Business Insider says – management delivers on forecasts.
New Gold updated the market on the commissioning process of the company’s New Afton gold mine and mill.The company announced that production at its New Afton
Mine started with the first ore having been processed through the mill circuit on June 28, 2012. NGD noted that the average mining rate over last 30 days was in excess of 5,250 tonnes per day, or 47% of the nameplate capacity of 11,000 tonne per day capacity with mining rate on schedule to reach 11,000 tonnes per day in early 2013.
The company noted that it currently has a surface ore stockpile of one million tonnes which equates to approximately three months of production at full 11,000 tonne per day capacity. Average stockpile grade is 0.88 grams per tonne gold and 0.94% copper. New Gold expects its New Afton mine to produce 35,000 to 45,000 ounces of gold and 30 to 35 million pounds of copper in 2012.
On a co-product basis, the total cash cost in 2012 is expected to be $630 to $650 per ounce of gold and $1.35 to $1.45 per pound of copper. Both the by-product and co-product costs at New Afton are expected to come down meaningfully in 2013 and beyond as the mine hits its full capacity.
A Bay Street analyst was positive on the update and noted that it demonstrates the strength of management and the operating team at New Afton to achieve milestones within guidance.
Note : New Gold Is one of the mines covered in the AMP Gold and Precious Metals Portfolio now in perpetration for October publication.