New Gold Announces 2014 Second Quarter Results (cnw)

Delivers Record First Half Cash Flow

(All figures are in US dollars unless otherwise indicated)

VANCOUVER, July 31, 2014 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) and (NYSE MKT:NGD) today announces its second quarter 2014 operational and financial results. The company produced 89,460 ounces of gold at all-in sustaining costs(1) of $745 per ounce, which led to $59 million, or $0.12 per share, in net cash generated from operations.

Second Quarter 2014 Highlights

• All-in sustaining costs(1) of $745 per ounce decreased by $186 per ounce compared to the second quarter of 2013 driven by lower total cash costs(2)
  • Record-low total cash costs(2) of $251 per ounce were down $179 per ounce from $430 per ounce in the prior-year quarter
• All-in sustaining cost margin of $559 per ounce and total cash cost margin of $1,053 per ounce
• Gold production of 89,460 ounces coupled with copper production of 25.5 million pounds
• Adjusted net earnings(3) of $8 million, or $0.02 per share, compared to $4 million, or $0.01 per share, in the prior-year quarter
• Net cash generated from operations per share increased by 33% to $0.12 per share, or $59 million, from $0.09 per share, or $43 million, in the second quarter of 2013
• $414 million in cash and cash equivalents at June 30, 2014
• The company reiterates its 2014 guidance of 380,000 to 420,000 ounces of gold production at all-in sustaining costs(1) of $815 to $835 per ounce, including total cash costs(2) of $320 to $340 per ounce
• Rainy River - all key long lead time items have been ordered and detailed engineering is progressing; project continues on schedule with targeted first production in late 2016

"We are proud that our second quarter results further establish our low-cost position which, together with our steady production, once again resulted in strong cash flow generation," stated Randall Oliphant, Executive Chairman. "We are particularly excited that after achieving such solid performance in the first half of 2014, the second half of the year, and particularly the fourth quarter, should deliver marked increases in gold production and cash flow."

"Beyond the performance of our producing mines, we also made important progress at both our Rainy River and Blackwater projects. At Rainy River, we continued to successfully lock in long lead time equipment on favourable terms while we also steadily advanced the detailed engineering. At the same time, at Blackwater we have now submitted the final environmental assessment report to advance the permitting process," added Mr. Oliphant.