New Gold hit by write-downs at Blackwater, Cerro San Pedro

New Gold reported a net loss of US$432mn in its Q4 financial results, compared to a net loss of US$255mn in the same period of 2013, primarily due to impairment charges.

The Canadian miner recorded a US$394mn after-tax impairment following a review of its assets, with US$59.1mm at its Cerro San Pedro operation in Mexico and the remainder at the Blackwater project in Canada.

The company reported asset impairments of US$272mn in 4Q13. Inventory write-downs in Q4 were US$10.5mn, up from US$7.3mn.

Revenues declined 5% to US$188mn due to lower gold, silver and copper prices, with production stable.

Adjusted net earnings were US$13.4mn, down from US$16.7mn. All-in sustaining costs (AISCs) were US$845/oz gold in the quarter, down from US$883/oz, with Cerro San Pedro AISCs at US$1,447/oz, up from US$1,076/oz.

Cerro San Pedro produced 22,600oz of gold in the quarter, flat compared to 4Q13, while company-wide output was also flat at 106,000oz.

FULL YEAR RESULTS

For the full year 2014 the company reported a net loss of US$477mn, compared to a net loss of US$191mn in 2013, with adjusted net earnings of US$45.2mn, down from US$61.3mn, and revenues of US$726mn, down from US$780mn, on lower gold production and prices.

New Gold's AISCs for the year were US$779/oz gold, down from US$899/oz, with Cerro San Pedro's AISC's up at US$1,354/oz from US$766/oz.

Cerro San Pedro produced 69,800oz of gold last year, down from 102,800oz in 2013. New Gold's total output in 2014 was 380,100oz compared to 397,700oz the year before.

The company said previously it expects a profitable 2015 at Cerro San Pedro, which is in its final year of active mine life. New Gold also has operations in the US and Canada.