New Gold
Inc. ("New Gold") (TSX:NGD)(NYSE AMEX:NGD) today announces
financial and operational results for the third quarter of 2011. The company
finished the third quarter with gold sales of 93,028 ounces at a total cash
cost(1) per ounce sold, net of by-product sales, of$528 per
ounce. The combination of increased gold sales and the continued strength of
the gold price led to another quarter of strong financial results, despite
certain temporary operational challenges resulting in higher total cash cost(1).
During the quarter, the company's earnings from mine operations increased by
61% to $76 million, resulting in net earnings of $41 million, or $0.09 per
share. Net cash generated from operations increased by 105% to $71
million when compared to the third quarter of 2010.
New
Gold Third Quarter Highlights
·
Quarterly
gold sales increased to 93,028 ounces from 89,692 ounces in the same period
in 2010
·
·
Net cash
generated from operations increased by 105% to $71 million
·
·
Underground
mine production commenced at New Afton with first drawbell blasts
successfully initiating the caving process
·
·
$433
million of cash at September 30, 2011
·
·
Updated NI
43-101 compliant mineral resource estimate for the Blackwater Project (100%
basis):
·
o
Indicated
gold resource: 165 million tonnes at an average grade of 1.01 g/t containing
5.4 million ounces of gold
o
o
Inferred
gold resource: 39 million tonnes at an average grade of 0.94 g/t containing
1.2 million ounces of gold
o
"The
third quarter saw New Gold continue to build on its momentum,
particularly through the start of underground mining at New Afton and the
significant growth in gold resources at Blackwater," stated Randall
Oliphant, Executive Chairman. "While our quarterly cash costs were
impacted by certain operational challenges, the performance of our mines in
the first nine months of the year has allowed us to maintain a very strong
financial footing. It is from this solid foundation that we advance our three
exciting projects which provide our company with an even more promising
future."
2011 Third Quarter Operations Overview
|
New Gold 2011 Third Quarter Consolidated - Summary
Operational Results
|
|
Three
months ended
|
|
Nine
months ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
2011
|
2010
|
|
2011
|
2010
|
Gold
|
|
|
|
|
|
|
Sales (thousand ounces)
|
|
93.0
|
89.7
|
|
292.3
|
252.1
|
Production (thousand ounces)
|
|
90.4
|
91.3
|
|
286.5
|
258.5
|
Average
realized price ($ per ounce)
|
|
$1,570
|
$1,181
|
|
$1,430
|
$1,137
|
|
|
|
|
|
|
|
Silver
|
|
|
|
|
|
|
Sales (thousand ounces)
|
|
379.6
|
748.7
|
|
1,567.8
|
1,447.6
|
Production (thousand ounces)
|
|
380.6
|
733.5
|
|
1,536.3
|
1,487.2
|
Average
realized price ($ per ounce)
|
|
$37.71
|
$19.25
|
|
$36.25
|
$18.66
|
|
|
|
|
|
|
|
Copper
|
|
|
|
|
|
|
Sales (million pounds)
|
|
4.9
|
2.3
|
|
12.4
|
9.3
|
Production (million pounds)
|
|
2.6
|
3.1
|
|
9.4
|
11.1
|
Average
realized price ($ per pound)
|
$3.39
|
$3.33
|
|
$3.84
|
$3.28
|
|
|
|
|
|
|
|
Total
cash cost(1) - net of by-product sales ($ per ounce)
|
$528
|
$422
|
|
$409
|
$456
|
Average
realized margin ($
per ounce)
|
$1,042
|
$759
|
|
$1,021
|
$681
|
The
company's portfolio of three operating mines delivered another strong quarter
of gold production and sales, however, total cash cost(1) per
ounce sold, net of by-product sales, increased when compared to the prior
year quarter. While the reasons for the total cash cost(1) increases
at the individual operations are discussed further in the mine-by-mine
results below, the primary driver was the increase in total cash cost(1) at
the Peak Mines. Peak's costs were negatively impacted by a combination of
higher labour and foreign exchange rates and lower mill recoveries,
particularly for copper. Further, as Peak's concentrate inventory was sold at
the end of September, the realized copper price was below the prevailing
average copper price during the third quarter of 2011 thus resulting in a
lower copper by-product revenue.
During the
third quarter, each of New Gold's three large development projects
continued to advance. New Afton, the company's most immediate development
project, is now just eight months from production. The third quarter marked
the official beginning of underground mine production at New Afton as caving
was initiated through the blasting of the first drawbells. With both surface
construction and underground development progressing well, New Afton remains
on track for its targeted mid-2012 production start. At El Morro, the
company's 70% partner Goldcorp Inc. ("Goldcorp"), continued
to oversee the update of the 2008 feasibility study where the technical work
on the update was completed during the third quarter and is now under Goldcorp management's
review. The company's newest project, Blackwater, progressed significantly
during the quarter as highlighted by the company's September 19, 2011 announcement
regarding the project's updated mineral resource estimate. On a 100% basis,
the updated resource, which included holes drilled through the end of July
2011, contained 5.4 million ounces of indicated gold mineral resources and an
additional 1.2 million ounces of inferred gold mineral resources. Further, New
Gold has continued to upgrade the mine camp at Blackwater to facilitate
the addition of more drills and has held multiple positive meetings with the
local First Nations, communities, governments and other regulatory bodies.
Subsequent to the end of the third quarter, on October 17th,
the company announced offers to acquire both Silver Quest Resources Ltd. ("Silver
Quest") and Geo Minerals Ltd. ("Geo"). Upon closing,
these acquisitions would both consolidate New Gold'sownership of 100% of
the Blackwater Project and add to New Gold's already
significant landholdings in the area surrounding the current Blackwater
mineral resource.
"The
third quarter saw our operating teams deliver another strong quarter of gold
production and while our costs increased, I am pleased with how the teams
worked proactively to minimize the overall impact on our results,"
stated Robert Gallagher, President and Chief Executive Officer.
"While the cash cost increase at Peak during the quarter was compounded
due to the timing of the concentrate sale, the cost pressures and recovery
challenges at the mine remain a core focus for us as we move into the fourth quarter
and into 2012."
2011 Third Quarter Consolidated Financial Results
|
New Gold 2011 Third Quarter Consolidated -
Summary Financial Results
|
|
Three
months ended
|
|
Nine
months ended
|
Figures
in US$ millions, expect per share amounts
|
|
September
30,
|
|
|
September
30,
|
|
|
2011
|
2010
|
|
2011
|
2010
|
Revenue
|
|
175.5
|
127.1
|
|
518.3
|
341.1
|
Average
realized gold price ($ per ounce)
|
|
1,570
|
1,181
|
|
1,430
|
1,137
|
Average
margin per ounce ($ per ounce)
|
1,042
|
759
|
|
1,021
|
681
|
Earnings from mine operations
|
|
76.1
|
47.1
|
|
240.0
|
120.4
|
|
|
|
|
|
|
|
Net
earnings from continuing operations
|
40.7
|
44.8
|
|
144.0
|
31.8
|
Net
earnings per share from continuing operations
|
0.09
|
0.11
|
|
0.34
|
0.08
|
Adjusted
net earnings from continuing operations
|
49.5
|
29.3
|
|
145.7
|
58.7
|
Adjusted
net earnings per share
|
|
0.11
|
0.07
|
|
0.34
|
0.15
|
|
|
|
|
|
|
|
Pre-tax
cash generated from operations
|
93.0
|
49.3
|
|
240.8
|
125.9
|
Net cash
generated from operations
|
70.7
|
34.5
|
|
163.6
|
97.8
|
The
combination of increased gold sales and higher average realized gold prices
resulted in New Gold reporting increases in key financial
categories during the quarter. Importantly, despite the increase in total
cash cost(1) during the quarter, the company was able to
provide shareholders with an average margin of over $1,000 per
ounce for the second straight quarter. Increased gold sales at higher average
realized gold prices led to a 38% increase in revenue during the third
quarter of 2011, which, in turn, resulted in a 61% increase in earnings from
mine operations to $76 million.
Net
earnings from continuing operations in the third quarter of 2011 were $41
million, or $0.09 per share. Adjusted net earnings from continuing
operations(2)were $49 million, or $0.11 per share,
during the quarter compared to $29 million, or $0.07 per
share, in the third quarter of 2010. Net earnings has been adjusted and tax
affected for the group of costs in "Other gains (losses)" on the
condensed consolidated income statement. The most significant adjustment is
the fair value change of the company's share purchase warrants and
convertible debentures in the third quarter of 2011 which was a pre-tax loss
of $35 million, relative to a pre-tax loss of $10 million in
the same period of the prior year. See the notes at the end of the release
for a reconciliation of Adjusted net earnings.
Net cash
generated from operations increased by 105% to $71 million when
compared to the prior year quarter. Cash flow during the quarter benefitted from
strong earnings and New Gold's ability to reduce working capital.
Mesquite
Mine Increases Production and Earnings from Mine Operations
|
Mesquite
|
|
Three
months ended
|
|
Nine
months ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
2011
|
2010
|
|
2011
|
2010
|
Gold
|
|
|
|
|
|
|
Sales (thousand ounces)
|
|
32.5
|
30.9
|
|
117.5
|
119.2
|
Production (thousand ounces)
|
|
31.8
|
30.2
|
|
114.4
|
113.0
|
|
|
|
|
|
|
|
Average realized prices
|
|
|
|
|
|
|
Gold ($ per ounce)
|
|
1,311
|
1,079
|
|
1,259
|
1,067
|
Total
cash cost(1) ($
per ounce)
|
|
732
|
670
|
|
628
|
600
|
Earnings
from mine operations ($ millions)
|
13.7
|
7.5
|
|
57.7
|
34.3
|
Gold sales
and production at Mesquite increased by 5% in the third quarter of 2011 and
were relatively consistent in the year-to-date period, when compared to the
same periods of the prior year. During the quarter and through 2011, the
operating team has remained focused on cost control despite year-over-year
input cost pressures, most notably from increased diesel prices. By working
to offset some of the impact of input cost pressures on total cash cost(1) and
through the increase in the average realized gold price, Mesquite increased
earnings from mine operations by 83% to $14 million during the
third quarter of 2011. Similarly, in the first nine months of 2011, earnings
from mine operations increased by 68% to $58 million when compared
to the same period of the prior year.
The
increases in gold production and sales during the third quarter were a result
of greater ore tonnes being placed on the leach pad at grades and recoveries
consistent with those realized in the third quarter of 2010. Year-to-date
gold production and sales were consistent with the prior year as the benefit
of mining at grades closer to reserve grade offset the impact of fewer ore
tonnes being placed on the pad. The change in total cash cost(1) was
primarily driven by increased inputs costs, such as diesel fuel, where prices
have been approximately 40% higher than in both the third quarter and
year-to-date periods of 2010. The higher diesel prices were partially offset
by a lower strip ratio resulting in lower waste tonnes moved during the third
quarter and increased operator efficiencies.
Based on
Mesquite's strong performance through the first nine months of 2011 and the
forecast for the fourth quarter, it is anticipated that Mesquite should
achieve the upper end of its 2011 gold production guidance of 145,000 to
155,000 ounces. In addition, depending on the movements in the diesel price
in the final months of the year, Mesquite should be lower than the total cash
cost(1) guidance range of $660 to $680 per ounce of
gold sold.
Cerro San
Pedro Mine Continues On Path to Best Year in its History
|
Cerro
San Pedro
|
|
Three
months ended
|
|
Nine
months ended
|
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
|
Gold
|
|
|
|
|
|
|
|
|
Sales (thousand ounces)
|
|
34.4
|
38.1
|
|
109.7
|
76.0
|
|
|
Production (thousand ounces)
|
|
34.3
|
37.5
|
|
109.6
|
79.8
|
|
|
|
|
|
|
|
|
|
|
|
Silver
|
|
|
|
|
|
|
|
|
Sales (thousand ounces)
|
|
379.6
|
748.7
|
|
1,567.8
|
1,447.6
|
|
|
Production (thousand ounces)
|
|
380.6
|
733.5
|
|
1,536.3
|
1,487.2
|
|
|
|
|
|
|
|
|
|
|
|
Average realized prices
|
|
|
|
|
|
|
|
|
Gold ($ per ounce)
|
|
1,693
|
1,234
|
|
1,531
|
1,205
|
|
|
Silver ($ per ounce)
|
|
37.71
|
19.25
|
|
36.25
|
18.66
|
|
|
Total
cash cost(1) - net of by-product sales ($ per ounce)
|
193
|
151
|
|
73
|
277
|
|
|
Earnings
from mine operations ($ millions)
|
45.1
|
29.5
|
|
135.2
|
47.4
|
|
|
Cerro San
Pedro had another strong quarter, increasing earnings from mine
operations by 53% to $45 million, despite lower gold and silver
production and sales when compared to the third quarter of 2010. For the nine
months ended September 30, 2011, the combination of a 44% increase in
gold sales, higher realized gold prices and a $204 per ounce
decrease in total cash cost(1) per ounce of gold sold, net of
by-product sales, led to a 185% increase in earnings from mine operations to $135
million when compared to the same period of the prior year.
Gold and
silver production and sales during the third quarter of 2011 were lower than
the prior year period due to a combination of lower ore grades and leach pad
recoveries. The lower grades were a result of mine sequencing while the lower
recoveries were driven by reduced cyanide supply. Cerro San
Pedro'scyanide supplier experienced production issues at its plant during the
quarter, which resulted in Cerro San Pedro and various other mining
operations receiving only a partial allotment of their usual cyanide supply.
The team successfully minimized the impact of the cyanide shortage by placing
more ore tonnes on the pad thus leading Cerro San Pedro to another
strong quarter. The cyanide supply issues have now been resolved and Cerro
San Pedro is receiving its full cyanide allotment. Gold and silver
production and sales increased in the year-to-date period due to a 57%
increase in ore tonnes placed on the leach pad. The increase in total cash
cost(1) during the third quarter was primarily due to lower
silver by-product revenue. The decrease in total cash cost(1) in
the year-to-date period was largely a result of higher silver by-product
revenues driven by both higher silver sales and prices.
Cerro San
Pedro remains on track to achieve the best year in its history with
year-to-date earnings from mine operations of $135 million already
well exceeding the 2010 full year total, despite the cyanide supply issues
during the third quarter. Cerro San Pedro is forecast to meet its
2011 gold production guidance of 135,000 to 145,000 ounces and also remains
well positioned as the company's lowest cost producer. As a result of lower
third quarter silver sales volumes and the time required for the leach pad to
reach historical silver recoveries, the company anticipates Cerro San
Pedro's 2011 total cash cost(1) per ounce of gold sold,
net of by-product sales, could be slightly above the guidance range of $90
to $110 per ounce.
Peak
Mines' Costs Negatively Impacted by Stronger Australian Dollar and Operating
Cost Inflation
|
Peak
Mines
|
|
Three
months ended
|
|
Nine
months ended
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
Gold
|
|
|
|
|
|
|
|
Sales (thousand ounces)
|
|
26.2
|
20.7
|
|
65.1
|
56.9
|
|
Production (thousand ounces)
|
|
24.4
|
23.7
|
|
62.5
|
65.6
|
|
|
|
|
|
|
|
|
|
Copper
|
|
|
|
|
|
|
|
Sales (million pounds)
|
|
4.9
|
2.3
|
|
12.4
|
9.3
|
|
Production (million pounds)
|
|
2.6
|
3.1
|
|
9.4
|
11.1
|
|
|
|
|
|
|
|
|
|
Average realized prices
|
|
|
|
|
|
|
|
Gold ($ per ounce)
|
|
1,731
|
1,234
|
|
1,568
|
1,194
|
|
Copper ($ per pound)
|
|
3.39
|
3.33
|
|
3.84
|
3.28
|
|
Total
cash cost(1) - net of by-product sales ($ per ounce)
|
715
|
549
|
|
580
|
393
|
|
Earnings
from mine operations ($ millions)
|
17.1
|
10.1
|
|
47.2
|
38.7
|
|
Gold and
copper sales at Peak Mines increased in the third quarter of 2011 and
year-to-date periods as Peak was able to sell down the majority of its
concentrate inventory during the quarter. As a result of the increases in
gold sales and average realized gold prices, and despite the increase in
total cash cost(1), Peak Mines increased earnings from mine
operations by 69% and 22% in the third quarter of 2011 and year-to-date,
respectively, when compared to the same periods of the prior year.
While gold
production during the third quarter of 2011 and year-to-date periods remained
similar with that of the prior year periods, copper production declined due
to lower copper grades and recoveries. Recoveries were negatively impacted by
the slower than anticipated commissioning of a new floatation plant during
the quarter. The start-up issues associated with the floatation plant are
being resolved with recoveries increasing towards historic levels.
The
increase in total cash cost(1) during the third quarter of
2011 and year-to-date periods resulted primarily from a combination of higher
labour and foreign exchange rates and the lower mill recoveries. The
appreciation of the Australian dollar and inflationary cost pressures each
contributed approximately $200 per ounce to the increase in total
cash cost(1) when comparing the third quarter of 2011 with
the prior year quarter. These cost increases were partially offset by higher
by-product revenues from the increased copper sales volumes reducing total
cash cost(1) by approximately $225 per ounce when
compared to the prior year quarter. The increase in total cash cost(1) in
the year-to-date period is for similar reasons to those noted for the third
quarter. While labour and exchange rate pressures continue to be a factor in Australia,
they are largely a result of Australia being a desired place to
operate and a politically secure country to invest in mining.
In
September, the company was able to sell down its concentrate inventory as
additional rail cars became available for New Gold to ship greater
than its usual allotment of concentrate to the port. While the inventory
reduction was positive as it reduced New Gold's working capital and
increased the company's cash flow, the timing of the inventory sale at the
end of the quarter also contributed to the increased costs. The combination
of lower copper recoveries and production in the quarter and the fact the
concentrate sale occurred in late September when the copper price declined
well below its quarterly and year-to-date average levels, meant the
aforementioned increases in costs did not have as significant a by-product
offset as anticipated. Had Peak realized the quarterly average copper price
of $4.08 per pound, total cash cost(1) would have
been lower by approximately $125 per ounce and more in line with
the prior year quarter.
Based on
Peak's performance through the first nine months of 2011 and the forecast for
the fourth quarter, it is anticipated that the Peak Mines should achieve the
lower end of the 2011 gold production guidance of 90,000 to 100,000 ounces.
As both the year-to-date realized copper price and the current copper price
are below the forecast assumption of $4.00 per pound and the
Australian dollar remains above the assumed parity level, it is anticipated
that Peak's 2011 total cash cost(1) per ounce of gold sold,
net of by-product sales, will remain above the guidance range of $410 to
$430 per ounce. The year-to-date total cash cost(1) of $580 per
ounce is representative of Peak's current 2011 full year cost forecast.
New Afton
Officially Commences Underground Operations
New Gold's most
immediate development project continued on schedule during the third quarter
of 2011 with multiple areas of development and construction being advanced or
completed. Both the underground development work and surface construction
activities continue on schedule for the targeted mid-2012 production start.
New Afton will be an underground mine and concentrator which is expected to
produce an annual average of 85,000 ounces of gold and 75 million pounds of
copper at low operating costs.
The third
quarter marked the commencement of underground mine production at New Afton
as the first drawbell was blasted on September 9th, with the
second and third drawbells being blasted on October 2nd and
21st, respectively. The New Afton team is pleased with these
initial blasts as the drawbell structure, related rock behaviour and the ore
flow have been consistent with expectations. The process of removing ore from
the first drawbell commenced during the quarter and with additional drawbell
blasts scheduled in the fourth quarter, the surface stockpile should continue
to grow consistently through the mid-2012 production start. It is anticipated
that there will be approximately three months of ore stockpiled on surface by
start-up.
New Afton Third Quarter Underground Highlights
·
First
drawbell blasted on September 9th
·
o
Removed
~3,500 tonnes from drawbell opening by the end of the quarter
o
·
Second and
third drawbells blasted in October with fourth drawbell in progress
·
·
~139,000
tonnes of ore moved to surface stockpile as at September 30, 2011
·
·
Continued
blasting/development of undercut and extraction levels
·
·
~2,210 metres of underground
advance completed
·
·
Completed
raise boring of two ore passes and one extraction level ventilation raise
·
·
Underground
development crusher assembled - concrete foundation 85% completed
·
New Afton Third Quarter Surface Construction
Highlights
·
Erection
of interior steel in mill building over 75% complete
·
·
Final
grading for pipes and surface road in tailings corridor underway
·
·
Earthworks
for tailings storage facility over 80% complete
·
·
Overhead
electrical lines installed on site
·
In the
third quarter of 2011, project spending at New Afton was $66 million,
excluding capitalized interest. On a year-to-date basis, project spending has
been$182 million, excluding capitalized interest. Capitalized interest was $6
million and $19 million during the third quarter and
year-to-date periods, respectively.
In
addition to the significant progress being made at the site, off-take
agreements are now in place for 100% of the projected concentrate production.
The company has also established an agreement for storage and ship loading of
concentrate at the Vancouver wharves. The key terms of the contract
for trucking of concentrate from New Afton to the wharves have also been
established and it is anticipated this contract should be executed prior to
the end of the year.
The
company is very pleased with the continued progress at New Afton and looks
forward to additional milestones being achieved through the end of 2011 and
into 2012. With the remaining capital through the mid-2012 production start
now at approximately $200 million, New Gold continues to have
a cash balance well in excess of the remaining capital required. Once in
production, New Afton is expected to contribute significantly to New
Gold's current portfolio of operating assets driving gold production
growth at lower costs. At current commodity prices, the mine is expected to
approximately double the company's cash flow.
El Morro
Costs and Timeline Updated - New Gold Fully Carried
El Morro
is an advanced stage, world-class gold/copper project in northern Chile,
one of the most attractive mining jurisdictions in the world. New Gold is
a 30 percent partner in the project, with Goldcorp, the project
developer and operator, holding the remaining 70 percent. The project is
located in the Atacama region of Chile approximately 80 kilometres
east of the city of Vallenar and comprises a large, 36-square kilometre land
package with significant potential for organic growth through further
exploration. Two principal zones of gold-copper mineralization have been
identified to date - the El Morro and La Fortuna zones - and several
additional targets have also been identified through a regional exploration
plan. Currently, New Gold's attributable 30% share of proven and
probable reserves contains 2.6 million ounces of gold and 1.8 billion pounds
of copper. Future exploration efforts will also test the potential for
bulk-mineable gold and copper production below the bottom of the current
design pit. New Gold's attributable 30% share of the inferred
mineral resource below the open pit contains 1.3 million ounces of gold and
0.6 billion pounds of copper.
As
reported by Goldcorp on October 26th, during the
third quarter, progress continued on an update to the project's 2008
feasibility study. The update is aimed at evaluating the optimum location of
the project's primary infrastructure items as well as a reassessment of
technical aspects, cost and schedule of the project. While the results of the
study are currently undergoing Goldcorp's review, preliminary
results have indicated a total capital cost of approximately $3.9
billion and a production start date in mid-2017. Under the terms of New
Gold's joint venture agreement with Goldcorp, Goldcorp is
responsible for funding New Gold's 30% share of capital costs, or
approximately $1.2 billion. The carried funding will accrue interest at
a fixed rate of 4.58%. New Gold will repay its share of capital
plus accumulated interest out of 80% of its 30% share of the project's cash
flow with New Gold retaining 20% of its 30% share of cash flow from
the time production commences.
Condemnation
drilling continues at El Morro with two rigs on site and an additional two
rigs to be added during the fourth quarter of 2011. In addition, construction
permits to authorize construction of specific facilities are expected to be
approved by the middle of the fourth quarter.
On a 100%
basis, capital expenditures, excluding capitalized interest, during the three
months ended September 30, 2011 amounted to $32 million, with
year-to-date expenditures totalling $56 million. Goldcorp is
responsible for funding New Gold's 30% share of capital costs.
As
disclosed on January 13, 2010, New Gold received a Statement
of Claim filed by Barrick Gold Corporation ("Barrick") in
the Ontario Superior Court of Justice, against New Gold, Goldcorp and
affiliated subsidiaries. The claim relates to the transactions announced on January
7, 2010, the ultimate completion of which resulted in New Gold and Goldcorp becoming
partners at El Morro. Barrick also subsequently filed a motion to amend its
claim to add various Xstrata entities as defendants. The trial
started in June 2011 and continued in October 2011, with
closing arguments expected in early 2012 and a decision expected three to six
months thereafter. New Gold continues to believe that the claim is
without merit.
Blackwater
Resource Grows - Drilling Continues to Accelerate
On June
1, 2011, New Gold closed the acquisition of Richfield Ventures
Corp. thus adding the exciting Blackwater Project, located in
central British Columbia, to the company's pipeline. In mid-September
the company updated the Blackwater mineral resource estimate to include
drilling completed from the beginning of the year through the end of July
2011, thus incorporating an additional 71 holes (24,660 metres) beyond that
of the initial March 2011 resource estimate. The project's updated
September mineral resource estimate included 5.4 million ounces of indicated
gold resources and an additional 1.2 million ounces of inferred gold
resources. New Gold is targeting the completion of an additional 75
holes from the end of July through the end of 2011.
New Gold was
very active in the Blackwater area both during and subsequent to the third
quarter, highlights of which include:
Blackwater
Third Quarter Highlights
·
Completed
updated mineral resource estimate in September
·
·
Added
sixth drill rig in mid-September
·
·
Completed
over 22,000 metres of drilling during the third quarter (56 holes)
·
·
Drilled
seven dedicated core holes for metallurgical testing
·
·
Continued
camp expansion for accelerated drill program
·
·
Continued
engineering trade-off studies in preparation for project's Preliminary
Economic Assessment targeted for the second quarter of 2012
·
·
Continued
implementation of sustainability program including interaction with local communities,
local First Nations, government and regulatory officials
·
·
Continued environmental baseline
program
·
·
On October
17th, announced two separate offers to acquire Silver Quest and
Geo in an effort to consolidate the ownership of 100% of the Blackwater
Projectand add further to New Gold's significant landholdings in
the broader Blackwater area
·
·
On October
26th, the company acquired an additional 580 hectares of land to
the southwest of the Blackwater Project from two private
individuals
·
The map
below shows a portion of New Gold's landholdings around the Blackwater
Project area. The Blackwater joint venture ground which is currently
owned 25% by Silver Quest and 75% by New Gold and the Geo
Minerals ground would become 100%-owned by New Gold upon
closing of the above noted October 17th transactions,
while ownership of the private claims has now been transferred to New
Gold.
http://preview1.newswire.ca/media/2011/11/03/20111103-549191-6152-8f9deef4-1932-400d-b9e5-cd729afe38ff.pdf
Key
Financial Information
New Gold's cash
balance at September 30, 2011 was $433 million. The company
had $241 million of debt outstanding at the end of the third
quarter comprised of $173 million of 10% senior secured notes due
in 2017 (face value of C$187 million), $43 million of 5%
convertible debentures due in 2014 (face value of C$55 million and C$9.35 conversion
price) and $25 million in El Morro project funding loans.
Management
Changes
New Gold today
also announces changes to its senior management team as Executive Vice
President and Chief Operating Officer, Jim Currie, will be leaving the
company. Mr. Currie joined New Gold shortly after the company's
three-way merger in mid-2008 and has been a key contributor in New
Gold's evolution since that time. He has successfully led the operating
teams to an enviable record of achieving production and cost guidance over
the past three years and has also played an important role in the development
of New Afton.
"Over
the last three years Jim has done a wonderful job of integrating new mines
and projects into New Gold's portfolio while creating a strong
performance culture among both our operating and development teams who will
continue to deliver strong results," stated Robert Gallagher,
President and Chief Executive Officer. "On behalf of the Board and
entire New Gold team, I thank Jim for all that he has done for the
company and wish him success in his future endeavours."
Robert
Gallagher will assume Mr. Currie's responsibilities until a
comprehensive search process to identify his successor is completed.
2011
Outlook
Through
the first nine months of 2011, New Gold has produced 286,484 ounces
of gold at total cash cost(1), net of by-product sales, of $409 per
ounce. New Gold is pleased to reiterate the 2011 production
guidance the company set at the beginning of the year for gold production of
380,000 to 400,000 ounces.New Gold's initial guidance for 2011 total
cash cost(1) per ounce sold, net of by-product sales, was $430
to $450 per ounce. In May of 2011, based on the rapid appreciation of
silver and copper prices, New Gold lowered its total cash cost(1) guidance
for the year to $390 to $410 per ounce. Among other assumptions,
this cost guidance range was based upon a $4.00 per pound copper
price. Taking into account the year-to-date realized copper price and
assuming $3.50 per pound copper in the fourth quarter, total cash
cost(1) per ounce sold, net of by-product sales, for the year
may be nominally above the company's reduced guidance range of $390 to
$410 per ounce. New Gold should finish the year as one of the
lowest cost producers in the industry. In addition to the three operating
mines, the company's three development projects should continue to advance
meaningfully with multiple catalysts anticipated in late 2011 and early 2012.
Conference
Call and Webcast
New Gold will
hold a conference call and webcast on Friday, November 4th, 2011 at 10:00
am Eastern Time to discuss the company's third quarter 2011 financial
results. Participants may join the conference by calling 1-647-427-7450 or
toll-free 1-888-231-8191 in North
America. To listen to a recorded playback of the call after the event, please
call 1-416-849-0833 or
toll-free 1-855-859-2056 in North
America - Passcode 19823451.
A live and
archived webcast will also be available at www.newgold.com.
About New
Gold Inc.
New Gold is
an intermediate gold mining company. The company has a portfolio of three
producing assets and three significant development projects. The
Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico and
Peak Gold Mines in Australia are expected to produce between
380,000 and 400,000 ounces of gold in 2011. The fully-funded New Afton
project in Canada is scheduled to add further growth in 2012. In addition, New
Gold owns 30% of the world-class El Morro project located in Chile and,
in June 2011, New Gold acquired the exciting Blackwater
project in Canada. For further information on the company, please visit www.newgold.com.
Cautionary
Note Regarding Forward-Looking Statements
Certain
information contained in this news release, including any information
relating to New Gold's future financial or operating performance
may be deemed "forward looking". All statements in this news
release, other than statements of historical fact, that address events or
developments that New Gold expects to occur, are
"forward-looking statements". Forward-looking statements are
statements that are not historical facts and are generally, but not always,
identified by the words "expects", "does not expect",
"plans", "anticipates", "does not anticipate",
"believes", "intends", "estimates",
"projects", "potential", "scheduled",
"forecast", "budget" and similar expressions, or that
events or conditions "will", "would", "may",
"could", "should" or "might" occur. All such
forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made and are subject to
important risk factors and uncertainties, many of which are beyond New
Gold's ability to control or predict. Forward-looking statements are
necessarily based on estimates and assumptions (including that the business
of Richfield will be integrated successfully in the New Gold organization)
that are inherently subject to known and unknown risks, uncertainties and
other factors that may cause actual results, level of activity, performance
or achievements to be materially different from those expressed or implied by
such forward-looking statements. Such factors include, without limitation:
significant capital requirements; fluctuations in the international currency
markets and in the rates of exchange of the currencies of Canada, the
United States, Australia, Mexico and Chile; price
volatility in the spot and forward markets for commodities; impact of any
hedging activities, including margin limits and margin calls; discrepancies
between actual and estimated production, between actual and estimated
reserves and resources and between actual and estimated metallurgical
recoveries; changes in national and local government legislation in Canada, the
United States, Australia, Mexico and Chile or any
other country in which New Gold currently or may in the future
carry on business; taxation; controls, regulations and political or economic
developments in the countries in which New Gold does or may carry
on business; the speculative nature of mineral exploration and development,
including the risks of obtaining and maintaining the validity and
enforceability of the necessary licenses and permits and complying with the
permitting requirements of each jurisdiction that New Gold operates,
including, but not limited to, Mexico, whereNew Gold is involved
with ongoing challenges relating to its environmental impact statement for
the Cerro San Pedro Mine; the lack of certainty with respect to the
Mexican and other foreign legal systems, which may not be immune from the
influence of political pressure, corruption or other factors that are
inconsistent with the rule of law; the uncertainties inherent to current and
future legal challenges the company is or may become a party to, including
the third party claim related to the El Morro transaction with respect to New
Gold's exercise of its right of first refusal on the El Morro
copper-gold project in Chile and its partnership with Goldcorp
Inc., which transaction and third party claim were announced by New Gold in January
2010; diminishing quantities or grades of reserves; competition; loss of key
employees; additional funding requirements; actual results of current
exploration or reclamation activities; changes in project parameters as plans
continue to be refined; accidents; labour disputes; defective title to
mineral claims or property or contests over claims to mineral properties. In
addition, there are risks and hazards associated with the business of mineral
exploration, development and mining, including environmental hazards,
industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding
and gold bullion losses (and the risk of inadequate insurance or inability to
obtain insurance to cover these risks) as well as "Risk Factors"
included in New Gold's disclosure documents filed on and available
atwww.sedar.com. Forward-looking statements are not guarantees of
future performance, and actual results and future events could materially
differ from those anticipated in such statements. All of the forward-looking
statements contained in this news release are qualified by these cautionary
statements. New Goldexpressly disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, events or otherwise, except in accordance with applicable
securities laws.
Cautionary
Note to U.S. Readers Concerning Estimates of Measured, Indicated and Inferred
Mineral Resources
Information
concerning the properties and operations discussed herein has been prepared
in accordance with Canadian standards under applicable Canadian securities
laws, and may not be comparable to similar information for United States companies.
The terms "Mineral Resource", "Measured Mineral
Resource", "Indicated Mineral Resource" and "Inferred
Mineral Resource" used in this news release are Canadian mining terms as
defined in accordance with NI 43-101 under guidelines set out in the Canadian
Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on
Mineral Resources and Mineral Reserves adopted by the CIM Council on December
11, 2005. While the terms "Mineral Resource", "Measured
Mineral Resource", "Indicated Mineral Resource" and
"Inferred Mineral Resource" are recognized and required by Canadian
regulations, they are not defined terms under standards of the United
States Securities and Exchange Commission. Under United States standards,
mineralization may not be classified as a "reserve" unless the
determination has been made that the mineralization could be economically and
legally produced or extracted at the time the reserve calculation is made. As
such, certain information contained in this news release concerning
descriptions of mineralization and resources under Canadian standards is not
comparable to similar information made public byUnited States companies
subject to the reporting and disclosure requirements of the United
States Securities and Exchange Commission. An "Inferred Mineral
Resource" has a great amount of uncertainty as to its existence and as
to its economic and legal feasibility. It cannot be assumed that all or any
part of an "Inferred Mineral Resource" will ever be upgraded to a
higher category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or other economic studies.
Readers are cautioned not to assume that all or any part of Measured or
Indicated
Resources
will ever be converted into Mineral Reserves. Readers are also cautioned not
to assume that all or any part of an "Inferred Mineral Resource"
exists, or is economically or legally mineable. In addition, the definitions
of "Proven Mineral Reserves" and "Probable Mineral
Reserves" under CIM standards differ in certain respects from the
standards of the United States Securities and Exchange Commission.
Technical
Information
The
Blackwater Project resource estimate was prepared by Mr. Ronald
Simpson, P. Geo, President of Geosim Services Inc., an independent
"Qualified Person" under NI 43-101 National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101") and a NI
43-101 technical report in respect of the mineral resource estimate disclosed
has been filed on SEDAR. The El Morro Project reserves and
resources were prepared by Ms. Maryse Belanger, P. Geo and Ms. Sophie
Bergeron, Ing. both of Goldcorp, each a "Qualified Person"
under NI 43-101.
The scientific
and technical information in this news release has been reviewed by Mark
Petersen, a Qualified Person under National Instrument 43-101 and employee of New
Gold.
(1) TOTAL
CASH COST
"Total cash cost" per ounce figures are calculated in accordance
with a standard developed by The Gold Institute, which was a worldwide
association of suppliers of gold and gold products and included leading North
American gold producers. The Gold Institute ceased operations in
2002, but the standard is widely accepted as the standard of reporting cash
cost of production in North America. Adoption of the standard is
voluntary and the cost measures presented may not be comparable to other
similarly titled measures of other companies. New Gold reports
total cash cost on a sales basis. Total cash cost includes mine site
operating costs such as mining, processing, administration, royalties and
production taxes, but is exclusive of amortization, reclamation, capital and
exploration costs. Total cash cost is reduced by any by-product revenue and
is then divided by ounces sold to arrive at the total by-product cash cost of
sales. The measure, along with sales, is considered to be a key indicator of
a company's ability to generate operating earnings and cash flow from its
mining operations. This data is furnished to provide additional information
and is a non-IFRS measure. Total cash cost presented do not have a
standardized meaning prescribed by IFRS and may not be comparable to similar
measures presented by other mining companies. It should not be considered in
isolation as a substitute for measures of performance prepared in accordance
with IFRS and is not necessarily indicative of operating costs presented
under IFRS. A reconciliation will be provided in the MD&A accompanying
the quarterly financial statements.
(2)
RECONCILIATION OF ADJUSTED NET EARNINGS FROM CONTINUING OPERATIONS
|
New Gold 2011 Third Quarter Consolidated -
Adjusted Net Earnings Reconciliation
|
|
Three
months ended
|
|
Nine
months ended
|
Figures
in US$ millions, except per share amounts
|
|
September
30,
|
|
|
September
30,
|
|
|
2011
|
2010
|
|
2011
|
2010
|
Net
earnings from continuing operations
|
40.7
|
44.8
|
|
144.0
|
31.8
|
Net
earnings per share from continuing operations
|
0.09
|
0.11
|
|
0.34
|
0.08
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair
value of derivative - Senior notes
|
(9.7)
|
(10.9)
|
|
(10.5)
|
(11.6)
|
Fair
value of derivative - Warrants/Convertibles
|
34.6
|
10.5
|
|
28.9
|
49.9
|
Gain/(loss)
on foreign exchange
|
|
(18.0)
|
4.2
|
|
(20.0)
|
9.2
|
Other
|
|
0.8
|
(2.0)
|
|
5.4
|
(4.6)
|
Tax
impact of adjustments
|
|
1.1
|
(17.2)
|
|
(2.0)
|
(16.0)
|
|
|
8.8
|
(15.4)
|
|
1.7
|
26.9
|
|
|
|
|
|
|
|
Adjusted
net earnings from continuing operations
|
49.5
|
29.3
|
|
145.7
|
58.7
|
Adjusted
net earnings per share
|
|
0.11
|
0.07
|
|
0.34
|
0.15
|
New Gold Inc.
|
|
|
|
|
|
Condensed consolidated income statements
|
|
|
|
Three
and nine month periods ended September 30
|
|
(Expressed
in thousands of U.S. dollars, except share and per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
Three
months ended
|
|
Nine
months ended
|
|
2011
|
2010
|
|
2011
|
2010
|
|
$
|
$
|
|
$
|
$
|
|
|
|
|
|
|
Revenues
|
175,501
|
127,116
|
|
518,349
|
341,095
|
Operating expenses
|
83,550
|
58,874
|
|
225,209
|
167,933
|
Depreciation and depletion
|
15,901
|
21,122
|
|
53,122
|
52,791
|
Earnings from mine operations
|
76,050
|
47,120
|
|
240,018
|
120,371
|
|
|
|
|
|
|
Corporate administration expenses
|
6,214
|
4,977
|
|
17,392
|
16,584
|
Share-based payment expenses
|
3,567
|
1,418
|
|
8,986
|
5,265
|
Exploration
and corporate development expenses
|
1,413
|
4,939
|
|
7,747
|
9,925
|
|
|
|
|
|
|
Income from operations
|
64,856
|
35,786
|
|
205,893
|
88,597
|
|
Finance income
|
962
|
1,188
|
|
2,930
|
1,840
|
|
Finance costs
|
(1,311)
|
(333)
|
|
(3,968)
|
(1,180)
|
|
Other gains (losses)
|
(7,618)
|
(1,819)
|
|
(3,596)
|
(42,961)
|
|
|
|
|
|
|
Earnings before taxes
|
56,889
|
34,822
|
|
201,259
|
46,296
|
Income tax (expense) recovery
|
(16,180)
|
9,932
|
|
(57,229)
|
(14,506)
|
|
|
|
|
|
|
Net
earnings from continuing operations
|
40,709
|
44,754
|
|
144,030
|
31,790
|
Loss from discontinued operations
|
-
|
-
|
|
-
|
(9,886)
|
Net earnings
|
40,709
|
44,754
|
|
144,030
|
21,904
|
|
|
|
|
|
|
Earnings
per share from continuing operations
|
|
|
|
|
|
|
Basic
|
0.09
|
0.11
|
|
0.34
|
0.08
|
|
Diluted
|
0.09
|
0.11
|
|
0.33
|
0.08
|
|
|
|
|
|
|
Loss per
share from discontinued operations
|
|
|
|
|
|
|
Basic
|
-
|
-
|
|
-
|
(0.03)
|
|
Diluted
|
-
|
-
|
|
-
|
(0.02)
|
|
|
|
|
|
|
Earnings
per share from continuing and discontinued operations
|
|
|
|
|
Basic
|
0.09
|
0.11
|
|
0.34
|
0.05
|
|
Diluted
|
0.09
|
0.11
|
|
0.33
|
0.06
|
|
|
|
|
|
|
Weighted
average number of shares outstanding
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
Basic
|
450,138
|
391,686
|
|
422,135
|
390,186
|
|
Diluted
|
456,499
|
401,564
|
|
433,789
|
399,628
|
New Gold Inc.
|
|
|
|
|
Condensed
consolidated statements of financial position
|
(Expressed
in thousands of U.S. dollars)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
September
30
|
|
December
31
|
|
|
2011
|
|
2010
|
|
|
$
|
|
$
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
433,113
|
|
490,754
|
|
Trade and other receivables
|
|
20,616
|
|
11,929
|
|
Inventories
|
|
122,073
|
|
103,055
|
|
Prepaid expenses and other
|
|
6,624
|
|
7,325
|
Total current assets
|
|
582,426
|
|
613,063
|
|
|
|
|
|
Investments
|
|
-
|
|
7,533
|
Mining interests
|
|
2,413,101
|
|
1,767,240
|
Deferred tax assets
|
|
21,728
|
|
10,058
|
Other
|
|
33,740
|
|
31,295
|
Total assets
|
|
3,050,995
|
|
2,429,189
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Trade and other payables
|
|
90,438
|
|
69,245
|
|
Current derivative liabilities
|
|
53,068
|
|
40,072
|
|
Current non-hedged derivative liabilities
|
|
14,656
|
|
-
|
|
Current tax liabilities
|
|
31,053
|
|
31,392
|
Total current liabilities
|
|
189,215
|
|
140,709
|
|
|
|
|
|
Reclamation and closure obligations
|
|
41,431
|
|
34,173
|
Provisions
|
|
17,979
|
|
9,227
|
Non-current derivative liabilities
|
|
111,642
|
|
113,303
|
Non-current non-hedged derivative liabilities
|
|
159,336
|
|
155,365
|
Deferred tax liabilities
|
|
136,699
|
|
179,180
|
Long-term debt
|
|
241,055
|
|
229,884
|
Deferred benefit
|
|
46,276
|
|
46,276
|
Other
|
|
765
|
|
577
|
Total liabilities
|
|
944,398
|
|
908,694
|
|
|
|
|
|
Equity
|
|
|
|
|
Common shares
|
|
2,356,107
|
|
1,845,886
|
Contributed surplus
|
|
79,425
|
|
81,176
|
Other reserves
|
|
(118,311)
|
|
(51,913)
|
Deficit
|
|
(210,624)
|
|
(354,654)
|
|
|
(328,935)
|
|
(406,567)
|
Total equity
|
|
2,106,597
|
|
1,520,495
|
Total liabilities and equity
|
|
3,050,995
|
|
2,429,189
|
New Gold Inc.
|
|
|
|
|
|
|
Condensed
consolidated statements of cash flows
|
|
|
|
|
Three
and nine month periods ended September 30
|
|
|
|
|
(Expressed
in thousands of U.S. dollars)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Nine
months ended
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
|
$
|
$
|
|
$
|
$
|
Operating activities
|
|
|
|
|
|
|
|
Net earnings
|
|
40,709
|
44,754
|
|
144,030
|
21,904
|
|
Loss from discontinued operations
|
|
-
|
-
|
|
-
|
9,886
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
Unrealized gain on gold contracts
|
|
(2,259)
|
(2,013)
|
|
(6,469)
|
(6,178)
|
|
|
Unrealized loss on fuel contracts
|
|
-
|
55
|
|
-
|
238
|
|
|
Unrealized foreign exchange (gain) loss
|
|
(18,048)
|
4,237
|
|
(20,029)
|
9,189
|
|
|
Unrealized and realized gain on investments
|
|
-
|
(2,126)
|
|
(1,349)
|
(7,018)
|
|
|
Unrealized loss on non-hedged derivatives
|
|
34,576
|
10,487
|
|
28,895
|
49,892
|
|
|
Loss on disposal of assets
|
|
396
|
32
|
|
648
|
1,449
|
|
|
Depreciation and depletion
|
|
15,770
|
21,044
|
|
52,625
|
52,806
|
|
|
Equity-settled share-based payment expense
|
|
1,778
|
1,340
|
|
5,498
|
5,064
|
|
|
Unrealized gain on embedded derivative contract
|
|
(9,670)
|
(10,916)
|
|
(10,520)
|
(11,568)
|
|
|
Unrealized loss on cash flow hedging items
|
|
481
|
-
|
|
4,167
|
-
|
|
|
Income tax expense (recovery)
|
|
16,180
|
(9,932)
|
|
57,229
|
14,506
|
|
|
Finance income
|
|
(962)
|
(1,188)
|
|
(2,930)
|
(1,840)
|
|
|
Finance costs
|
|
1,311
|
333
|
|
3,968
|
1,180
|
|
|
80,262
|
56,107
|
|
255,763
|
139,510
|
|
Change in non-cash operating working capital
|
|
12,723
|
(6,794)
|
|
(15,003)
|
(13,565)
|
Cash generated from operations
|
|
92,985
|
49,313
|
|
240,760
|
125,945
|
|
Income taxes paid
|
|
(22,298)
|
(14,832)
|
|
(77,116)
|
(28,106)
|
Net cash generated from operations
|
|
70,687
|
34,481
|
|
163,644
|
97,839
|
Cash used in discontinued operations
|
|
-
|
-
|
|
-
|
(1,696)
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
Mining interests
|
|
(112,009)
|
(34,159)
|
|
(255,094)
|
(82,621)
|
|
Interest paid
|
|
-
|
(22)
|
|
(11,412)
|
(10,523)
|
|
Recovery (contribution) of reclamation deposits
|
|
-
|
(2)
|
|
8,147
|
(45)
|
|
Cash acquired in asset acquisition, net of transaction
costs
|
|
-
|
-
|
|
18,589
|
-
|
|
Cash received in El Morro transaction, net of
transaction costs
|
|
-
|
-
|
|
-
|
46,276
|
|
Investment in El Morro
|
|
-
|
-
|
|
-
|
(463,000)
|
|
Proceeds from sale of investments
|
|
-
|
-
|
|
8,927
|
48,112
|
|
Interest received
|
|
980
|
785
|
|
2,521
|
1,577
|
|
Proceeds from disposal of assets
|
|
285
|
243
|
|
500
|
272
|
Cash used in continuing operations
|
|
(110,744)
|
(33,155)
|
|
(227,822)
|
(459,952)
|
Cash generated from discontinued operations
|
|
-
|
-
|
|
-
|
34,410
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
Exercise of options to purchase common stock
|
|
2,408
|
379
|
|
15,001
|
6,789
|
|
Exercise of warrants to purchase common stock
|
|
65
|
-
|
|
65
|
-
|
|
El Morro loan
|
|
-
|
-
|
|
-
|
463,000
|
|
Repayment of long-term debt
|
|
-
|
-
|
|
-
|
(27,235)
|
Cash generated by financing activities
|
|
2,473
|
379
|
|
15,066
|
442,554
|
Cash generated from (used in) discontinued operations
|
|
-
|
-
|
|
-
|
-
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalents
|
|
(19,749)
|
13,207
|
|
(8,529)
|
5,497
|
|
|
|
|
|
|
|
(Decrease) increase in cash and cash equivalents
|
|
(57,333)
|
14,912
|
|
(57,641)
|
118,652
|
Cash and cash equivalents, beginning of period
|
|
490,446
|
376,092
|
|
490,754
|
272,352
|
Cash and cash equivalents, end of period
|
|
433,113
|
391,004
|
|
433,113
|
391,004
|
|
|
|
|
|
|
|
Cash and cash equivalents are comprised of
|
|
|
|
|
|
|
|
Cash
|
|
267,466
|
120,133
|
|
267,466
|
120,133
|
|
Short-term money market instruments
|
|
165,647
|
270,871
|
|
165,647
|
270,871
|
|
|
433,113
|
391,004
|
|
433,113
|
391,004
|
|