investor day 2013 v final
TRANSCRIPT
1
Investor Day 2013
February 5, 2013
Arcadian Loft
2
Discussion topics
Company Overview Randall Oliphant
2012 Operating Performance and 2013 Outlook Ernie Mast
Health, Safety and Corporate Social Responsibility Bob Gallagher
Development Projects Bob Gallagher
Reserves and Resources and Exploration Update Mark Petersen
New Afton Value Enhancing Initiatives Kurt Keskimaki
Conclusion Randall Oliphant
3
All monetary amounts in U.S. dollars unless otherwise stated
Total cash costs shown net of by-product sales unless otherwise stated
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained in this presentation, including any information relating to New Gold's future financial or operating performance may be deemed "forward looking". All statements
in this presentation, 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 use of forward-looking terminology such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", “projects”, “potential”, "believes" or variations of such words and phrases or statements that certain actions, events or results
"may", "could", "would", “should”, "might" or "will be taken", "occur" or "be achieved" or the negative connotation. 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 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 international, 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 obtaining the necessary permits for the Blackwater project, in Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS
and Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; the lack of certainty with respect to 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,; 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 at www.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 presentation are qualified by these cautionary statements.
New Gold expressly 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 statement
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Cautionary statement (cont’d)
CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES
Information concerning the properties and operations discussed in this presentation 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 presentation 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 presentation concerning descriptions
of mineralization and resources under Canadian standards is not comparable to similar information made public by United 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 scientific and technical information in this presentation has been reviewed by Mark Petersen, a Qualified Person under National Instrument 43-101 and an employee of New Gold.
(1) TOTAL CASH COSTS
“Total cash costs” 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 costs on a sales basis. Total cash costs 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 costs are reduced by any by-product revenue and are then
divided by ounces sold to arrive at the total by-product cash costs 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 costs presented does 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) ALL-IN SUSTAINING CASH COSTS
The company is working with the World Gold Council and is in the process of adopting an “all-in sustaining cash costs” measure that the company believes more fully defines the total costs associated with producing gold.
Although the definition is still preliminary, all-in sustaining cash costs, as currently defined, includes: by-product cash costs, corporate general and administrative expenses, exploration expense and sustaining capital.
This metric is a non-IFRS measure.
(3) PEA – ADDITIONAL CAUTIONARY NOTE
This note regarding the Preliminary Economic Assessment (“PEA”) is in addition to cautionary language already included within the news release as required under NI 43-101. The Blackwater PEA is preliminary in nature
and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no
certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
This note regarding the preliminary economic assessment (“PEA”) is in addition to cautionary language already included in this news release as required under NI 43-101. The Blackwater PEA is preliminary in nature and
includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no
certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This news release includes information on New
Gold’s PEA with respect to the Blackwater Project, which was outlined in the PEA Technical Report filed on October 10, 2012. As disclosed in the news release, New Gold has, since the date of the PEA, updated the
mineral resource estimate for the Blackwater Project. Although the PEA represents useful, accurate and reliable information based on the information available at the time of its publication, and provides an important
indicator as to the economic potential of the Blackwater Project, the PEA is based on mineral resources estimates with an effective date of July 27, 2012, which do not reflect drilling conducted since their effective date,
and the PEA does not reflect the latest mineral resource estimate. Certain assumptions used in the PEA, some of which relate to the July 27, 2012 mineral resource estimate, may have changed from those used for the
new resource estimate, causing a variation of parameters. Moreover, the updated mineral resource estimate may have an impact on New Gold’s plans on how it intends to develop the deposit, including pit outlines,
production rates and mine life.
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Company Overview
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ESTABLISHING THE LEADING INTERMEDIATE GOLD COMPANY
Focus on Value Enhancement Established Track Record
Experienced/Invested Team Low Cost/High Margin
Growing Resources Doubling Gold Production Organically
Strong Balance Sheet Accretive ‘per share’ Growth
New Gold overview
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Notes: 1. Refer to Cautionary Statement and note on Total cash costs.
2. 2013 estimated margin per ounce based on mid-point of range of total cash costs of $275 per ounce and an assumed gold price of $1,600 per ounce.
2012 to 2013 – The path forward
6% gold production growth Forecasting additional 12% gold
production growth
Total cash costs(1) declined by $25
per ounce
Targeting a further ~$145 per
ounce reduction in total cash
costs(1)
Average realized margin of $1,130
per ounce
Margin expected to grow to
$1,325(2) per ounce
2012 Achievements 2013 Objectives
8
2012 to 2013 – The path forward (cont’d)
New Afton achieved full production
ahead of schedule (September
2012)
Evaluation of New Afton mill
throughput increase/C-Zone
exploration
Successfully completed Blackwater
Preliminary Economic Assessment
Focus on Feasibility Study and
Permitting
Measured and Indicated resources
increased by 10% per share; New
Afton extended mine life by two
years
Increase resources organically at
Blackwater, New Afton C-Zone and
Peak Mines
2012 Achievements 2013 Objectives
9
2012 to 2013 – The path forward (cont’d)
Increased liquidity and balance
sheet strength
Build increased flexibility through
free cash flow generation
Strengthened team with additions of
David Emerson to the Board of
Directors and Ernie Mast as VP
Operations
Continuously look for
opportunities to add talented
people
Outperformed S&P/TSX gold index(1)
by 25%
Strive to further history of
outperformance
2012 Achievements 2013 Objectives
Notes: 1. S&P/TSX Gold Index includes 54 gold companies in various stages of development/production.
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James Estey, Former Chairman UBS Canada
Robert Gallagher, President & CEO
Vahan Kololian, Founder Terra Nova Partners
Martyn Konig, Former Chairman European Goldfields
Pierre Lassonde, Chairman Franco-Nevada
Randall Oliphant, Executive Chairman
Raymond Threlkeld, CEO Rainy River Resources
David Emerson, Former Canadian Cabinet Minister
Board of Directors
Collectively over $125 million invested in New Gold
11
-
10
20
30
40
50
YE 2009 YE 2010 YE 2011 YE 2012
Operating assets
Development projects
Notes: 1. Excludes resources from Amapari which was sold in April 2010.
2. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. Measured and Indicated resources inclusive of reserves, and Capoose Indicated resources of 196Koz.
3. New Gold holds a fully carried 30% interest in the El Morro project.
Peak Mines
Cerro San
Pedro
El Morro(3)
New Afton
Blackwater
Mesquite
M&I Resources(2): 21.4 Moz Measured & Indicated Gold Resources per 1,000 shares
Track record of increasing M&I gold
resources on a ‘per share’ basis
(1)
Growing resource base in solid jurisdictions
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Notes: 1. Cash and equivalents as at December 31, 2012. The cash balance provided is an unaudited figure and may differ slightly from the final result included in the 2012 annual audited financial statements and MD&A.
2. $50 million of total $150 million currently used for Letters of Credit.
3. See Appendix 1 for detailed breakdown of components of debt.
• All corporate debt now due in 2020 or
beyond(3)
• Two senior unsecured notes offerings
during 2012 ($300 million/7.00%, $500
million/6.25%)
• Redemption of 10% senior secured
notes
• Early conversion of 5% convertible
debenture
• Total common shares outstanding of 476
million
Cash and
Equivalents(1)
Undrawn Credit
Facility(2)
Liquidity
Position
$688mm
$100mm
$788mm
Capitalization and liquidity
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$1,324
$1,130
$500
$800
$1,100
$1,400
Q4'12 FY2012
$254
$421
-
$200
$400
$600
Q4'12 FY2012
113
412
-
150
300
450
Q4'12 FY2012
Fourth Quarter and Full Year 2012 Gold Production (thousand ounces)
Fourth Quarter and Full Year 2012 Total Cash Costs ($/ounce)(1)
Fourth Quarter and Full Year 2012 Average Realized Margin ($/ounce)(2)
• Fourth quarter was the
strongest of 2012 and
among the best in New
Gold’s history
• New Afton started to hit
its stride
• Mining of higher grade
areas at Peak Mines
• Fourth quarter total cash
costs(1) demonstrate
company’s low costs
• Highest ever quarterly and
annual average realized
margin
Notes: 1. Refer to Cautionary Statement and note on Total cash costs.
2. Average realized margin per ounce calculated as average realized gold price in fourth quarter and full year 2012 less total cash costs per ounce during fourth quarter and full year 2012.
Fourth quarter leads to strong 2012
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$465
$418
$446
$421
302
383 387412
Notes: 1. Refer to Cautionary Statement and note on Total cash costs.
2. 2009 costs shown based on Canadian GAAP and 2010 and beyond based on IFRS.
Gold production(1) (thousand ounces)
Total cash costs(1)(2) ($/ounce)
2009
Guidance
2009
Actual
2010
Guidance
2010
Actual
2011
Guidance
2011
Actual
2012
Guidance
Four year track record of delivering on guidance, production growth and lower cash costs
2012
Actual
2009
Guidance
2009
Actual
2010
Guidance
2010
Actual
2011
Guidance
2011
Actual
2012
Guidance
2012
Actual
Operational execution
15
2012 Actual
Gold production(1)
440 - 480Koz
Total cash costs(2)
$265 - $285/oz
Notes: 1. Gold sales expected to be in same range as production.
2. Refer to Cautionary Statement and note on Total cash costs.
Gold production
412Koz
Total cash costs(2)
$421/oz
2013 Guidance
2013 consolidated guidance
+48Koz
+ 12%
($146/oz)
(35%)
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• Gold production growth through full year of
production at New Afton and increased
throughput and recoveries at Peak Mines
• Copper production forecast to double to 78 to 88
million pounds
• Copper and silver by-products continue to act as
natural hedge to industry-wide cost pressures
• By-product price assumptions (consistent with
2012):
• Copper $3.50 per pound
• Silver $30.00 per ounce
Gold production(1)
440 - 480Koz
Total cash costs(2)
$265 - $285/oz
Notes: 1. Gold sales range forecast to be 440,000 to 480,000 ounces.
2. Refer to Cautionary Statement and note on Total cash costs.
• By-product sensitivities:
• $0.25 per pound change in copper impacts
consolidated cash costs by ~$45 per ounce
• $1.00 per ounce change in silver impacts
consolidated cash costs by ~$3 per ounce
• At spot commodity prices and foreign exchange
rates, total cash costs(2) would be below $250
per ounce
2013 consolidated guidance and sensitivities
17
$465
$418
$446 $421
$265-$285
$478
$557
$643
$736
2009 2010 2011 2012 2013E
Notes: 1. Calculated based on Q3’2012 GFMS industry average less mid-point of New Gold 2013 cost guidance.
2. Refer to Cautionary Statement and note on Total cash costs.
3. Industry data per GFMS reports calculated net of by-product credits as at Q3’2012.
$600
$400
$200
To
tal C
ash
Co
sts
(U
S$/o
z)(
2)
New Gold offers shareholders potential for over $450 per ounce(1) of incremental margin
$800
Incremental Margin to New Gold
Shareholders
(3)
Lower costs driving margin expansion
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Total cash costs(1)
General and administrative
Exploration expense
Sustaining capital(2)
All-in sustaining cash costs(3)
$275/oz
~$60/oz
~$70/oz
~$470/oz
~$875/oz
2013 estimated all-in sustaining cash costs
Notes: 1. Refer to Cautionary Statement and note on Total cash costs. $275 per ounce based on mid-point of 2013 guidance.
2. Sustaining capital based on New Gold’s total 2013 estimated capital expenditures excluding expenditures related to growth-related initiatives.
3. All-in sustaining cash costs calculated using the mid-point of New Gold’s estimated 2013 production range.
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Go
ld P
rod
ucti
on
(th
ou
san
d o
un
ces)
Peer leading growth with targeted doubling of production by 2017
A future of growth
387412
~440 - 480
200
400
600
800
1,000
2011A 2012A 2013E 2017E
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Notes: 1. Margin per ounce calculated as average realized gold price less total cash costs per ounce.
2. Bloomberg. All amounts in USD.
3. S&P/TSX Gold Index includes 54 gold companies in various stages of development/production.
4. FTSE Gold Mines Index includes 26 gold producing companies.
5. HUI Index includes 15 of the major global gold producers.
Margin Growth(1) Gold Production Growth Trailing 3 Years
2012
2011
2010
+36% +116%
+6% +11%
+1% +32%
+27% +47%
168%
33%
30%
29%
26%
0% 20% 40% 60% 80% 100% 120% 140% 160% 180%
New Gold (US$)
HUI Index
Gold Price
FTSE Gold Mines Index
S&P/TSX Gold Index
10%
3%
(13%)
(14%)
(16%)
(20%) (15%) (10%) (5%) 0% 5% 10% 15%
Gold Price
New Gold (US$)
HUI Index
S&P/TSX Gold Index
FTSE Gold Mines Index
9%
7%
(11%)
(15%)
(16%)
(20%) (15%) (10%) (5%) 0% 5% 10% 15%
New Gold (US$)
Gold Price
HUI Index
FTSE Gold Mines Index
S&P/TSX Gold Index
203%
53%
3%
(8%)
(9%)
(50%) 0% 50% 100% 150% 200% 250%
New Gold (US$)
Gold Price
HUI Index
FTSE Gold Mines Index
S&P/TSX Gold Index
History of growth leading to outperformance
New Gold
21
2012 Operating Performance
and 2013 Outlook
22
Notes: 1. Refer to Cautionary Statement and note on Total cash costs.
Gold Production (Koz)
• Achieved consolidated
production and sales
guidance for each of
gold, silver and copper
• Total cash costs(1) also
within guidance range
• Each asset a meaningful
contributor to overall
portfolio
• Portfolio mix
continues to be
effective with by-
products providing
offset to cost
pressures
Total Cash Costs(1) ($/oz)
Reflects 2012
guidance range
Reflects 2012
guidance range
412
$421
Consolidated
Consolidated
405-445
$410-$430
2012 guidance versus actuals
142 138
96
37
-
50
100
150
Mesquite Cerro SanPedro
Peak New Afton
$690 $232 $764
($1,043)
($1,500)
($1,000)
($500)
-
$500
$1,000
Mesquite Cerro SanPedro
Peak New Afton
23
$421
2012A 2013E
412
2012A 2013E
Notes: 1. Refer to Cautionary Statement and note on Total cash costs.
2. By-product price assumptions: Silver - $30.00/oz; Copper - $3.50/lb.
3. New Afton co-product cost estimates: Gold - $570-$590/oz; Copper - $1.20-$1.30/lb.
Gold Production (Koz) Total Cash Costs(1) ($/oz)
2013 Guidance Summary
480
440
+ 48Koz
+ 12%
($146/oz)
(35%)
$285
$265
Gold production (Koz)
Silver production (Moz)
Copper production (Mlbs)
Total cash costs(1)(2)
($/oz)
Mesquite 130 - 140 -- -- $830 - $850
Cerro San Pedro 140 - 150 1.4 - 1.6 -- $375 - $395
Peak Mines 95 - 105 -- 12 - 14 $670 - $690
New Afton 75 - 85 -- 66 - 74 ($1,410) - ($1,390)(3)
Total 440 - 480 1.4 - 1.6 78 - 88 $265 - $285
2012 actuals versus 2013 guidance
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$690
2012A 2013E
142
2012A 2013E
Key assumptions and sensitivities
• Diesel comprises ~25% of Mesquite’s total costs
• Rack diesel price most correlated to Brent oil price
• Budgeted diesel price in 2013 8% higher than
2012 average price paid
• Every 10% change in diesel price has ~$20 per
ounce impact on costs
2012A versus 2013E
• Production expected to decline moderately
due to the planned processing of ore from an
area within the mine plan that is below
reserve grade
• Increase in costs attributable to higher cost
leach pad inventory working through sales
and lower production base
Notes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxides; ~35% for sulphides.
2. Refer to Cautionary Statement and note on Total cash costs.
Gold Production(1) (Koz) Total Cash Costs(2) ($/oz)
140
130
$850
$830
Mesquite
25
$232
2012A 2013E
1.9
2012A 2013E
138
2012A 2013E
Key assumptions and sensitivities
• Silver price - $30.00 per ounce (2012A - $30.78 per
ounce)
• Mexican Peso: U.S. foreign exchange – 13:1
• $1.00 per ounce change in silver equals ~$10 per
ounce change in Cerro San Pedro cash costs
• $1.00 change in Mexican Peso equals ~$25 per
ounce change in Cerro San Pedro cash costs
2012A versus 2013E
• Targeting 5% increase in gold production
• Decrease in tonnes processed offset by
increase in gold grade
• Increase in costs primarily driven by lower silver
by-product production as well as lower price
assumption
• ~$95 per ounce of increase in costs
attributable to lower silver by-product revenue
• Silver grades decreasing by ~25%
Notes: 1. Cerro San Pedro life-of-mine recovery continues to track at: Gold – ~60%; Silver – ~25%.
2. Refer to Cautionary Statement and note on Total cash costs.
Gold Production(1) (Koz) Total Cash Costs(2) ($/oz) Silver Production(1) (Moz)
150
140 1.6
1.4
$395
$375
Cerro San Pedro
26
$764
2012A 2013E
96
2012A 2013E
14
2012A 2013E
Key assumptions and sensitivities
• Copper price - $3.50 per pound (2012A - $3.51per
pound)
• Australian dollar: U.S. foreign exchange – 1:1
• $0.25 per pound change in copper equals ~$35 per
ounce change in Peak Mines cash costs
• $0.01 change in Australian dollar equals ~$10 per
ounce change in Peak Mines cash costs
2012A versus 2013E
• Increased gold production driven by 50,000
tonne increase in tonnes processed
• Similar copper production a result of increased
tonnes processed and copper recoveries offset
by lower copper grades
• Reduction in estimated cash costs a result of
increased gold production and lower foreign
exchange rate assumption versus average 2012
exchange rate
Gold Production (Koz) Total Cash Costs(1) ($/oz) Copper Production (Mlbs)
105
95 14
12
$690
$670
Peak Mines
Notes: 1. Refer to Cautionary Statement and note on Total cash costs.
27
28
2012A 2013E
37
2012A 2013E
2012A versus 2013E
• New Afton entering first full year of production in 2013 after successful 2012 start-up
• Increased gold production driven by a full year of operations as well as continued recovery improvements,
partially offset by lower gold grade
• Copper production expected to more than double, driven by full year of production as well as increases in
copper grades and recoveries
85
75
74
66
Gold Production (Koz) Copper Production (Mlbs)
New Afton
28
$656
2012A 2013E
($1,043)
2012A 2013E
$1.40
2012A 2013E
Key assumptions and sensitivities
• Copper price - $3.50 per pound (2012A - $3.58 per pound)
• Canadian dollar: U.S. foreign exchange – 1:1
• $0.25 per pound change in copper equals ~$220 per ounce change in New Afton by-product cash costs
• $0.01 change in Canadian dollar equals ~$15 per ounce change in New Afton by-product cash costs
Total Cash Costs(1) ($/oz)
(By-Product)
Total Cash Costs(1) ($/oz)
(Co-Product Copper)
Total Cash Costs(1) ($/oz)
(Co-Product Gold)
($1,390)
($1,410)
$590
$570
$1.30
$1.20
New Afton (cont’d)
Notes: 1. Refer to Cautionary Statement and note on Total cash costs.
29
• New Gold’s 2013 estimated capital expenditures of $290 million are down 42% from 2012
• Capital includes costs related to ongoing annual sustaining capital as well as investments for future
production
• Capital estimates by site are shown below:
Total 2013 Capital Expenditure Estimate: $290 million
New Afton
$110mm
Peak Mines
$60mm
Cerro San
Pedro
$40mm
Mesquite
$20mm
Blackwater
$60mm
2012 and 2013 capital expenditures by site
Total 2012 Actual Capital Expenditures: $497 million
New Afton
$297mm
Peak Mines
$47mm
Cerro San Pedro
$15mm
Mesquite
$11mm
Blackwater
$127mm
30
Direct investment for future production
• The below breaks down capital expenditures at each site into two categories – annual sustaining capital
and direct investments for future production growth and mine life extension
New Afton - $110 million
Blackwater - $60 million
Peak Mines - $60 million
Annual sustaining capital
82%
18%
100%
50% 50%
• $90 million – continued cave and drawbell development as well as related
technical services
• Total of ~90 drawbells expected to be completed by end of 2013
• Annual drawbell development to decrease over mine life with commensurate
decrease in capital
• $15 million – capitalized exploration
• $45 million – Feasibility and related engineering studies, permitting, camp
facilities/operation
• $30 million – underground development and capitalized exploration
• $30 million – equipment, mine and mill projects/maintenance
2013 capital expenditures by category
31
Direct investment for future production
Cerro San Pedro - $40 million
Mesquite - $20 million
Annual sustaining capital
75%
25%
60%
40%
• $30 million – final leach pad expansion and capitalized stripping for phase 5
development
• $10 million – site maintenance/processing improvements
• $12 million – two additional trucks and construction of new welding and tire shops
• $8 million – equipment components/site maintenance
New Gold’s 30% share of estimated El Morro capital cost of $23 million fully carried by
Goldcorp Inc.
2013 capital expenditures by category (cont’d)
32
Health, Safety and Corporate
Social Responsibility
33
Policy
• At New Gold, our commitment to corporate
social responsibility is specified in our Health,
Safety, Environment and Corporate Social
Responsibility (“HSE & CSR”) Policy
Governance
• The HSE & CSR Committee of our Board of
Directors provides oversight of our progress
and adherence to the principles of our Policy
Commitment
• On the ground wherever we work, the organization, resources and commitment of our people are in
place to actualize the Policy
• New Gold is a business participant of the UN Global Compact and has committed to its principles in
the areas of human rights, labor, environment and anti-corruption
• New Gold is a signatory to the International Cyanide Management Code
• Our Sustainability Report is published annually
Overview
34
• Cerro San Pedro – over one million man hours without a
Lost Time Incident (“LTI”)
• New Afton continues as one of the lowest LTI
underground mines
Safety
New Gold is the sum total of our employees’ strengths – it
is a company-wide policy to develop their careers and
protect their health and safety
• Mesquite – certified under the International Cyanide
Management Code
• Cerro San Pedro – re-certified ISO 14001 Environmental
Management System for 2011-2014 period
Environment
New Gold takes a pro active risk-management approach to
safeguarding the environment guided by high international
and national standards
• Cerro San Pedro – recognized as a socially responsible
company for the third straight year by Mexican Centre
for Philanthropy
• Opened local Vanderhoof office and sample preparation
laboratory to support the Blackwater Project
• New Afton – working together with local First Nations on
project contracts
Social Responsibility
New Gold fosters open communication with local residents
and community leaders and strives to be a full partner in
the long-term sustainability of the communities and
regions in which we operate
Safety, environmental and social responsibility highlights
35
0.0
2.0
4.0
6.0
8.0N
ew
Afto
n
Bla
ckw
ate
r
Cerr
o S
an
Ped
ro Pea
k
Me
sq
uite
All
Ope
ratio
ns
New Gold 2011
Industry Average 2011
New Gold 2012
Notes: 1. Industry stats are supplied by those jurisdictions in which each mine is operating and is reflective of underground and surface operations as appropriate.
2. “All Operations” compares the average rate of injury for all New Gold operations versus average rate for all Regulatory jurisdictions based on 200,000 hours.
Safety performance
36
2012 recognitions
2011 Mining and Sustainability Award
Corporate Advocate for Aboriginal Business Award
Viola R. MacMillan Award for company or mine development
Northern British Columbia Prospector/Developer of the Year Award
New Afton
Blackwater
Mexican Mining Chamber Award for Excellence in Safety
Cerro San Pedro
Cobar Business Award for Environmental Achievement
Peak Mines
37
ISO 14001 certification for all New Gold operations
Pre-approval for International Cyanide Management Code at Cerro San Pedro and
Peak Mines
Formalize community engagement and feedback systems at all sites
Continue active engagement with First Nations at Blackwater and New Afton
Initiate certification process for ‘Towards Sustainable Mining’ at Blackwater
Begin filing Environmental Impact Assessment with federal and provincial
environmental assessment agencies for Blackwater
2013 key objectives
38
Development Projects
39
El Morro (30%) Blackwater
Continued exploration potential
Significant resource base
Located in areas with strong mining tradition
Estimating below industry average costs
Robust production and cash flow generation potential
Two growth projects sharing key characteristics
40
-
2
4
6
-
2
4
6
8
10
12
Gold Copper
-
2
4
6
-
2
4
6
8
10
12
Gold Copper
-
50
100
150
200
250
-
100
200
300
400
500
600
Gold Copper
• Blackwater and El Morro combine to provide New Gold shareholders with significant gold and
copper resource exposure
• The two assets combined should double the company’s production base at low costs
Measured & Indicated
Resources(1)(2) Inferred Resources(1)(3) Potential Annual Gold/Copper
Production(4)
Gold
(Moz)
Copper
(Blbs)
Gold
(Moz)
Copper
(Blbs)
Gold
(Koz)
Copper
(Mlbs)
11.2
2.2
~600
2.1
0.6
~85
Notes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations. El Morro shown at New Gold’s attributable 30% share.
2. Blackwater Measured and Indicated resources inclusive of Capoose Indicated resources of 196Koz.
3. Blackwater Inferred resources inclusive of Capoose Inferred resources of 595Koz.
4. El Morro shown at New Gold’s attributable 30% share.
Blackwater
El Morro
El Morro
Blackwater
El Morro
Blackwater
El Morro
El Morro
A future of further gold and copper leverage
41
Blackwater
42
Site snapshot
43
• Acquired in mid-2011 through acquisition of
Richfield Ventures
• Conducted aggressive exploration drill
program to increase size and quality of
mineral resource
• Completed Preliminary Economic
Assessment (“PEA”) in September 2012
• 2012 year end resource included additional
101,056 metres in 466 holes beyond PEA
• Total 2012 drilling over 270,000 metres
project wide
• Targeting completion of Feasibility Study by
late 2013
British Columbia
Vancouver
Victoria
Blackwater
New Afton
Vanderhoof
Prince George
Project overview
44
~160km to
Prince George
~112km to
Vanderhoof
Blackwater
Project
50km
80km
Capoose
Resource
Blackwater
Resource
Blackwater area map
45
Signing of two exploration agreements with First Nations
Approval of Multi-Year Area Based exploration permit
Opened regional office and sample preparation lab in Vanderhoof
Completion of Preliminary Economic Assessment
Confirmed point of access to B.C. Hydro power connection
Completed Geotechnical Investigation Program
Completed Environmental Baseline Program
Initiated Federal and Provincial environmental processes
Completed 2012 year end mineral resource estimate
2012 key achievements
46
• 2012 year end resource update successfully upgraded majority of mineralization into
Measured and Indicated resource categories
• 33% of Measured and Indicated resource contained gold ounces now at Measured
classification whereas previously all classified as Indicated
• Infill drilling now complete on main Blackwater mineral resource
• Incorporation of infill drilling and updated geologic resource constraints post-PEA resulted in a
decline in the overall resource inventory offset by a significant increase in confidence
Mineral resource update since PEA
Year End 2012 Mineral Resources
(0.4 AuEq g/t cut-off)
Category Tonnes
(000’s)
Au
(g/t)
Ag
(g/t)
Gold
(Koz)
Silver
(Koz)
Measured 88,188 0.94 5.2 2,670 14,740
Indicated 207,958 0.81 6.2 5,400 41,450
Total M&I 296,146 0.85 5.9 8,070 56,190
Inferred 16,585 0.58 10.8 310 5,760
September 2012 Mineral Resource Estimate
(0.3 AuEq g/t cut-off)
Category Tonnes
(000’s)
Au
(g/t)
Ag
(g/t)
Gold
(Koz)
Silver
(Koz)
Measured -- -- -- -- --
Indicated 267,145 0.88 4.3 7,520 36,930
Total M&I 267,145 0.88 4.3 7,520 36,930
Inferred 120,478 0.69 7.3 2,660 28,280
47
• In assessing the updated mineral resource estimate, New Gold is focused on the highest
quality tonnes and ounces to maximize profitability rather than global resource inventory
• Increased resource reporting cut-off to 0.4 gold-equivalent grams per tonne (“AuEq g/t”)
from PEA resource cut-off (0.3 AuEq g/t) to maximize grade of tonnes to be mined at
expense of more marginal resources
– Intend to stockpile material below 0.4 AuEq g/t cut-off for processing later in
Blackwater’s mine life
• Continue to target a variable cut-off strategy for mine planning to process most profitable
ore tonnes in early years to maximize internal rate of return and payback period
– 2012 year end resource expected to support a steadier production profile in first 10
years when compared to PEA which saw higher production in first five years at expense
of lower production levels in years six through 10
• Total estimated gold production in first 10 years is expected to remain consistent with
that of the PEA
Mineral resource update since PEA (cont’d)
48
Operating Cost Per Tonne
Mine Plan
Strip Ratio
Development Capital $1.8 billion (inclusive of $346 million contingency) per PEA
remains consistent with current expectations
Trade-off studies ongoing, however, total mining, processing
and G&A cost per tonne expected remain in line with PEA
estimates
Subject to ongoing scheduling optimizations through
completion of Feasibility Study. Focus on mining/processing
of most profitable ounces
Remains in line with PEA estimate
General update since PEA
49
Update process flowsheet, throughput and grinding plant selection studies
Update infrastructure trade-off studies
Mine planning and optimized production schedule
Detailed design of tailings facility, powerline, access road and fresh water supply route
Complete Feasibility Study
Continue discussions with First Nations regarding Participation Agreements
Complete Environmental Assessment Report
2013 plans and initiatives
50
New Gold has engaged McKinsey & Company to collaborate with Blackwater team on
establishing a Project Implementation Plan
• Key objective is to maximize effectiveness of project planning to ensure delivery and
execution of Blackwater is consistent with New Gold’s prior developments including:
Mesquite, Cerro San Pedro and New Afton
Areas of focus include:
• Delivery model selection
• Project team organization
• Reporting metrics and management processes
• Labour strategy
• Procurement strategy
• Governance
• Risk management
Project planning, management and execution initiative
51
Notes: 1. Indicative timeline is dependent on permit approvals. There is no assurance this timeline will be achieved nor that the deposit will ever reach the production stage.
Blackwater – Indicative timeline
Development activity
First Nations & Public Consultation
Preliminary Economic Assessment
Base Line Environmental Studies
Feasibility Study
Engineering Procurement
Production Target
Drilling
Project Description/Terms of Reference
Environmental Assessment Reports
Provincial Approval
Federal Approval
Construction
H1 H2 H1 H2 H1 H2H1 H2 H1 H2 H1 H2
2012 2013 2014 2015 2016 2017
Reflects critical path in timeline
52
El Morro
53
• Goldcorp – 70% partner and project operator
• New Gold’s 30% share of capital fully-funded by
Goldcorp
• Current resource entirely within La Fortuna deposit
• Neighbouring El Morro deposit underexplored
• 2012 year end update added 0.4 million ounces of
gold and 229 million pounds of copper to reserves(1)
• Addressing recent temporary suspension of
environmental permit
• Resolution targeted prior to end of 2013
• Chile evaluating various alternatives for a power
source to northern Chilean development projects
2.1 Blbs
Copper Reserve(1)
2.9 Moz
Gold Reserve(1)
Notes: 1. New Gold’s attributable 30% share. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations.
El Morro (30%)
54
• New Gold’s 30% share of development capital 100% carried
• Interest fixed at 4.58%
Notes: 1. Capital estimates based on December 2011 Feasibility Study.
Total Capital
100%
~ $3.9 billion
100% Average annual
cash flow
70% 30%
70% ~ $2.7 billion
Funded by
$1.2 billion
interest at 4.58%
30%
80%
20%
Carried funding repayment
El Morro (30%) – Funding structure(1)
55
El Morro project – Plan view
56
La Fortuna deposit
2012 open pit Proven and
Probable reserves and Measured
and Indicated resources
Underground Inferred
resource with block
cave potential
500 metres
57
• El Morro Feasibility Study was updated in December 2011
• Key parameters for New Gold include:
• 30% share of estimated development capital, or $1.2 billion, carried by Goldcorp
– Receive cash flow from start of production
– Interest rate fixed at 4.58%
• Base 17-year mine life
• 30% share of annual production: ~90,000 ounces of gold and ~85 million pounds of copper
• Estimated total cash costs(1), net of by-products ($700) per ounce
– Co-product gold ~$550 per ounce
– Co-product copper ~$1.45 per pound
• At today’s prices, approximates $290 million in annual EBITDA
Notes: 1. Refer to Cautionary Statement and note on Total cash costs.
Overview of updated Feasibility Study
58
Reserves and Resources
and Exploration Update
59
Notes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations.
2. Measured and Indicated resources inclusive of reserves.
7.9 7.7
18.8 21.4
6.3 4.4
Proven and Probable Reserves (Moz)
Measured and Indicated Resources (Moz)(2)
Inferred Resources (Moz)
Proven and Probable Reserves
• Mine depletion at four operating assets
partially offset by year-over-year
reserve increases at New Afton and
Peak Mines
• New Afton reserve update adds ~2
years to mine life
Measured and Indicated Resources
• 10% increase in resources per share
Year End 2011 Year End 2012
Gold reserves and resources
60
18.8
21.43.2
(0.6)
15.0
16.0
17.0
18.0
19.0
20.0
21.0
22.0
12/31/2011 Ounces Mined2012
Ounces added throughexploration/updatedresource estimates
12/31/2012
Measured & Indicated Gold Resources (million ounces, inclusive of reserves)
Notes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations.
Exploration growing resources
Blackwater
Mesquite Cerro San Pedro
New Afton
Peak Mines
61
• 10% increase in Measured and
Indicated gold resources per share
• 49% increase in Blackwater
resources
• 14% increase in New Afton
resources
• Fourth consecutive year with ‘per
share’ growth in Measured and
Indicated resources
Measured and Indicated Resources(1)
Notes: 1. Measured and Indicated resources inclusive of reserves.
Go
ld R
eso
urc
es (
ou
nc
es p
er
1,0
00 s
ha
res)
Increasing gold leverage per share
-
10
20
30
40
50
YE 2009 YE 2010 YE 2011 YE 2012
62
New Afton
Notes: 1. Refer to Appendix 4 for detailed disclosure on reserve and resource calculations.
2. Measured and Indicated resources inclusive of reserves.
Gold M&I Resources(2)
21.4 Moz
Copper M&I Resources(2)
4.1 Blbs
Silver M&I Resources(2)
132 Moz
Blackwater
Mesquite
El Morro Cerro San Pedro
Peak Mines
Capoose
December 31, 2012
Blackwater
Mesquite
El Morro
Cerro San Pedro
New Afton
Peak Mines Capoose
Blackwater
Cerro San Pedro
Capoose
El Morro
New Afton
Peak Mines
Measured and Indicated resource contribution
63
2013 exploration program overview
• New Gold’s estimated exploration budget for 2013 is $50 million
• Capitalized: $20 million
• Expensed: $30 million
New Afton
40,000 metres
Peak Mines
33,000 metres Blackwater
40,000 metres
Capitalized: $15 million
Expensed: $15 million
Expensed: $10 million
Capitalized: $5 million
Expensed: $5 million
64
~160km to
Prince George
~112km to
Vanderhoof
Blackwater
Project
50km
80km
Capoose
Resource
Blackwater
Resource
Blackwater area map
65
Blackwater area geology
5 km 5 km
Siltstones
Blackwater host volcanics
Post-mineral andesites
Glacial till
66
5 km
Siltstones
Blackwater host volcanics
Post-mineral andesites
Glacial till
5 km
Blackwater development footprint
67
Blackwater 2013 objectives
>1000 ppb Au
500-1000 ppb Au
250-500 ppb Au
50-250 ppb Au
Blackwater
Auro
Fawnie Van Tine
Capoose
• Blackwater: Explore for satellite deposits and test
potential extensions to known resource
• Capoose: Expand and upgrade resource with special
focus on potential to extend gold-rich zones
• Regional targets: Identify specific drill targets and
complete first pass reconnaissance drilling
Plan for four to six drills to be active during primary field season
68
Peak corridor map
Great Cobar
~9 kilometres
69
New Afton long section
* 2012 Holes completed - Assays pending
* * * *
*
EA-2
EA-9
EA-11
EA-19
EA-21
EA-24
C-Zone
B-Zone
A-Zone
4,900m
2012 East Extension
Reserves conversion
drilling
*
B3 Block
70
• B-Zone reserve addition
• Added reserves equivalent to two years of production at current rates
• Four infill holes totaling 1,100 metres included in year end resource update
• Four additional infill holes totaling 2,000 metres to be included in future resource
update
• C-Zone exploration
• Completed 26 exploration holes totaling 13,898 metres during third and fourth quarters
of 2012
• First 11,200 metres drilled to prove up deeper Measured and Indicated resources and
potentially lower B3 block extraction level
• Three holes totaling 1,321 metres included in year end resource update
• 23 holes totaling 12,577 metres to be included in future resource update
New Afton exploration program – 2012 results
71
New Afton exploration program
Explore and expand mineral resources to extend mine life and provide additional ore
sources to support increased mill throughput
Proven and Probable Reserves
Tonnes
(000’s)
Au
(g/t)
Cu
(%)
Gold
(Koz)
Copper
(Mlbs)
52,500 0.65 0.93 1,100 1,080
A&B Zone Reserves December 31, 2012
Measured and Indicated Resources
Tonnes
(000’s)
Au
(g/t)
Cu
(%)
Gold
(Koz)
Copper
(Mlbs)
3,300 0.62 0.68 66 49
C-Zone Resources December 31, 2012
Inferred Resources
Tonnes
(000’s)
Au
(g/t)
Cu
(%)
Gold
(Koz)
Copper
(Mlbs)
13,600 0.70 0.76 307 228
• C-Zone grades compare favorably to
current reserves
• 2012 drill results indicate potential to
lower current B3 extraction level and
increase both tonnes and grade for C-
Zone
72
New Afton C-Zone exploration program – Highlights
* Holes completed - Assays pending
* * * * *
EA-2
EA-9
EA-11
EA-19
EA-21
EA-24
EA-2
EA-24
EA-19
EA-11 EA-21
EA-9
C-Zone
B-Zone
A-Zone
C-Zone
4,900m 4,900m
A-Zone
B-Zone
5,400m 5,400m
East Extension
Historic “Deep C-Zone” Intercepts
AF-125: 122m @ 1.01 g/t Au, 1.23% Cu
AF-139: 92m @ 1.09 g/t Au, 1.36% Cu
Fourth Quarter 2012 C-Zone Drilling Highlights
Drill Hole From (m) To (m) Interval (m) Au g/t Cu %
EA12-7 424 494 70 1.23 1.19
EA12-9 286 444 158 0.88 0.94
EA12-11 418 528 110 1.05 0.90
EA12-19 460 626 166 1.23 1.28
EA12-21 488 597 109 1.06 0.95
EA12-24 574 730 156 1.01 1.02
Drilling highlights not
included in 2012 year
end resource update
73
New Afton exploration objectives
Target 30,000 metres of C-Zone drilling
2013 Objectives
Determine potential to expand C-Zone resource two to three fold
Target 5,000 metres of district reconnaissance exploration
Target 5,000 metres of drilling for reserve replacement
74
2013 exploration objectives
First half
2013
Blackwater:
• Explore potential Blackwater extensions and complete condemnation program
• Initiate Capoose geophysical and drilling programs
• Define drill-specific targets on regional prospects
New Afton:
• Extend outer limits of C-Zone
• Initiate district reconnaissance drilling
Peak:
• Drill test southern mine corridor targets
• Complete Great Cobar exploration program
Second half
2013
Blackwater:
• Complete Capoose drilling program
• First pass reconnaissance testing of regional prospects
• Expand target portfolio through continued property-wide reconnaissance
New Afton:
• Define outer limits and test internal continuity of C-Zone
• Complete district reconnaissance drilling
Peak:
• Drill test northern mine corridor targets
• Reconnaissance drilling on regional targets
75
New Afton Value
Enhancing Initiatives
76
New Gold is actively evaluating organic growth initiatives across
its portfolio, with a current focus on New Afton
Mill throughput
optimization/increase
C-Zone: Resource
growth
Mine life extension at higher
annual production rates
Overview
77
3,799
7,428
9,734
11,66112,252
11,68211,183
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Jun Jul Aug Sep Oct Nov Dec
Daily average throughput by month (tonnes per day)
• Successful mill start-up
• June 28, 2012 – first ore through mill meeting targeted
start date
• July 31, 2012 – achieved commercial production ahead
of schedule
• September 21, 2012 – achieved full production (11,000
tonne per day design capacity) over one month ahead
of schedule
• November/December 2012 – scheduled throughput
decrease to manage stockpile/feed inventory in
advance of permanent crusher installation in January
2013
• Throughput averages 11,706 tonnes per day in fourth
quarter 2012
• Record daily throughput of 13,840 tonnes
Nameplate Capacity
2012 Mill Ramp-Up
Overview of New Afton mill start-up
78
• To assess the potential for the mill to operate at a throughput higher than nameplate 11,000
tonnes per day on sustainable basis, the following elements require consideration:
• Ore access/drawbell development/mining rate
• Underground crushing capacity/conveyor capacity
• Mill capacity
New Afton optimization opportunities
With a potential increase in mill throughput, the company is simultaneously evaluating the
additional resource potential of the C-Zone Block to maintain or increase the current 14-year
mine life at higher annual gold and copper production rates
79
• Drawbell development has been progressing at a
faster rate than planned
• 50 active drawbells required to source 11,000
tonnes per day of ore feed
• Completed 50th drawbell on November 22,
2012
– At December 31, 2012 – 54 drawbells had
been completed
• As a result of accelerated drawbell development,
took the opportunity to develop the East Cave,
the benefits of which include:
• Additional ore access points
• More consistent annual production profile
• Added flexibility
It is expected approximately 65 active drawbells would ultimately provide ~25-30% more
ore, resulting in potential for similar increase in mining rate
54
~65
~90
0
20
40
60
80
100
December 31, 2012 June 30, 2013 December 31, 2013
Drawbell Development
Target Target
Ore access/drawbell development/mining rate
80
54 drawbells
in production
at end of 2012
East Cave
production to begin
mid-year
Central Cave
to be activated
later in mine life Final 11 drawbells
in West Cave
Accelerating East Cave
development for added
flexibility/more ore sources
Height of Draw
Planned development
in 2013
New Afton drawbell development and ore columns
Copper resource grades
81
• Gyratory crusher provides excess
production capability at nominal
20,000 tonnes per day capacity
• Development crusher provides
~8,000 tonnes per day back-up
crushing capacity
• Conveyor designed to haul up to
14,500 tonnes per day
Combined underground crushing and conveying capacity significantly exceeds mill
nameplate 11,000 tonnes per day
Underground crushing capacity/conveyor capacity
82
Q1’2013
Q2’2013
Q3’2013
Q4’2013
• Commission gyratory crusher
• Increase underground mining rate to 11,000 tonnes per day
• Complete VR7 rehab and implement push/pull ventilation
• Ventilation study to increase overall system capacity
• Increase mining rate to 11,500 tonnes per day
• Ore haulage studies to optimize scoops and trucks
• Begin mining in East Cave
• Total 65 completed drawbells
• Continued drawbell development
• Step up mining rate to 12,000 tonnes per day
• Total 90 completed drawbells
Mining rate increase timeline
83
• Record daily throughput of 13,840 tonnes
• 12,250 tonnes per day sustained in October 2012 with
no significant optimization efforts
• Key considerations for increased mill throughput include:
• SAG Mill: Flexibility to optimize mill power and burden
level for finest possible product size distribution over a
wide range of ore conditions
• Ball Mill: Optimize SAG screen deck and hydrocyclone
cluster configurations for SAG/Ball Mill circuit balance;
optimal Ball Mill feed size and classification efficiency
• Flotation: Capacity is adequate for substantial increase
in throughput
• Concentrate Filtration: Existing capacity for incremental
production increase; ample space for installation of third
filter
• Tailings Pumping Capacity: Three stage variable speed
pumps currently running well below maximum
capacities
Mill capacity
84
Q1’2013
Q2’2013
Q3’2013
Q4’2013
• Optimize crushing and conveying with gyratory crusher
• Hold mill at 11,000 tonnes per day average, build-up live stockpile
• Crushing and conveying output achieves steady-state – mill matching at
11,500 tonnes per day average
• Target completion of several efficiency improvements including: cyclones,
Ball Mill trommel, pebble crusher, screen deck, expert system
• Increase crushing and conveying output as experience is gained
• Target of mill throughput increase to 12,000 tonnes per day
Mill throughput increase timeline
85
Conclusion
86
Growing Together
Established Solid Foundation Low Cost – High Margin
• Delivered on operational guidance for fourth
consecutive year
• Organic, fully-funded growth profile to double
production at low costs
• No need for M&A
• Simplified balance sheet
• Board and senior management have significant
ownership stake in company
• Established strong, mutually-beneficial
relationships with stakeholders across portfolio
• Employ 1,780 people globally
• One of only companies in industry with declining
cost profile
• All-in sustaining cash costs only marginally above
current industry-average cash costs
• Natural economic hedge of copper/silver provides
effective offset to cost pressures
Executing on Shareholder-Oriented Strategy
• Realizing target of ‘per share’ growth
• Increased NAV per share
• Have grown Measured and Indicated resources
per share
• Outperformed key gold equity indices
Review
87
• New Afton provides solid gold production growth and even more significant step change in cash flow
New Afton’s contribution
2013 Estimated Cash Flow Contribution
New Afton
50%
Peak Mines
15%
Cerro San Pedro
25%
Mesquite
10%
• Potential mill throughput increase could make New Afton an even more significant contributor in coming
years
88
Organic growth versus M&A
• New Gold has successful track record of value creation through both organic growth
(New Afton) and acquisitions (Blackwater)
• Management sees no need to pursue M&A unless truly compelling
• Current portfolio provides for fully funded doubling of production
• No need for additional scale – focus on meaningful value enhancement
• Perceive organic initiatives (New Afton throughput increase/C-Zone and Blackwater
regional exploration) as highest return potential allocations of capital
89
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
500%
1-J
un-0
9
28
-Oct-
09
26
-Mar-
10
22
-Aug
-10
18
-Jan
-11
16
-Jun
-11
12
-Nov-1
1
9-A
pr-
12
5-S
ep-1
2
1-F
eb
-13
NGD Gold PriceS&P/TSX Gold Index FTSE Gold Mines IndexHUI Index
Completed $1.2bn business
combination with Western Goldfields
Closing of Richfield
acquisition
Source: Broker Reports, Company Estimates and Announcements, Bloomberg, all amounts in USD.
Notes: 1. Street consensus NAV.
2. Current street consensus NAV for El Morro; Includes $50 million cash payment received from Goldcorp as part of transaction consideration.
3. New Gold purchased Richfield and Silver Quest with the deals closing on June 1, 2011 and December 23, 2011, respectively.
4. S&P/TSX Gold Index includes 54 gold companies in various stages of development/production.
5. FTSE Gold Mines Index includes 26 gold producing companies.
6. HUI Index includes 15 of the major global gold producers.
6/1/09 Today
Mesquite, Cerro San Pedro, Peak Mines
New Afton
El Morro(2)
~ $875 $1,775
~ $120 $1,491
~ $40 $697
Net Asset Value(1)
Blackwater(3)
$-- $1,502
Net asset value and relative performance
+239%
(13%)
(16%)
+71%
0%
90
2013 catalysts
2013 guidance – increased resources, production growth and lower costs
Blackwater regional exploration update
New Afton C-Zone exploration update
Completion of Blackwater Feasibility Study
New Afton mill to reach 12,000 tonnes per day
Resolution of El Morro temporary permit suspension
Results of New Afton throughput increase evaluation
91
EXPERIENCED BOARD AND MANAGEMENT
FULLY FUNDED COMPANY WITH STRONG BALANCE SHEET
DIVERSIFIED ASSET BASE IN MINING FRIENDLY JURISDICTIONS
ORGANIC GROWTH OPPORTUNITIES/METAL OPTIONALITY
PRODUCTION GROWTH/MARGIN EXPANSION
INCREASING UNDERLYING ASSET VALUE
MULTIPLE CATALYSTS
COMPELLING INVESTMENT PROPOSITION
The New Gold investment thesis
92
Appendices
1. Summary of debt
2. Fourth quarter and full year 2012 performance
3. Detailed operating results/assumptions
4. Reserve and resources notes
Appendix
93
Appendix 1
Summary of debt
Undrawn Credit
Facility
Senior Unsecured Notes
(April 2012)
Senior Unsecured Notes
(November 2012)
El Morro
Funding Loan
Face Value $150 million(1) $300 million $500 million $65 million
Maturity 1 year with annual
extensions permitted
April 15, 2020 November 15, 2022 n/a
Interest Rate See ‘Key features’ 7.00% 6.25% 4.58%
Payable Revolving credit Semi-annually Semi-annually Upon start of
production
Conversion price n/a n/a n/a n/a
Current trading
value
n/a ~107 ~105 n/a
Key features Normal financial
covenants
Interest Rate
• 3.00-4.25% over
LIBOR based on
ratios
• Standby fee of
0.75-1.06%
• Senior unsecured
• Redeemable after April
15, 2016 at 103.5%
down to 100% of face
after 2018
• Unlimited dividends if
leverage ratio below 2:1
• Senior unsecured
• Redeemable after
November 15, 2017 at
par plus half coupon,
declining ratably to par
• Unlimited dividends if
leverage ratio below 2:1
New Gold to
repay Goldcorp
out of 80% of its
30% share of
cash flow once El
Morro starts
production
Notes: 1. $50 million currently allocated for Letters of Credit.
94
Appendix 2
Fourth quarter and full year 2012 operating asset overview
Q4'12 2012 Q4'12 2012 Q4'12 2012 Q4'12 2012 Q4'12 2012
Gold production (Koz) 29 142 32 138 29 96 23 37 113 412
Gold sales (Koz) 30 142 31 134 26 89 23 30 110 396
Silver production (Koz) -- -- 401 1,939 -- -- -- -- 401 1,939
Silver sales (Koz) -- -- 420 1,926 -- -- -- -- 420 1,926
Copper production (Mlbs) -- -- -- -- 3.6 14.4 17.3 28.5 20.9 42.8
Copper sales (Mlbs) -- -- -- -- 3.0 13.0 16.8 22.6 19.8 35.6
Total cash costs(1) ($/oz) $787 $690 $320 $232 $743 $764 ($1,067) ($1,043) $254 $421
Mesquite Cerro San Pedro Peak Mines TotalNew Afton
Notes: 1. Refer to Cautionary Statement and note on Total cash costs.
95
Notes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxides; ~35% for sulphides.
2. Cerro San Pedro life-of-mine recovery: Gold – ~60%; Silver – ~25%.
Appendix 3
Detailed operating results/assumptions
2012A 2013E 2012A 2013E 2012A 2013E 2012A 2013E
Tonnes processed (000 tonnes) 14,503 14,250-14,750 16,531 12,250-12,750 778 815-835 1,970 4,000-4,200
Tonnes mined (000 tonnes) 45,666 46,000-48,000 30,905 36,000-38,000 786 1,310-1,330 903 4,300-4,500
Gold grade (g/t) 0.46 0.41-0.45 0.47 0.58-0.63 4.18 4.1-4.3 0.73 0.67-0.71
Silver grade (g/t) -- -- 21.43 13.0-17.0 -- -- -- --
Copper grade (g/t) -- -- -- -- 0.97% 0.80-0.84% 0.78% 0.86-0.90%
Gold recovery (%) (1) (1) (2) (2) 91.3% 90.0-92.0% 78.8% 88.0-90.0%
Silver recovery (%) -- -- (2) (2) -- -- -- --
Copper recovery (%) -- -- -- -- 86.0% 89.0-91.0% 84.5% 88.0-90.0%
Capital expenditures ($mm) $11 $20 $15 $40 $47 $60 $297 $110
Mesquite Cerro San Pedro Peak Mines New Afton
96
Appendix 4
Reserve and resources
Tonnes
000's
Gold
g/t
Silver
g/t
Copper
%
Gold
Koz
Silver
Koz
Copper
Mlbs
Mesquite
Proven 13,140 0.68 - - 287 - -
Probable 114,409 0.56 - - 2,055 - -
Mesquite P&P 127,549 0.57 - - 2,342 - -
Cerro San Pedro
Proven 21,100 0.52 17.1 - 353 11,600 -
Probable 26,400 0.48 17.4 - 407 14,800 -
CSP P&P 47,500 0.50 17.3 - 760 26,400 -
Peak
Proven 2,030 6.07 7.6 1.07 396 496 48
Probable 2,020 3.90 7.0 1.20 253 455 53
Peak P&P 4,050 4.99 7.3 1.13 649 951 101
New Afton
Proven - - - - - - -
Probable 52,500 0.65 2.3 0.93 1,100 3,880 1,080
New Afton P&P 52,500 0.65 2.3 0.93 1,100 3,880 1,080
El Morro 30% Basis
Proven 307,949 0.57 - 0.56 1,705 - 1,135
Probable 335,152 0.37 - 0.44 1,186 - 962
El Morro P&P 643,101 0.47 - 0.49 2,891 - 2,097
Mineral Reserves statement as at December 31, 2012
Metal grade Contained metal
100% Basis
97
Appendix 4
Reserve and resources (cont’d)
Tonnes
000's
Gold
g/t
Silver
g/t
Copper
%
Gold
Koz
Silver
Koz
Copper
Mlbs
Mesquite
Measured - oxide 19,100 0.51 - - 313 - -
Indicated - oxide 274,100 0.38 - - 3,349 - -
Meqsuite M&I - oxide 293,200 0.39 - - 3,662 - -
Measured - non oxide 4,900 0.88 - - 139 - -
Indicated - non oxide 96,000 0.61 - - 1,883 - -
Mesquite M&I - non oxide 100,900 0.62 - - 2,022 - -
Total Mesquite M&I 394,100 0.45 - - 5,684 - -
Cerro San Pedro
Measured - oxide 27,100 0.34 15.0 - 303 13,100 -
Indicated - oxide 49,000 0.24 13.0 - 380 20,480 -
CSP M&I - oxide 76,100 0.28 13.7 - 683 33,580 -
Measured - sulphide 15,200 0.47 11.9 - 229 5,800 -
Indicated - sulphide 60,400 0.41 9.6 - 791 18,600 -
CSP M&I - sulphide 75,600 0.42 10.1 - 1,020 24,400 -
Total CSP M&I 151,700 0.35 11.9 - 1,703 57,980 -
Peak
Measured 2,700 5.74 7.5 1.05 494 650 62
Indicated 3,200 3.75 6.8 1.19 386 700 84
Peak M&I 5,900 4.66 7.1 1.13 880 1,350 146
New Afton
A&B Zones
Measured 33,500 0.86 2.9 1.18 929 3,160 873
Indicated 45,900 0.67 2.4 0.89 984 3,530 896
A&B Zone M&I 79,400 0.75 2.6 1.01 1,913 6,690 1,769
C-Zone
Measured 400 0.60 1.3 0.73 8 20 6
Indicated 2,900 0.63 1.3 0.68 58 120 43
C-Zone M&I 3,300 0.62 1.3 0.68 66 140 49
Total New Afton M&I 82,700 0.74 2.6 1.00 1,979 6,830 1,818
Blackwater
Measured 88,188 0.94 5.2 - 2,670 14,740 -
Indicated 207,958 0.81 6.2 - 5,400 41,450 -
Blackwater M&I 296,146 0.85 5.9 - 8,070 56,190 -
Capoose
Indicated 14,200 0.43 20.8 - 196 9,497 -
El Morro
Measured 307,949 0.57 - 0.56 1,705 - 1,135
Indicated 335,152 0.37 - 0.44 1,186 - 962
El Morro M&I 643,101 0.47 - 0.49 2,891 - 2,097
100% Basis
Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2012
Metal grade Contained metal
30% Basis
98
Appendix 4
Reserve and resources (cont’d)
Tonnes
000's
Gold
g/t
Silver
g/t
Copper
%
Gold
Koz
Silver
Koz
Copper
Mlbs
Mesquite
Oxide 35,200 0.33 - - 373 - -
Non oxide 15,700 0.55 - - 278 - -
Mesquite Inferred 50,900 0.40 - - 651 - -
Cerro San Pedro
Oxides 53,400 0.17 9.0 - 300 15,400 -
Sulphides 50,500 0.34 8.5 - 550 13,800 -
CSP Inferred 103,900 0.25 8.8 - 850 29,200 -
Peak 1,700 2.64 4.8 1.13 144 261 42
New Afton
A&B-Zone 14,900 0.45 2.0 0.65 216 940 212
C-Zone 13,600 0.70 1.5 0.76 307 670 228
New Afton Inferred 28,400 0.57 1.8 0.70 523 1,610 440
Blackwater 16,585 0.58 10.8 - 310 5,760 -
Capoose 64,070 0.29 23.2 - 595 47,789 -
El Morro 137,555 0.99 - 0.70 1,310 - 632
Inferred Resource statement as at December 31, 2012
Metal grade Contained metal
100% Basis 30% Basis
99
Appendix 4
Reserve and resources notes
Mineral reserves are contained within Measured and Indicated mineral resources. Measured and Indicated mineral resources that are not mineral reserves do not have demonstrated economic
viability as defined by a technical Feasibility Study. New Gold reports its Measured and Indicated mineral resources inclusive of its mineral reserves. Inferred mineral resources are not known
with the same degree of certainty as Measured and Indicated resources, do not have demonstrated economic viability, and are exclusive of mineral reserves. Mineral reserves have been
estimated and reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (‘CIM’) definition standards and guidelines and Canadian National Instrument 43-101 (‘NI
43-101’).
1) Mineral Reserves for the company’s mineral properties have been calculated based on the following metal prices and lower cut-off criteria:
Mineral Property Gold
(US$/oz)
Silver
(US$/oz)
Copper
(US$/lb)
Lower Cut-off
Mesquite $1,300 - - 0.21 g/t Au – Oxide reserves
0.41 g/t Au – Non-oxide reserves
Cerro San Pedro $1,300 $24.00 - US$4.33 /t NSR
Peak Mines $1,300 $24.00 $3.00 A$120 – 253/t NSR
New Afton $1,300 - $3.00 US$24/t NSR
El Morro $1,350 - $3.00 0.20% CuEq
100
Appendix 4
Reserve and resources notes (cont’d)
2) Mineral Resources for the company’s mineral properties have been calculated based on the following metal prices and lower cut-off criteria:
Mineral resources have been estimated and reported in accordance with CIM definition standards and guidelines and Canadian NI 43-101.
Mineral Property Gold
(US$/oz)
Silver
(US$/oz)
Copper
(US$/lb)
Lower Cut-off
Mesquite $1,400 - - 0.12 g/t Au – Oxide resources
0.24 g/t Au – Non-oxide resources
Cerro San Pedro $1,400 $28.00 - 0.1g/t AuEq – Open pit oxide resources
0.4g/t AuEq – Open pit sulphide resources
Peak Mines $1,400 $28.00 $3.25 A$97 - 137/t NSR
New Afton $1,400 $28.00 $3.25 0.40% CuEq – All resources
El Morro $1,500 - $3.50 0.15% Cu – Open pit resources
0.20% Cu – Underground resources
Blackwater $1,400 - - 0.40 g/t AuEq
Capoose $1,400 - - 0.40 g/t AuEq
3) Mineral resources are classified as Measured, Indicated and Inferred resources and are reported based on technical and economic parameters consistent with the methods most suitable for
their potential commercial exploitation. Where different mining and/or processing methods might be applied to different portions of a mineral resource, the designators ‘open pit’ and
‘underground’ have been applied to indicate envisioned mining method. Likewise the designators ‘oxide’, ‘non-oxide’ and ‘sulphide’ have been applied to indicate the type of mineralization as
it relates to appropriate mineral processing method and expected payable metal recoveries. Additional details regarding mineral resource estimation, classification and reporting parameters for
each of New Gold’s mineral properties are provided in the respective NI 43-101 Technical Reports which are available on SEDAR.
4) Qualified Person: The preparation of New Gold’s mineral reserve and resource statements has been done by Qualified Persons as defined under Canadian National Instrument 43-101
under the oversight and review of Mark Petersen, a Qualified Person under National Instrument 43-101 and employee of New Gold.
101
Contact information
Investor Relations
Hannes Portmann
Vice President, Corporate Development
416-324-6014