As well as successes, there were challenges during the year. As discussed in the second half of 2013, New Gold’s 2013 production was impacted by a combination of a pit wall movement and lower recoveries at Cerro San Pedro Mine and lower grades at Mesquite. In October 2013, New Gold updated its production outlook, maintaining original guidance for New Afton and Peak Mines and lowering expectations for Cerro San Pedro and Mesquite.

The Company’s costs were among the lowest in the industry. Total cash costs were $377 per ounce, while all-in sustaining costs were $899 per ounce.

2014 production is expected to be in line with 2013, while costs are expected to fall further. New Gold is targeting all-in sustaining costs of between $815 and $835 per ounce for 2014. As one of the lowest-cost companies in the business, New Gold is well positioned for the future. Strong cash flows from operations, and a cash balance of $414 million, give New Gold the financial flexibility to internally fund future growth. New Gold has a peer-leading growth pipeline, and expects to continue its history of value creation for the benefit of shareholders.

2013 FULL YEAR MINE-BY-MINE OPERATING RESULTS Gold production (Koz) Total cash costs ($/oz) All-in sustaining costs ($/oz)
New Afton 87 ($1,196) ($133)
Mesquite 107 $907 $1,108
Peak Mines 101 $850 $1,331
Cerro San Pedro 103 $676 $766
398 $377 $899
New Afton co-product cash costs
Gold ($/oz)  $486
Copper ($/lb)  $1.19