2014 New Gold Annual Report

In 2014, New Gold delivered record low costs of $312 per ounce. We are positioned with assets in politically stable regions, a dedicated executive team who are shareholders themselves, strong cash flows and a leading growth pipeline in the industry. We have a track record of value creation through ups and downs in the market and intend to build on it in the future.


Fellow
Shareholders,

Our operating mines are, collectively, our engine for growth. Together, they achieved 2014 production guidance of over 380,000 ounces of gold.
In 2015, we expect increased production at continued low costs.

2014 Scorecard
2015 Targets

New Afton Mine

New Afton Mine
2014 PRODUCTION 104,589 Gold (ounces) 84.5 Copper (million pounds) $(1,248) Total cash costs per ounce
(net of by-product sales)
$(650) All-in sustaining costs
per ounce
2015 targets 105,000–115,000 Gold (ounces) 85–95 Copper (million pounds) $(1,070)–$(1,030) Total cash costs per ounce
(net of by-product sales)
$(560)–$(520) All-in sustaining costs
per ounce

Mesquite Mine

Mesquite Mine
2014 PRODUCTION 106,670 Gold (ounces) $909 Total cash costs per ounce $1,266 All-in sustaining costs
per ounce
2015 targets 110,000–120,000 Gold (ounces) $925–$965 Total cash costs per ounce $1,290–$1,330 All-in sustaining costs
per ounce

Peak Mines

Peak Mines
2014 PRODUCTION 99,030 Gold (ounces) 17 million Copper (pounds) $658 Total cash costs per ounce
(net of by-product sales)
$1,025 All-in sustaining costs
per ounce
2015 targets 85,000–95,000 Gold (ounces) 15–17 million Copper (pounds) $660–$700 Total cash costs per ounce
(net of by-product sales)
$1,005–$1,045 All-in sustaining costs
per ounce

Cerro San Pedro Mine

Cerro San Pedro Mine
2014 PRODUCTION 69,847 Gold (ounces) 1.1 million Silver (ounces) $1,251 Total cash costs per ounce
(net of by-product sales)
$1,354 All-in sustaining costs
per ounce
2015 targets 90,000–100,000 Gold (ounces) 1.75–1.95 million Silver (ounces) $955–$995 Total cash costs per ounce
(net of by-product sales)
$1,005–$1,045 All-in sustaining costs
per ounce

Rainy River Project

Rainy River Project
Proven and Probable Reserves 3.8 million Gold (ounces) 9.4 million Silver (ounces)
Production estimates 325,000 Gold (ounces per year)
for the first nine years

Blackwater Project

Blackwater Project
Proven and Probable Reserves 8.2 million Gold (ounces) 60.8 million Silver (ounces)
Production estimates 485,000 Gold (ounces per year)
for the first nine years

El Morro Project

El Morro Project
Proven and Probable Reserves
(New gold’s 30 percent share)
2.7 million Gold (ounces) 2.0 billion Copper (pounds)
Production estimates 2011 feasibility study
(New gold’s 30 percent share)
90,000 Gold (ounces per year) 85 million Copper (pounds per year)

Financial Highlights

In 2014, New Gold strengthened our financial position as our operations met production guidance and also beat guidance for all-in sustaining costs. Even in a challenging gold price environment, we delivered the highest cash flow in our Company’s history at $310 million before working capital, an increase of 20% over the prior year.