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New Gold Inc. (NGD) reported its second-quarter 2025 earnings, surpassing earnings per share (EPS) estimates but falling short on revenue expectations. The company posted an adjusted EPS of $0.11, outperforming the forecast of $0.10, marking a 10% surprise. Despite the positive EPS, New Gold’s revenue of $308.4 million missed the forecasted $321.9 million, leading to a premarket stock decline of 1.13%, with shares trading at $4.36. According to InvestingPro analysis, NGD currently appears undervalued, with a "GREAT" overall financial health score of 3.25 out of 5, suggesting strong fundamental positioning despite the revenue miss.
Key Takeaways
- New Gold exceeded EPS expectations with a 10% surprise.
- Revenue fell short of forecasts, contributing to a stock decline.
- Record free cash flow of $63 million was achieved during the quarter.
- The company maintains its 2025 production guidance.
- Continued focus on organic growth and resource expansion.
Company Performance
New Gold demonstrated resilience in Q2 2025 by surpassing EPS estimates, a significant achievement in a challenging market. The company’s net earnings reached $68 million, or $0.09 per share, while adjusted net earnings were $90 million, or $0.11 per share. This performance reflects a solid operational execution, supported by higher gold prices and efficient cost management.
Financial Highlights
- Revenue: $308.4 million, down from forecasted $321.9 million.
- Earnings per share: $0.11, exceeding the $0.10 forecast.
- Record free cash flow: $63 million.
- Cash on hand: $226 million.
- Liquidity position: $452 million.
Earnings vs. Forecast
New Gold’s EPS of $0.11 exceeded the forecast of $0.10, resulting in a 10% positive surprise. However, the revenue of $308.4 million fell short of the expected $321.9 million, marking a 4.19% miss. This mixed performance highlights the company’s ability to manage costs effectively, even as revenue targets were not met.
Market Reaction
Despite the EPS beat, New Gold’s stock experienced a premarket decline of 1.13%, trading at $4.36. The stock’s movement reflects investor concerns over the revenue miss and its implications for future growth. The share price remains within its 52-week range, with a high of $5.16 and a low of $1.94.
Outlook & Guidance
New Gold maintains its 2025 production guidance, focusing on reserve replacement and resource conversion. The company targets a gold price assumption of $1,900-$2,000 for year-end calculations and continues to explore organic growth opportunities at its New Afton and Rainy River sites.
Executive Commentary
CEO Patrick Godin emphasized the company’s strategic focus, stating, "We don’t want to be big to be big. We want to be bigger to be better." He also highlighted the company’s safety performance and free cash flow potential, projecting approximately $1.86 billion over the next three years.
Risks and Challenges
- Revenue shortfall: Continued revenue misses could affect investor confidence.
- Commodity price fluctuations: Changes in gold and copper prices could impact profitability.
- Operational risks: Delays in project developments like New Afton could affect production targets.
- Market competition: Increased competition in the mining sector may pressure margins.
- Economic conditions: Macro-economic factors could influence commodity demand and pricing.
Q&A
During the earnings call, analysts inquired about the production split between Q3 and Q4, shareholder return options, and confidence in the grade profile for the second half of 2025. Management confirmed an even production split and is exploring potential dividends or buybacks, expressing confidence in future performance.
Full transcript - New Gold Inc (NGD) Q2 2025:
Jean Louis, Conference Operator: Good morning. My name is Jean Louis, and I will be your conference operator today. Welcome to the New Gold Second Quarter twenty twenty five Earnings Call and Webcast. All lines have been placed on mute to prevent any background noise. Please be advised that today’s conference call and webcast is being recorded.
After the speakers’ remarks, there will be a question and answer session. If you would like to ask questions during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, simply press star, one again. I would now like to hand the conference over to Anik Shah, Executive Vice President of Strategy and Business Development. Thank you.
Anik Shah, Executive Vice President of Strategy and Business Development, New Gold: Thank you, Jean Louis, and good morning, everyone. We appreciate you joining us today for NuVault’s Second Quarter twenty twenty five Earnings Conference Call and Webcast. On the line today, have Patrick Godin, President and CEO Keith Murphy, CFO and Travis Murphy, Vice President, Operations. In addition, have Luke Buchanan, Vice President, Technical Services and Jean Francois Ravanel, Vice President, Geology available to assist during the question and answer portion at the end of the call. Should you wish to follow along with the webcast, please sign in from our webpage at newgold.com.
Before the team begins the presentation, I would like to direct your attention to our cautionary language related to forward looking statements found on Slide two of the presentation. Today’s commentary includes forward looking statements relating to New Gold. In this respect, we refer you to our detailed cautionary note regarding forward looking statements in the presentation. You are cautioned that actual results and future events could differ materially from those expressed or implied in forward looking statements. Slide two provides additional information and should be reviewed.
We also refer you to the section entitled Risk Factors in New Gold’s latest AIF, MD and A and other filings available on SEDAR plus which set out certain material factors that could cause actual results to differ. In addition, at the conclusion of the presentation, there are a number of endnotes that provide important information and should be reviewed in conjunction with the material presented. Slide four highlights some of the key accomplishments during the second quarter. Through the first half of twenty twenty five, we have made excellent progress on advancing and completing many of the objectives presented at the beginning of the year. Safety, highlighted by a courage to care culture, continues to be a focus and strength for the company.
During the quarter, we delivered a low total recordable injury frequency rate of zero point eight two, continuing the downward trend over the last three years. New Afton was awarded three safety awards during the second quarter for exemplary safety performance in 2024. The awards received included the JT Ryan Regional Award for British Columbia Yukon, British Columbia’s safest large underground mine and British Columbia’s Mine Safety Innovation Award. In the second quarter, New Afton also won British Columbia’s Underground Mine Rescue Championship and the Rainy River Mine won Thunder Bay District Mine Rescue Championship, a true testament to our commitment to health and safety. During the quarter, the company produced approximately 78,600 ounces of gold and 13,500,000 pounds of copper at an all in sustaining cost of $13.93 dollars per ounce.
Gold production for the first half of the year was about 38% of the midpoint of the consolidated production guidance range of three and twenty five thousand to 365,000 ounces of gold consistent with the plan 38% stated in the February outlook. The company generated more than 163,000,000 in cash flow from operations and achieved a record of 63,000,000 in free cash flow. Rainy River also reported a quarterly record of 45,000,000 in free cash flow. The company made significant progress on initiatives aligned with its three year production growth and accomplished several key milestones during the quarter. At New Afton, C zone cave construction is now approximately 65% complete, supporting the progressive increase in processing rates towards the target of 16,000 tons per day by early twenty twenty six.
An important development milestone was also achieved in May with the completion of undercutting, unlocking the remaining extraction drives for development and construction. At Rainy River, the PIP portal breakthrough was achieved in early April. Subsequently, completion of the ODM East ventilation loop and commissioning of the fresh air rays were accomplished later in the quarter. These key milestones are expected to facilitate increased underground development and production rates. Our exploration initiatives made significant progress during the quarter, highlighted by record activity at New Afton.
Following the completion of the C zone extraction level exploration drift, current efforts are concentrated on K Zone. At Rainy River, work is advancing on the Northwest Trend open pit zone, as well as upgrading the underground ore inventory. We plan to provide an exploration update in September. In April, it was announced that NewVault would acquire the remaining 19.9% free cash flow interest at New Afton, consolidating our interest to 100%. In summary, we achieved the planned objectives for the 2025 with a continued focus on generating meaningful value for our shareholders.
With that, I will now turn the call over to Travis. Travis? Thank you, Ankit.
Travis Murphy, Vice President, Operations, New Gold: I’m on slide six, which has our operating highlights. As Ankit noted, Q2 delivered production and costs on plan. Production totaled approximately 78,600 gold ounces and 13,500,000 pounds of copper. This increase in gold production compared to Q2 twenty twenty four was driven by planned higher feed grade at Rainy River, partially offset by lower planned feed grade at New Afton. Consolidated all in sustaining costs for the quarter were $13.93 dollars per gold ounce on a by product basis, in line with Q2 twenty twenty four, but a substantial improvement over the first quarter of twenty twenty five.
Costs will continue to trend down throughout the year as production increases. New Afton delivered an excellent quarter as the B3K continued to over deliver compared to the plan set out at the beginning of the year. As a result, New Afton achieved an all in sustaining cost of negative $537 per ounce after considering the copper credit. Rainy River delivered on plan as the mill transitioned from low grade stockpile material to processing higher grade open pit ore. All in sustaining costs were $16.96 dollars per ounce in the quarter, a substantial improvement compared to the first quarter.
Costs should continue to trend lower throughout the year as production ramps up. Our total capital expenditures for the quarter were approximately $92,000,000 with $34,000,000 spent on sustaining capital and $58,000,000 spent on growth capital. At New Afton, sustaining capital is primarily related to mobile equipment, while growth capital primarily related to construction, growth mine development, tailings, and machinery and equipment. At Rainy River, sustaining capital is primarily related to open pit stripping and tailings facility expansion, while growth capital related to underground development, machinery and equipment. Turning to the assets, starting with New Afton on Slide 7.
New Afton delivered another strong quarter. The B3 cave continued to over deliver and C zone ore production continued its ramp up following commercial production and crusher commissioning early in the fourth quarter of twenty twenty four. Through the first six months of the year, production represented approximately 5449% of the midpoint of guidance of 60,000 to 70,000 ounces of gold, and 50 to 60,000,000 pounds of copper respectively, higher than the first half guidance provided in February due to the B3 outperformance. The B3 Cave is now expected to exhaust in the middle of the third quarter, and annual production is expected to be in line with the guidance profile previously provided. With increased production at lower cost, New Afton generated an impressive $33,000,000 in free cash flow, while continuing to complete the construction of the C Zone Block Cave.
Through the first half of twenty twenty five, New Afton has generated over $85,000,000 in free cash flow. In terms of development, the C Zone Cave construction continues to advance on schedule. Undercutting was completed in May, which consisted of the last stage of production blasting and mucking, and was a significant milestone achieved in the development timeline. Cave construction progress is 64% complete as of the June. C Zone remains on track to ramp up to full processing capacity of approximately 16,000 tonnes per day beginning in 2026.
Turning now to Rainy River on Slide 8. Gold production in the second quarter was 61,600 ounces of gold at an all in sustaining cost of $16.96 dollars per gold ounce sold. The first six months of production represented approximately 34% of the midpoint of guidance of 265,000 to 295,000 ounces of gold, slightly behind the first half guidance of 37%. This is driven by a one week delay in the sequencing of the higher grade open pit material in May, led to an increase of approximately 5,900 ounces of Golden Circuit inventory at the end of the quarter. What this effectively means is we mined and processed the 5,900 ounces, but were unable to port into our final product by the quarter end, which would have translated to a consolidated production of approximately 84,000 ounces of gold.
Production was substantially higher than the first quarter as we successfully transitioned from stockpiled ore and started processing the higher grade open pit ore. As Ank had mentioned at the top of the call, June was a record production month with over 37,300 ounces produced at an average grade of 1.44 grams per tonne. The mill also demonstrated the ability to process higher grade material at high throughput rates, with over 40% of the days in June processing over 30,000 tonnes per day. As a result of the increased production, Rainy River generated a quarterly record $45,000,000 in free cash flow. Following the successful breakthrough of the pit portal in early April, the Rainy River underground mine achieved another important milestone, with fresh air raised commissioning and the completion of the ODM East ventilation loop.
Underground development and stope production from several new mining zones can now progress as they come online in late twenty twenty five. To sum up, we made excellent progress in the second quarter and remain on track to deliver our 2025 stated objectives. With that, I’ll turn the call over to Keith. Keith?
Keith Murphy, CFO, New Gold: Thanks, Travis. Our financial results can be found on Slide 10. Second quarter revenue was $3.00 $8,000,000 higher than the prior year quarter due to higher gold prices and gold sales, slightly offset by lower copper prices and sales. Cash generated from operations before working capital adjustments was $161,000,000 or $0.20 per share for the quarter, higher than the prior year period, primarily due to higher revenues. New Gold generated a record quarterly free cash flow of $63,000,000 as higher revenue was only partially offset by the higher capital expenditure as key growth projects were advanced.
The company recorded net earnings of approximately $68,000,000 or $09 per share during the second quarter. After adjusting for certain other charges, net earnings was $90,000,000 or $0.11 per share in Q2. Our Q2 adjusted earnings include adjustments related to other gains and losses and other non reoccurring items. Turning to our balance sheet on Slide 11. At the end of Q2, we had cash on hand of $226,000,000 and a liquidity position of $452,000,000 Post quarter, the remaining $111,000,000 of the 2027 senior notes was redeemed as planned and previously announced and paid forward cash in hand.
In order to fund the new asset and buyback transaction announced back in April, 150,000,000 of the credit facility was drawn in the quarter and a gold prepayment was entered into in mid April. The company has agreed to deliver approximately 2,770 ounces of gold per month over the July 2025 to June 2026 period at an average price of $3,157 per gold ounce. To sum up, we were in a very healthy financial position with a significant free cash flow profile ahead of us. With that, I’ll turn the call to Pat.
Patrick Godin, President and CEO, New Gold: Thanks, Pete. Touching on exploration briefly, I’m on slide 13. The new Afton exploration program centered on key zones and nearby targets is currently at an all time high with one surface drill targeting the key zone trend along strike and six underground drills actively targeting the core of the zone and testing its footprint. With the C zone level exploration drill complete and the Lift one level drill completed last year, we now have two distinct exploration drifts separated by more than 400 meters in elevation to better explore and infill T zone. At Rainy River, the company is advancing open pit and underground exploration in parallel.
During Q2, this includes drilling the Northwest Trend open pit zone to infill part of the inferred resources and test potential pit extension. Exploration drilling also focused on testing underground ore growth opportunity at ODM Main from surface. We continued our work on open pit expansion studies with the goal of keeping the mill fully utilized for longer. As shown studies on the overall mine design optimization also continued to make progress. As I’ve said previously, we expect continued and significant growth in gold and copper production over the next three years.
The second quarter performance was an excellent indication of the expected trajectory to come. As production volumes increase, the unit cost per ounces of gold is projected to decrease substantially. As a result, I’ll continue to expect to generate significant free cash flow over the next three years. At current consensus commodity prices, this translates to approximately US1.86 billion in free cash flow over that period. At current spot prices, the figure exceeds US2.5 billion dollars over 70% of our market cap.
In closing, the second quarter was positive for New Gold as we continue to deliver on our stated strategic goals. We will continue to build on these goals from here. This includes delivering on 2025 production and cost guidance with the same attention to health and safety. Our continuous improvement with our TRIFR performance is a direct indicator of the support from our employees and colleagues for the courage of the care culture. At New Aplen, we will ramp up C Zone in advance of development of East Extension.
At Rainy River, we will continue to ramp up the underground main, mining Phase IV and advanced Phase V open pit development. Lastly, we are continuing to increase our exploration efforts at both sites with a combined $30,000,000 of investment for 2025 targeting further reserve replacement. New Gold offers a compelling investment opportunity with increasing production and simply free cash flow generation combined with our safe, well established mining jurisdiction. Increasingly compelling exploration upside and exposure to what we view as preferred metal in gold and copper. We were confident in our ability to deliver additional upside.
The remainder of 2025 will continue to build from here, both operationally as well as project and exploration catalysts, which is expected to create meaningful value for our shareholders and provide increased financial flexibility and optionality for new goal moving forward. This concludes our presentation. I will now turn it back to the operator for the Q and A portion of the call. Charlie?
Jean Louis, Conference Operator: Thank you. Your Your first question comes from the line of Lawson Winder of Bank of America. Your line is open.
Lawson Winder, Analyst, Bank of America: Thank you very much, operator. Hello, gentlemen. Thank you for the update today. Can I please start off by asking for a little additional color on the split in production between Q3 and Q4 of twenty twenty five? Thank you.
Patrick Godin, President and CEO, New Gold: So we’re mostly in Q3, Q4, we are targeting to have the same portion mostly.
Lawson Winder, Analyst, Bank of America: And is that consistent across both Rainy and Nuvastin in terms of gold?
Patrick Godin, President and CEO, New Gold: Yes, so in terms of gold it’s mostly yes. Rainy will generate the majority of the cash because we produce a lot of gold as planned and we’re ramping up new weapons. So we’ll exhaust the B3 cave and we will ramp up C zone. And as in C zone, so we still target to produce the metal that we forecast in the guidance.
Lawson Winder, Analyst, Bank of America: Okay. With regards to reserves and resources, just looking toward year end and first of all, guess just generally, do you expect to replace reserves in 2025? And then a little more specifically with the Northwest trend resource conversion to indicated, do we expect that to show up in reserves and resources? Then just thinking about gold price assumption year end 2024 was $16.50 dollars we’re nearly double that now, $19.80 dollars I think you guys use for resources. How are you thinking about a gold price assumption for calculating reserves and resources at year end?
Patrick Godin, President and CEO, New Gold: Yeah, so first, in terms of New Afton, in terms of reserve renewal, our target for this year, as we discussed, was to increase our end skidded resources and to produce probable reserve or feasibility study. That’s the main purpose is to have the sufficient drilling to convert resources in reserve and studies in 2026. So it’s what we plan. For concerning the Rainy River. The intent is to define complete the definition drilling to reclassify Northwest trend and to transfer that in reserves.
So it’s our objective. And also we have some excellent targets on the ground that we will, as we explained in February, is our objective is to increase reserves on the ground where we plan to we already plan to have infrastructures to reduce the CapEx and increase the NAV for the company and actually it’s what we are doing. So I don’t think that the 2020 revert to be objective and rational that we will renew the totality of what we mined, but it will be significant for us. It’s been the so for one thing. Second thing concerning the gold price, every year we’re benchmarking of our peers what our peers are doing, so not coming out, coming from the office or this year we’re going to use this price.
But basically, for sure, with the current consensus, the price for reserve calculation goes slightly for both. We have a high probability that it will increase, So maybe turn around 1,900 to 2,000 probably, it’s something that is actually the trend that the industry is looking at. So, but basically it’s what we’ll look for. But when you’re at 20 rivers, so it can provide significant value for shareholders.
Anik Shah, Executive Vice President of Strategy and Business Development, New Gold: Okay, thanks for that. And then
Lawson Winder, Analyst, Bank of America: if I could just squeeze in one more question, thinking about your capital allocation priorities vis a vis the very strong expected inflection higher in free cash flow. Is there any thought to being active or putting in place a buyback thought about a dividend. Where are the priorities vis a vis those two options and debt repayment? Then if you could just comment on your thoughts on acquisition. So does it remain a strategic objective to add a third core asset?
Thank you.
Anik Shah, Executive Vice President of Strategy and Business Development, New Gold: Hey, Lawson, it’s Ankit. Shareholder returns are definitely something that we evaluate in the near term right now. I think as Keith mentioned, we ended the year with just over 200 of tasks Subsequent to quarter, we paid down the debt from the original bond offering. So, bringing down our cash balance, we still have 150,000,000 on our credit facility that we expect to pay by the end of the year. And we are also ramping up two significant projects with the C zone, the underground development plus our exploration program is also back half weighted.
So, I would say for 2025, our focus is very internal and organic. And as we hit this free cash flow inflection point and kind of come towards the end of the year, that will be something that shareholder returns will be definitely top of mind. In terms of M and A, I think as Pat’s mentioned on previous calls, I think we did our best transaction with consolidating New Afton over the last year, able to consolidate an asset that we own at sub one times NAV in a rising gold price environment. We will continue to evaluate other opportunities, they improve the profile of new gold based on our internal criteria. So, that’s something that we always evaluate, but will be very prudent in our M and A strategy.
Lawson Winder, Analyst, Bank of America: Okay, fantastic. Thanks very much guys.
Jean Louis, Conference Operator: Your next question comes from the line of Michael Ciperco of RBC Capital Markets. Your line is open.
Michael Ciperco, Analyst, RBC Capital Markets: Thanks very much guys. A quick question on New Afton. With the B zone being extended, can you just clarify on how we should expect the transition to primary C zone mining to go? And is there a transition period or should we just see a smooth uptick in throughput and grade and sort of when does that manifest in the second half?
Patrick Godin, President and CEO, New Gold: In terms of V3 is, you know, for us, we are really pleased by what is happening in B3 because it’s the result of the disciplined drum management of the vacay that we are having in front of us. So, we always plan for the worst and wish for the best. And derma actually what is nice with the B3 is we will reconcile extremely well. And so, and we are marking because the dilution is actually is less than expected. So going forward, it’s excellent and the grade is good for us.
It just delayed C zone in term of we will not delay C zone, sorry, but it will extend the mine life of C by the additional tonnage of that coming from B3. But we and at the beginning of C zone, I just want to remind you, Michael, that we are it was planned like this and all the bottom part of C zone, we localized that to optimize the recovery. So the grade in the lower part of C zone is lower than the average grade of the blockade by itself. It’s planned, it’s what we have in our plan, it’s what we plan in the metal produced in 2025 and we’re sticking to our plan mostly. So basically, we’re not expecting due to the good news that we are extending the mile up of B3 to change our metal production guidance for Q4 twenty twenty five, we’re bang on.
The objective is to and for us it’s a pros more than a cons because the way that we’ll accelerate the cave of C zone, it will be more flat than to be more aggressive in the center and less on the wings of the block cave. So it means that we’ll have a better drum management looking forward. So it’s extremely positive for us to have additional funds from B3.
Michael Ciperco, Analyst, RBC Capital Markets: Okay, great. That makes sense, puts it in good context. One more question for me, if I could, and then I’ll pass it on. On M and A, broadly speaking, I guess the quarterly update, if you can provide one, but with the consolidation of New Afton now out of the way and also the, I think substantial organic growth potential at New Afton, which is set to maybe get some more visibility over the next six to twelve months. How are you thinking about growth now versus maybe exiting Q1?
Patrick Godin, President and CEO, New Gold: Well, first, we did an excellent M and A in Q2 with teachers. It’s something that we’re proud of and you will understand the short future why we were so excited to do this, to consolidate our own assets. I think it was the best opportunity for us. Actually, as my colleague said, we focus on the organic growth first, it’s what we can control, and it’s where we can generate a lot of value for shareholders without a lot of capital to invest. We are remaining active because we’re looking for opportunities.
We think that with the cash flow that we’ll generate, we can create value for shareholders. If we don’t, we cannot provide an investment opportunity for shareholders without the U. Bank itself to return capital to them. But basically, I think we are disciplined. I think my colleagues are only at the table this morning and we are disciplined.
We don’t want to be big to be big. We want to be bigger to be better. And so we’ll work so hard to generate this capital, this cash flow that we don’t want to put that at risk. So we are diligent in our approach, but we’re still looking, we’re still active and we are vigilant.
Jean Louis, Conference Operator: Thank you. Your next question comes from the line of Anita Soni of CIBC. Your line is open.
Anita Soni, Analyst, CIBC: Hi. Good morning, Pat and team. Most of my questions have been asked and answered, I just wanted to understand on Rainy River, I think you said there was a weak delay in some of the high grade material in the open pit. Is the expectation that you’ll get that back in the second half of the year?
Patrick Godin, President and CEO, New Gold: Yes, so we are still guiding to the guidance and so it will not change our guidance for a year.
Anita Soni, Analyst, CIBC: Okay, and so you’re still gearing for the of middle end or sort of like the original your expectations are still intact is what I’m trying to say.
Patrick Godin, President and CEO, New Gold: Yeah, so for this time what Travis has explained is we produce these ounces, but we’re not able to strip it from the circuit at the end of the quarter, so it’s mainly what happened. If not, we’re going to deliver what we so it was not in a bar, it was in solutions or bad lease. But we expect to have this waterfall in the second half of the year.
Anita Soni, Analyst, CIBC: And then can you just provide an update on what the next deliverables are for the K Zone, like when you expect to have an update on that?
Patrick Godin, President and CEO, New Gold: So, want to do an update in the September on all our exploration activities at both sites. And our objective, know, is what is interesting in geology is more to drill or adding value, but our objective is to, as much as we can, to present for the first time and further resources in key zone for the reserve and resource report of 2026.
Anita Soni, Analyst, CIBC: Okay. All right. Thanks and congratulations on the strong results.
Patrick Godin, President and CEO, New Gold: Thank you very much.
Jean Louis, Conference Operator: Your next question comes from the line of Mohammad Sadeid of Citibank. Your line is open.
Travis Murphy, Vice President, Operations, New Gold: Thanks, Patrick and Tim, for taking my question. Just most of my questions have been answered, but just following up on Rainy River and the strong performance in June with the 37,000 ounces at 1.44 grams per ton. Can you maybe give us some color into the grade profile into the second half of the year, please? Thank you.
Patrick Godin, President and CEO, New Gold: Yeah, so the grade profile for the second half of the year.
Keith Murphy, CFO, New Gold: Pete? Yeah, so with the transition to that steady feed grade that we’ve seen in June, we can expect a similar high profile, a similar grade profile in the back half of the year in order to come into that guidance range. The majority of the feed, just as a reminder, is coming from the open pit and that will bring us in line with the guidance range for the end of the year.
Anik Shah, Executive Vice President of Strategy and Business Development, New Gold: Great. Thanks, Noah. We can follow-up post call as well with more detailed discussion of the second half.
Patrick Godin, President and CEO, New Gold: What confident we here is you know, remember that last year we had some reconciliation issue and we did the new model, but we, as myself, Jean Francois and his team, and the mine site, they did a new model and we applied a cap on the high grade and saw a cap of three grams per ton. And basically, we tested this high grade zone in Q2 and we reconciled extremely well. So we are extremely confident for the second half of the year. And the second half of the year, we will end the year with a 3,000,000 ton of ore stockpile at the rim collar. And so of the pit I’m talking about here and basically the strip ratio going forward would be one to one this year in phase four, so we’ll be well positioned to execute and to de risk.
So, it’s now we are seeing that the customer, Travis, is coming in the right time and is enjoying the ride.
Travis Murphy, Vice President, Operations, New Gold: Great. No, that’s very helpful. And then Ankit for sure, I’ll take you up on that offer. Thanks a lot guys.
Anik Shah, Executive Vice President of Strategy and Business Development, New Gold: Thanks, Mo.
Jean Louis, Conference Operator: There are no further questions at this time. I’d like to pass it back to Ankit and the team for closing remarks.
Anik Shah, Executive Vice President of Strategy and Business Development, New Gold: Great. Thank you very much. And thank you to everyone who joined us today. As always, should you have any additional questions, please do not hesitate to reach out to us by phone or email. Have a great day.
Jean Louis, Conference Operator: This concludes today’s conference call. You may now disconnect.
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