Create FREE account or log in

to receive MINING.COM digests

New Gold has record year

New Gold had their best year in 2010, with increased production and declining costs resulting in record earnings and cash flow, the B.C.-based company said on Friday.

Consolidated revenue for the year was $530 million compared to $324 million in 2009, which the company attributed to higher production rates and elevated gold prices.

Earnings from mine operations  jumped 129% to USD$203 million, compared to $89 million in the previous year.

The company’s treasury was flush with $491 million at the end of 2010 compared to $272 million at year-end 2009, with cash flow from operations at the highest levels in New Gold’s history.

“2010 was a  very  successful year for  our company and we are proud of our results. We remain even more excited about 2011 and the coming years,” said Executive Chairman Randall Oliphant.

Between the Mesquite Mine in the US, the Cerro San Pedro Mine in Mexico and Peak Gold Mines in Australia, New Gold expects to produce between 380,000 and 400,000 gold ounces in 2011.

The company’s next mine, New Afton, located near Kamloops, BC, is expected to go into production in mid-2012. The underground copper-gold mine is expected to produce an average 85,000 ounces of gold per annum and 75 million pounds of copper.

Read more