New Gold Inc. issued an operations update for the fourth quarter of 2010 and full year, including production and cost data for its mining operations. The company also provided guidance on both these items for 2011.
New Gold Inc. reported that the company produced 124,445 ounces of gold from its mining operations in the fourth quarter of 2010. This represented an 11% increase from the same quarter of 2009, when the company produced 111,672 ounces of gold. The fourth quarter of 2010 production was a quarterly record for the company.
Gold production for 2010 also showed a large percentage increase over the previous year. New Gold Inc. reported 2010 gold production of 382,911 ounces, up 27% from 2009 production of 310,773 ounces. The 2010 production exceeded the established guidance range of 330,000 to 360,000 ounces of gold.
New Gold Inc. also became more efficient in its operations, and reported a total cash cost of production of $428 per ounce sold for 2010, below the guidance range of $445 to $465 per ounce sold.
In 2011, New Gold Inc. expects gold production to range between 380,000 and 400,000 ounces, and the total cash cost per ounce sold to range from $430 to $450 per ounce.
For more information on the company, go to www.newgold.com