC Code. For additional
                                                                                              details on Reserves and Resources, including related disclosure, please visit

New Gold Inc. Park Place, 3110-666 Burrard Street, Vancouver, British Columbia, Canada V6C 2X8 t +1 888 315 9715 F +1 604 696 4110

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