- New Gold Inc (TSX:NGD) is pulling its production guidance for 2020, due to an unpredictable industry environment caused by COVID-19
- The news comes after the company’s Rainy River mine recently reopened, after a two-week shutdown period caused by the pandemic
- The Rainy River mine produced 50,000 gold ounces and 61,000 silver ounces in its last quarter
- New Gold recently signed a $422 million deal with the Ontario Teachers’ Pension Plan for 46 per cent of its Afton mine
- New Gold Inc (NGD) is trading down 9 per cent at $0.96 per share with a market cap of $655 million
New Gold Inc (TSX:NGD) is pulling its production guidance for 2020, due to an unpredictable industry environment caused by COVID-19.
The Rainy River mine has just come out of a two week shutdown due to the pandemic.
Alongside the news, the company released its first quarter operational results from the Rainy River and New Afton mines.
The Rainy River mine produced 50,000 gold ounces and 61,000 silver ounces. New Afton posted production results of 16,409 gold ounces for the quarter and 18.5 million pounds of copper.
New Gold’s liquidity has ballooned out to $600 million following the completion of a big investment by the Ontario Teachers’ Pension Plan, where the pension plan acquired 46 per cent of the New Afton mine for $3422 million.
New Gold’s CEO, Renaud Adams, is encouraged by the quarterly performance, given the recent challenges.
“We are pleased to report New Gold’s operational results for the quarter, which are very encouraging when considering the two week suspension at the Rainy River in the latter part of March as well as the enhanced COVID-19 safety protocols put in place at both operations.
“Throughout this challenging time, New Gold will continue to prioritise the safety and well-being of our employees and local communities and we will continue to work with our Indigenous and community leaders to implement and coordinate actions the spread of COVID-19,” he said
The mine was one of the first to close in the region, due to its proximity to the US border, and it’s large US workforce.
Before border closures were introduced, mandatory two-week isolation blocks for travellers crossing international borders were the norm. That two-week isolation block left a lot of Rainy River mine workers trapped on the US side of the border unable to work.
New Gold Inc (NGD) is trading down 9 per cent at $0.96 per share at 1:05 pm EST.