New Gold (NYSE:NGD) cuts its forecast for FY 2021 gold equivalent production at its Rainy River mine in Ontario to 240K-255K oz. from previous guidance of 275K-295K oz.
Estimated gold equivalent all-in sustaining costs are higher at $1,365-$1,440 oz. from $1,125-$1,225 previously.
Company-wide gold equivalent production for the year is now seen at 405K-450K oz. vs. its prior outlook of 440K-490K oz.
New Gold had warned of downside guidance for Rainy River a month ago, which it said the realized gold grade from the East Lobe area was below the expected grade, which it said would hurt H2 production if the realized gold grade continued to track below expectations.
The company says it "continues reverse circulation drilling in the East Lobe and the understanding of the mineralization is improving, however, additional drilling is required to refine the block model and improve its predictability."