40-F/A

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 40-F

(Amendment No. 1)

¨ Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934

or

x Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, 2019 Commission File Number 001-31722

New Gold Inc.

(Exact name of Registrant as specified in its charter)

British Columbia
(Province or other jurisdiction
of incorporation or organization) 1000
(Primary Standard Industrial
Classification Code Number) Not Applicable
(I.R.S. Employer
Identification Number)

Suite 3320 Brookfield Place, 181 Bay Street

Toronto, Ontario, Canada M5J 2T3

(416) 324-6000
(Address and telephone number of Registrant’s principal executive offices)

CT Corporation System

28 Liberty Street, New York, NY 10005

(212) 894-8940
(Name, address (including zip code) and telephone number
(including area code) of agent for service in the United States)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class:	Trading Symbol(s):	Name of Each Exchange On Which Registered:
Common Shares, no par value	NGD	NYSE American

Securities registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this form:

x Annual Information Form x Audited Annual Financial Statements

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:

At December 31, 2019, the Registrant had outstanding 675,957,106 common shares without par value.

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.

x Yes      ¨ No

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).

x Yes      ¨ No

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company ¨

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

EXPLANATORY NOTE

New Gold Inc. (the “Registrant” or the “Company”) is filing this Amendment No. 1 on Form 40-F/A (“Amendment No. 1”) to the Company’s Annual Report on Form 40-F, dated March 27, 2020 (the “Original Form 40-F”) for the sole purpose of re-submitting the XBRL interactive data file as a technical error in the version previously submitted affected its filing.

Except as set forth above, this Amendment No. 1 does not modify or update any of the disclosures in the Original Form 40-F. This Amendment No. 1 speaks as of the time of filing the Original Form 40-F and does not reflect events that may have occurred subsequent to such filing.

SIGNATURES

Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereto duly authorized.

NEW GOLD INC.

By: /s/ Robert Chausse

Name: Robert Chausse

Title: Executive Vice President and Chief Financial Officer

Date: April 14, 2020 

EXHIBIT INDEX

The following documents are being filed with the Commission as exhibits to this annual report on Form 40-F.

Exhibit	Description
101.1NS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definitions Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

XML

SEGMENTED INFORMATION - Segmented assets and liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
SEGMENTED ASSETS AND LIABILITIES
Assets	$ 2,158.5	$ 2,169.6
Liabilities	1,197.2	1,225.1
Capital expenditure	253.3	213.9
Assets held for sale	0.0
Liabilities held for sale	0.0
Capital expenditures held for sale		13.2
Total assets	2,158.5	2,169.6
Total liabilities	1,197.2	1,225.1
Total capital expenditures	253.3	227.1
Rainy River
SEGMENTED ASSETS AND LIABILITIES
Assets	1,078.4	986.0
Liabilities	334.9	313.6
Capital expenditure	185.9	170.6
New Afton
SEGMENTED ASSETS AND LIABILITIES
Assets	647.7	730.9
Liabilities	89.8	73.8
Capital expenditure	61.8	35.9
Blackwater
SEGMENTED ASSETS AND LIABILITIES
Assets	356.5	341.4
Liabilities	27.9	18.8
Capital expenditure	5.1	7.3
Other [Member]
SEGMENTED ASSETS AND LIABILITIES
Assets	75.9	111.3
Liabilities	744.6	818.9
Capital expenditure	$ 0.5	$ 0.1

XML

BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2019

BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

Schedule of subsidiaries

THE PRINCIPAL SUBSIDIARIES OF THE COMPANY ARE AS FOLLOWS:

			Country of	Interest as at		Interest as at
		Method of	incorporation and	December 31,		December 31,
Name of subsidiary/associate(1)	Principal activity	accounting	operation	2019		2018
Minera San Xavier S.A. de C.V.	Mining	Consolidated	Mexico	100	%	100	%

1. The Company sold Peak Gold Mines Pty Ltd in April 2018 and sold Western Mesquite Mines Inc. in October 2018.

2. New Gold Inc. directly owns the assets of Rainy River, New Afton and Blackwater.

Schedule of estimated useful life of property plant and equipment

Asset class	Estimated useful life (years)
Plant and machinery	3 – 13
Mobile equipment	5 – 7

XML

INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2019

INVENTORIES

Schedule of inventories

	As at	As at
	December 31	December 31
(in millions of U.S. dollars)	2019	2018
INVENTORIES
Stockpile ore(3)	32.6	74.3
Work-in-process	8.3	7.7
Finished goods(1)	12.5	25.4
Supplies	56.6	49.3
	110.0	156.7
Less: non-current inventories(2)	—	(14.9)
Total current inventories	110.0	141.8

1. The amount of inventories recognized in operating expenses for the year ended December 31, 2019 was $358.0 million (2018 - $311.6 million).

2. Non-current inventories consist of low-grade stockpiled inventories at Rainy River.

For the year ended December 31, 2019, the Company wrote down $19.8 million of stockpile ore at Rainy River, of which $14.1 million was included in operating expenses and $5.7 million was included in depreciation and depletion, primarily resulting from the write down of the low-grade stockpile.

XML

RECLAMATION AND CLOSURE COST OBLIGATIONS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
RECLAMATION AND CLOSURE COST OBLIGATIONS
Beginning Balance	$ 92.6	$ 124.1
Reclamation and closure costs paid	(8.8)	(1.2)
Unwinding of discount	2.7	2.4
Revisions to expected cash flows	16.0	(6.3)
Foreign exchange movement	4.5	(6.4)
Less: amounts reclassified as held for sale and sold		(20.0)
Ending Balance	107.0	92.6
Less: current portion of closure costs	(12.3)	(6.5)
Non-current portion of closure costs	94.7	86.1
Rainy River
RECLAMATION AND CLOSURE COST OBLIGATIONS
Beginning Balance	53.6	63.4
Reclamation and closure costs paid	(0.2)	(0.3)
Unwinding of discount	1.1	1.5
Revisions to expected cash flows	9.7	(6.1)
Foreign exchange movement	2.8	(4.9)
Less: amounts reclassified as held for sale and sold		0.0
Ending Balance	67.0	53.6
Less: current portion of closure costs	(1.4)	0.0
Non-current portion of closure costs	65.6	53.6
New Afton
RECLAMATION AND CLOSURE COST OBLIGATIONS
Beginning Balance	10.7	11.6
Reclamation and closure costs paid	0.0	0.0
Unwinding of discount	0.2	0.2
Revisions to expected cash flows	6.4	(0.3)
Foreign exchange movement	0.7	(0.8)
Less: amounts reclassified as held for sale and sold		0.0
Ending Balance	18.0	10.7
Less: current portion of closure costs	0.0	0.0
Non-current portion of closure costs	18.0	10.7
Mesquite [Member]
RECLAMATION AND CLOSURE COST OBLIGATIONS
Beginning Balance	0.0	20.5
Reclamation and closure costs paid	0.0	0.0
Unwinding of discount	0.0	0.4
Revisions to expected cash flows	0.0	(0.9)
Foreign exchange movement	0.0	0.0
Less: amounts reclassified as held for sale and sold		(20.0)
Ending Balance	0.0	0.0
Less: current portion of closure costs	0.0	0.0
Non-current portion of closure costs	0.0	0.0
Cerro San Pedro
RECLAMATION AND CLOSURE COST OBLIGATIONS
Beginning Balance	20.0	19.2
Reclamation and closure costs paid	(8.6)	(0.9)
Unwinding of discount	1.2	0.1
Revisions to expected cash flows	(0.6)	1.5
Foreign exchange movement	0.6	0.1
Less: amounts reclassified as held for sale and sold		0.0
Ending Balance	12.6	20.0
Less: current portion of closure costs	(10.9)	(6.5)
Non-current portion of closure costs	1.7	13.5
Blackwater
RECLAMATION AND CLOSURE COST OBLIGATIONS
Beginning Balance	8.3	9.4
Reclamation and closure costs paid	0.0	0.0
Unwinding of discount	0.2	0.2
Revisions to expected cash flows	0.5	(0.5)
Foreign exchange movement	0.4	(0.8)
Less: amounts reclassified as held for sale and sold		0.0
Ending Balance	9.4	8.3
Less: current portion of closure costs	0.0	0.0
Non-current portion of closure costs	$ 9.4	$ 8.3

XML

FINANCIAL RISK MANAGEMENT - Credit risk (Details) - Credit Risk [Member] - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
CREDIT RISK EXPOSURE
Maximum exposure to credit risk	$ 107.1	$ 139.6
Cash and cash equivalents
CREDIT RISK EXPOSURE
Maximum exposure to credit risk	83.4	103.7
Trade receivables
CREDIT RISK EXPOSURE
Maximum exposure to credit risk	$ 23.7	$ 35.9

XML

INVENTORIES

12 Months Ended

Dec. 31, 2019

INVENTORIES

INVENTORIES

8. INVENTORIES

	As at	As at
	December 31	December 31
(in millions of U.S. dollars)	2019	2018
INVENTORIES
Stockpile ore(3)	32.6	74.3
Work-in-process	8.3	7.7
Finished goods(1)	12.5	25.4
Supplies	56.6	49.3
	110.0	156.7
Less: non-current inventories(2)	—	(14.9)
Total current inventories	110.0	141.8

1. The amount of inventories recognized in operating expenses for the year ended December 31, 2019 was $358.0 million (2018 - $311.6 million).

2. Non-current inventories consist of low-grade stockpiled inventories at Rainy River.

3. For the year ended December 31, 2019, the Company wrote down $19.8 million of stockpile ore at Rainy River, of which $14.1 million was included in operating expenses and $5.7 million was included in depreciation and depletion, primarily resulting from the write down of the low-grade stockpile.

XML

CRITICAL JUDGMENTS AND ESTIMATION UNCERTAINTIES

12 Months Ended

Dec. 31, 2019

CRITICAL JUDGMENTS AND ESTIMATION UNCERTAINTIES

CRITICAL JUDGMENTS AND ESTIMATION UNCERTAINTIES

3. CRITICAL JUDGMENTS AND ESTIMATION UNCERTAINTIES

The preparation of the Company’s consolidated financial statements in conformity with IFRS requires the Company’s management to make judgments, estimates and assumptions about the future events that affect the amounts reported in the consolidated financial statements and related notes to the financial statements. Estimates and assumptions are continually evaluated and are based on management’s experience and other facts and circumstances. Revisions to estimates and the resulting effects on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

The areas which require management to make significant judgments, estimates and assumptions in determining carrying values include, but are not limited to:

(a) Critical judgments in the application of accounting policies

(i) Commencement of commercial production

Prior to the period when a mine has reached management’s intended operating levels, costs incurred as part of the development of the related mining property are capitalized and any mineral sales during the commissioning period are offset against the costs capitalized. The Company defines the commencement of commercial production as the date that a mine has achieved a consistent level of production. Depletion of capitalized costs for mining properties begins when operating levels intended by management have been reached.

There are a number of factors the Company considers when determining if conditions exist for the commencement of commercial production of an operating mine. Management examines the following when making that judgment:

· All major capital expenditures to bring the mine to the condition necessary for it to be capable of operating in the manner intended by management have been completed;

· The completion of a reasonable period of testing of the mine plant and equipment has been completed;

· The mine or mill has reached a pre-determined percentage of design capacity; and

· The ability to sustain ongoing production of ore has been achieved.

The list is not exhaustive and each specific circumstance is taken into account before making the decision.

(ii) Functional currency

The functional currency for each of the Company’s Subsidiaries is the currency of the primary economic environment in which the entity operates. The Company has determined the functional currency of each entity as the U.S. dollar. Determination of the functional currency may involve certain judgments to determine the primary economic environment and the Company reconsiders the functional currency of its entities if there is a change in events and conditions which determines the primary economic environment.

(iii) Determination of economic viability

Management has determined that exploratory drilling, evaluation, development and related costs incurred on the Blackwater project, and New Afton C-zone project have future economic benefits and are economically recoverable. In making this judgment, management has assessed various criteria including, but not limited to, the geologic and metallurgic information, history of conversion of mineral deposits to proven and probable mineral reserves, operating management expertise, existing permits, the expectation of receiving additional permits and life-of-mine (“LOM”) plans.

(iv) Carrying value of long-lived assets and impairment charges

In determining whether the impairment or reversal of a previous impairment of the carrying value of an asset is necessary, management first determines whether there are external or internal indicators that would signal the need to test for impairment or impairment reversal. These indicators consist of but are not limited to the prolonged significant changes in commodity prices, per ounce in-situ multiples, significant change to LOM plans, significant changes in discount rates and the factors which lead to a market capitalization deficiency. If an impairment or impairment reversal indicator is identified, the Company compares the carrying value of the asset against the recoverable amount. These determinations and their individual assumptions require that management make a decision based on the best available information at each reporting period.

As at December 31, 2018, indicators of impairment existed for Rainy River and Blackwater as the Company experienced a sustained and prolonged period where the carrying value of its net assets were more that its market capitalization. The results of the impairment assessment, including the significant estimates and assumptions used, are set out in Note 10.

(v) Determination of CGU

In determining a CGU, management had to examine the smallest identifiable group of assets that generates cash inflows that are largely independent of cash inflows from other assets or groups of assets. The Company has determined that each mine site and development project qualifies as an individual CGU. Each of these assets generates or will have the ability to generate cash inflows that are independent of the other assets and therefore qualifies as an individual asset for impairment testing purposes.

(vi) Classification of Gold Stream Instruments

The Company holds a gold stream agreement with a counterparty for the purchase and delivery of gold and silver. Management has assessed this gold stream agreement under the scope of IFRS 9, Financial Instruments as to whether or not the agreements constitute a financial instrument. As the gold stream obligation has embedded derivatives that would otherwise need to be accounted for separately at FVTPL, Management has designated the deposit received from Royal Gold as a financial liability at FVTPL, with initial and subsequent measurement at fair value, as permitted under IFRS 9.

(b) Key sources of estimation uncertainty in the application of accounting policies

(i) Revenue recognition

Revenue from sales of concentrate is recorded when control of the goods pass to the purchaser. Variations between the prices set in the contracts and final settlement prices may be caused by changes in the market prices and result in an embedded derivative in the accounts receivable. The embedded derivative is recorded at fair value each reporting period until final settlement occurs, with changes in the fair value being recorded as revenue. For changes in metal quantities upon receipt of new information and assays, the provisional sales quantities are adjusted as well, with the change being recorded as revenue.

(ii) Inventory valuation

Management values inventory at the lower of weighted average production costs or net realizable value (“NRV”). Weighted average production costs include expenditures incurred and depreciation and depletion of assets used in mining and processing activities that are deferred and accumulated as the cost of ore in stockpiles, work-in-process and finished metals inventories. The allocation of costs to ore in stockpiles and in-process inventories and the determination of NRV involve the use of estimates. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained ounces or pounds (based on assay data), and the estimated metallurgical recovery rates (based on the expected processing method).Timing and ultimate recovery of metal contained in stockpiles vary from the estimates.

(iii) Mineral reserves and resources

The figures for mineral reserves and mineral resources are determined in accordance with National Instrument 43‑101, “Standards of Disclosure for Mineral Projects”, issued by the Canadian Securities Administrators. There are numerous estimates in determining the mineral reserves and resource estimates. Such estimation is a subjective process, and the accuracy of any mineral reserve or resource estimate is a function of the quantity and quality of available data and of the assumptions made and judgments used in engineering and geological interpretation. Differences between management’s assumptions including economic assumptions, such as metal prices and market conditions, could have a material effect in the future on the Company’s financial position and results of operations.

(iv) Estimated recoverable ounces

The carrying amounts of the Company’s mining properties are depleted based on recoverable ounces. Changes to estimates of recoverable ounces and depletable costs including changes resulting from revisions to the Company’s mine plans and changes in metal price forecasts can result in a change to future depletion rates.

(v) Deferred income taxes

In assessing the probability of realizing income tax assets recognized, management makes estimates related to expectations of future taxable income, applicable tax planning opportunities, expected timing of reversals of existing temporary differences and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. In making its assessments, management gives additional weight to positive and negative evidence that can be objectively verified. Estimates of future taxable income are based on forecasted cash flows from operations and the application of existing tax laws in each jurisdiction. Forecasted cash flows from operations are based on LOM projections internally developed and reviewed by management. The Company considers tax planning opportunities that are within the Company’s control, are feasible and implementable without significant obstacles. Examination by applicable tax authorities is supported based on individual facts and circumstances of the relevant tax position examined in light of all available evidence. Where applicable tax laws and regulations are either unclear or subject to ongoing varying interpretations, it is possible that changes in these estimates can occur that materially affect the amounts of income tax assets recognized. At the end of each reporting period, the Company reassesses unrecognized income tax assets.

(vi) Reclamation and closure cost obligations

The Company’s provision for reclamation and closure cost obligations represents management’s best estimate of the present value of the future cash outflows required to settle the liability which reflects estimates of future costs, inflation, movements in foreign exchange rates and assumptions of risks associated with the future cash outflows, and the applicable risk-free interest rates for discounting the future cash outflows. Changes in the above factors can result in a change to the provision recognized by the Company.

XML

GOLD STREAM OBLIGATION

12 Months Ended

Dec. 31, 2019

GOLD STREAM OBLIGATION

GOLD STREAM OBLIGATION

12. GOLD STREAM OBLIGATION

In 2015, the Company entered into a $175 million streaming transaction with RGLD Gold AG, a wholly owned subsidiary of Royal Gold Inc. (“Royal Gold”). Under the terms of the agreement, the Company will deliver to Royal Gold 6.5% of gold production from Rainy River up to a total of 230,000 ounces of gold and then 3.25% of the mine’s gold production thereafter. The Company will also deliver to Royal Gold 60% of the mine’s silver production to a maximum of 3.1 million ounces and then 30% of silver production thereafter. Royal Gold paid $175.0 million in consideration of this transaction.

In addition to the upfront deposit, Royal Gold will pay 25% of the average spot gold or silver price at the time each ounce of gold or silver is delivered under the stream. The difference between the spot price of metal and the cash received from Royal Gold will reduce the $175.0 million deposit over the life of the mine. Upon expiry of the 40-year term of the agreement (which may be extended in certain circumstances), any balance of the $175.0 million upfront deposit remaining unpaid will be refunded to Royal Gold.

The Company has designated the gold stream obligation as a financial liability at fair value through profit or loss (“FVTPL”) under the scope of IFRS 9. Accordingly, the Company values the liability at the present value of its expected future cash flows at each reporting period with changes in fair value reflected in the consolidated income statements and consolidated statements of comprehensive income.

The following is a summary of the changes in the Company’s gold stream obligation:

(in millions of U.S. dollars)
CHANGE IN STREAM OBLIGATION
Balance, December 31, 2017	273.5
Settlements during the period	(15.0)
Fair value adjustments related to changes in the Company’s own credit risk(1)	(66.6)
Other fair value adjustments(2)	(11.7)
Balance, December 31, 2018	180.2
Less: current portion of gold stream obligation(3)	(18.3)
Non-current portion of gold stream obligation	161.9
Balance, December 31, 2018	180.2
Settlements during the period	(20.0)
Fair value adjustments related to changes in the Company’s own credit risk(1)	24.4
Other fair value adjustments(2)	(20.1)
Balance, December 31, 2019	164.5
Less: current portion of gold stream obligation(3)	(21.6)
Non-current portion of gold stream obligation	142.9

1. Fair value adjustments related to changes in the Company’s own credit risk are included in other comprehensive income.

2. Other fair value adjustments are included in the consolidated income statements.

3. The current portion of the gold stream obligation is included in trade and other payables on the statement of financial position.

Fair value adjustments represent the net effect on the gold stream obligation of changes in the variables included in the Company’s valuation model between the date of receipt of deposit and the reporting date. These variables include accretion, risk-free interest rate, future metal prices, Company-specific credit spread and expected gold and silver ounces to be delivered.

XML

SHARE CAPITAL - Stock options (Details) Options in Thousands	12 Months Ended
	Dec. 31, 2019 Options $ / shares	Dec. 31, 2018 Options $ / shares
SHARE CAPITAL
Balance | Options	8,628	13,087
Granted | Options	2,360
Forfeited | Options	(1,417)	(1,925)
Expired | Options	(3,993)	(2,534)
Balance | Options	5,578	8,628
Begining balance | $ / shares	$ 4.39	$ 5.08
Granted | $ / shares	1.12
Forfeited | $ / shares	3.58	4.13
Expired | $ / shares	5.01	8.22
Ending balance | $ / shares	$ 2.81	$ 4.39

XML

LEASES - Lease liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Disclosure of maturity analysis of operating lease payments [line items]
Total undiscounted lease payments	$ 35.4
Carrying value of lease liabilities	32.6
Less: current portion of lease liabilities	(8.7)
Non-current portion of lease liabilities	23.9	$ 8.9
2020
Disclosure of maturity analysis of operating lease payments [line items]
Total undiscounted lease payments	9.8
Between 1 and 3 years
Disclosure of maturity analysis of operating lease payments [line items]
Total undiscounted lease payments	17.0
Between 3 and 5 years
Disclosure of maturity analysis of operating lease payments [line items]
Total undiscounted lease payments	8.6
More than 5 years
Disclosure of maturity analysis of operating lease payments [line items]
Total undiscounted lease payments	$ 0.0

XML

DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
DERIVATIVE ASSETS
Total derivative assets	$ 0.2	$ 0.7
DERIVATIVE LIABILITIES
Total derivative liabilities	26.4	5.5
Unsettled provisionally priced concentrate derivatives, and swap contracts
DERIVATIVE ASSETS
Total derivative assets	0.2	0.0
DERIVATIVE LIABILITIES
Total derivative liabilities	0.0	0.7
Copper price option contract
DERIVATIVE ASSETS
Total derivative assets	0.0	0.7
Gold price option contracts
DERIVATIVE LIABILITIES
Total derivative liabilities	$ 26.4	$ 4.8

XML

LONG-TERM DEBT - Redemption prices (Details) - Senior unsecured notes - due November 15, 2022	12 Months Ended
	Dec. 31, 2019
2019
Long Term Debt
Borrowings Redemption Price Percentage	101.04%
2020 and thereafter
Long Term Debt
Borrowings Redemption Price Percentage	100.00%

XML

LONG-TERM DEBT - Additional information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Long Term Debt
Outstanding borrowings	$ 714.5	$ 780.5
Senior unsecured notes - due November 15, 2022
Long Term Debt
Outstanding borrowings	397.4	495.3
Notional amount	$ 400.3
Borrowings, interest rate	6.25%
Principal amount repurchased and cancelled	$ 99.7
Principal amount repurchased and cancelled, transaction costs	$ 0.3
Interest Coverage Ratio	minimum interest coverage incurrence covenant of earnings before interest, taxes, depreciation, amortization, impairment, and other non-cash adjustments to interest of 2:1.
Transaction Costs Capitalized	$ 9.9
Senior unsecured notes - due May 15, 2025
Long Term Debt
Outstanding borrowings	287.1	285.2
Notional amount	$ 300.0	$ 300.0
Borrowings, interest rate	6.375%
Interest Coverage Ratio	minimum interest coverage incurrence covenant of earnings before interest, taxes, depreciation, amortization, impairment, and other non-cash adjustments to interest of 2:1
Borrowing costs incurred	$ 10.7
Borrowings Redemption Price Percentage	100.00%
Credit Facility
Long Term Debt
Standby fees on undrawn amounts under credit facility, Percentage	0.73%	0.73%
Letters Of Credit Issued	$ 118.9	$ 110.8
Credit Facility Full Interest Rate	3.25%	3.25%
Increase Decrease The Capacity for Credit Facility	$ 400.0
Proceeds from non-current borrowings	$ 30.0
Credit Facility | Bottom of range [member]
Long Term Debt
Standby fees on undrawn amounts under credit facility, Percentage	0.51%
Credit Facility Full Interest Rate	1.25%
Credit Facility | Top of range [member]
Long Term Debt
Standby fees on undrawn amounts under credit facility, Percentage	0.84%
Credit Facility Full Interest Rate	3.75%

XML

DERIVATIVE INSTRUMENTS - Gold price option contracts (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) oz
Gold contracts, January 2020 - June 2020
Disclosure of derivative instruments
Gold Call Contracts Sold Quantity Outstanding	72,000
Gold Call Contracts Sold Remaining Contractual term	6 months
Gold Call Contracts Sold Exercise Price	1,355
Gold Call Contracts Sold Fair Value Assets Liability | $	$ (12.6)
Gold contracts, July 2020 - December 2020
Disclosure of derivative instruments
Gold Call Contracts Sold Quantity Outstanding	96,000
Gold Call Contracts Sold Remaining Contractual term	6 months
Gold Call Contracts Sold Exercise Price	1,415
Gold Call Contracts Sold Fair Value Assets Liability | $	$ (14.1)
Gold
Disclosure of derivative instruments
Gold Call Contracts Purchased Quantity Outstanding	168,000
Gold Call Contracts Purchased Remaining Contractual term	12 months
Gold Call Contracts Purchased Exercise Price	1,300
Gold Call Contracts Purchased Fair Value Assets Liability | $	$ 0.3

XML

REVISIONS TO PRIOR PERIOD COMPARATIVES (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
REVISIONS TO PRIOR PERIOD COMPARATIVES
Increase to income tax expense	$ 14.8
Increase to deferred tax liabilities	14.8
Increase to accumulated deficit	$ 14.8

XML

FAIR VALUE MEASUREMENT (Tables)

12 Months Ended

Dec. 31, 2019

FAIR VALUE MEASUREMENT

Schedule of financial assets and liabilities by category and information about financial assets and liabilities measured at fair value on recurring basis

The following table summarizes the Company’s financial assets and liabilities by category and information about financial assets and liabilities measured at fair value on a recurring basis in the statement of financial position categorized by level of significance of the inputs used in making the measurements:

		As at December 31, 2019		As at December 31, 2018
(in millions of U.S. dollars)	Category	Level		Level
FINANCIAL ASSETS
Cash and cash equivalents	Financial assets at amortized cost		83.4		103.7
Trade and other receivables	Financial assets at amortized cost		14.5		36.6
Provisionally priced contracts	Financial instruments at FVTPL	2	1.5	2	(1.6)
Gold and copper swap contracts	Financial instruments at FVTPL	2	(1.3)	2	0.9
Copper price option contracts	Financial Instruments at FVTPL	2	—	2	0.7
Proceeds due from income tax refunds at Mesquite(2)	Financial assets at amortized cost	3	9.0	3	8.5
Investments	Financial instruments at FVTPL	1	0.5	1	0.8
FINANCIAL LIABILITIES
Trade and other payables(1)	Financial liabilities at amortized cost		111.3		101.3
Long-term debt	Financial liabilities at amortized cost		714.5		780.5
Gold stream obligation	Financial instruments at FVTPL	3	164.5	3	182.4
Performance share units	Financial instruments at FVTPL	3	0.2	3	0.2
Restricted share units	Financial instruments at FVTPL	1	0.5	1	0.3
Deferred share units	Financial instruments at FVTPL	1	1.1	1	0.3
Gold price option contracts	Financial instruments at FVTPL	2	26.4	2	4.8

1. Trade and other payables exclude the short-term portion of reclamation and closure cost obligations and the short-term portion of the gold stream obligation.

Proceeds due from income tax refunds at Mesquite are included in current assets on the consolidated statement of financial position

Schedule of carrying values and fair values of financial instruments

The carrying values and fair values of the Company’s financial instruments are as follows:

	As at December 31, 2019		As at December 31, 2018
	Carrying		Carrying
(in millions of U.S. dollars)	value	Fair value	value	Fair value
FINANCIAL ASSETS
Cash and cash equivalents	83.4	83.4	103.7	103.7
Trade and other receivables	14.5	14.5	36.6	36.6
Provisionally priced contracts	1.5	1.5	(1.6)	(1.6)
Gold and copper swap contracts	(1.3)	(1.3)	0.9	0.9
Copper price option contracts	—	—	0.7	0.7
Proceeds due from income tax refunds at Mesquite(2)	9.0	9.0	8.5	8.5
Investments	0.5	0.5	0.8	0.8
FINANCIAL LIABILITIES
Trade and other payables(1)	111.3	111.3	101.3	101.3
Long-term debt	714.5	707.7	780.5	652.9
Gold stream obligation	164.5	164.5	182.4	182.4
Performance share units	0.2	0.2	0.2	0.2
Restricted share units	0.5	0.5	0.3	0.3
Deferred share units	1.1	1.1	0.3	0.3
Gold price option contracts	26.4	26.4	4.8	4.8

1. Trade and other payables exclude the short-term portion of reclamation and closure cost obligation and the short-term portion of the gold stream obligation.

Proceeds due from income tax refunds at Mesquite are included in other non-current assets on the consolidated statement of financial position

XML

DISCONTINUED OPERATIONS - Mesquite (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
		Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
DISCONTINUED OPERATIONS
Revenue			$ 630.6	$ 604.5
Operating expense			371.9	325.4
Revenue less cost of goods sold			18.1	39.2
Finance income			2.2	1.5
Finance costs			(62.6)	(69.0)
Other losses			(5.6)	18.1
Impairment loss on held-for-sale assets		$ (671.1)	0.0	(1,054.8)
Loss before taxes			(73.9)	(1,096.0)
Loss from discontinued operations, net of tax	[1]		$ 0.0	(154.9)
Discontinued operations [member]
DISCONTINUED OPERATIONS
Revenue				146.1
Operating expense				95.6
Depreciation and depletion				35.4
Revenue less cost of goods sold				15.1
Finance income				0.4
Finance costs				(0.4)
Other losses				0.0
Impairment loss on held-for-sale assets				(253.1)
Loss before taxes				(238.0)
Income tax recovery				83.9
Loss from discontinued operations, net of tax				$ (154.1)

[1] In the prior year period, Peak Mines and Mesquite were classified as discontinued operations and accordingly earnings and cash flows from continuing operations are presented exclusive of Peak Mines and Mesquite. Peak Mines was sold in April 2018 and Mesquite was sold in October 2018. Refer to Note 16 for further details.

XML

MINING INTERESTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Mining Interests
Balance	$ 1,853.4
Balance	1,928.0	$ 1,853.4
Gross carrying amount [member]
Mining Interests
Balance	2,948.9	4,351.3
Additions	309.8	214.9
Disposals	(7.0)	(5.2)
Sale of Mesquite		(557.3)
Transfers	0.0	0.0
Government Grants	(2.0)
Asset impairment		(1,054.8)
Balance	3,249.7	2,948.9
Accumulated depreciation and amortisation [member]
Mining Interests
Balance	1,095.5	1,150.9
Depreciation for the year	229.3	299.8
Disposals	(3.1)	(3.7)
Sale of Mesquite		(351.5)
Balance	1,321.7	1,095.5
Depletable [Member]
Mining Interests
Balance	545.7
Balance	619.7	545.7
Depletable [Member] | Gross carrying amount [member]
Mining Interests
Balance	1,262.7	2,353.0
Additions	87.3	70.8
Disposals	(0.2)	(0.4)
Sale of Mesquite		(323.5)
Transfers	101.3	(0.6)
Government Grants	0.0
Asset impairment		(836.6)
Balance	1,451.1	1,262.7
Depletable [Member] | Accumulated depreciation and amortisation [member]
Mining Interests
Balance	717.0	737.3
Depreciation for the year	114.4	169.1
Disposals	0.0	(0.1)
Sale of Mesquite		(189.3)
Balance	831.4	717.0
Non-depletable [Member]
Mining Interests
Balance	367.6
Balance	409.0	367.6
Non-depletable [Member] | Gross carrying amount [member]
Mining Interests
Balance	367.6	562.0
Additions	43.5	23.8
Disposals	(0.1)	0.0
Sale of Mesquite		0.0
Transfers	0.0	0.0
Government Grants	(2.0)
Asset impairment		(218.2)
Balance	409.0	367.6
Non-depletable [Member] | Accumulated depreciation and amortisation [member]
Mining Interests
Balance	0.0	0.0
Depreciation for the year	0.0	0.0
Disposals	0.0	0.0
Sale of Mesquite		0.0
Balance	0.0	0.0
Plant and Equipment [Member]
Mining Interests
Balance	812.9
Balance	769.9	812.9
Plant and Equipment [Member] | Gross carrying amount [member]
Mining Interests
Balance	1,191.4	1,379.3
Additions	75.5	48.3
Disposals	(6.7)	(4.8)
Sale of Mesquite		(232.0)
Transfers	0.0	0.6
Government Grants	0.0
Asset impairment		0.0
Balance	1,260.2	1,191.4
Plant and Equipment [Member] | Accumulated depreciation and amortisation [member]
Mining Interests
Balance	378.5	413.6
Depreciation for the year	114.9	130.7
Disposals	(3.1)	(3.6)
Sale of Mesquite		(162.2)
Balance	490.3	378.5
Construction in Progress [Member]
Mining Interests
Balance	127.2
Balance	129.4	127.2
Construction in Progress [Member] | Gross carrying amount [member]
Mining Interests
Balance	127.2	57.0
Additions	103.5	72.0
Disposals	0.0	0.0
Sale of Mesquite		(1.8)
Transfers	(101.3)	0.0
Government Grants	0.0
Asset impairment		0.0
Balance	129.4	127.2
Construction in Progress [Member] | Accumulated depreciation and amortisation [member]
Mining Interests
Balance	0.0	0.0
Depreciation for the year	0.0	0.0
Disposals	0.0	0.0
Sale of Mesquite		0.0
Balance	$ 0.0	$ 0.0

XML

TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
TRADE AND OTHER RECEIVABLES
Trade receivables	$ 5.9	$ 9.5
Sales tax receivable	7.1	14.0
Unsettled provisionally priced concentrate derivatives and swap contracts (Note 14)	0.2	(0.7)
Proceeds due from the sale of Mesquite, including income tax refund receivable (Note 16)	9.0	11.2
Other	1.5	1.9
Total trade and other receivables	$ 23.7	$ 35.9

XML

SHARE CAPITAL - Loss per share (Details) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Calculation of diluted income loss per share
Loss from continuing operations	[1]	$ (73.5)	$ (1,085.6)
Net loss		$ (73.5)	$ (1,239.7)
Basic weighted average number of shares outstanding		611,100,000	578,700,000
Stock options		0	0
Diluted weighted average number of shares outstanding		611,100,000	578,700,000
Loss from continuing operations per share: Basic		$ (0.12)	$ (1.88)
Diluted earnings (loss) per share		(0.12)	(2.14)
Loss from continuing operations per share: Diluted		(0.12)	(1.88)
Basic earnings (loss) per share		$ (0.12)	$ (2.14)

[1] In the prior year period, Peak Mines and Mesquite were classified as discontinued operations and accordingly earnings and cash flows from continuing operations are presented exclusive of Peak Mines and Mesquite. Peak Mines was sold in April 2018 and Mesquite was sold in October 2018. Refer to Note 16 for further details.

XML

IMPAIRMENT - Additional information (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2018
IMPAIRMENT
Impairment loss after-tax	$ 671.1	$ 282.1	$ 953.2

XML

INCOME AND MINING TAXES - Deferred income tax (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
DEFERRED TAX LIABILITIES
Deferred tax liabilities	$ (48.3)	$ (56.3)
Deferred tax assets and liabilities
Deferred income tax liabilities, net	(48.3)	(56.3)	$ (78.0)
Canada [Member]
Deferred tax assets
Deferred tax assets	255.3	261.4
DEFERRED TAX LIABILITIES
Deferred tax liabilities	(48.3)	(56.3)
Unrecognized Deferred Tax Assets	(255.3)	(261.4)
Deferred tax assets and liabilities
Deferred income tax liabilities, net	(48.3)	(56.3)
Canada [Member] | Capital Losses [Member]
Deferred tax assets
Deferred tax assets	18.4	37.1
Canada [Member] | Property, plant and equipment and Mining interests [Member]
Deferred tax assets
Deferred tax assets	122.7	110.8
Canada [Member] | Tax credits [Member]
Deferred tax assets
Deferred tax assets	49.9	47.5
Canada [Member] | Ontario Mining Tax [Member]
Deferred tax assets
Deferred tax assets	45.4	53.9
Canada [Member] | Other deferred tax assets [Member]
Deferred tax assets
Deferred tax assets	18.9	12.1
Canada [Member] | British Columbia Mining Tax [Member]
DEFERRED TAX LIABILITIES
Deferred tax liabilities	$ (48.3)	$ (56.3)

XML

DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2019

Derivative instruments [Line Items]

Schedule of derivative assets and derivative liabilities

	As at	As at
	December 31	December 31
(in millions of U.S. dollars)	2019	2018
DERIVATIVE ASSETS
Unsettled provisionally priced concentrate derivatives, and swap contracts(2)	0.2	—
Copper price option contracts	—	0.7
Total derivative assets	0.2	0.7
DERIVATIVE LIABILITIES
Unsettled provisionally priced concentrate derivatives, and swap contracts(2)	—	0.7
Gold price option contracts(1)	26.4	4.8
Total derivative liabilities	26.4	5.5

1. As at December 31, 2019,gold price option contracts are included within trade and other payables in the statement of financial position. As at December 31, 2018, copper price option contracts are included within prepaids and other in the statement of financial position and gold price option contracts are included within trade and other payables in the statement of financial position.

2. Unsettled provisionally priced concentrate derivatives are included within trade and other receivables in the statement of financial position.

Schedule of realised and unrealised gains (losses) on provisionally priced sales

The following tables summarize the realized and unrealized gains (losses) on provisionally priced sales:

	Year ended December 31, 2019
(in millions of U.S. dollars)	Gold	Copper	Total
GAIN (LOSS) ON THE PROVISIONAL PRICING OF CONCENTRATE SALES
Realized	2.2	(1.7)	0.5
Unrealized	0.5	1.0	1.5
Total gain (loss)	2.7	(0.7)	2.0

	Year ended December 31, 2018
(in millions of U.S. dollars)	Gold	Copper	Total
GAIN (LOSS) ON THE PROVISIONAL PRICING OF CONCENTRATE SALES
Realized	(1.2)	(7.7)	(8.9)
Unrealized	1.1	(2.7)	(1.6)
Total (loss) gain	(0.1)	(10.4)	(10.5)

Schedule of realised and unrealised gains (losses) on gold and copper swap contracts

The following tables summarize the realized and unrealized gains (losses) on gold and copper swap contracts:

	Year ended December 31, 2019
(in millions of U.S. dollars)	Gold	Copper	Total
(LOSS) GAIN ON SWAP CONTRACTS
Realized	(3.2)	0.2	(3.0)
Unrealized	(0.4)	(0.9)	(1.3)
Total (loss) gain	(3.6)	(0.7)	(4.3)

	Year ended December 31, 2018
(in millions of U.S. dollars)	Gold	Copper	Total
(LOSS) GAIN ON SWAP CONTRACTS
Realized	1.3	11.3	12.6
Unrealized	(0.8)	1.7	0.9
Total gain (loss)	0.5	13.0	13.5

Schedule of impact of movements in market commodity prices

The following table summarizes the net exposure to the impact of movements in market commodity prices for provisionally priced sales:

	As at December 31	As at December 31
	2019	2018
VOLUMES SUBJECT TO FINAL PRICING NET OF OUTSTANDING SWAPS
Gold ounces (000s)	0.9	0.8
Copper pounds (millions)	0.5	1.6

Gold

Derivative instruments [Line Items]

Schedule of remaining contracts of metal option

	Quantity			Exercise price	Fair value  - asset
	outstanding		Remaining term	($/oz)	(liability) (1)
GOLD PRICE OPTION CONTRACTS OUTSTANDING
Gold call contracts - sold	72,000	oz	January 2020 – June 2020	1,355	(12.6)
Gold call contracts - sold	96,000	oz	July 2020 – December 2020	1,415	(14.1)
Gold put contracts - purchased	168,000	oz	January 2020 – December  2020	1,300	0.3

1. The Company presents the fair value of its put and call options on a net basis on the consolidated statements of financial position. The Company has a legally enforceable right to set off the amounts under its option contracts and intends to settle on a net basis.

XML

RECLAMATION AND CLOSURE COST OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2019

RECLAMATION AND CLOSURE COST OBLIGATIONS

Schedule of reclamation and closure cost obligations

Changes to the reclamation and closure cost obligations are as follows:

	Rainy	New		Cerro San
(in millions of U.S. dollars)	River	Afton	Mesquite	Pedro	Blackwater	Total
CHANGES TO RECLAMATION AND CLOSURE COST OBLIGATIONS
Balance - December 31, 2017	63.4	11.6	20.5	19.2	9.4	124.1
Reclamation expenditures	(0.3)	—	—	(0.9)	—	(1.2)
Unwinding of discount	1.5	0.2	0.4	0.1	0.2	2.4
Revisions to expected cash flows	(6.1)	(0.3)	(0.9)	1.5	(0.5)	(6.3)
Foreign exchange movement	(4.9)	(0.8)	—	0.1	(0.8)	(6.4)
Less: amounts reclassified as held for sale and sold	—	—	(20.0)	—	—	(20.0)
Balance - December 31, 2018	53.6	10.7	—	20.0	8.3	92.6
Less: current portion of closure costs (Note 7)	—	—	—	(6.5)	—	(6.5)
Non-current portion of closure costs	53.6	10.7	—	13.5	8.3	86.1
Balance - December 31, 2018	53.6	10.7	—	20.0	8.3	92.6
Reclamation expenditures	(0.2)	—	—	(8.6)	—	(8.8)
Unwinding of discount	1.1	0.2	—	1.2	0.2	2.7
Revisions to expected cash flows	9.7	6.4	—	(0.6)	0.5	16.0
Foreign exchange movement	2.8	0.7	—	0.6	0.4	4.5
Balance - December 31, 2019	67.0	18.0	—	12.6	9.4	107.0
Less: current portion of closure costs (Note 7)	(1.4)	—	—	(10.9)	—	(12.3)
Non-current portion of closure costs	65.6	18.0	—	1.7	9.4	94.7

XML

COMPENSATION OF KEY MANAGEMENT PERSONNEL (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
COMPENSATION OF KEY MANAGEMENT PERSONNEL
Short-term benefits	$ 1.9	$ 1.5
Share-based payments	0.2	0.0
Termination benefits	1.1	4.1
Total key management personnel remuneration	$ 3.2	$ 5.6

XML

SEGMENTED INFORMATION

12 Months Ended

Dec. 31, 2019

SEGMENTED INFORMATION

SEGMENTED INFORMATION

20. SEGMENTED INFORMATION

(a) Segment revenues and results

The Company manages its reportable operating segments by operating mines and development projects. Operating results of reportable operating segments are reviewed by the Company’s chief operating decision maker ("CODM") to make decisions about resources to be allocated to the segments and to assess their performance. Effective January 1, 2019, Cerro San Pedro is in the reclamation phase of its mine life cycle. As a result, the Company has grouped Cerro San Pedro with the Company's development and exploration properties that have no revenues or operating costs. The segmented information for the twelve months ended December 31, 2018 has been restated to reflect the Company's reportable operating segments for the twelve months ended December 31, 2019. The results from operations for these reportable operating segments are summarized in the following tables:

	Year ended December 31, 2019
	Rainy	New
(in millions of U.S. dollars)	River	Afton	Corporate	Other(1)	Total
OPERATING SEGMENT RESULTS
Gold revenues	354.2	80.2	—	—	434.4
Copper revenues	—	187.3	—	—	187.3
Silver revenues	4.7	4.2	—	—	8.9
Total revenues(2)	358.9	271.7	—	—	630.6
Operating expenses	258.4	113.5	—	—	371.9
Depreciation and depletion	93.9	146.7	—	—	240.6
Revenue less cost of goods sold	6.6	11.5	—	—	18.1
Corporate administration	—	—	17.6	—	17.6
Corporate restructuring(3)	—	—	1.1	—	1.1
Share-based payment expenses	—	—	1.7	—	1.7
Exploration and business development	1.4	3.1	1.1	—	5.6
(Loss) income from operations	5.2	8.4	(21.5)	—	(7.9)

1. Other includes balances relating to Cerro San Pedro, the development and exploration properties that have no revenues or operating costs.

2. Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the year ended December 31, 2019.

3. During 2019, the Company recognized restructuring charges of $1.1 million related to severance and other termination benefits.

	Year ended December 31, 2018
	Rainy	New
(in millions of U.S. dollars)	River	Afton	Corporate	Other(1)	Total
OPERATING SEGMENT RESULTS
Gold revenues	270.6	83.8	—	13.8	368.2
Copper revenues	—	226.1	—	—	226.1
Silver revenues	3.8	4.2	—	2.2	10.2
Total revenues(2)	274.4	314.1	—	16.0	604.5
Operating expenses	179.9	104.3	—	41.2	325.4
Depreciation and depletion	78.3	158.2	—	3.4	239.9
Revenue less cost of goods sold	16.2	51.6	—	(28.6)	39.2
Corporate administration	—	—	23.2	—	23.2
Corporate restructuring(3)	—	—	4.1	—	4.1
Share-based payment expenses	—	—	0.7	—	0.7
Asset impairment	836.6	—	—	218.2	1,054.8
Exploration and business development	0.5	0.5	1.9	0.1	3.0
(Loss) income from operations	(820.9)	51.1	(29.9)	(246.9)	(1,046.6)

1. Other includes balances relating to Cerro san Pedro, the development and exploration properties that have no revenues or operating costs.

2. Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the year ended December 31, 2018.

3. In 2018, the Company recognized a restructuring charge of approximately $4.1 million in severance and other termination benefits related to changes at the executive leadership level of the organization.

(b) Segmented assets and liabilities

The following table presents the segmented assets and liabilities:

	Total assets		Total liabilities		Capital expenditures(1)
	As at	As at	As at	As at	Year ended
	December 31	December 31	December 31	December 31	December 31
(in millions of U.S. dollars)	2019	2018	2019	2018	2019	2018
SEGMENTED ASSETS AND LIABILITIES
Rainy River	1,078.4	986.0	334.9	313.6	185.9	170.6
New Afton	647.7	730.9	89.8	73.8	61.8	35.9
Blackwater	356.5	341.4	27.9	18.8	5.1	7.3
Other(2)	75.9	111.3	744.6	818.9	0.5	0.1
	2,158.5	2,169.6	1,197.2	1,225.1	253.3	213.9
Assets and liabilities held for sale and capital expenditures from discontinued operations (Note 16)	—	—	—	—	—	13.2
Total assets, liabilities and capital expenditures	2,158.5	2,169.6	1,197.2	1,225.1	253.3	227.1

1.Capital expenditures per consolidated statement of cash flows.

2.Other includes corporate balance, exploration properties and Cerro San Pedro.

(c) Geographical information

The Company operates in one principal geographical area - Canada (country of domicile). In 2018, the Company had operated in the United States, Mexico and Australia. The Company’s revenue and non-current assets are located in Canada.

(d) Information about major customers

The following table presents sales to individual customers exceeding 10% of annual sales for the following periods. The following five customers represent 89% (2018 – five customers representing 79%) of the Company’s sales revenue for the years ended December 31.

		Year ended December 31
(in millions of U.S. dollars)		2019
CUSTOMER	REPORTING SEGMENT
1	Rainy River	128.9
2	Rainy River	126.7
3	Rainy River	102.5
4	New Afton	100.9
5	New Afton	99.2
Total sales to customers exceeding 10% of annual sales		558.2

		Year ended December 31
(in millions of U.S. dollars)		2018
CUSTOMER	REPORTING SEGMENT
1	Rainy River	137.9
2	New Afton	109.9
3	New Afton	94.2
4	Rainy River	78.0
5	New Afton	70.7
Total sales to customers exceeding 10% of annual sales		490.7

The Company is not economically dependent on a limited number of customers for the sale of its product because gold and other metals can be sold through numerous commodity market traders worldwide. Refer to Note 22(a) for further discussion on the Company’s exposure to credit risk.

XML

FINANCIAL RISK MANAGEMENT - Credit risk - Aging of trade and other receivables (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	$ 23.7	$ 35.9
Rainy River
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	5.5	8.8
New Afton
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	6.3	8.3
Cerro San Pedro
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	1.4	5.1
Blackwater
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.3	0.3
Corporate
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	10.2	$ 13.4
0-30 days
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	18.6
0-30 days | Rainy River
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	4.5
0-30 days | New Afton
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	3.4
0-30 days | Cerro San Pedro
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.5
0-30 days | Blackwater
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.0
0-30 days | Corporate
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	10.2
31-60 days
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.1
31-60 days | Cerro San Pedro
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.1
31-60 days | Blackwater
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.0
31-60 days | Corporate
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.0
61-90 days
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.1
61-90 days | Rainy River
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.0
61-90 days | Cerro San Pedro
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.1
61-90 days | Blackwater
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.0
61-90 days | Corporate
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.0
91-120 days
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	3.0
91-120 days | Rainy River
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.0
91-120 days | New Afton
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	2.9
91-120 days | Cerro San Pedro
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.1
91-120 days | Blackwater
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.0
91-120 days | Corporate
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.0
Over 120 days
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	1.9
Over 120 days | Rainy River
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	1.0
Over 120 days | New Afton
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.0
Over 120 days | Cerro San Pedro
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.6
Over 120 days | Blackwater
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	0.3
Over 120 days | Corporate
AGING TRADE AND OTHER RECEIVABLES
Total Trade and other receivables	$ 0.0

XML

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITIES - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Common shares, beginning of period	$ 3,035.2	$ 3,036.5
Common share issuance	109.3	0.3
Shares issued for exercise of options and vested PSUs	0.0	0.3
Reversal of deferred tax recovery	0.0	(1.9)
Common shares, end of period	3,144.5	3,035.2
Contributed surplus, beginning of period	105.0	103.2
Exercise of options and vested PSUs	0.0	(0.3)
Equity settled share-based payments	0.7	2.1
Contributed surplus, ending of period	105.7	105.0
Other reserves, beginning of period	6.1
(Loss) gain on revaluation of gold stream obligation (net of tax)	(19.7)	45.0
Other reserves, ending of period	(13.6)	6.1
Deficit, beginning of period	(2,201.8)	(961.3)
Net loss	(73.5)	(1,240.5)
Deficit, ending of period	(2,275.3)	(2,201.8)
Total equity	$ 961.3	$ 944.5

XML

CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Millions		6 Months Ended	12 Months Ended
		Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED INCOME STATEMENTS
Revenues			$ 630.6	$ 604.5
Operating expenses			371.9	325.4
Depreciation and depletion			240.6	239.9
Revenue less cost of goods sold			18.1	39.2
Corporate administration			17.6	23.2
Corporate restructuring	[1]		1.1	4.1
Share-based payment expenses			1.7	0.7
Exploration and business development			5.6	3.0
Asset impairment		$ 671.1	0.0	1,054.8
Loss from operations			(7.9)	(1,046.6)
Finance income			2.2	1.5
Finance costs			(62.6)	(69.0)
Other (losses) gains			(5.6)	18.1
Loss before taxes			(73.9)	(1,096.0)
Income tax recovery			0.4	10.4
Loss from continuing operations(2)	[2]		(73.5)	(1,085.6)
Loss from discontinued operations, net of tax(2)	[2]		0.0	(154.9)
Net loss			$ (73.5)	$ (1,240.5)
Loss from continuing operations per share
Basic			$ (0.12)	$ (1.88)
Diluted			(0.12)	(1.88)
Net loss per share
Basic			(0.12)	(2.14)
Diluted			$ (0.12)	$ (2.14)
Weighted average number of shares outstanding (in millions)
Basic			611,100,000	578,700,000
Diluted			611,100,000	578,700,000

[1] During 2019 and 2018, the Company recognized restructuring charges of $1.1 million and $4.1million respectively related to severance and other termination benefits.

[2] In the prior year period, Peak Mines and Mesquite were classified as discontinued operations and accordingly earnings and cash flows from continuing operations are presented exclusive of Peak Mines and Mesquite. Peak Mines was sold in April 2018 and Mesquite was sold in October 2018. Refer to Note 16 for further details.

XML

FINANCIAL RISK MANAGEMENT - Metal and input price risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Gold
FINANCIAL RISK MANAGEMENT
Impact on net earnings due to 10 % change in price	$ 19.0	$ 37.6
Impact on other comprehensive income due to 10 % change in price	0.0	0.0
Copper
FINANCIAL RISK MANAGEMENT
Impact on net earnings due to 10 % change in price	20.7	6.5
Impact on other comprehensive income due to 10 % change in price	0.0	0.0
Fuels and electricity
FINANCIAL RISK MANAGEMENT
Impact on net earnings due to 10 % change in price	7.0	$ 5.5
Impact on other comprehensive income due to 10 % change in price	$ 0.0

XML

DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2019

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

16. DISCONTINUED OPERATIONS

(a) Peak Mines

In the third quarter of 2017, Peak Mines in Australia ("Peak Mines") met the criteria as a discontinued operation under IFRS 5. The Company completed the sale of Peak Mines in early April 2018 and recognized a loss from discontinued operations, net of tax of $0.8 million for the year ended December 31, 2018.

(b) Mesquite

In September 2018, the Company announced that it had entered into an agreement to sell the Mesquite Mine in the United States ("Mesquite") and as a result Mesquite met the criteria as a discontinued operation under IFRS 5. The Company completed the sale of Mesquite in October 2018.

For the year ended December 31, 2018, the net earnings from Mesquite was reported as earnings from discontinued operations. Upon execution of the sale, the Company received $158.0 million in cash and incurred $0.9 million in disposal costs. In addition to the net cash proceeds, the purchase consideration included a working capital receivable due from the purchaser, which was collected in the first quarter of 2019. Additionally, the expected purchase consideration included an estimate for a receivable from the purchaser related to income tax refunds that were recoverable by Mesquite at the date of the sale, which is included in current assets on the statement of financial position. For the year ended December 31, 2018, the Company recognized a loss from discontinued operations of $154.1 million related to Mesquite.

 The net earnings from Mesquite for the year ended December 31, 2018 are as follows:

	Year ended December 31
(in millions of U.S. dollars, except per share amounts)	2018
Revenues	146.1
Operating expenses	95.6
Depreciation and depletion	35.4
Revenue less cost of goods sold	15.1
Finance income	0.4
Finance costs	(0.4)
Other losses	—
Impairment loss on held-for-sale assets	(253.1)
Loss before taxes	(238.0)
Income tax recovery	83.9
Loss from discontinued operations, net of tax	(154.1)

The following table provides details of the cash flow from operating, investing and financing activities of Mesquite for the year ended December 31, 2018:

	Year ended December 31
(in millions of U.S. dollars)	2018
OPERATING ACTIVITIES
Loss from discontinued operations	(154.1)
Adjustments for:
Depreciation and depletion	35.4
Income tax recovery	(83.9)
Finance income	(0.4)
Finance costs	0.4
Impairment loss on held-for-sale assets	253.1
	50.5
Change in non-cash operating working capital	(15.9)
Income taxes received	2.6
Cash generated from operations	37.2
INVESTING ACTIVITIES
Mining interests	(4.5)
Interest received	0.4
Cash used by investing activities	(4.1)
Change in cash and cash equivalents	33.1

XML

LONG-TERM DEBT (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
LONG-TERM DEBT
Total long-term debt	$ 714.5	$ 780.5
Senior unsecured notes - due November 15, 2022
LONG-TERM DEBT
Total long-term debt	397.4	495.3
Senior unsecured notes - due May 15, 2025
LONG-TERM DEBT
Total long-term debt	287.1	285.2
Credit Facility [Member]
LONG-TERM DEBT
Total long-term debt	$ 30.0	$ 0.0

XML

INCOME AND MINING TAXES - Movement in the net deferred tax liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
INCOME AND MINING TAXES
Balance at the beginning of the year	$ (56.3)	$ (78.0)
Recognized in net loss	3.0	14.5
Recognized in other comprehensive income	4.8	(23.5)
Recognized as foreign exchange	0.2	(1.3)
Reclassified as held-for-sale or disposed of	0.0	32.0
Total movement in the net deferred tax liabilities	$ (48.3)	$ (56.3)

XML

DISCONTINUED OPERATIONS - Cashflows (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Operating activities
Loss from discontinued operations	[1]	$ 0.0	$ (154.9)
Adjustments for:
Income tax recovery		0.4	10.4
Finance income		(2.2)	(1.5)
Finance costs		62.6	69.0
Change in non-cash operating working capital		(25.9)	71.6
Income taxes received		2.6	4.1
Cash generated from operations		263.5	245.1
Investing activities
Mining interests		(253.3)	(213.9)
Interest received		2.2	1.2
Cash used by investing activities		(234.0)	(32.2)
Change in cash and cash equivalents		$ (20.3)	(112.5)
Discontinued operations [member]
Operating activities
Loss from discontinued operations			(154.1)
Adjustments for:
Depreciation and depletion			35.4
Income tax recovery			83.9
Finance income			(0.4)
Finance costs			0.4
Impairment loss on held-for-sale assets			253.1
Total adjustments to reconcile profit (loss)			50.5
Change in non-cash operating working capital			(15.9)
Income taxes received			2.6
Cash generated from operations			37.2
Investing activities
Mining interests			(4.5)
Interest received			0.4
Cash used by investing activities			(4.1)
Change in cash and cash equivalents			$ 33.1

[1] In the prior year period, Peak Mines and Mesquite were classified as discontinued operations and accordingly earnings and cash flows from continuing operations are presented exclusive of Peak Mines and Mesquite. Peak Mines was sold in April 2018 and Mesquite was sold in October 2018. Refer to Note 16 for further details.

XML

MINING INTERESTS - Carrying amount (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Mining Interests
Property, plant and equipment	$ 1,928.0	$ 1,853.4
New Afton
Mining Interests
Property, plant and equipment	588.4	656.0
Cerro San Pedro
Mining Interests
Property, plant and equipment		0.0
Rainy River
Mining Interests
Property, plant and equipment	979.8	853.9
Blackwater
Mining Interests
Property, plant and equipment	354.6	340.3
Other [Member]
Mining Interests
Property, plant and equipment	5.2	3.2
Depletable [Member]
Mining Interests
Property, plant and equipment	619.7	545.7
Depletable [Member] | New Afton
Mining Interests
Property, plant and equipment	371.4	421.9
Depletable [Member] | Cerro San Pedro
Mining Interests
Property, plant and equipment		0.0
Depletable [Member] | Rainy River
Mining Interests
Property, plant and equipment	248.3	123.8
Depletable [Member] | Blackwater
Mining Interests
Property, plant and equipment	0.0	0.0
Depletable [Member] | Other [Member]
Mining Interests
Property, plant and equipment	0.0	0.0
Non-depletable [Member]
Mining Interests
Property, plant and equipment	409.0	367.6
Non-depletable [Member] | New Afton
Mining Interests
Property, plant and equipment	50.0	26.1
Non-depletable [Member] | Cerro San Pedro
Mining Interests
Property, plant and equipment		0.0
Non-depletable [Member] | Rainy River
Mining Interests
Property, plant and equipment	17.8	14.3
Non-depletable [Member] | Blackwater
Mining Interests
Property, plant and equipment	340.1	326.1
Non-depletable [Member] | Other [Member]
Mining Interests
Property, plant and equipment	1.1	1.1
Plant and Equipment [Member]
Mining Interests
Property, plant and equipment	769.9	812.9
Plant and Equipment [Member] | New Afton
Mining Interests
Property, plant and equipment	149.2	191.6
Plant and Equipment [Member] | Cerro San Pedro
Mining Interests
Property, plant and equipment		0.0
Plant and Equipment [Member] | Rainy River
Mining Interests
Property, plant and equipment	602.1	605.0
Plant and Equipment [Member] | Blackwater
Mining Interests
Property, plant and equipment	14.5	14.2
Plant and Equipment [Member] | Other [Member]
Mining Interests
Property, plant and equipment	4.1	2.1
Construction in Progress [Member]
Mining Interests
Property, plant and equipment	129.4	127.2
Construction in Progress [Member] | New Afton
Mining Interests
Property, plant and equipment	17.8	16.4
Construction in Progress [Member] | Cerro San Pedro
Mining Interests
Property, plant and equipment		0.0
Construction in Progress [Member] | Rainy River
Mining Interests
Property, plant and equipment	111.6	110.8
Construction in Progress [Member] | Blackwater
Mining Interests
Property, plant and equipment	0.0	0.0
Construction in Progress [Member] | Other [Member]
Mining Interests
Property, plant and equipment	$ 0.0	$ 0.0

XML

TRADE AND OTHER PAYABLES (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
TRADE AND OTHER PAYABLES
Trade payables	$ 39.7	$ 47.1
Interest payable	6.1	6.9
Accruals	65.5	47.3
Current portion of reclamation and closure cost obligations (Note 18)	12.3	6.5
Current portion of gold stream obligation (Note 12)	21.6	18.3
Current portion of derivative liabilities (Note 14)	26.4	4.8
Total trade and other payables	$ 171.6	$ 130.9

XML

SHARE CAPITAL - Stock options (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
SHARE CAPITAL
Stock options excluded from the calculation of diluted earnings per share	5.6	8.6

XML

LEASES (Tables)

12 Months Ended

Dec. 31, 2019

LEASES

Schedule of changes in right-of-use assets

	As at December 31, 2019
(in millions of U.S. dollars)
RIGHT-OF-USE ASSETS
Balance, January 1, 2019	20.8
Additions	28.5
Depreciation	(6.1)
Disposals	—
Balance, December 31, 2019	43.2

Schedule of maturity analysis of the Company's lease payments

	As at December 31, 2019
(in millions of U.S. dollars)
MATURITY ANALYSIS FOR LEASES
Less than 1 year	9.8
Between 1 and 3 years	17.0
Between 3 and 5 years	8.6
More than 5 years	—
Total undiscounted lease payments(1)	35.4
Carrying value of lease liabilities	32.6
Less: current portion of lease liabilities(2)	(8.7)
Non-current portion of lease liabilities	23.9

1.Total undiscounted lease payments excludes leases that are classified as short term and leases for low value assets, which are not recognized as lease liabilities.

2.The current portion of the lease liabiltiies is included in trade and other payables on the statement of financial position.

XML

INCOME AND MINING TAXES (Tables)

12 Months Ended

Dec. 31, 2019

INCOME AND MINING TAXES

Schedule of the composition of income tax expense

The following table outlines the composition of income tax expense between current tax and deferred tax:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
CURRENT INCOME AND MINING TAX EXPENSE
Canada	2.2	4.2
Foreign	0.4	(0.1)
	2.6	4.1
DEFERRED INCOME AND MINING TAX EXPENSE
Canada	1.9	(19.2)
Adjustments in respect of prior year	(4.9)	4.7
	(3.0)	(14.5)
Total income tax recovery	(0.4)	(10.4)

Schedule of reconciliation Of Income tax recovery

Income tax expense differs from the amount that would result from applying the Canadian federal and provincial income tax rates to earnings before taxes. The differences result from the following items:

	Year ended December 31
(in millions of U.S. dollars)	2019		2018
Loss before taxes	(73.9)		(1,096.0)
Canadian federal and provincial income tax rates	26.3	%	26.3	%
Income tax recovery based on above rates	(19.4)		(288.2)
INCREASE (DECREASE) DUE TO
Permanent differences	(0.1)		58.3
Different statutory tax rates on earnings of foreign subsidiaries	—		(4.1)
Foreign exchange on non-monetary assets and liabilities	0.2		0.4
Other foreign exchange differences	3.7		(3.2)
Prior years’ adjustments relating to tax provision and tax returns	(5.2)		4.7
Canadian mining tax	(2.5)		26.6
Change in unrecognized deferred tax assets	22.9		210.0
Sale of Peak and Mesquite	—		(15.1)
Other	—		0.2
Income tax recovery	(0.4)		(10.4)

Schedule of deferred tax assets and liabilities

The following tables provide analysis of the deferred tax assets and liabilities, all of which are located in Canada:

	Year Ended December 31,
(in millions of U.S. dollars)	2019	2018
DEFERRED TAX ASSETS
Capital losses	18.4	37.1
Property, plant and equipment and Mining interests	122.7	110.8
Tax credits	49.9	47.5
Ontario Mining Tax	45.4	53.9
Other	18.9	12.1
	255.3	261.4
DEFERRED TAX LIABILITIES
British Columbia Mining Tax	(48.3)	(56.3)
	(48.3)	(56.3)
Unrecognized deferred tax asset	(255.3)	(261.4)
Deferred income tax liabilities, net	(48.3)	(56.3)

Schedule Of the movement in the net deferred tax liabilities

The following table outlines the movement in the net deferred tax liabilities:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
MOVEMENT IN THE NET DEFERRED TAX LIABILITIES
Balance at the beginning of the year	(56.3)	(78.0)
Recognized in net loss	3.0	14.5
Recognized in other comprehensive income	4.8	(23.5)
Recognized as foreign exchange	0.2	(1.3)
Reclassified as held-for-sale or disposed of	—	32.0
Total movement in the net deferred tax liabilities	(48.3)	(56.3)

XML

FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
DEBT COMMITMENTS
Trade and other payables	$ 171.6	$ 130.9
Outstanding borrowings	714.5	780.5
Interest payable on long-term debt	174.7	242.9
Gold stream obligation	192.7	267.5
Total debt commitments	1,247.7	1,423.0
Accounts Payable excluding current portion of Gold Stream Obligation [Member]
DEBT COMMITMENTS
Trade and other payables	150.0	112.6
Principle of Long Term Debt [Member]
DEBT COMMITMENTS
Outstanding borrowings	730.3	$ 800.0
2020
DEBT COMMITMENTS
Trade and other payables	150.0
Outstanding borrowings	0.0
Interest payable on long-term debt	44.2
Gold stream obligation	22.0
Total debt commitments	216.2
Between 1 and 3 years
DEBT COMMITMENTS
Trade and other payables	0.0
Outstanding borrowings	430.3
Interest payable on long-term debt	85.1
Gold stream obligation	49.9
Total debt commitments	565.3
2023 and thereafter
DEBT COMMITMENTS
Trade and other payables	0.0
Interest payable on long-term debt	38.3
Gold stream obligation	54.9
Total debt commitments	93.2
More than 5 years
DEBT COMMITMENTS
Trade and other payables	0.0
Outstanding borrowings	300.0
Interest payable on long-term debt	7.1
Gold stream obligation	65.9
Total debt commitments	$ 373.0

XML

CAPITAL RISK MANAGEMENT

12 Months Ended

Dec. 31, 2019

CAPITAL RISK MANAGEMENT

CAPITAL RISK MANAGEMENT

21. CAPITAL RISK MANAGEMENT

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance.

In the management of capital, the Company includes the components of equity, long-term debt, net of cash and cash equivalents, and investments.

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
CAPITAL (AS DEFINED ABOVE) IS SUMMARIZED AS FOLLOWS
Equity	961.3	944.5
Long-term debt	714.5	780.5
	1,675.8	1,725.0
Cash and cash equivalents	(83.4)	(103.7)
Total	1,592.4	1,621.3

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying capital instruments. To maintain or adjust the capital structure, the Company may issue new shares, restructure or issue new debt, acquire or dispose of assets or sell its investments.

In order to facilitate the management of its capital requirements, the Company prepares annual budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions. The annual budget is approved by the Board of Directors. The Company’s investment policy is to invest its surplus funds in permitted investments consisting of treasury bills, bonds, notes and other evidences of indebtedness of Canada, the United States or any of the Canadian provinces with a minimum credit rating of R‑1 mid from the Dominion Bond Rating Service (“DBRS”) or an equivalent rating from Standard & Poor’s and Moody’s and with maturities of 12 months or less at the original date of acquisition. In addition, the Company is permitted to invest in bankers’ acceptances and other evidences of indebtedness of certain financial institutions. All investments must have a maximum term to maturity of 12 months and the average term will generally range from seven days to 90 days. Under the policy, the Company is not permitted to make investments in asset-backed commercial paper.

XML

CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
OPERATING ACTIVITIES
Loss from continuing operations	[1]	$ (73.5)	$ (1,085.6)
Adjustments for:
Asset impairment		0.0	1,054.8
Foreign exchange loss (gain)		3.3	(6.6)
Reclamation and closure costs paid		(8.8)	(1.2)
Depreciation and depletion		241.7	241.2
Other non-cash adjustments		17.5	9.0
Income tax recovery		0.4	10.4
Finance income		(2.2)	(1.5)
Finance costs		62.6	69.0
Cash flows from (used in) operations before changes in working capital		240.2	268.7
Change in non-cash operating working capital		25.9	(71.6)
Income taxes paid		(2.6)	(4.1)
Operating cash flows generated from continuing operations	[2]	263.5	193.0
Operating cash flows generated from discontinued operations		0.0	52.1
Cash generated from operations		263.5	245.1
INVESTING ACTIVITIES
Mining interests		(253.3)	(213.9)
Proceeds from the sale of other assets		2.7	1.1
Proceeds from sale of Mesquite, net of transaction costs and other adjustments		12.4	149.8
Proceeds from the sale of Peak Mines, net of transaction costs		0.0	42.4
Government grant received		2.0	0.0
Interest received		2.2	1.2
Investing cash flows used by continuing operations	[2]	(234.0)	(19.4)
Investing cash flows used by discontinued operations		0.0	(12.8)
Cash used by investing activities		(234.0)	(32.2)
FINANCING ACTIVITIES
Proceeds received from issuance of common shares		106.7	0.0
Drawdown of Credit Facility		30.0	0.0
Lease payments		(13.0)	(4.0)
Repayment of long-term debt		(100.0)	(230.0)
Cash settlement of gold stream obligation		(19.8)	(14.9)
Financing initiation costs		0.0	(0.6)
Interest paid		(54.1)	(63.2)
Cash used by financing activities		(50.2)	(312.7)
Effect of exchange rate changes on cash and cash equivalents		0.4	(0.5)
Cash and cash equivalents sold or classified as held-for-sale		0.0	(12.2)
Change in cash and cash equivalents		(20.3)	(112.5)
Cash and cash equivalents, beginning of period		103.7	216.2
Cash and cash equivalents, end of period		83.4	103.7
Cash and cash equivalents are comprised of:
Cash		66.0	64.3
Short-term money market instruments		17.5	39.4
Cash and cash equivalents, end of period		$ 83.4	$ 103.7

[1] In the prior year period, Peak Mines and Mesquite were classified as discontinued operations and accordingly earnings and cash flows from continuing operations are presented exclusive of Peak Mines and Mesquite. Peak Mines was sold in April 2018 and Mesquite was sold in October 2018. Refer to Note 16 for further details.

[2] In the prior year period, Peak Mines and Mesquite were classified as discontinued operations and accordingly earnings and cash flows from continuing operations are presented exclusive of Peak Mines and Mesquite. Peak Mines was sold in April 2018 and Mesquite was sold in October 2018. Refer to Note 16 for further details.

XML

CONSOLIDATED INCOME STATEMENTS (Parenthetical) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED INCOME STATEMENTS
Expense of restructuring activities	[1]	$ 1.1	$ 4.1

[1] During 2019 and 2018, the Company recognized restructuring charges of $1.1 million and $4.1million respectively related to severance and other termination benefits.

XML

INCOME AND MINING TAXES

12 Months Ended

Dec. 31, 2019

INCOME AND MINING TAXES

INCOME AND MINING TAXES

17. INCOME AND MINING TAXES

The following table outlines the composition of income tax expense between current tax and deferred tax:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
CURRENT INCOME AND MINING TAX EXPENSE
Canada	2.2	4.2
Foreign	0.4	(0.1)
	2.6	4.1
DEFERRED INCOME AND MINING TAX EXPENSE
Canada	1.9	(19.2)
Adjustments in respect of prior year	(4.9)	4.7
	(3.0)	(14.5)
Total income tax recovery	(0.4)	(10.4)

Income tax expense differs from the amount that would result from applying the Canadian federal and provincial income tax rates to earnings before taxes. The differences result from the following items:

	Year ended December 31
(in millions of U.S. dollars)	2019		2018
Loss before taxes	(73.9)		(1,096.0)
Canadian federal and provincial income tax rates	26.3	%	26.3	%
Income tax recovery based on above rates	(19.4)		(288.2)
INCREASE (DECREASE) DUE TO
Permanent differences	(0.1)		58.3
Different statutory tax rates on earnings of foreign subsidiaries	—		(4.1)
Foreign exchange on non-monetary assets and liabilities	0.2		0.4
Other foreign exchange differences	3.7		(3.2)
Prior years’ adjustments relating to tax provision and tax returns	(5.2)		4.7
Canadian mining tax	(2.5)		26.6
Change in unrecognized deferred tax assets	22.9		210.0
Sale of Peak and Mesquite	—		(15.1)
Other	—		0.2
Income tax recovery	(0.4)		(10.4)

The following tables provide analysis of the deferred tax assets and liabilities, all of which are located in Canada:

	Year Ended December 31,
(in millions of U.S. dollars)	2019	2018
DEFERRED TAX ASSETS
Capital losses	18.4	37.1
Property, plant and equipment and Mining interests	122.7	110.8
Tax credits	49.9	47.5
Ontario Mining Tax	45.4	53.9
Other	18.9	12.1
	255.3	261.4
DEFERRED TAX LIABILITIES
British Columbia Mining Tax	(48.3)	(56.3)
	(48.3)	(56.3)
Unrecognized deferred tax asset	(255.3)	(261.4)
Deferred income tax liabilities, net	(48.3)	(56.3)

The following table outlines the movement in the net deferred tax liabilities:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
MOVEMENT IN THE NET DEFERRED TAX LIABILITIES
Balance at the beginning of the year	(56.3)	(78.0)
Recognized in net loss	3.0	14.5
Recognized in other comprehensive income	4.8	(23.5)
Recognized as foreign exchange	0.2	(1.3)
Reclassified as held-for-sale or disposed of	—	32.0
Total movement in the net deferred tax liabilities	(48.3)	(56.3)

Deferred income tax assets are recognized for tax loss carry-forwards to the extent that the realization of the related tax benefit through future taxable profits is probable. The Company did not recognize deductible temporary differences on the following losses by country:

· Canadian capital loss carry-forwards of $139.9 million with no expiry date; and

· Other loss carry-forwards of $40.3 million with varying expiry dates.

The Company did not recognize net deductible temporary differences and tax credits in the amount of $728.2 million for income taxes (2018 - $783.9 million), which includes the Canadian loss carry-forwards noted above, and $534.1 million for mining taxes (2018 - $634.6 million) on other temporary differences.

The Company recognizes deferred taxes by taking into account the effects of local enacted tax legislation. Deferred tax assets are fully recognized when the Company concludes that sufficient positive evidence exists to demonstrate that it is probable that a deferred tax asset will be realized. In order to determine whether an asset can be recognized, it must be considered probable that an entity will have sufficient taxable profits available in the future to enable recovery of the asset. IAS 12 states that an entity will have sufficient taxable profits available in the future to enable the recovery of the asset when:

· There are sufficient taxable temporary differences relating to the same tax authority and the same taxable entity that are expected to reverse either in the same period as the expected reversal of the deductible temporary difference or in periods into which a tax loss arising from the deferred tax asset that can be carried back or forward;

· It is probable that the entity will have sufficient taxable profit relating to the same tax authority and the same taxable entity, in the same period as the reversal of the deductible temporary difference (or in the periods into which a tax loss arising from the deferred tax asset can be carried back or forward). In making this evaluation taxable amounts arising from deductible temporary differences that are expected to originate in future periods should be ignored because these will need further future taxable profits in order to be utilized.

· Tax planning opportunities that are available to the entity that will create taxable profit in appropriate periods.

Future income is impacted by changes in market gold, copper and silver prices as well as forecasted future costs and expenses to produce gold and copper reserves. In addition, the quantities of proven and probable gold and copper reserves, market interest rates and foreign currency exchange rates also impact future levels of taxable income. Any change in any of these factors will result in an adjustment to the recognition of deferred tax assets to reflect the Company’s latest assessment of the amount of deferred tax assets that is probable will be realized.

XML

FINANCIAL RISK MANAGEMENT - Additional information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
FINANCIAL RISK MANAGEMENT
Description of functional currency	U.S. dollars
Percentage of gains losses on exchange differences on translation recognised in profit or loss	10.00%
Percentage of changes in differences on commodity price recognised in net earnings and other comprehensive income	10.00%
At 1 percent change [Member]
FINANCIAL RISK MANAGEMENT
Interest income	$ 0.8
Credit Facility
FINANCIAL RISK MANAGEMENT
Amount drawn under facility	$ 30.0

XML

COMMITMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Contractual commitments [Line Items]
Contractual capital commitments	$ 72.5	$ 27.2
2020
Contractual commitments [Line Items]
Contractual capital commitments	$ 72.3	$ 26.9

XML

CAPITAL RISK MANAGEMENT (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CAPITAL RISK MANAGEMENT
Equity	$ 961.3	$ 944.5
Long-term debt	714.5	780.5
Gross Capital	1,675.8	1,725.0
Cash and cash equivalents	(83.4)	(103.7)	$ (216.2)
Total	$ 1,592.4	$ 1,621.3

XML

BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2019

BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

(a) Statement of compliance

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board (“IASB”), referred to as “IFRS”.

These consolidated financial statements were approved by the Board of Directors of the Company on February 12, 2020.

Basis of preparation

(b) Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for those assets and liabilities that are measured at fair values at the end of each reporting period. Additionally, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

Basis of consolidation

(c) Basis of consolidation

Subsidiaries

These consolidated financial statements include the financial statements of the Company and entities controlled by the Company (“Subsidiaries”). Control exists when the Company is exposed, or has rights to variable returns from its involvement with the Subsidiary and has the ability to affect those returns through its power over the Subsidiary.

THE PRINCIPAL SUBSIDIARIES OF THE COMPANY ARE AS FOLLOWS:

			Country of	Interest as at		Interest as at
		Method of	incorporation and	December 31,		December 31,
Name of subsidiary/associate(1)	Principal activity	accounting	operation	2019		2018
Minera San Xavier S.A. de C.V.	Mining	Consolidated	Mexico	100	%	100	%

1. The Company sold Peak Gold Mines Pty Ltd in April 2018 and sold Western Mesquite Mines Inc. in October 2018.

2. New Gold Inc. directly owns the assets of Rainy River, New Afton and Blackwater.

Business combinations and asset acquisitions

(d) Business combinations and asset acquisitions

A business combination is an acquisition of assets and liabilities that constitute a business. A business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return to the company and its shareholders in the form of improved earnings, lower costs or other economic benefits.

Business combinations are accounted for using the acquisition method whereby identifiable assets acquired and liabilities assumed, including contingent liabilities, are recorded at 100% of their acquisition-date fair values. The acquisition date is the date the Company obtains control over the acquiree, which is generally the date that consideration is transferred and the Company acquires the assets and assumes the liabilities of the acquiree. The Company considers all relevant facts and circumstances in determining the acquisition date.

The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Company, the liabilities, including contingent consideration, incurred and payable by the Company to former owners of the acquiree and the equity interests issued by the Company. The measurement date for equity interests issued by the Company is the acquisition date.

Acquisition-related costs, other than costs to issue debt or equity securities, of the Company, including investment banking fees, legal fees, accounting fees, valuation fees, and other professional or consulting fees are expensed as incurred. The costs to issue equity securities of the Company as consideration for the acquisition are reduced from share capital as share issue costs.

The Company accounts for the purchase of assets and assumption of liabilities as an acquisition of net assets when the transactions do not qualify as a business combination under IFRS 3, Business Combinations, as the significant inputs and processes that constitute a business are not identified. The purchase consideration is allocated to the fair value of the assets acquired and liabilities assumed based on management’s best estimates and available information at the time of the acquisition. Acquisition-related costs, other than costs to issue debt or equity securities, of the Company, including investment banking fees, legal fees, accounting fees, valuation fees, and other professional or consulting fees are capitalized as part of the asset acquisition.

Cash and cash equivalents

(e) Cash and cash equivalents

The Company considers all highly liquid investments with original maturities of three months or less at the date of acquisition to be cash equivalents. These highly liquid investments only comprise short-term Canadian and United States government treasury bills and other evidences of indebtedness and treasury bills of the Canadian provinces with a minimum credit rating of R‑1 mid from the Dominion Bond Rating Service or an equivalent rating from Standard & Poor’s and Moody’s. In addition, the Company invests in bankers’ acceptances and other evidences of indebtedness of certain financial institutions, including Canadian banks.

Inventories

(f) Inventories

Finished goods, work-in-process, ore and stockpiled ore are valued at the lower of weighted average production cost or net realizable value. Production costs include the cost of raw materials, direct labour, mine-site overhead expenses and depreciation and depletion of mining interests. Net realizable value is calculated as the estimated price at the time of sale based on prevailing and long-term metal prices less estimated future production costs to convert the inventories into saleable form. At operations where ore extracted contains significant amount of metals other than gold, primarily copper or silver, cost is allocated between the joint products on a pro rata basis.

Stockpiles represent ore that has been extracted from the mine and is available for further processing.Costs are added to stockpiles based on current mining costs, including applicable overhead and depreciation and depletion relating to mining operations and removed at each stockpile’s average cost per recoverable unit as material is processed.

Work-in-process inventory represents materials that are currently in the process of being converted into finished goods. The average production cost of finished goods represents the average cost of work-in-process inventories incurred prior to the refining process, plus applicable refining, selling, shipping costs and associated royalties.

Supplies are measured at weighted average cost. In the event that the net realizable value of the finished product, the production of which the supplies are held for use in, is lower than the expected cost of the finished product, the supplies are written down to net realizable value.

Mining interests

(g) Mining interests

Mining interests include mining properties and related plant and equipment. Capitalized costs are depreciated and depleted using either a unit-of-production method over the estimated economic life of the mine to which they relate, or for plant and equipment, using the straight-line method over their estimated useful lives, if shorter than the mine life.

Mining properties

The costs associated with mining properties include acquired interests in production, development and exploration stage properties representing the fair value at the time they were acquired.

Mining properties include costs directly attributable to bringing a mineral asset into the state where it is capable of operating in the manner intended by management. The determination of development costs to be capitalized during the production stage of a mine operation requires the use of judgments and estimates.

The Company estimates its mineral reserves and mineral resources based on information compiled by appropriately qualified persons. The estimation of recoverable reserves will be impacted by forecasted commodity prices, exchange rates, production costs and recoveries amongst other factors. Changes in the reserve or resource estimates may impact the carrying value of assets and depreciation and impairment charges recorded in the consolidated income statement.

A mining property is considered to be capable of operating in a manner intended by management when it commences commercial production. The critical judgments included in the determination of the commencement of commercial production are described in Note 3(a)(i). Upon commencement of commercial production, a mining property is depleted on a unit-of-production method. Unit-of-production depletion rates are determined based on the estimated recoverable proven and probable mineral reserves at the mine.

Costs related to property acquisitions are capitalized until the viability of the mineral property is determined. When either external or internal triggering events determine that a property is not economically recoverable, the capitalized costs are written off.

The costs associated with the acquisition of land holdings are included within mining interest and are not depleted.

Exploration and evaluation

Exploration and evaluation costs are expensed until the probability that future economic benefits will flow to the entity and the asset cost or value can be measured reliably. Management uses the following criteria to determine the economic recoverability and probability of future economic benefits:

· The Company controls access to the benefit;

· Internal project economics are beneficial to the Company;

· The project is technically feasible; and

· Costs can be reliably measured.

Further development expenditures are capitalized to the property.

Drilling and related costs incurred on sites without an existing mine and on areas outside the boundary of a known mineral deposit which contains proven and probable reserves are exploration expenditures and are expensed as incurred to the date of establishing that property costs are economically recoverable. Further development expenditures, subsequent to the establishment of economic recoverability, are capitalized to the property.

Property, plant and equipment

Property, plant and equipment consists of buildings and fixtures, processing equipment and surface and underground fixed and mobile equipment.

Depreciation and depletion rates of major categories of asset costs

Mining properties are depleted using a unit-of-production method over the estimated economic life of the mine to which they relate. Management reviews the estimated total recoverable ounces contained in depletable reserves at each financial year end, and when events and circumstances indicate that such a review should be made. Plant and equipment is depreciated using the straight-line method over their estimated useful lives, or the remaining life of the mine, if shorter. Right-of-use assets are depreciated using the straight-line method over the remaining lease term, or the remaining life of the mine, if shorter.

Asset class	Estimated useful life (years)
Plant and machinery	3 – 13
Mobile equipment	5 – 7

Capitalized borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized until such time as the assets are substantially ready for their intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

Where funds are borrowed specifically to finance a project, the amount capitalized represents the actual borrowing costs incurred. Where the funds used to finance a project form part of general borrowings, the amount capitalized is calculated using a weighted average of interest rates applicable to relevant general borrowings of the Company during the period, to a maximum of actual borrowing costs incurred. Capitalization of interest is suspended during extended periods in which active development is interrupted.

Stripping costs in surface mining

As part of its operations, the Company incurs stripping costs both during the development phase and production phase of its operations. Stripping costs incurred as part of development stage mining activities incurred by the Company are deferred and capitalized as part of mining properties.

Stripping costs incurred during the production stage are incurred in order to produce inventory or to improve access to ore which will be mined in the future. Where the costs are incurred to produce inventory, the production stripping costs are accounted for as a cost of producing those inventories. Where the costs are incurred to improve access to ore which will be mined in the future, the costs are deferred and capitalized to the statement of financial position as a stripping activity asset (included in mining interest) if the following criteria are met: improved access to the ore body is probable; the component of the ore body can be accurately identified; and the costs relating to the stripping activity associated with the component can be reliably measured. If these criteria are not met, the costs are expensed in the period in which they are incurred.

The stripping activity asset is subsequently depleted using the units-of-production depletion method over the life of the identified component of the ore body to which access has been improved as a result of the stripping activity.

Derecognition

Upon sale or abandonment, the cost of the asset and related accumulated depreciation or depletion are removed from the accounts and any gains or losses thereon are recognized in net earnings.

Impairment of long-lived assets

(h) Impairment of long-lived assets

The Company reviews and evaluates its mining interests for indicators of impairment at the end of each reporting period. Impairment assessments are conducted at the level of cash-generating units (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Each operating mine and development project represents a separate CGU as each mine site or development project has the ability or the potential to generate cash inflows that are separately identifiable and independent of each other. If an indication of impairment exists, the recoverable amount of the CGU is estimated. An impairment loss is recognized when the carrying amount of the CGU is in excess of its recoverable amount.

The recoverable amount of a mine site is the greater of its fair value less costs to dispose and value in use. In determining the recoverable amounts of the Company’s mine sites, the Company uses the fair value less costs to dispose as this will generally be greater than or equal to the value in use. When there is no binding sales agreement, fair value less costs to dispose is estimated as the discounted future after-tax cash flows expected to be derived from a mine site, less an amount for costs to dispose estimated based on similar past transactions. The inputs used in the fair value measurement constitute Level 3 inputs under the fair value hierarchy. When discounting estimated future cash flows, the Company uses an after-tax discount rate that would approximate what market participants would assign. Estimated cash flows are based on expected future production, metal selling prices, operating costs and capital costs. If the recoverable amount of a mine site is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount. The carrying amount of each mine site includes the carrying amounts of mining properties, plant and equipment, and certain deferred tax balances. Impairment losses are recognized as expenses in the period they are incurred. The allocation of an impairment loss, if any, for a particular mine site to its assets is based on the relative book values of these assets at the date of impairment, to the extent that the impairment allocation does not reduce the carrying values of these asset classes below their recoverable amounts.

The Company assesses at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for a long-lived asset may no longer exist or may have decreased. If any such indication exists, the Company estimates the recoverable amount of that CGU. A reversal of an impairment loss is recognized up to the lesser of the recoverable amount or the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the CGU in prior years. Reversals of impairment losses are recognized in net earnings in the period the reversals occur.

Reclamation and closure cost obligations

(i) Reclamation and closure cost obligations

The Company’s mining and exploration activities are subject to various governmental laws and regulations relating to the protection of the environment. The Company has made, and intends to make in the future, expenditures to comply with such laws and regulations. The Company has recorded a liability and corresponding asset for the estimated future cost of reclamation and closure, including site rehabilitation and long-term treatment and monitoring costs These costs represent management’s best estimates which incorporate assumptions on the effects of inflation, movements in foreign exchange rates and the effects of country and other specific risks associated with the related liabilities. The costs are discounted to net present value using the risk free rate applicable to the future cash outflows. Such estimates are, however, subject to changes in laws and regulations or changes to market inputs to the decommissioning model.

The present value of estimated costs is recorded in the period in which the asset is installed or the environment is disturbed and a reasonable estimate of future costs and discount rates can be made. The provision is discounted using a risk-free rate and estimates of future cash flows are adjusted to reflect risk.

After the initial measurement, the obligation is adjusted to reflect the passage of time and changes in the estimated future cash flows underlying the obligation. The increase in the provision due to the passage of time is recognized in finance costs, whereas increases and decreases due to changes in the estimated future cash flows are capitalized and depreciated over the life of the related asset unless the amount deducted from the cost exceeds the carrying value of the asset, in which case the excess is recorded in net earnings. Actual costs incurred upon settlement of the site restoration obligation are charged against the provision to the extent the provision was established for those costs. Upon settlement of the liability, a gain or loss may be recorded in net earnings.

Income taxes

(j) Income taxes

The income tax expense or benefit for the period consists of two components: current and deferred.

Current Tax

The tax currently payable is based on taxable earnings for the year. Taxable earnings differ from earnings before taxes due to items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the statement of financial position date in each of the jurisdictions and includes any adjustments for taxes payable or recovery in respect of prior periods.

Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated statement of financial position and the corresponding tax base used in the computation of taxable net earnings. Deferred tax is calculated based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates that are expected to apply in the year of realization or settlement based on tax rates and laws enacted or substantively enacted at the statement of financial position date.

Deferred tax liabilities are generally recorded for all taxable temporary differences. Deferred tax liabilities are recognized for taxable temporary differences arising on investments in Subsidiaries except where the reversal of the temporary difference can be controlled and it is probable that the difference will not reverse in the foreseeable future.

Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable earnings will be available against which those deductible temporary differences can be utilized. The carrying amount of the deferred tax assets are reviewed at each statement of financial position date and are reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The Company records foreign exchange gains and losses representing the impacts of movements in foreign exchange rates on the tax base of non-monetary assets and liabilities which are denominated in foreign currencies. Foreign exchange gains and losses relating to deferred income taxes are included within other (losses) gains in the consolidated income statement.

Current and deferred tax for the year

Current and deferred tax are recognized in net earnings except when they arise as a result of items recognized in other comprehensive income or directly in equity in the current or prior periods, in which case the related current and deferred income taxes are also recognized in other comprehensive income or directly in equity, respectively.

Government assistance and tax credits

Any federal or provincial tax credits received by the Company, with respect to exploration or development work conducted on any of its properties, are credited as a reduction to the carrying costs of the property to which the credits relate. The Company records these tax credits when there is reasonable assurance with regard to collections and assessments as well as reasonable assurance that the Company will comply with the conditions associated to them.

Foreign currency translation

(k) Foreign currency translation

The individual financial statements of each Subsidiary are presented in the currency of the primary economic environment in which that entity operates (its functional currency). The functional currency of the Company and the presentation currency of the consolidated financial statements is the United States dollar (“U.S. dollar”).

Management determines the functional currency by examining the primary economic environment of each operating mine, development and exploration project. The Company considers the following factors in determining its functional currency:

· The main influences of sales prices for goods and the country whose competitive forces and regulations mainly determine the sales price;

· The currency that mainly influences labour, material and other costs of providing goods;

· The currency in which funds from financing activities are generated; and

· The currency in which receipts from operating activities are usually retained.

When preparing the consolidated financial statements of the Company, the Company translates non-U.S. dollar balances into U.S. dollars as follows:

· Mining interest and equity method investments using historical exchange rates;

· Financial instruments measured at fair value through profit or loss using the closing exchange rate as at the statement of financial position date with translation gains and losses recorded in net earnings;

· Deferred tax assets and liabilities using the closing exchange rate as at the statement of financial position date with translation gains and losses recorded in net earnings;

· Other assets and liabilities using the closing exchange rate as at the statement of financial position date with translation gains and losses recorded in net earnings; and

Income and expenses using the average exchange rate for the period, except for expenses that relate to non-monetary assets and liabilities measured at historical rates, which are translated using the same historical rate as the associated non-monetary assets and liabilities.

Earnings (loss) per share

(l) Earnings (loss) per share

Earnings (loss) per share calculations are based on the weighted average number of common shares and common share equivalents issued and outstanding during the year. Diluted earnings per share are calculated using the treasury stock method. This requires the calculation of diluted earnings per share by assuming that outstanding stock options with an average market price that exceeds the average exercise price of the options and warrants for the year, are exercised and the assumed proceeds are used to repurchase shares of the Company at the average market price of the common share for the year.

Revenue recognition

(m) Revenue recognition

Revenue from the sale of metals and metals in concentrate is recognized when the Company satisfies the performance obligations associated with the sale. Typically, this is accomplished when control over the metals and metals in concentrate are passed from the Company to the buyer. Factors that may indicate the point in time at which control passes include:

· The Company has transferred to the buyer the significant risks and rewards of ownership to the purchaser;

· The Company has transferred legal title to the asset sold to the purchaser;

· The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

· The Company has transferred physical possession of the asset to the purchaser;

· The Company has present right to payment; and

· The purchaser has accepted the asset.

Revenue from the sale of metals in concentrate may be subject to adjustment upon final settlement of estimated metal prices, weights and assays. Revenue is recognized based on the estimated fair value of the total consideration receivable. Adjustments to revenue for metal prices and other adjustments are recorded at each period end and on final settlement. Refining and treatment charges are netted against revenue for sales of metal concentrate.

Financial assets

(n) Financial assets

Financial assets are initially measured at fair value and are subsequently measured at either amortized cost or fair value through profit or loss, depending on the classification of the financial assets. The classification of assets is driven by the Company’s business model for managing financial assets and their contractual cash flow characteristics.

The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the statement of financial position. The quoted market price used for financial assets held by the Company is the last bid price of the day.

The Company has categorized its financial assets in accordance with International Financial Reporting Standard 9, Financial Instruments (“IFRS 9”) into one of the following two categories:

Category under IFRS 9	Description
Fair value through profit or loss	Includes equity investments, gold and copper price option contract assets, gold and copper swap contracts, copper forward contracts, and other financial assets designated to this category under the fair value option. The Company has assessed the contractual cash flows of its provisionally priced contracts in accordance with IFRS 9 and has classified these contracts as fair value through profit or loss (“FVTPL”).
Financial assets at amortized cost	Includes cash and cash equivalents, and trade receivables at amortized cost.

Financial liabilities

(o) Financial liabilities

Financial liabilities are accounted for at amortized cost except for those at FVTPL which includes liabilities designated as FVTPL and derivatives. Financial liabilities classified as FVTPL or those which are designated as FVTPL under the fair value option are measured at fair value with unrealized gains and losses recognized in net earnings. In cases where financial liabilities are designated as FVTPL, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the Income statement. Financial liabilities at amortized cost are initially measured at fair value net of transaction costs, and subsequently measured at amortized cost.

The Company has classified its financial liabilities in accordance with IFRS 9 into one of the following two categories:

Category under IFRS 9	Description
Fair value through profit or loss	Includes provisions related to the RSU plans, DSU plans and the cash settled portion of the PSU plans, gold and copper price option contract liabilities and gold stream obligation.
Financial liabilities at amortized cost	Includes trade and other payables and long-term debt.

Derivative instruments

(p) Derivative instruments

Derivative instruments, including embedded derivatives, are recorded at fair value on initial recognition and at each subsequent reporting period. Any gains or losses arising from changes in fair value on derivatives that do not qualify for hedge accounting are recorded in net earnings.

Gold Stream Obligation

The Company has a gold stream agreement with RGLD Gold AG, a wholly owned subsidiary of Royal Gold Inc. (“Royal Gold”). For accounting purposes, the Company has determined that the gold stream obligation represents a financing contract with embedded derivatives. The value of the embedded derivatives changes in response to changes in metal prices and in the number of ounces expected to be delivered. As the gold stream obligation has embedded derivatives that would otherwise need to be accounted for separately at FVTPL, the Company has designated the deposit received from Royal Gold as a financial liability at FVTPL, with initial and subsequent measurement at fair value, as permitted under IFRS 9. Transaction costs directly attributable to the gold stream obligation were expensed through profit or loss.

Fair value of the gold stream obligation on initial recognition was determined by the amount of the cash advance received. Subsequent fair value is calculated on each reporting date with gains and losses recorded in net earnings. Fair value adjustments as a result of the Company’s own credit risk are recorded in the consolidated statement of comprehensive loss, as required by IFRS 9 for financial liabilities designated as at FVTPL. Components of the adjustment to fair value at each reporting date include:

· Accretion expense due to passage of time

· Change in the risk-free interest rate

· Change in the Company specific credit spread

· Change in any expected ounces to be delivered

· Change in future metal prices

Provisional pricing

Certain products are “provisionally priced” whereby the selling price is subject to final adjustment up to 150 days after delivery to the customer. The final price is based on the market price at the relevant quotation point stipulated in the contract. As is customary in the industry, revenue on provisionally priced sales is recognized based on estimates of the fair value of the consideration receivable based on relevant forward market prices. At each reporting date, provisionally priced metal is marked to market based on the forward selling price for the quotational period stipulated in the contract. For this purpose, the selling price can be measured reliably for those products, such as gold and copper, for which there exists active and freely traded commodity markets. The marking to market of provisionally priced sales contracts is recorded as an adjustment to revenue.

Gold and copper price option contracts

In order to increase cash flow certainty, the Company holds gold and copper price option contracts, purchasing put options and selling call options. These are treated as derivative financial instruments and marked to market at each reporting period on the consolidated statement of financial position with changes in fair value recognized in other gains and losses. Realized gains and losses as a result of the exercise of the Company’s call and put options up to an amount not exceeding the Company’s production of gold ounces or copper pounds for the reporting period are recorded as an adjustment to revenue. The exercise of options on gold ounces or copper pounds in excess of the Company’s production for the reporting period are recorded as other gains and losses.

Gold and copper swaps

In order to mitigate a portion of the metal price exposure associated with the time lag between the provisional and final determination of concentrate sales, the Company has entered into cash settled derivative gold and copper contracts to swap future contracted monthly average metal prices for fixed metal prices. At each reporting date, these gold and copper swap agreements are marked to market based on corresponding forward gold and copper prices. The marking to market of gold and copper swap agreements is recorded as an adjustment to revenue.

Trade and other receivables

(q) Trade and other receivables

Trade and other receivables are carried at amortized cost less impairment. Trade and other receivables are impaired if they are determined to be uncollectible.

Leases

(r) Leases

As noted below, the Company has adopted IFRS 16, Leases ("IFRS 16") on January 1, 2019. As the Company adopted the IFRS 16, Leases using the modified retrospective approach, the leases in the prior-year comparative period are accounted for under IAS 17. Under IAS 17 leases were classified as finance leases when the terms of the lease transfered substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. All other leases were classified as operating leases.

Applying IFRS 16, the Company recognizes right-of-use assets and lease liabilities in the consolidated statement of financial position initially measured as the present value of future lease payment and recognizes depreciation of right-of-use assets and interest on lease liabilities in the consolidated income statement. Lease payments are recognized within the consolidated statement of cash flows within financing activities.

For short-term leases (lease terms of 12 months or less) and leases of low-value or immaterial assets, the Company has opted to recognize these lease payments as expenses on the consolidated income statement, as permitted by IFRS 16. This expense is presented within operating expenses.

New and amended IFRS Standards that are effective for the current year

(s) New and amended IFRS Standards that are effective for the current year

The Company has adopted the following new IFRS policy along with any amendments, effective January 1, 2019. These changes were made in accordance with the applicable transitional provisions.

IFRS 16 - Leases

On January 6, 2016, the IASB issued IFRS 16. This standard specifies the methodology to recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases. The effective date is for reporting periods beginning on or after January 1, 2019 with early adoption permitted.

The Company adopted IFRS 16 on January 1, 2019 using the modified retrospective approach. Under this approach, the cumulative effect of initially applying IFRS 16 is recognized as an adjustment to equity at the date of initial application. Comparative figures are not restated to reflect the adoption of IFRS 16. Additionally, the Company has adopted the exemption for leases with a lease term of 12 months or less and for leases that are low value. Given that the Company's existing operating leases are not material, no adjustment to equity has been recognized upon IFRS 16 adoption on January 1, 2019.

XML

SEGMENTED INFORMATION (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
		Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
OPERATING SEGMENT RESULTS
Gold revenues			$ 434.4	$ 368.2
Copper revenues			187.3	226.1
Silver revenues			8.9	10.2
Total revenues			630.6	604.5
Operating expenses			371.9	325.4
Depreciation and depletion			240.6	239.9
Revenue less cost of goods sold			18.1	39.2
Corporate administration			17.6	23.2
Corporate restructuring	[1]		1.1	4.1
Share-based payment expenses			1.7	0.7
Asset Impairment		$ 671.1	0.0	1,054.8
Exploration and business development			5.6	3.0
(Loss) income from operations			(7.9)	(1,046.6)
Rainy River
OPERATING SEGMENT RESULTS
Gold revenues			354.2	270.6
Copper revenues			0.0	0.0
Silver revenues			4.7	3.8
Total revenues			358.9	274.4
Operating expenses			258.4	179.9
Depreciation and depletion			93.9	78.3
Revenue less cost of goods sold			6.6	16.2
Corporate administration			0.0	0.0
Corporate restructuring			0.0	0.0
Share-based payment expenses			0.0	0.0
Asset Impairment				836.6
Exploration and business development			1.4	0.5
(Loss) income from operations			5.2	(820.9)
New Afton
OPERATING SEGMENT RESULTS
Gold revenues			80.2	83.8
Copper revenues			187.3	226.1
Silver revenues			4.2	4.2
Total revenues			271.7	314.1
Operating expenses			113.5	104.3
Depreciation and depletion			146.7	158.2
Revenue less cost of goods sold			11.5	51.6
Corporate administration			0.0	0.0
Corporate restructuring			0.0	0.0
Share-based payment expenses			0.0	0.0
Asset Impairment				0.0
Exploration and business development			3.1	0.5
(Loss) income from operations			8.4	51.1
Corporate
OPERATING SEGMENT RESULTS
Gold revenues			0.0	0.0
Copper revenues			0.0	0.0
Silver revenues			0.0	0.0
Total revenues			0.0	0.0
Operating expenses			0.0	0.0
Depreciation and depletion			0.0	0.0
Revenue less cost of goods sold			0.0	0.0
Corporate administration			17.6	23.2
Corporate restructuring			1.1	4.1
Share-based payment expenses			1.7	0.7
Asset Impairment				0.0
Exploration and business development			1.1	1.9
(Loss) income from operations			(21.5)	(29.9)
Other segment [Member]
OPERATING SEGMENT RESULTS
Gold revenues			0.0	13.8
Copper revenues			0.0	0.0
Silver revenues			0.0	2.2
Total revenues			0.0	16.0
Operating expenses			0.0	41.2
Depreciation and depletion			0.0	3.4
Revenue less cost of goods sold			0.0	(28.6)
Corporate administration			0.0	0.0
Corporate restructuring			0.0	0.0
Share-based payment expenses			0.0	0.0
Asset Impairment				218.2
Exploration and business development			0.0	0.1
(Loss) income from operations			$ 0.0	$ (246.9)

[1] During 2019 and 2018, the Company recognized restructuring charges of $1.1 million and $4.1million respectively related to severance and other termination benefits.

XML

INCOME AND MINING TAXES - Additional information (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
INCOME AND MINING TAXES
Unused tax losses for which no deferred tax asset recognised	$ 728.2	$ 783.9
Other temporary differences [member]
INCOME AND MINING TAXES
Unused tax losses for which no deferred tax asset recognised	40.3
Mining Tax [Member]
INCOME AND MINING TAXES
Unused tax losses for which no deferred tax asset recognised	534.1	$ 634.6
Canada [Member]
INCOME AND MINING TAXES
Unused Capital Losses For Which No Deferred Tax Assets Recognized	139.9
Canada [Member] | Unused Capital Losses [Member]
INCOME AND MINING TAXES
Unused Capital Losses For Which No Deferred Tax Assets Recognized	$ 139.9

XML

TRADE AND OTHER PAYABLES (Tables)

12 Months Ended

Dec. 31, 2019

TRADE AND OTHER PAYABLES

Schedule of trade and other payables

	As at	As at
	December 31	December 31
(in millions of U.S. dollars)	2019	2018
TRADE AND OTHER PAYABLES
Trade payables	39.7	47.1
Interest payable	6.1	6.9
Accruals	65.5	47.3
Current portion of reclamation and closure cost obligations (Note 18)	12.3	6.5
Current portion of gold stream obligation (Note 12)	21.6	18.3
Current portion of derivative liabilities (Note 14)	26.4	4.8
Total trade and other payables	171.6	130.9

XML

LEASES

12 Months Ended

Dec. 31, 2019

LEASES

LEASES

13. LEASES

The Company adopted IFRS 16 on January 1, 2019 using the modified retrospective approach. Under this approach, the cumulative effect of initially applying IFRS 16 is recognized as an adjustment to equity at the date of initial application. Comparative figures are not restated to reflect the adoption of IFRS 16. Additionally, the Company adopted the exemption for leases with a lease term of 12 months or less and for leases that are low value. As the Company's operating leases were not material, no adjustment to equity was recognized upon IFRS 16 adoption on January 1, 2019.

(a) Right-of-use assets

The Company leases assets such as buildings, mobile equipment and machinery. These assets are included in Mining Interests on the statement of financial position and are classified as plant & equipment as per note 9 of the Company's consolidated financial statements.

	As at December 31, 2019
(in millions of U.S. dollars)
RIGHT-OF-USE ASSETS
Balance, January 1, 2019	20.8
Additions	28.5
Depreciation	(6.1)
Disposals	—
Balance, December 31, 2019	43.2

(b) Lease liabilities

Please see below for a maturity analysis of the Company’s lease payments:

	As at December 31, 2019
(in millions of U.S. dollars)
MATURITY ANALYSIS FOR LEASES
Less than 1 year	9.8
Between 1 and 3 years	17.0
Between 3 and 5 years	8.6
More than 5 years	—
Total undiscounted lease payments(1)	35.4
Carrying value of lease liabilities	32.6
Less: current portion of lease liabilities(2)	(8.7)
Non-current portion of lease liabilities	23.9

1.Total undiscounted lease payments excludes leases that are classified as short term and leases for low value assets, which are not recognized as lease liabilities.

2.The current portion of the lease liabiltiies is included in trade and other payables on the statement of financial position.

For the year ended December 31, 2019, the Company recognized $1.5 million in interest expense on lease liabilities. For the year ended December 31, 2019, the Company expensed $9.9 million related to leases that are classified as short term and $1.7 million of leases for low value assets.

XML

MINING INTERESTS

12 Months Ended

Dec. 31, 2019

MINING INTERESTS

MINING INTERESTS

9. MINING INTERESTS

	Mining Properties
		Non-	Plant &	Construction
	Depletable	depletable	equipment	in progress	Total
(in millions of U.S. dollars)
COST
As at December 31, 2017	2,353.0	562.0	1,379.3	57.0	4,351.3
Additions	70.8	23.8	48.3	72.0	214.9
Disposals	(0.4)	—	(4.8)	—	(5.2)
Sale of Mesquite(1)	(323.5)	—	(232.0)	(1.8)	(557.3)
Transfers	(0.6)	—	0.6	—	—
Asset impairment	(836.6)	(218.2)	—	—	(1,054.8)
As at December 31, 2018	1,262.7	367.6	1,191.4	127.2	2,948.9
Additions	87.3	43.5	75.5	103.5	309.8
Disposals	(0.2)	(0.1)	(6.7)	—	(7.0)
Transfers	101.3	—	—	(101.3)	—
Government Grants(2)	—	(2.0)	—	—	(2.0)
As at December 31, 2019	1,451.1	409.0	1,260.2	129.4	3,249.7
ACCUMULATED DEPRECIATION
As at December 31, 2017	737.3	—	413.6	—	1,150.9
Depreciation for the year	169.1	—	130.7	—	299.8
Disposals	(0.1)	—	(3.6)	—	(3.7)
Sale of Mesquite(1)	(189.3)	—	(162.2)	—	(351.5)
As at December 31, 2018	717.0	—	378.5	—	1,095.5
Depreciation for the year	114.4	—	114.9	—	229.3
Disposals	—	—	(3.1)	—	(3.1)
As at December 31, 2019	831.4	—	490.3	—	1,321.7
CARRYING AMOUNT
As at December 31, 2018	545.7	367.6	812.9	127.2	1,853.4
As at December 31, 2019	619.7	409.0	769.9	129.4	1,928.0

1. Refer to Note 16 for further information on discontinued operations. Mesquite was classified as an asset held-for-sale in the third quarter of 2018 and was sold in October 2018.

2. The province of British Columbia provides an incentive for exploration in British Columbia as a refundable tax credit. This refundable tax credit is treated as government assistance and reduces Mining Interests. For the year ended December 31, 2019, the Company received $2.0 million in refundable tax credits which was recorded as a reduction to Mining Interests.

Carrying amount by property as at December 31, 2019

	As at December 31, 2019
		Non-	Plant &	Construction
(in millions of U.S. dollars)	Depletable	depletable	equipment	in progress	Total
MINING INTEREST BY SITE
New Afton	371.4	50.0	149.2	17.8	588.4
Rainy River	248.3	17.8	602.1	111.6	979.8
Blackwater	—	340.1	14.5	—	354.6
Other(1)	—	1.1	4.1	—	5.2
Carrying amount	619.7	409.0	769.9	129.4	1,928.0

1. Other includes corporate balances and exploration properties.

Carrying amount by property as at December 31, 2018:

	As at December 31, 2018
		Non-	Plant &	Construction
(in millions of U.S. dollars)	Depletable	depletable	equipment	in progress	Total
MINING INTEREST BY SITE
New Afton	421.9	26.1	191.6	16.4	656.0
Cerro San Pedro(2)	—	—	—	—	—
Rainy River	123.8	14.3	605.0	110.8	853.9
Blackwater	—	326.1	14.2	—	340.3
Other(1)	—	1.1	2.1	—	3.2
Carrying amount	545.7	367.6	812.9	127.2	1,853.4

1. Other includes corporate balances and exploration properties.

2. Cerro San Pedro transitioned to the reclamation phase of its mine life cycle on December 31, 2018. As a result, Cerro San Pedro's mining interest are fully amortized as at December 31, 2018.

XML

REVISIONS TO PRIOR PERIOD COMPARATIVES

12 Months Ended

Dec. 31, 2019

REVISIONS TO PRIOR PERIOD COMPARATIVES

REVISIONS TO PRIOR PERIOD COMPARATIVES

4. REVISIONS TO PRIOR PERIOD COMPARATIVES

In the first quarter of 2019 the Company identified an immaterial error relating to its deferred tax liabilities. The result of this error is an increase to income tax expense and deferred tax liabilities of $14.8 million for the year ended December 31, 2018. The resulting understatement of the deferred tax liabilities, the income tax expense and the deficit balance of $14.8 million for the year ended December 31, 2018 have been revised in the comparative consolidated statement of financial position, consolidated income statements and the consolidated statement of cash flow.

XML

LEASES - Additional information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
LEASES
Interest expense on lease liabilities	$ 1.5
Expenses related to leases that are classified as short term	9.9
Expenses related to leases for low value assets	$ 1.7

XML

LONG-TERM DEBT (Parenthetical) (Details)	12 Months Ended
	Dec. 31, 2019
Senior unsecured notes - due November 15, 2022
Long Term Debt
Borrowings, maturity	November 15, 2022
Senior unsecured notes - due May 15, 2025
Long Term Debt
Borrowings, maturity	May 15, 2025

XML

LONG-TERM DEBT - Financial Covenants (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Long Term Debt
Liabilities Arising From Financing Activities	$ 967.6
Borrowings	30.0
Repayments	(169.6)
Fair Value changes	5.5
Interest & Accretion	51.2
Foreign Exchange	0.0
Liabilities Arising From Financing Activities	884.7
Long-term borrowings [member]
Long Term Debt
Liabilities Arising From Financing Activities	780.5
Borrowings	30.0
Repayments	(99.7)
Fair Value changes	1.2
Interest & Accretion	2.5
Foreign Exchange	0.0
Liabilities Arising From Financing Activities	714.5
Interest Payable [Member]
Long Term Debt
Liabilities Arising From Financing Activities	6.9
Borrowings	0.0
Repayments	(49.9)
Fair Value changes	0.0
Interest & Accretion	48.7
Foreign Exchange	0.0
Liabilities Arising From Financing Activities	5.7
Gold stream obligation [Member]
Long Term Debt
Liabilities Arising From Financing Activities	180.2
Borrowings	0.0
Repayments	(20.0)
Fair Value changes	4.3
Interest & Accretion	0.0
Foreign Exchange	0.0
Liabilities Arising From Financing Activities	$ 164.5

XML

DERIVATIVE INSTRUMENTS - Impact of movements in market commodity prices (Details) lb in Millions	Dec. 31, 2019 lb oz	Dec. 31, 2018 lb oz
Volumes subject to final pricing net of outstanding swaps
Gold ounces | oz	900.0	800.0
Copper pounds | lb	0.5	1.6

XML

SHARE CAPITAL - Share-based payment expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share capital
Share-based payment expenses	$ 2.7	$ 0.7
Stock Options [Member]
Share capital
Share-based payment expenses	0.5	1.4
Performance Share Units [Member]
Share capital
Share-based payment expenses	0.3	0.1
Restricted Share Unit [Member]
Share capital
Share-based payment expenses	1.1	(0.3)
Deferred share units [Member]
Share capital
Share-based payment expenses	0.8	(0.8)
Common Shares Under First Nations Agreement [Member]
Share capital
Share-based payment expenses	$ 0.0	$ 0.3

XML

LEASES - Right-of-use assets (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
LEASES
Balance, January 1, 2019	$ 20.8
Additions	28.5
Depreciation	(6.1)
Disposals	0.0
Balance, December 31, 2019	$ 43.2

XML

EXPENSES - Operating expenses by nature (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
EXPENSES
Raw materials and consumables	$ 126.6	$ 148.1
Salaries and employee benefits	112.5	102.1
Contractors	81.1	60.6
Repairs and maintenance	37.2	47.7
General and administrative	24.4	20.3
Leases	6.9	4.2
Royalties	6.2	3.5
Drilling and analytical	3.8	2.4
Other	6.1	5.2
Total production expenses	404.8	394.1
Less: Production expenses capitalized	(71.6)	(45.3)
Add (less): Change in inventories	38.7	(23.4)
Total operating expenses	$ 371.9	$ 325.4

XML

COMPENSATION OF KEY MANAGEMENT PERSONNEL (Tables)

12 Months Ended

Dec. 31, 2019

COMPENSATION OF KEY MANAGEMENT PERSONNEL

Schedule of remuneration of the Company's key management personnel

The remuneration of the Company’s key management personnel(1) was as follows:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
KEY MANAGEMENT PERSONNEL REMUNERATION
Short-term benefits(2)	1.9	1.5
Share-based payments	0.2	—
Termination benefits	1.1	4.1
Total key management personnel remuneration	3.2	5.6

1. Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the Company.

Short-term benefits include salaries, bonuses payable within twelve months of the statement of financial position date and other annual employee benefits.

XML

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

12 Months Ended

Dec. 31, 2019

SUPPLEMENTAL CASH FLOW INFORMATION

Schedule of supplemental cash flow information

Supplemental cash flow information (included within operating activities) is as follows:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
CHANGE IN NON-CASH OPERATING WORKING CAPITAL
Trade and other receivables	4.4	(5.4)
Inventories	16.2	(53.1)
Prepaid expenses and other	(2.3)	(0.6)
Trade and other payables	7.6	(12.5)
Total change in non-cash operating working capital	25.9	(71.6)

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
OTHER NON-CASH ADJUSTMENTS
Unrealized loss on concentrate contracts	(0.2)	0.7
Equity settled share-based payment expense	0.7	2.7
Loss on disposal of assets	1.2	0.3
Settlement and loss on revaluation of gold price option contracts	21.7	4.8
Unrealized gain on gold stream obligation	(20.1)	(11.7)
Settlement (gain) loss on revaluation of copper price option contracts	0.7	(4.8)
Revaluation of CSP’s reclamation and closure cost obligation	(0.6)	1.0
Inventory write-downs	14.1	15.8
Other non-cash adjustments	—	0.2
Total other non-cash adjustments	17.5	9.0

XML

LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2019

LONG-TERM DEBT

Schedule of borrowings

Long-term debt consists of the following:

		As at
		December 31
(in millions of U.S. dollars)	2019	2018
LONG-TERM DEBT
Senior unsecured notes - due November 15, 2022 (a)	397.4	495.3
Senior unsecured notes - due May 15, 2025 (b)	287.1	285.2
Credit Facility (c)	30.0	—
Total long-term debt	714.5	780.5

Schedule of applicable redemption prices on unsecured notes

· During the 12‑month period beginning on November 15 of the years indicated at the redemption prices below, expressed as a percentage of the principal amount of the 2022 Unsecured Notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date:

Date	Redemption prices (%)
2019	101.04	%
2020 and thereafter	100.00	%

Schedule of applicable redemption prices on 2025 Unsecured Notes

· During the 12‑month period beginning on May 15 of the years indicated at the redemption prices below, expressed as a percentage of the principal amount of the 2025 Unsecured Notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date:

Date	Redemption prices (%)
2020	104.78	%
2021	103.19	%
2022	101.59	%
2023 and thereafter	100.00	%

Schedule of significant covenants

Significant financial covenants are as follows:

		Twelve months ended	Twelve months ended
		December 31	December 31
	Financial Covenant	2019	2018
FINANCIAL COVENANTS
Minimum interest coverage ratio (Adjusted EBITDA to interest)	>3.0 : 1	4.3 : 1	4.5 : 1
Maximum leverage ratio (net debt to Adjusted EBITDA)	<4.5 : 1	3.1 : 1	2.6 : 1
Maximum secured leverage ratio (secured debt to Adjusted EBITDA)	<2.0 : 1	0.7 : 1	0.4 : 1

Schedule of reconciliation of liabilities arising from financing activities explanatory

The following is a summary of the changes in liabilities arising from financing activities for the year ended December 31, 2019:

	As at						As at
	December			Fair Value	Interest &	Foreign	December
	31, 2018	Borrowings	Repayments	changes	Accretion	Exchange	31, 2019
LIABILITIES ARISING FROM FINANCING ACTVITIES
Long-term debt	780.5	30.0	(99.7)	1.2	2.5	—	714.5
Interest payable	6.9	—	(49.9)	—	48.7	—	5.7
Gold stream obligation	180.2	—	(20.0)	4.3	—	—	164.5
Total	967.6	30.0	(169.6)	5.5	51.2	—	884.7

XML

SHARE CAPITAL (Tables)

12 Months Ended

Dec. 31, 2019

SHARE CAPITAL

Schedule of common shares issued and outstanding

(a) No par value common shares issued

	Number of shares
(in millions of U.S. dollars, except where noted)	(000s)	$
NO PAR VALUE COMMON SHARES ISSUED
Balance at December 31, 2017	578,636	3,036.5
Issuance of common shares under First Nations agreements	113	0.3
Exercise of options and vested performance share units	366	0.3
Reversal of deferred tax recovery(1)	—	(1.9)
Balance at December 31, 2018	579,115	3,035.2
Issuance of common shares(2)	93,750	106.7
Issuance of common shares under First Nations agreeements	3,077	2.6
Exercise of options and vested performance share units	15	—
Balance at December 31, 2019	675,957	3,144.5

1. In 2017, the Company closed an equity financing and related agreements and recognized a deferred tax recovery of $1.9 million. This deferred tax recovery was reversed in 2018.

2. On August 30, 2019, New Gold Inc. closed its offering of common shares of the Company with a syndicate of underwriters. An aggregate of 93,750,000 Common Shares were issued by the Company at a price of C$1.60 per share for net proceeds of $106.7 million (gross proceeds of C$150.0 million less equity issuance costs).

Schedule of share-based payment arrangements

The following table summarizes share-based payment expenses:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
SHARE-BASED PAYMENT EXPENSES
Stock option expense (i)	0.5	1.4
Performance share unit expense	0.3	0.1
Restricted share unit expense(1)	1.1	(0.3)
Deferred share unit expense	0.8	(0.8)
Shares issued under First Nations agreements(1)	—	0.3
Total share-based payment expenses	2.7	0.7

1. For the year ended December 31, 2019 $1.0 million were recognized in operating expenses (2018‑ ($nil) million).

Schedule of number and weighted average exercise prices of share options

The following table presents changes in the Company’s stock option plan:

		Weighted average
	Number of options	exercise price
	(000s)	C$/share
CHANGES TO THE COMPANY’S STOCK OPTION PLAN
Balance at December 31, 2017	13,087	5.08
Forfeited	(1,925)	4.13
Expired	(2,534)	8.22
Balance at December 31, 2018	8,628	4.39
Granted	2,360	1.12
Forfeited	(1,417)	3.58
Expired	(3,993)	5.01
Balance at December 31, 2019	5,578	2.81

Schedule of earnings per share

The following table sets out the calculation of loss per share:

	Year ended December 31
(in millions of U.S. dollars, except where noted)	2019	2018
CALCULATION OF LOSS PER SHARE
Loss from continuing operations	(73.5)	(1,085.6)
Net loss	(73.5)	(1,239.7)
Basic weighted average number of shares outstanding	611.1	578.7
(in millions)
Dilution of securities:
Stock options	—	—
Diluted weighted average number of shares outstanding	611.1	578.7
(in millions)
Loss from continuing operations per share:
Basic	(0.12)	(1.88)
Diluted	(0.12)	(1.88)
Net loss per share:
Basic	(0.12)	(2.14)
Diluted	(0.12)	(2.14)

Schedule of antidilutive securities excluded from computation of earnings per share

The following table lists the equity securities excluded from the calculation of diluted loss per share. All stock options are excluded from the calculation when the Company is in a net loss position.

	Year ended December 31
(in millions of units)	2019	2018
EQUITY SECURITIES EXCLUDED FROM THE CALCULATION OF DILUTED EARNINGS PER SHARE
Stock options	5.6	8.6

XML

INCOME AND MINING TAXES - Income tax recovery (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
INCOME AND MINING TAXES
Loss before taxes	$ (73.9)	$ (1,096.0)
Canadian federal and provincial income tax rates	26.30%	26.30%
Income tax recovery based on above rates	$ (19.4)	$ (288.2)
INCREASE (DECREASE) DUE TO
Permanent differences	(0.1)	58.3
Different statutory tax rates on earnings of foreign subsidiaries	0.0	(4.1)
Foreign exchange on non-monetary assets and liabilities	0.2	0.4
Other foreign exchange differences	3.7	(3.2)
Prior years' adjustments relating to tax provision and tax returns	(5.2)	4.7
Canadian mining tax	(2.5)	26.6
Change in unrecognized deferred tax assets	22.9	210.0
Sale of Peak and Mesquite	0.0	(15.1)
Other	0.0	0.2
Total income tax expense (recovery)	$ (0.4)	$ (10.4)

XML

IMPAIRMENT (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018
Impairment
Impairment loss	$ 671.1		$ 0.0	$ 1,054.8
Tax recovery	0.0	$ (101.6)		(101.6)
Total impairment loss, net of tax	671.1	282.1		953.2
Rainy River Mining Properties Depletable [Member]
Impairment
Impairment loss	452.9	383.7		836.6
Blackwater nondepletable mining properties [Member]
Impairment
Impairment loss	$ 218.2	$ 0.0		$ 218.2

XML

INVENTORIES - Additional information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure of inventories
Inventory write-down	$ 14.1	$ 15.8
Operating expense	371.9	325.4
Stockpile Ore at Rainy River [Member]
Disclosure of inventories
Inventory write-down	19.8
Operating expense	14.1
Depreciation expense	5.7
Inventories recognized [Member]
Disclosure of inventories
Operating expense	$ 358.0	$ 311.6

XML

DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions		1 Months Ended	12 Months Ended
		Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018
DISCONTINUED OPERATIONS
Profit (loss) from discontinued operations	[1]		$ 0.0	$ (154.9)
Net Cash Received From Disposal Of Mesquite Asset		$ 158.0
Discontinued operations [member]
DISCONTINUED OPERATIONS
Profit (loss) from discontinued operations				(154.1)
Peak Mines [Member] | Discontinued operations [member]
DISCONTINUED OPERATIONS
Profit (loss) from discontinued operations				$ 0.8
Mesquite [Member]
DISCONTINUED OPERATIONS
Disposal Costs Incurred		$ 0.9

[1] In the prior year period, Peak Mines and Mesquite were classified as discontinued operations and accordingly earnings and cash flows from continuing operations are presented exclusive of Peak Mines and Mesquite. Peak Mines was sold in April 2018 and Mesquite was sold in October 2018. Refer to Note 16 for further details.

XML

FINANCIAL RISK MANAGEMENT - Translation exposure (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Canada, Dollars
FINANCIAL RISK MANAGEMENT
Impact of 10% change in foreign exchange rates	$ 21.3	$ 21.0
Mexico, Pesos
FINANCIAL RISK MANAGEMENT
Impact of 10% change in foreign exchange rates	$ 0.9	$ 1.8

XML

SUPPLEMENTAL CASH FLOW INFORMATION

12 Months Ended

Dec. 31, 2019

SUPPLEMENTAL CASH FLOW INFORMATION

SUPPLEMENTAL CASH FLOW INFORMATION

19. SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information (included within operating activities) is as follows:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
CHANGE IN NON-CASH OPERATING WORKING CAPITAL
Trade and other receivables	4.4	(5.4)
Inventories	16.2	(53.1)
Prepaid expenses and other	(2.3)	(0.6)
Trade and other payables	7.6	(12.5)
Total change in non-cash operating working capital	25.9	(71.6)

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
OTHER NON-CASH ADJUSTMENTS
Unrealized loss on concentrate contracts	(0.2)	0.7
Equity settled share-based payment expense	0.7	2.7
Loss on disposal of assets	1.2	0.3
Settlement and loss on revaluation of gold price option contracts	21.7	4.8
Unrealized gain on gold stream obligation	(20.1)	(11.7)
Settlement (gain) loss on revaluation of copper price option contracts	0.7	(4.8)
Revaluation of CSP’s reclamation and closure cost obligation	(0.6)	1.0
Inventory write-downs	14.1	15.8
Other non-cash adjustments	—	0.2
Total other non-cash adjustments	17.5	9.0

XML

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 83.4	$ 103.7
Total Trade and other receivables	23.7	35.9
Inventories	110.0	141.8
Current income tax receivable	4.5	4.3
Prepaid expenses and other	7.1	4.7
Total current assets	228.7	290.4
Non-current inventories	0.0	14.9
Mining interests	1,928.0	1,853.4
Other	1.8	10.9
Total assets	2,158.5	2,169.6
Current liabilities
Trade and other payables	171.6	130.9
Current income tax payable	0.3
Total current liabilities	171.9	130.9
Reclamation and closure cost obligations	94.7	86.1
Gold stream obligation	142.9	161.9
Long-term debt	714.5	780.5
Deferred tax liabilities	48.3	56.3
Lease obligations	23.9	8.9
Other	1.0	0.5
Total liabilities	1,197.2	1,225.1
Equity
Common shares	3,144.5	3,035.2
Contributed surplus	105.7	105.0
Other reserves	(13.6)	6.1
Deficit	(2,275.3)	(2,201.8)
Total equity	961.3	944.5
Total liabilities and equity	$ 2,158.5	$ 2,169.6

XML

Document And Entity Information	12 Months Ended
	Dec. 31, 2019 shares
Document and Entity Information [Abstract]
Document Type	40-F/A
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	New Gold Inc. /FI
Entity Central Index Key	0000800166
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Trading Symbol	NGD
Entity Common Stock, Shares Outstanding	579,115,291
Entity Emerging Growth Company	false

XML

SHARE CAPITAL

12 Months Ended

Dec. 31, 2019

SHARE CAPITAL

SHARE CAPITAL

15. SHARE CAPITAL

At December 31, 2019, the Company had unlimited authorized common shares and 676.0 million common shares outstanding.

(a) No par value common shares issued

	Number of shares
(in millions of U.S. dollars, except where noted)	(000s)	$
NO PAR VALUE COMMON SHARES ISSUED
Balance at December 31, 2017	578,636	3,036.5
Issuance of common shares under First Nations agreements	113	0.3
Exercise of options and vested performance share units	366	0.3
Reversal of deferred tax recovery(1)	—	(1.9)
Balance at December 31, 2018	579,115	3,035.2
Issuance of common shares(2)	93,750	106.7
Issuance of common shares under First Nations agreeements	3,077	2.6
Exercise of options and vested performance share units	15	—
Balance at December 31, 2019	675,957	3,144.5

1. In 2017, the Company closed an equity financing and related agreements and recognized a deferred tax recovery of $1.9 million. This deferred tax recovery was reversed in 2018.

2. On August 30, 2019, New Gold Inc. closed its offering of common shares of the Company with a syndicate of underwriters. An aggregate of 93,750,000 Common Shares were issued by the Company at a price of C$1.60 per share for net proceeds of $106.7 million (gross proceeds of C$150.0 million less equity issuance costs).

(b) Share-based payment expenses

The following table summarizes share-based payment expenses:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
SHARE-BASED PAYMENT EXPENSES
Stock option expense (i)	0.5	1.4
Performance share unit expense	0.3	0.1
Restricted share unit expense(1)	1.1	(0.3)
Deferred share unit expense	0.8	(0.8)
Shares issued under First Nations agreements(1)	—	0.3
Total share-based payment expenses	2.7	0.7

1. For the year ended December 31, 2019 $1.0 million were recognized in operating expenses (2018‑ ($nil) million).

(i) Stock options

The following table presents changes in the Company’s stock option plan:

		Weighted average
	Number of options	exercise price
	(000s)	C$/share
CHANGES TO THE COMPANY’S STOCK OPTION PLAN
Balance at December 31, 2017	13,087	5.08
Forfeited	(1,925)	4.13
Expired	(2,534)	8.22
Balance at December 31, 2018	8,628	4.39
Granted	2,360	1.12
Forfeited	(1,417)	3.58
Expired	(3,993)	5.01
Balance at December 31, 2019	5,578	2.81

(c) Loss per share

The following table sets out the calculation of loss per share:

	Year ended December 31
(in millions of U.S. dollars, except where noted)	2019	2018
CALCULATION OF LOSS PER SHARE
Loss from continuing operations	(73.5)	(1,085.6)
Net loss	(73.5)	(1,239.7)
Basic weighted average number of shares outstanding	611.1	578.7
(in millions)
Dilution of securities:
Stock options	—	—
Diluted weighted average number of shares outstanding	611.1	578.7
(in millions)
Loss from continuing operations per share:
Basic	(0.12)	(1.88)
Diluted	(0.12)	(1.88)
Net loss per share:
Basic	(0.12)	(2.14)
Diluted	(0.12)	(2.14)

The following table lists the equity securities excluded from the calculation of diluted loss per share. All stock options are excluded from the calculation when the Company is in a net loss position.

	Year ended December 31
(in millions of units)	2019	2018
EQUITY SECURITIES EXCLUDED FROM THE CALCULATION OF DILUTED EARNINGS PER SHARE
Stock options	5.6	8.6

XML

FAIR VALUE MEASUREMENT - Summary of carrying values and fair values of financial instruments (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Trade and other payables [Member]
Financial Liabilities
Carrying value	$ 111.3	$ 101.3
Fair value	111.3	101.3
Long-term debts [Member]
Financial Liabilities
Carrying value	714.5	780.5
Fair value	707.7	652.9
Gold stream obligation [Member]
Financial Liabilities
Carrying value	164.5	182.4
Fair value	164.5	182.4
Performance Share Units [Member]
Financial Liabilities
Carrying value	0.2	0.2
Fair value	0.2	0.2
Restricted share units [Member]
Financial Liabilities
Carrying value	0.5	0.3
Fair value	0.5	0.3
Gold price option contracts [Member]
Financial Liabilities
Carrying value	26.4	4.8
Fair value	26.4	4.8
Cash and cash equivalents
Financial Assets
Carrying value	83.4	103.7
Fair value	83.4	103.7
Trade and other receivables [Member]
Financial Assets
Carrying value	14.5	36.6
Fair value	14.5	36.6
Provisionally priced contracts [Member]
Financial Assets
Carrying value	1.5	(1.6)
Fair value	1.5	(1.6)
Copper price option contracts [Member]
Financial Assets
Carrying value	0.0	0.7
Fair value	0.0	0.7
Gold and copper swap contracts [Member]
Financial Assets
Carrying value	(1.3)	0.9
Fair value	(1.3)	0.9
Investment [Member]
Financial Assets
Carrying value	0.5	0.8
Fair value	0.5	0.8
Proceeds due from income tax refunds at Mesquite [Member]
Financial Assets
Carrying value	9.0	8.5
Fair value	9.0	8.5
Deferred share units [Member]
Financial Liabilities
Carrying value	1.1	0.3
Fair value	$ 1.1	$ 0.3

XML

BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2019

BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

2.BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of compliance

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board (“IASB”), referred to as “IFRS”.

These consolidated financial statements were approved by the Board of Directors of the Company on February 12, 2020.

(b) Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for those assets and liabilities that are measured at fair values at the end of each reporting period. Additionally, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

(c) Basis of consolidation

Subsidiaries

These consolidated financial statements include the financial statements of the Company and entities controlled by the Company (“Subsidiaries”). Control exists when the Company is exposed, or has rights to variable returns from its involvement with the Subsidiary and has the ability to affect those returns through its power over the Subsidiary.

THE PRINCIPAL SUBSIDIARIES OF THE COMPANY ARE AS FOLLOWS:

			Country of	Interest as at		Interest as at
		Method of	incorporation and	December 31,		December 31,
Name of subsidiary/associate(1)	Principal activity	accounting	operation	2019		2018
Minera San Xavier S.A. de C.V.	Mining	Consolidated	Mexico	100	%	100	%

1. The Company sold Peak Gold Mines Pty Ltd in April 2018 and sold Western Mesquite Mines Inc. in October 2018.

2. New Gold Inc. directly owns the assets of Rainy River, New Afton and Blackwater.

(d) Business combinations and asset acquisitions

A business combination is an acquisition of assets and liabilities that constitute a business. A business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return to the company and its shareholders in the form of improved earnings, lower costs or other economic benefits.

Business combinations are accounted for using the acquisition method whereby identifiable assets acquired and liabilities assumed, including contingent liabilities, are recorded at 100% of their acquisition-date fair values. The acquisition date is the date the Company obtains control over the acquiree, which is generally the date that consideration is transferred and the Company acquires the assets and assumes the liabilities of the acquiree. The Company considers all relevant facts and circumstances in determining the acquisition date.

The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Company, the liabilities, including contingent consideration, incurred and payable by the Company to former owners of the acquiree and the equity interests issued by the Company. The measurement date for equity interests issued by the Company is the acquisition date.

Acquisition-related costs, other than costs to issue debt or equity securities, of the Company, including investment banking fees, legal fees, accounting fees, valuation fees, and other professional or consulting fees are expensed as incurred. The costs to issue equity securities of the Company as consideration for the acquisition are reduced from share capital as share issue costs.

The Company accounts for the purchase of assets and assumption of liabilities as an acquisition of net assets when the transactions do not qualify as a business combination under IFRS 3, Business Combinations, as the significant inputs and processes that constitute a business are not identified. The purchase consideration is allocated to the fair value of the assets acquired and liabilities assumed based on management’s best estimates and available information at the time of the acquisition. Acquisition-related costs, other than costs to issue debt or equity securities, of the Company, including investment banking fees, legal fees, accounting fees, valuation fees, and other professional or consulting fees are capitalized as part of the asset acquisition.

(e) Cash and cash equivalents

The Company considers all highly liquid investments with original maturities of three months or less at the date of acquisition to be cash equivalents. These highly liquid investments only comprise short-term Canadian and United States government treasury bills and other evidences of indebtedness and treasury bills of the Canadian provinces with a minimum credit rating of R‑1 mid from the Dominion Bond Rating Service or an equivalent rating from Standard & Poor’s and Moody’s. In addition, the Company invests in bankers’ acceptances and other evidences of indebtedness of certain financial institutions, including Canadian banks.

(f) Inventories

Finished goods, work-in-process, ore and stockpiled ore are valued at the lower of weighted average production cost or net realizable value. Production costs include the cost of raw materials, direct labour, mine-site overhead expenses and depreciation and depletion of mining interests. Net realizable value is calculated as the estimated price at the time of sale based on prevailing and long-term metal prices less estimated future production costs to convert the inventories into saleable form. At operations where ore extracted contains significant amount of metals other than gold, primarily copper or silver, cost is allocated between the joint products on a pro rata basis.

Stockpiles represent ore that has been extracted from the mine and is available for further processing.Costs are added to stockpiles based on current mining costs, including applicable overhead and depreciation and depletion relating to mining operations and removed at each stockpile’s average cost per recoverable unit as material is processed.

Work-in-process inventory represents materials that are currently in the process of being converted into finished goods. The average production cost of finished goods represents the average cost of work-in-process inventories incurred prior to the refining process, plus applicable refining, selling, shipping costs and associated royalties.

Supplies are measured at weighted average cost. In the event that the net realizable value of the finished product, the production of which the supplies are held for use in, is lower than the expected cost of the finished product, the supplies are written down to net realizable value.

(g) Mining interests

Mining interests include mining properties and related plant and equipment. Capitalized costs are depreciated and depleted using either a unit-of-production method over the estimated economic life of the mine to which they relate, or for plant and equipment, using the straight-line method over their estimated useful lives, if shorter than the mine life.

Mining properties

The costs associated with mining properties include acquired interests in production, development and exploration stage properties representing the fair value at the time they were acquired.

Mining properties include costs directly attributable to bringing a mineral asset into the state where it is capable of operating in the manner intended by management. The determination of development costs to be capitalized during the production stage of a mine operation requires the use of judgments and estimates.

The Company estimates its mineral reserves and mineral resources based on information compiled by appropriately qualified persons. The estimation of recoverable reserves will be impacted by forecasted commodity prices, exchange rates, production costs and recoveries amongst other factors. Changes in the reserve or resource estimates may impact the carrying value of assets and depreciation and impairment charges recorded in the consolidated income statement.

A mining property is considered to be capable of operating in a manner intended by management when it commences commercial production. The critical judgments included in the determination of the commencement of commercial production are described in Note 3(a)(i). Upon commencement of commercial production, a mining property is depleted on a unit-of-production method. Unit-of-production depletion rates are determined based on the estimated recoverable proven and probable mineral reserves at the mine.

Costs related to property acquisitions are capitalized until the viability of the mineral property is determined. When either external or internal triggering events determine that a property is not economically recoverable, the capitalized costs are written off.

The costs associated with the acquisition of land holdings are included within mining interest and are not depleted.

Exploration and evaluation

Exploration and evaluation costs are expensed until the probability that future economic benefits will flow to the entity and the asset cost or value can be measured reliably. Management uses the following criteria to determine the economic recoverability and probability of future economic benefits:

· The Company controls access to the benefit;

· Internal project economics are beneficial to the Company;

· The project is technically feasible; and

· Costs can be reliably measured.

Further development expenditures are capitalized to the property.

Drilling and related costs incurred on sites without an existing mine and on areas outside the boundary of a known mineral deposit which contains proven and probable reserves are exploration expenditures and are expensed as incurred to the date of establishing that property costs are economically recoverable. Further development expenditures, subsequent to the establishment of economic recoverability, are capitalized to the property.

Property, plant and equipment

Property, plant and equipment consists of buildings and fixtures, processing equipment and surface and underground fixed and mobile equipment.

Depreciation and depletion rates of major categories of asset costs

Mining properties are depleted using a unit-of-production method over the estimated economic life of the mine to which they relate. Management reviews the estimated total recoverable ounces contained in depletable reserves at each financial year end, and when events and circumstances indicate that such a review should be made. Plant and equipment is depreciated using the straight-line method over their estimated useful lives, or the remaining life of the mine, if shorter. Right-of-use assets are depreciated using the straight-line method over the remaining lease term, or the remaining life of the mine, if shorter.

Asset class	Estimated useful life (years)
Plant and machinery	3 – 13
Mobile equipment	5 – 7

Capitalized borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized until such time as the assets are substantially ready for their intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

Where funds are borrowed specifically to finance a project, the amount capitalized represents the actual borrowing costs incurred. Where the funds used to finance a project form part of general borrowings, the amount capitalized is calculated using a weighted average of interest rates applicable to relevant general borrowings of the Company during the period, to a maximum of actual borrowing costs incurred. Capitalization of interest is suspended during extended periods in which active development is interrupted.

Stripping costs in surface mining

As part of its operations, the Company incurs stripping costs both during the development phase and production phase of its operations. Stripping costs incurred as part of development stage mining activities incurred by the Company are deferred and capitalized as part of mining properties.

Stripping costs incurred during the production stage are incurred in order to produce inventory or to improve access to ore which will be mined in the future. Where the costs are incurred to produce inventory, the production stripping costs are accounted for as a cost of producing those inventories. Where the costs are incurred to improve access to ore which will be mined in the future, the costs are deferred and capitalized to the statement of financial position as a stripping activity asset (included in mining interest) if the following criteria are met: improved access to the ore body is probable; the component of the ore body can be accurately identified; and the costs relating to the stripping activity associated with the component can be reliably measured. If these criteria are not met, the costs are expensed in the period in which they are incurred.

The stripping activity asset is subsequently depleted using the units-of-production depletion method over the life of the identified component of the ore body to which access has been improved as a result of the stripping activity.

Derecognition

Upon sale or abandonment, the cost of the asset and related accumulated depreciation or depletion are removed from the accounts and any gains or losses thereon are recognized in net earnings.

(h) Impairment of long-lived assets

The Company reviews and evaluates its mining interests for indicators of impairment at the end of each reporting period. Impairment assessments are conducted at the level of cash-generating units (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Each operating mine and development project represents a separate CGU as each mine site or development project has the ability or the potential to generate cash inflows that are separately identifiable and independent of each other. If an indication of impairment exists, the recoverable amount of the CGU is estimated. An impairment loss is recognized when the carrying amount of the CGU is in excess of its recoverable amount.

The recoverable amount of a mine site is the greater of its fair value less costs to dispose and value in use. In determining the recoverable amounts of the Company’s mine sites, the Company uses the fair value less costs to dispose as this will generally be greater than or equal to the value in use. When there is no binding sales agreement, fair value less costs to dispose is estimated as the discounted future after-tax cash flows expected to be derived from a mine site, less an amount for costs to dispose estimated based on similar past transactions. The inputs used in the fair value measurement constitute Level 3 inputs under the fair value hierarchy. When discounting estimated future cash flows, the Company uses an after-tax discount rate that would approximate what market participants would assign. Estimated cash flows are based on expected future production, metal selling prices, operating costs and capital costs. If the recoverable amount of a mine site is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount. The carrying amount of each mine site includes the carrying amounts of mining properties, plant and equipment, and certain deferred tax balances. Impairment losses are recognized as expenses in the period they are incurred. The allocation of an impairment loss, if any, for a particular mine site to its assets is based on the relative book values of these assets at the date of impairment, to the extent that the impairment allocation does not reduce the carrying values of these asset classes below their recoverable amounts.

The Company assesses at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for a long-lived asset may no longer exist or may have decreased. If any such indication exists, the Company estimates the recoverable amount of that CGU. A reversal of an impairment loss is recognized up to the lesser of the recoverable amount or the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the CGU in prior years. Reversals of impairment losses are recognized in net earnings in the period the reversals occur.

(i) Reclamation and closure cost obligations

The Company’s mining and exploration activities are subject to various governmental laws and regulations relating to the protection of the environment. The Company has made, and intends to make in the future, expenditures to comply with such laws and regulations. The Company has recorded a liability and corresponding asset for the estimated future cost of reclamation and closure, including site rehabilitation and long-term treatment and monitoring costs These costs represent management’s best estimates which incorporate assumptions on the effects of inflation, movements in foreign exchange rates and the effects of country and other specific risks associated with the related liabilities. The costs are discounted to net present value using the risk free rate applicable to the future cash outflows. Such estimates are, however, subject to changes in laws and regulations or changes to market inputs to the decommissioning model.

The present value of estimated costs is recorded in the period in which the asset is installed or the environment is disturbed and a reasonable estimate of future costs and discount rates can be made. The provision is discounted using a risk-free rate and estimates of future cash flows are adjusted to reflect risk.

After the initial measurement, the obligation is adjusted to reflect the passage of time and changes in the estimated future cash flows underlying the obligation. The increase in the provision due to the passage of time is recognized in finance costs, whereas increases and decreases due to changes in the estimated future cash flows are capitalized and depreciated over the life of the related asset unless the amount deducted from the cost exceeds the carrying value of the asset, in which case the excess is recorded in net earnings. Actual costs incurred upon settlement of the site restoration obligation are charged against the provision to the extent the provision was established for those costs. Upon settlement of the liability, a gain or loss may be recorded in net earnings.

(j) Income taxes

The income tax expense or benefit for the period consists of two components: current and deferred.

Current Tax

The tax currently payable is based on taxable earnings for the year. Taxable earnings differ from earnings before taxes due to items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the statement of financial position date in each of the jurisdictions and includes any adjustments for taxes payable or recovery in respect of prior periods.

Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated statement of financial position and the corresponding tax base used in the computation of taxable net earnings. Deferred tax is calculated based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates that are expected to apply in the year of realization or settlement based on tax rates and laws enacted or substantively enacted at the statement of financial position date.

Deferred tax liabilities are generally recorded for all taxable temporary differences. Deferred tax liabilities are recognized for taxable temporary differences arising on investments in Subsidiaries except where the reversal of the temporary difference can be controlled and it is probable that the difference will not reverse in the foreseeable future.

Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable earnings will be available against which those deductible temporary differences can be utilized. The carrying amount of the deferred tax assets are reviewed at each statement of financial position date and are reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The Company records foreign exchange gains and losses representing the impacts of movements in foreign exchange rates on the tax base of non-monetary assets and liabilities which are denominated in foreign currencies. Foreign exchange gains and losses relating to deferred income taxes are included within other (losses) gains in the consolidated income statement.

Current and deferred tax for the year

Current and deferred tax are recognized in net earnings except when they arise as a result of items recognized in other comprehensive income or directly in equity in the current or prior periods, in which case the related current and deferred income taxes are also recognized in other comprehensive income or directly in equity, respectively.

Government assistance and tax credits

Any federal or provincial tax credits received by the Company, with respect to exploration or development work conducted on any of its properties, are credited as a reduction to the carrying costs of the property to which the credits relate. The Company records these tax credits when there is reasonable assurance with regard to collections and assessments as well as reasonable assurance that the Company will comply with the conditions associated to them.

(k) Foreign currency translation

The individual financial statements of each Subsidiary are presented in the currency of the primary economic environment in which that entity operates (its functional currency). The functional currency of the Company and the presentation currency of the consolidated financial statements is the United States dollar (“U.S. dollar”).

Management determines the functional currency by examining the primary economic environment of each operating mine, development and exploration project. The Company considers the following factors in determining its functional currency:

· The main influences of sales prices for goods and the country whose competitive forces and regulations mainly determine the sales price;

· The currency that mainly influences labour, material and other costs of providing goods;

· The currency in which funds from financing activities are generated; and

· The currency in which receipts from operating activities are usually retained.

When preparing the consolidated financial statements of the Company, the Company translates non-U.S. dollar balances into U.S. dollars as follows:

· Mining interest and equity method investments using historical exchange rates;

· Financial instruments measured at fair value through profit or loss using the closing exchange rate as at the statement of financial position date with translation gains and losses recorded in net earnings;

· Deferred tax assets and liabilities using the closing exchange rate as at the statement of financial position date with translation gains and losses recorded in net earnings;

· Other assets and liabilities using the closing exchange rate as at the statement of financial position date with translation gains and losses recorded in net earnings; and

· Income and expenses using the average exchange rate for the period, except for expenses that relate to non-monetary assets and liabilities measured at historical rates, which are translated using the same historical rate as the associated non-monetary assets and liabilities.

(l) Earnings (loss) per share

Earnings (loss) per share calculations are based on the weighted average number of common shares and common share equivalents issued and outstanding during the year. Diluted earnings per share are calculated using the treasury stock method. This requires the calculation of diluted earnings per share by assuming that outstanding stock options with an average market price that exceeds the average exercise price of the options and warrants for the year, are exercised and the assumed proceeds are used to repurchase shares of the Company at the average market price of the common share for the year.

(m) Revenue recognition

Revenue from the sale of metals and metals in concentrate is recognized when the Company satisfies the performance obligations associated with the sale. Typically, this is accomplished when control over the metals and metals in concentrate are passed from the Company to the buyer. Factors that may indicate the point in time at which control passes include:

· The Company has transferred to the buyer the significant risks and rewards of ownership to the purchaser;

· The Company has transferred legal title to the asset sold to the purchaser;

· The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

· The Company has transferred physical possession of the asset to the purchaser;

· The Company has present right to payment; and

· The purchaser has accepted the asset.

Revenue from the sale of metals in concentrate may be subject to adjustment upon final settlement of estimated metal prices, weights and assays. Revenue is recognized based on the estimated fair value of the total consideration receivable. Adjustments to revenue for metal prices and other adjustments are recorded at each period end and on final settlement. Refining and treatment charges are netted against revenue for sales of metal concentrate.

(n) Financial assets

Financial assets are initially measured at fair value and are subsequently measured at either amortized cost or fair value through profit or loss, depending on the classification of the financial assets. The classification of assets is driven by the Company’s business model for managing financial assets and their contractual cash flow characteristics.

The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the statement of financial position. The quoted market price used for financial assets held by the Company is the last bid price of the day.

The Company has categorized its financial assets in accordance with International Financial Reporting Standard 9, Financial Instruments (“IFRS 9”) into one of the following two categories:

Category under IFRS 9	Description
Fair value through profit or loss	Includes equity investments, gold and copper price option contract assets, gold and copper swap contracts, copper forward contracts, and other financial assets designated to this category under the fair value option. The Company has assessed the contractual cash flows of its provisionally priced contracts in accordance with IFRS 9 and has classified these contracts as fair value through profit or loss (“FVTPL”).
Financial assets at amortized cost	Includes cash and cash equivalents, and trade receivables at amortized cost.

(o) Financial liabilities

Financial liabilities are accounted for at amortized cost except for those at FVTPL which includes liabilities designated as FVTPL and derivatives. Financial liabilities classified as FVTPL or those which are designated as FVTPL under the fair value option are measured at fair value with unrealized gains and losses recognized in net earnings. In cases where financial liabilities are designated as FVTPL, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the Income statement. Financial liabilities at amortized cost are initially measured at fair value net of transaction costs, and subsequently measured at amortized cost.

The Company has classified its financial liabilities in accordance with IFRS 9 into one of the following two categories:

Category under IFRS 9	Description
Fair value through profit or loss	Includes provisions related to the RSU plans, DSU plans and the cash settled portion of the PSU plans, gold and copper price option contract liabilities and gold stream obligation.
Financial liabilities at amortized cost	Includes trade and other payables and long-term debt.

(p) Derivative instruments

Derivative instruments, including embedded derivatives, are recorded at fair value on initial recognition and at each subsequent reporting period. Any gains or losses arising from changes in fair value on derivatives that do not qualify for hedge accounting are recorded in net earnings.

Gold Stream Obligation

The Company has a gold stream agreement with RGLD Gold AG, a wholly owned subsidiary of Royal Gold Inc. (“Royal Gold”). For accounting purposes, the Company has determined that the gold stream obligation represents a financing contract with embedded derivatives. The value of the embedded derivatives changes in response to changes in metal prices and in the number of ounces expected to be delivered. As the gold stream obligation has embedded derivatives that would otherwise need to be accounted for separately at FVTPL, the Company has designated the deposit received from Royal Gold as a financial liability at FVTPL, with initial and subsequent measurement at fair value, as permitted under IFRS 9. Transaction costs directly attributable to the gold stream obligation were expensed through profit or loss.

Fair value of the gold stream obligation on initial recognition was determined by the amount of the cash advance received. Subsequent fair value is calculated on each reporting date with gains and losses recorded in net earnings. Fair value adjustments as a result of the Company’s own credit risk are recorded in the consolidated statement of comprehensive loss, as required by IFRS 9 for financial liabilities designated as at FVTPL. Components of the adjustment to fair value at each reporting date include:

· Accretion expense due to passage of time

· Change in the risk-free interest rate

· Change in the Company specific credit spread

· Change in any expected ounces to be delivered

· Change in future metal prices

Provisional pricing

Certain products are “provisionally priced” whereby the selling price is subject to final adjustment up to 150 days after delivery to the customer. The final price is based on the market price at the relevant quotation point stipulated in the contract. As is customary in the industry, revenue on provisionally priced sales is recognized based on estimates of the fair value of the consideration receivable based on relevant forward market prices. At each reporting date, provisionally priced metal is marked to market based on the forward selling price for the quotational period stipulated in the contract. For this purpose, the selling price can be measured reliably for those products, such as gold and copper, for which there exists active and freely traded commodity markets. The marking to market of provisionally priced sales contracts is recorded as an adjustment to revenue.

Gold and copper price option contracts

In order to increase cash flow certainty, the Company holds gold and copper price option contracts, purchasing put options and selling call options. These are treated as derivative financial instruments and marked to market at each reporting period on the consolidated statement of financial position with changes in fair value recognized in other gains and losses. Realized gains and losses as a result of the exercise of the Company’s call and put options up to an amount not exceeding the Company’s production of gold ounces or copper pounds for the reporting period are recorded as an adjustment to revenue. The exercise of options on gold ounces or copper pounds in excess of the Company’s production for the reporting period are recorded as other gains and losses.

Gold and copper swaps

In order to mitigate a portion of the metal price exposure associated with the time lag between the provisional and final determination of concentrate sales, the Company has entered into cash settled derivative gold and copper contracts to swap future contracted monthly average metal prices for fixed metal prices. At each reporting date, these gold and copper swap agreements are marked to market based on corresponding forward gold and copper prices. The marking to market of gold and copper swap agreements is recorded as an adjustment to revenue.

(q) Trade and other receivables

Trade and other receivables are carried at amortized cost less impairment. Trade and other receivables are impaired if they are determined to be uncollectible.

(r) Leases

As noted below, the Company has adopted IFRS 16, Leases ("IFRS 16") on January 1, 2019. As the Company adopted the IFRS 16, Leases using the modified retrospective approach, the leases in the prior-year comparative period are accounted for under IAS 17. Under IAS 17 leases were classified as finance leases when the terms of the lease transfered substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. All other leases were classified as operating leases.

Applying IFRS 16, the Company recognizes right-of-use assets and lease liabilities in the consolidated statement of financial position initially measured as the present value of future lease payment and recognizes depreciation of right-of-use assets and interest on lease liabilities in the consolidated income statement. Lease payments are recognized within the consolidated statement of cash flows within financing activities.

For short-term leases (lease terms of 12 months or less) and leases of low-value or immaterial assets, the Company has opted to recognize these lease payments as expenses on the consolidated income statement, as permitted by IFRS 16. This expense is presented within operating expenses.

(s) New and amended IFRS Standards that are effective for the current year

The Company has adopted the following new IFRS policy along with any amendments, effective January 1, 2019. These changes were made in accordance with the applicable transitional provisions.

IFRS 16 - Leases

On January 6, 2016, the IASB issued IFRS 16. This standard specifies the methodology to recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases. The effective date is for reporting periods beginning on or after January 1, 2019 with early adoption permitted.

The Company adopted IFRS 16 on January 1, 2019 using the modified retrospective approach. Under this approach, the cumulative effect of initially applying IFRS 16 is recognized as an adjustment to equity at the date of initial application. Comparative figures are not restated to reflect the adoption of IFRS 16. Additionally, the Company has adopted the exemption for leases with a lease term of 12 months or less and for leases that are low value. Given that the Company's existing operating leases are not material, no adjustment to equity has been recognized upon IFRS 16 adoption on January 1, 2019.

XML

FAIR VALUE MEASUREMENT

12 Months Ended

Dec. 31, 2019

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

23. FAIR VALUE MEASUREMENT

Fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In assessing the fair value of a particular contract, the market participant would consider the credit risk of the counterparty to the contract. Consequently, when it is appropriate to do so, the Company adjusts the valuation models to incorporate a measure of credit risk. Fair value represents management’s estimates of the current market value at a given point in time.

The Company has certain financial assets and liabilities that are held at fair value. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts), or inputs that are derived principally from or corroborated by observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

There were no transfers among Levels 1, 2 and 3 during the year ended December 31, 2019 or the year ended December 31, 2018. The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as of the date of the event or change in circumstances that caused the transfer.

Valuation methodologies for Level 2 and 3 financial assets and liabilities:

Provisionally priced contracts and gold and copper swap contracts

The fair value of the provisionally priced contracts and the gold and copper swap contracts is calculated using the mark-to-market forward prices of London Metals Exchange gold and copper based on the applicable settlement dates of the outstanding provisionally priced contracts and copper swap contracts.

Gold and copper price option contracts

The fair value of the gold and copper price option contracts are calculated using the mark-to-market method based on fair value prices obtained from the counterparties of the gold price option contracts and copper price option contracts.

Foreign exchange forward contracts

The fair value of foreign exchange forward contracts is calculated using the mark-to-market method based on the difference between the forward Canadian dollar to U.S dollar foreign exchange rate and the foreign exchange rates of the contracts.

Gold stream obligation

The fair value of the gold stream obligation is calculated using the risk-free interest rate derived from the U.S. Treasury rate, forward metal prices, company specific credit spread based on the yield on the Company’s 2025 Senior Unsecured Notes, and expected gold and silver ounces to be delivered from Rainy River’s life of mine model.

Proceeds due from income tax refunds at Mesquite

The proceeds due from income tax refunds at Mesquite is related to income tax refunds that were recoverable by Mesquite on the date of the sale of Mesquite. These income tax refunds are required to be paid to the Company once Mesquite receives these income tax refunds. The fair value of the income tax refund receivable is calculated based on the value of the income tax refunds that Mesquite is expected to receive.

Performance share units (PSU)

The fair value of the PSU liability is calculated using the quantity of base options subject to cash settlement, the weighted-average three-year achieved performance ratio (calculated using the annualized return of the Company’s share price compared to the annualized return of the S&P Global Gold Index) and the expected share price at the end of the vesting period.

The following table summarizes the Company’s financial assets and liabilities by category and information about financial assets and liabilities measured at fair value on a recurring basis in the statement of financial position categorized by level of significance of the inputs used in making the measurements:

		As at December 31, 2019		As at December 31, 2018
(in millions of U.S. dollars)	Category	Level		Level
FINANCIAL ASSETS
Cash and cash equivalents	Financial assets at amortized cost		83.4		103.7
Trade and other receivables	Financial assets at amortized cost		14.5		36.6
Provisionally priced contracts	Financial instruments at FVTPL	2	1.5	2	(1.6)
Gold and copper swap contracts	Financial instruments at FVTPL	2	(1.3)	2	0.9
Copper price option contracts	Financial Instruments at FVTPL	2	—	2	0.7
Proceeds due from income tax refunds at Mesquite(2)	Financial assets at amortized cost	3	9.0	3	8.5
Investments	Financial instruments at FVTPL	1	0.5	1	0.8
FINANCIAL LIABILITIES
Trade and other payables(1)	Financial liabilities at amortized cost		111.3		101.3
Long-term debt	Financial liabilities at amortized cost		714.5		780.5
Gold stream obligation	Financial instruments at FVTPL	3	164.5	3	182.4
Performance share units	Financial instruments at FVTPL	3	0.2	3	0.2
Restricted share units	Financial instruments at FVTPL	1	0.5	1	0.3
Deferred share units	Financial instruments at FVTPL	1	1.1	1	0.3
Gold price option contracts	Financial instruments at FVTPL	2	26.4	2	4.8

1. Trade and other payables exclude the short-term portion of reclamation and closure cost obligations and the short-term portion of the gold stream obligation.

2. Proceeds due from income tax refunds at Mesquite are included in current assets on the consolidated statement of financial position.

The carrying values and fair values of the Company’s financial instruments are as follows:

	As at December 31, 2019		As at December 31, 2018
	Carrying		Carrying
(in millions of U.S. dollars)	value	Fair value	value	Fair value
FINANCIAL ASSETS
Cash and cash equivalents	83.4	83.4	103.7	103.7
Trade and other receivables	14.5	14.5	36.6	36.6
Provisionally priced contracts	1.5	1.5	(1.6)	(1.6)
Gold and copper swap contracts	(1.3)	(1.3)	0.9	0.9
Copper price option contracts	—	—	0.7	0.7
Proceeds due from income tax refunds at Mesquite(2)	9.0	9.0	8.5	8.5
Investments	0.5	0.5	0.8	0.8
FINANCIAL LIABILITIES
Trade and other payables(1)	111.3	111.3	101.3	101.3
Long-term debt	714.5	707.7	780.5	652.9
Gold stream obligation	164.5	164.5	182.4	182.4
Performance share units	0.2	0.2	0.2	0.2
Restricted share units	0.5	0.5	0.3	0.3
Deferred share units	1.1	1.1	0.3	0.3
Gold price option contracts	26.4	26.4	4.8	4.8

1. Trade and other payables exclude the short-term portion of reclamation and closure cost obligation and the short-term portion of the gold stream obligation.

2. Proceeds due from income tax refunds at Mesquite are included in other non-current assets on the consolidated statement of financial position.

XML

LONG-TERM DEBT

12 Months Ended

Dec. 31, 2019

LONG-TERM DEBT

LONG-TERM DEBT

11. LONG-TERM DEBT

Long-term debt consists of the following:

		As at
		December 31
(in millions of U.S. dollars)	2019	2018
LONG-TERM DEBT
Senior unsecured notes - due November 15, 2022 (a)	397.4	495.3
Senior unsecured notes - due May 15, 2025 (b)	287.1	285.2
Credit Facility (c)	30.0	—
Total long-term debt	714.5	780.5

(a) Senior Unsecured Notes – due November 15, 2022

As at December 31, 2019, the Company has $400.3 million of senior unsecured notes outstanding that become due and payable on November 15, 2022 (“2022 Unsecured Notes”). The 2022 Unsecured Notes are denominated in U.S. dollars and bear interest at the rate of 6.25% per annum. Interest is payable in arrears in equal semi-annual instalments on May 15 and November 15 of each year. The Company incurred transaction costs of $9.9 million which have been offset against the carrying amount of the 2022 Unsecured Notes and are being amortized to net earnings using the effective interest method. In 2019, $99.7 million in principle of the 2022 Unsecured Notes were repurchased and cancelled. The Company incurred $0.3 million in transaction costs associated with the repurchase and cancellation of the 2022 Unsecured Notes.

The 2022 Unsecured Notes are subject to a minimum interest coverage incurrence covenant of earnings before interest, taxes, depreciation, amortization, impairment, and other non-cash adjustments to interest of 2:1. The test is applied on a pro-forma basis prior to the Company incurring additional debt, entering into business combinations or acquiring significant assets, or certain other corporate actions. There are no maintenance covenants.

The 2022 Unsecured Notes are redeemable by the Company in whole or in part:

· During the 12‑month period beginning on November 15 of the years indicated at the redemption prices below, expressed as a percentage of the principal amount of the 2022 Unsecured Notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date:

Date	Redemption prices (%)
2019	101.04	%
2020 and thereafter	100.00	%

(b) Senior Unsecured Notes – due May 15, 2025

As at December 31, 2019 the Company has $300.0 million of senior unsecured notes outstanding that mature and become due and payable on May 15, 2025 (“2025 Unsecured Notes”). The face value is $300.0 million. The 2025 Unsecured Notes are denominated in U.S. dollars and bear interest at the rate of 6.375% per annum. Interest is payable in arrears in equal semi-annual instalments on May 15 and November 15 of each year.The Company incurred initial transaction costs of $10.7 million which have been offset against the carrying amount of the 2025 Unsecured Notes and are being amortized to net earnings using the effective interest method.

The 2025 Unsecured Notes are subject to a minimum interest coverage incurrence covenant of earnings before interest, taxes, depreciation, amortization, impairment, and other non-cash adjustments to interest of 2:1. The test is applied on a pro-forma basis prior to the Company incurring additional debt, entering into business combinations or acquiring significant assets, or certain other corporate actions. There are no maintenance covenants.

The 2025 Unsecured Notes are redeemable by the Company in whole or in part:

· At any time prior to May 15, 2020 at a redemption price of 100% of the aggregate principal amount of the 2025 Unsecured Notes, plus a make-whole premium (consisting of future interest that would have been paid up to the first call date of May 15, 2020), plus accrued and unpaid interest, if any, to the redemption date.

· During the 12‑month period beginning on May 15 of the years indicated at the redemption prices below, expressed as a percentage of the principal amount of the 2025 Unsecured Notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date:

Date	Redemption prices (%)
2020	104.78	%
2021	103.19	%
2022	101.59	%
2023 and thereafter	100.00	%

(c) Credit Facility

The Company holds a revolving credit facility (the “Credit Facility”) with a maturity date of August 2021 and has a borrowing limit of $400.0 million.

The Credit Facility contains various covenants customary for a loan facility of this nature, including limits on indebtedness, asset sales and liens. The Credit Facility contains three covenant tests, the minimum interest coverage ratio, being earnings before interest, taxes, depreciation, amortization, exploration, impairment and other non-cash adjustments (“Adjusted EBITDA”) to interest, the maximum net debt to Adjusted EBITDA ratio (“Leverage Ratio”), and the maximum gross secured debt to Adjusted EBITDA (“Secured Leverage Ratio”), all of which are measured on a rolling four-quarter basis at the end of every quarter. Significant financial covenants are as follows:

		Twelve months ended	Twelve months ended
		December 31	December 31
	Financial Covenant	2019	2018
FINANCIAL COVENANTS
Minimum interest coverage ratio (Adjusted EBITDA to interest)	>3.0 : 1	4.3 : 1	4.5 : 1
Maximum leverage ratio (net debt to Adjusted EBITDA)	<4.5 : 1	3.1 : 1	2.6 : 1
Maximum secured leverage ratio (secured debt to Adjusted EBITDA)	<2.0 : 1	0.7 : 1	0.4 : 1

The interest margin on drawings under the Credit Facility ranges from 1.25% to 3.75% over LIBOR, the Prime Rate or the Base Rate, based on the Company’s Leverage Ratio and the currency and type of credit selected by the Company. Based on the Company’s Leverage Ratio, the rate is 3.25% over LIBOR as at December 31, 2019 (December 31, 2018 – 3.25%). The standby fees on undrawn amounts under the Credit Facility range from 0.51% to 0.84%, depending on the Company’s Leverage Ratio. Based on the Company’s Leverage Ratio, the rate is 0.73% as at December 31, 2019 (December 31, 2018 – 0.73%).

As at December 31, 2019, the Company has drawn $30.0 million under the Credit Facility and the Credit Facility has been used to issue letters of credit amounting of $118.9 million (December 31, 2018 - $110.8 million). Letters of credit relate to reclamation bonds, and other financial assurances required with various government agencies.

The following is a summary of the changes in liabilities arising from financing activities for the year ended December 31, 2019:

	As at						As at
	December			Fair Value	Interest &	Foreign	December
	31, 2018	Borrowings	Repayments	changes	Accretion	Exchange	31, 2019
LIABILITIES ARISING FROM FINANCING ACTVITIES
Long-term debt	780.5	30.0	(99.7)	1.2	2.5	—	714.5
Interest payable	6.9	—	(49.9)	—	48.7	—	5.7
Gold stream obligation	180.2	—	(20.0)	4.3	—	—	164.5
Total	967.6	30.0	(169.6)	5.5	51.2	—	884.7

XML

TRADE AND OTHER PAYABLES

12 Months Ended

Dec. 31, 2019

TRADE AND OTHER PAYABLES

TRADE AND OTHER PAYABLES

7. TRADE AND OTHER PAYABLES

	As at	As at
	December 31	December 31
(in millions of U.S. dollars)	2019	2018
TRADE AND OTHER PAYABLES
Trade payables	39.7	47.1
Interest payable	6.1	6.9
Accruals	65.5	47.3
Current portion of reclamation and closure cost obligations (Note 18)	12.3	6.5
Current portion of gold stream obligation (Note 12)	21.6	18.3
Current portion of derivative liabilities (Note 14)	26.4	4.8
Total trade and other payables	171.6	130.9

XML

MINING INTERESTS (Tables)

12 Months Ended

Dec. 31, 2019

MINING INTERESTS

Schedule of property, plant and equipment

	Mining Properties
		Non-	Plant &	Construction
	Depletable	depletable	equipment	in progress	Total
(in millions of U.S. dollars)
COST
As at December 31, 2017	2,353.0	562.0	1,379.3	57.0	4,351.3
Additions	70.8	23.8	48.3	72.0	214.9
Disposals	(0.4)	—	(4.8)	—	(5.2)
Sale of Mesquite(1)	(323.5)	—	(232.0)	(1.8)	(557.3)
Transfers	(0.6)	—	0.6	—	—
Asset impairment	(836.6)	(218.2)	—	—	(1,054.8)
As at December 31, 2018	1,262.7	367.6	1,191.4	127.2	2,948.9
Additions	87.3	43.5	75.5	103.5	309.8
Disposals	(0.2)	(0.1)	(6.7)	—	(7.0)
Transfers	101.3	—	—	(101.3)	—
Government Grants(2)	—	(2.0)	—	—	(2.0)
As at December 31, 2019	1,451.1	409.0	1,260.2	129.4	3,249.7
ACCUMULATED DEPRECIATION
As at December 31, 2017	737.3	—	413.6	—	1,150.9
Depreciation for the year	169.1	—	130.7	—	299.8
Disposals	(0.1)	—	(3.6)	—	(3.7)
Sale of Mesquite(1)	(189.3)	—	(162.2)	—	(351.5)
As at December 31, 2018	717.0	—	378.5	—	1,095.5
Depreciation for the year	114.4	—	114.9	—	229.3
Disposals	—	—	(3.1)	—	(3.1)
As at December 31, 2019	831.4	—	490.3	—	1,321.7
CARRYING AMOUNT
As at December 31, 2018	545.7	367.6	812.9	127.2	1,853.4
As at December 31, 2019	619.7	409.0	769.9	129.4	1,928.0

1. Refer to Note 16 for further information on discontinued operations. Mesquite was classified as an asset held-for-sale in the third quarter of 2018 and was sold in October 2018.

2. The province of British Columbia provides an incentive for exploration in British Columbia as a refundable tax credit. This refundable tax credit is treated as government assistance and reduces Mining Interests. For the year ended December 31, 2019, the Company received $2.0 million in refundable tax credits which was recorded as a reduction to Mining Interests.

Schedule of segmented assets and liabilities

Carrying amount by property as at December 31, 2019

	As at December 31, 2019
		Non-	Plant &	Construction
(in millions of U.S. dollars)	Depletable	depletable	equipment	in progress	Total
MINING INTEREST BY SITE
New Afton	371.4	50.0	149.2	17.8	588.4
Rainy River	248.3	17.8	602.1	111.6	979.8
Blackwater	—	340.1	14.5	—	354.6
Other(1)	—	1.1	4.1	—	5.2
Carrying amount	619.7	409.0	769.9	129.4	1,928.0

1. Other includes corporate balances and exploration properties.

Carrying amount by property as at December 31, 2018:

	As at December 31, 2018
		Non-	Plant &	Construction
(in millions of U.S. dollars)	Depletable	depletable	equipment	in progress	Total
MINING INTEREST BY SITE
New Afton	421.9	26.1	191.6	16.4	656.0
Cerro San Pedro(2)	—	—	—	—	—
Rainy River	123.8	14.3	605.0	110.8	853.9
Blackwater	—	326.1	14.2	—	340.3
Other(1)	—	1.1	2.1	—	3.2
Carrying amount	545.7	367.6	812.9	127.2	1,853.4

1. Other includes corporate balances and exploration properties.

Cerro San Pedro transitioned to the reclamation phase of its mine life cycle on December 31, 2018. As a result, Cerro San Pedro's mining interest are fully amortized as at December 31, 2018.

XML

COMPENSATION OF KEY MANAGEMENT PERSONNEL

12 Months Ended

Dec. 31, 2019

COMPENSATION OF KEY MANAGEMENT PERSONNEL

COMPENSATION OF KEY MANAGEMENT PERSONNEL

24. COMPENSATION OF KEY MANAGEMENT PERSONNEL

The remuneration of the Company’s key management personnel(1) was as follows:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
KEY MANAGEMENT PERSONNEL REMUNERATION
Short-term benefits(2)	1.9	1.5
Share-based payments	0.2	—
Termination benefits	1.1	4.1
Total key management personnel remuneration	3.2	5.6

1. Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the Company.

2. Short-term benefits include salaries, bonuses payable within twelve months of the statement of financial position date and other annual employee benefits.

The remuneration of key executives is determined by the compensation committee having regard to the performance of individuals and market trends.

XML

SEGMENTED INFORMATION - Information about major customers (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
SEGMENTED INFORMATION
Revenue	$ 630.6	$ 604.5
Customer [Member]
SEGMENTED INFORMATION
Revenue	558.2	490.7
Rainy River
SEGMENTED INFORMATION
Revenue	358.9	274.4
Rainy River | Customers one [Member]
SEGMENTED INFORMATION
Revenue	128.9	137.9
Rainy River | Customers two [Member]
SEGMENTED INFORMATION
Revenue	126.7	78.0
Rainy River | Customers three [Member]
SEGMENTED INFORMATION
Revenue	102.5
New Afton
SEGMENTED INFORMATION
Revenue	271.7	314.1
New Afton | Customers one [Member]
SEGMENTED INFORMATION
Revenue	100.9	109.9
New Afton | Customers two [Member]
SEGMENTED INFORMATION
Revenue	$ 99.2	94.2
New Afton | Customers three [Member]
SEGMENTED INFORMATION
Revenue		$ 70.7

XML

RECLAMATION AND CLOSURE COST OBLIGATIONS - Additional information (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
RECLAMATION AND CLOSURE COST OBLIGATIONS
Percentage of annual fees of the value of outstanding letters of credit	1.50%
Letters Of Credit [Member]
RECLAMATION AND CLOSURE COST OBLIGATIONS
Exposure to credit risk on loan commitments and financial guarantee contracts	$ 118.9	$ 110.8
Bottom of range [member]
RECLAMATION AND CLOSURE COST OBLIGATIONS
Discount rate applied to cash flow projections	1.80%	1.90%
Description of inflation rates applied to cash flow projections	1.40%	1.40%
Top of range [member]
RECLAMATION AND CLOSURE COST OBLIGATIONS
Discount rate applied to cash flow projections	5.40%	7.10%
Description of inflation rates applied to cash flow projections	3.30%	3.30%

XML

EXPENSES (Tables)

12 Months Ended

Dec. 31, 2019

EXPENSES

Schedule of expenses by nature

(a) Operating expenses by nature

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
OPERATING EXPENSES BY NATURE
Raw materials and consumables	126.6	148.1
Salaries and employee benefits	112.5	102.1
Contractors	81.1	60.6
Repairs and maintenance	37.2	47.7
General and administrative	24.4	20.3
Leases	6.9	4.2
Royalties	6.2	3.5
Drilling and analytical	3.8	2.4
Other	6.1	5.2
Total production expenses	404.8	394.1
Less: Production expenses capitalized	(71.6)	(45.3)
Add (less): Change in inventories	38.7	(23.4)
Total operating expenses	371.9	325.4

Schedule of finance costs and income

(b) Finance costs and income

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
FINANCE COSTS
Interest and accretion on senior unsecured notes(1)	51.1	53.2
Interest on Credit Facility	0.1	9.0
Accretion expense on decommissioning obligations (Note 18)	2.7	2.0
Loss on repayment of long-term debt (Note 11)	1.2	—
Other finance costs	7.5	4.8
Total finance costs	62.6	69.0
FINANCE INCOME
Interest income	2.2	1.5

Schedule of other (losses) and gains

(c) Other (losses) and gains

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
OTHER (LOSSES) AND GAINS
Rainy River Underground project costs(1)	(3.4)	—
(Loss) gain on foreign exchange	(3.7)	6.6
Loss on disposal of assets	(1.2)	(0.3)
Loss on revaluation of investments	—	(0.2)
Unrealized gain on revaluation of gold stream obligation (Note 12)	20.1	11.7
Settlement and loss on revaluation of gold price option contracts	(21.7)	(4.8)
Settlement and (loss) gain on revaluation of copper price option contracts	(0.7)	4.8
Settlement and gain on revaluation of foreign exchange forward contracts	1.5	—
Revaluation of Cerro San Pedro's reclamation and closure cost obligation(2)	0.6	(1.0)
Gain on receivable associated with Mesquite sale(3)	4.0	—
Other(2)	(1.1)	1.3
Total other (losses) gains	(5.6)	18.1

1. In early 2019, the Company announced that it has deferred the Rainy River underground mine development plan. As a result, the Company has recognized demobilization and related costs within other (losses) and gains.

2. Cerro San Pedro has transitioned to the reclamation phase of its mine life cycle effective December 31, 2018. As a result, changes in estimate to Cerro San Pedro’s reclamation and closure cost obligation resulting from revisions to the expected cash flows will be recognized within other gains and losses. Additionally, social closure costs associated with Cerro San Pedro are also recognized within other (losses) gains within the Other line item.

In 2019, the Company recognized a gain on the collection of the outstanding working capital proceeds due from the sale of Mesquite and income tax refunds at Mesquite.

XML

BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details)	12 Months Ended
	Dec. 31, 2019
Plant and machinery [Member] | Bottom of range [member]
Disclosure of detailed information about property, plant and equipment
Useful life measured as period of time, property, plant and equipment	3 years
Plant and machinery [Member] | Top of range [member]
Disclosure of detailed information about property, plant and equipment
Useful life measured as period of time, property, plant and equipment	13 years
Mobile equipment [member] | Bottom of range [member]
Disclosure of detailed information about property, plant and equipment
Useful life measured as period of time, property, plant and equipment	5 years
Mobile equipment [member] | Top of range [member]
Disclosure of detailed information about property, plant and equipment
Useful life measured as period of time, property, plant and equipment	7 years

XML

FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2019

FINANCIAL RISK MANAGEMENT

Schedule of maximum exposure to credit risk

The Company’s maximum exposure to credit risk is as follows:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
CREDIT RISK EXPOSURE
Cash and cash equivalents	83.4	103.7
Trade and other receivables	23.7	35.9
Total financial instrument exposure to credit risk	107.1	139.6

Schedule of aging of trade and other receivables

The aging of trade and other receivables is as follows:

	As at December 31
	0-30	31-60	61-90	91-120	Over 120	2019	2018
(in millions of U.S. dollars)	days	days	days	days	days	Total	Total
AGING TRADE AND OTHER RECEIVABLES
Rainy River	4.5	—	—	—	1.0	5.5	8.8
New Afton	3.4	—	—	2.9	—	6.3	8.3
Cerro San Pedro	0.5	0.1	0.1	0.1	0.6	1.4	5.1
Blackwater	—	—	—	—	0.3	0.3	0.3
Corporate	10.2	—	—	—	—	10.2	13.4
Total trade and other receivables	18.6	0.1	0.1	3.0	1.9	23.7	35.9

Schedule of contractual maturities of debt commitments

The following table shows the contractual maturities of debt commitments. The amounts presented represent the future undiscounted principal and interest cash flows, and therefore, do not equate to the carrying amounts on the consolidated statements of financial position.

	As at December 31
				After	2019	2018
(in millions of U.S. dollars)	< 1 year	1-3 years	4-5 years	5 years	Total	Total
DEBT COMMITMENTS
Trade and other payables	150.0	—	—	—	150.0	112.6
Long-term debt	—	430.3	—	300.0	730.3	800.0
Interest payable on long-term debt	44.2	85.1	38.3	7.1	174.7	242.9
Gold stream obligation	22.0	49.9	54.9	65.9	192.7	267.5
Total debt commitments	216.2	565.3	93.2	373.0	1,247.7	1,423.0

Schedule of currencies of financial instruments and other foreign currency denominated liabilities

	As at December 31, 2019
(in millions of U.S. dollars)	CAD	MXN
EXPOSURE TO CURRENCY RISK
Cash and cash equivalents	11.0	0.3
Trade and other receivables	7.0	0.9
Income tax (payable) receivable	(0.3)	4.6
Trade and other payables	(86.8)	(13.5)
Deferred tax liability	(48.3)	—
Reclamation and closure cost obligations	(93.3)	(1.4)
Share units	(1.9)	—
Total exposure to currency risk	(212.6)	(9.1)

	As at December 31, 2018
(in millions of U.S. dollars)	CAD	MXN
EXPOSURE TO CURRENCY RISK
Cash and cash equivalents	12.9	0.6
Trade and other receivables	9.9	4.9
Income tax receivable	—	4.6
Trade and other payables	(105.0)	(14.1)
Deferred tax liability	(54.5)	—
Reclamation and closure cost obligations	(72.6)	(13.5)
Performance share units and restricted share units	(0.5)	—
Total exposure to currency risk	(209.8)	(17.5)

Schedule of changes in foreign exchange rates

. A 10% strengthening (weakening) of the U.S. dollar against the following currencies would have decreased (increased) the Company’s net loss from the financial instruments presented by the amounts shown below.

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
IMPACT OF 10% CHANGE IN FOREIGN EXCHANGE RATES
Canadian dollar	21.3	21.0
Mexican peso	0.9	1.8

Schedule of change in commodity prices

. A 10% change in commodity prices and fuel and electricity prices would impact the Company’s net earnings before taxes and other comprehensive income before taxes as follows:

	Year ended December 31, 2019		Year ended December 31, 2018
		Other		Other
	Net	Comprehensive	Net	Comprehensive
(in millions of U.S. dollars)	Earnings	Income	Earnings	Income
IMPACT OF 10% CHANGE IN COMMODITY PRICES
Gold price	19.0	—	37.6	—
Copper price	20.7	—	6.5	—
Fuel and electricity price	7.0	—	5.5	—

XML

EXPENSES - Other (losses) and gains (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Other (losses) and gains
Rainy River Underground project costs	$ (3.4)	$ 0.0
(Loss) gain on foreign exchange	(3.7)	6.6
Loss on disposal of assets	(1.2)	(0.3)
Loss on revaluation of investments	0.0	(0.2)
Unrealized gain on revaluation of gold stream obligation (Note 12)	20.1	11.7
Settlement and loss on revaluation of gold price option contracts	(21.7)	(4.8)
Settlement and (loss) gain on revaluation of copper price option contracts	(0.7)	4.8
Settlement and gain on revaluation of foreign exchange forward contracts	1.5	0.0
Revaluation of Cerro San Pedro's reclamation and closure cost obligation(2)	0.6	(1.0)
Gain on receivable associated with Mesquite sale(3)	4.0	0.0
Other	(1.1)	1.3
Total other (losses) gains	$ (5.6)	$ 18.1

XML

DERIVATIVE INSTRUMENTS - Provisionally priced sales (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
GAIN (LOSS) ON THE PROVISIONAL PRICING OF CONCENTRATE SALES
Realized	$ 0.5	$ (8.9)
Unrealized	1.5	(1.6)
Total gain (loss)	2.0	(10.5)
Gold
GAIN (LOSS) ON THE PROVISIONAL PRICING OF CONCENTRATE SALES
Realized	2.2	(1.2)
Unrealized	0.5	1.1
Total gain (loss)	2.7	(0.1)
Copper
GAIN (LOSS) ON THE PROVISIONAL PRICING OF CONCENTRATE SALES
Realized	(1.7)	(7.7)
Unrealized	1.0	(2.7)
Total gain (loss)	$ (0.7)	$ (10.4)

XML

LONG-TERM DEBT - Borrowings redemption prices (Details) - Senior unsecured notes - due May 15, 2025	12 Months Ended
	Dec. 31, 2019
Long Term Debt
Borrowings Redemption Price Percentage	100.00%
2020
Long Term Debt
Borrowings Redemption Price Percentage	104.78%
2021
Long Term Debt
Borrowings Redemption Price Percentage	103.19%
2022
Long Term Debt
Borrowings Redemption Price Percentage	101.59%
2023 and thereafter
Long Term Debt
Borrowings Redemption Price Percentage	100.00%

XML

GOLD STREAM OBLIGATION - Change in stream obligation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
GOLD STREAM OBLIGATION
Balance	$ 180.2	$ 273.5
Settlements during the period	(20.0)	(15.0)
Fair value adjustments related to changes in the Company's own credit risk	24.4	(66.6)
Other fair value adjustments	(20.1)	(11.7)
Balance	164.5	180.2
Less: current portion of gold stream obligation	(21.6)	(18.3)
Non-current portion of gold stream obligation	$ 142.9	$ 161.9

XML

DERIVATIVE INSTRUMENTS - Additional information (Details) $ in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2018 lb oz $ / oz	Dec. 31, 2019 item t	Dec. 31, 2019 lb	Dec. 31, 2019 oz	Dec. 31, 2019 USD ($)
Disclosure of derivative instruments
Strike price of put options at the time of purchasing | $ / oz	1,230
Strike price of call options at the time of selling | $ / oz	1,300
Foreign exchange forward contracts
Disclosure of derivative instruments
Amount hedged per month | $					$ 20.0
Average foreign exchange rate | item		1.34
Purchased put options [Member]
Disclosure of derivative instruments
Strike price of copper price option contracts | oz	2.50
Selling call options [Member]
Disclosure of derivative instruments
Strike price of copper price option contracts | lb	3.00
Copper price option contracts [Member]
Disclosure of derivative instruments
Quantity of production		21,600	47,600,000
Gold price option contracts [Member]
Disclosure of derivative instruments
Quantity of production | oz				192,000

XML

SEGMENTED INFORMATION - Geographical information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
REVENUE AND NON-CURRENT ASSETS BY LOCATION
Revenue	$ 630.6	$ 604.5

XML

IMPAIRMENT

12 Months Ended

Dec. 31, 2019

IMPAIRMENT

IMPAIRMENT

10. IMPAIRMENT

In accordance with the Company’s accounting policies, the recoverable amount of an asset or cash-generating unit (“CGU”) is estimated when an indication of impairment exists.

During the second half of 2018, the Company experienced a significant and prolonged period where the carrying value of its net assets was more that its market capitalization. The Company identified this market capitalization deficiency as an indicator of impairment as at December 31, 2018. As a result of this impairment indicator, the Company assessed its CGUs and determined that impairments existed at Rainy River and Blackwater.

At Rainy River, the impairment loss was largely driven by increased capital expenditures and a lower in-situ value as a result of applying a lower per ounce value to in-situ ounces. At Blackwater, the Company assessed the value of the project using an in-situ metric approach for reserves and resources, rather than a discounted cash flow approach, consistent with the approach a market participant would take and also applying a lower per ounce value to in situ ounces. This approach incorporated values based on recent comparable market transactions. In the second quarter of 2018, the Company completed an updated Rainy River life-of-mine (“LOM”) plan and released an updated NI 43‑101 Technical Report for Rainy River in early August 2018. The Company identified the changes to the mine plan and increased cost estimates at Rainy River as indicators of impairment as at June 30, 2018 and recorded an after-tax impairment loss of $282.1 million within net loss. For the year ended December 31, 2018, the Company recorded an after-tax impairment loss of $953.2 million.

			Year ended
	June 30, 2018	December 312018	December 31, 2018
(in millions of U.S. dollars)
IMPAIRMENT LOSS
Rainy River depletable mining properties	383.7	452.9	836.6
Blackwater non-depletable mining properties	—	218.2	218.2
Total impairment loss	383.7	671.1	1,054.8
Tax recovery(1)	(101.6)	—	(101.6)
Total impairment loss, net of tax	282.1	671.1	953.2

1.There was no tax recovery associated with the impairment losses at Rainy River and Blackwater recorded during the fourth quarter of 2018 as the Company has not recognized any deferred tax assets as at December 31, 2018. Refer to Note 17 for further information.

XML

TRADE AND OTHER RECEIVABLES

12 Months Ended

Dec. 31, 2019

TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES

6. TRADE AND OTHER RECEIVABLES

	As at	As at
	December 31	December 31
(in millions of U.S. dollars)	2019	2018
TRADE AND OTHER RECEIVABLES
Trade receivables	5.9	9.5
Sales tax receivable	7.1	14.0
Unsettled provisionally priced concentrate derivatives and swap contracts (Note 14)	0.2	(0.7)
Proceeds due from the sale of Mesquite, including income tax refund receivable (Note 16)	9.0	11.2
Other	1.5	1.9
Total trade and other receivables	23.7	35.9

XML

SEGMENTED INFORMATION - Additional information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
SEGMENTED INFORMATION
Severance and Other Termination Benefits	$ 1.1	$ 4.1
Major Customer [Member]
SEGMENTED INFORMATION
Percentage of entity's revenue	89.00%	79.00%

XML

COMMITMENTS

12 Months Ended

Dec. 31, 2019

COMMITMENTS

COMMITMENTS

25. COMMITMENTS

The Company has entered into a number of contractual commitments for capital items relating to operations and development. At December 31, 2019, these commitments totalled $72.5 million, $72.3 million of which is expected to fall due over the next 12 months. This compares to commitments of $27.2 million as at December 31, 2018, $26.9 million of which was expected to fall due over the upcoming year. Certain contractual commitments may contain cancellation clauses; however, the Company discloses its commitments based on management’s intent to fulfill the contracts.

XML

TRADE AND OTHER RECEIVABLES (Tables)

12 Months Ended

Dec. 31, 2019

TRADE AND OTHER RECEIVABLES

Schedule of trade and other receivables

	As at	As at
	December 31	December 31
(in millions of U.S. dollars)	2019	2018
TRADE AND OTHER RECEIVABLES
Trade receivables	5.9	9.5
Sales tax receivable	7.1	14.0
Unsettled provisionally priced concentrate derivatives and swap contracts (Note 14)	0.2	(0.7)
Proceeds due from the sale of Mesquite, including income tax refund receivable (Note 16)	9.0	11.2
Other	1.5	1.9
Total trade and other receivables	23.7	35.9

XML

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CHANGE IN NON-CASH OPERATING WORKING CAPITAL
Trade and other receivables	$ 4.4	$ (5.4)
Inventories	16.2	(53.1)
Prepaid expenses and other	(2.3)	(0.6)
Trade and other payables	7.6	(12.5)
Total change in non-cash operating working capital	25.9	(71.6)
OTHER NON-CASH ADJUSTMENTS
Unrealized loss on concentrate contracts	(0.2)	0.7
Equity settled share-based payment expense	0.7	2.7
Loss on disposal of assets	1.2	0.3
Settlement and loss on revaluation of gold price option contracts	21.7	4.8
Unrealized gain on gold stream obligation	(20.1)	(11.7)
Settlement (gain) loss on revaluation of copper price option contracts	0.7	(4.8)
Revaluation of CSP's reclamation and closure cost obligation	(0.6)	1.0
Inventory write-downs	14.1	15.8
Other non-cash adjustments	0.0	0.2
Total other non-cash adjustments	$ 17.5	$ 9.0

XML

IMPAIRMENT (Tables)

12 Months Ended

Dec. 31, 2019

IMPAIRMENT

Schedule of impairment loss and reversal of impairment loss

			Year ended
	June 30, 2018	December 312018	December 31, 2018
(in millions of U.S. dollars)
IMPAIRMENT LOSS
Rainy River depletable mining properties	383.7	452.9	836.6
Blackwater non-depletable mining properties	—	218.2	218.2
Total impairment loss	383.7	671.1	1,054.8
Tax recovery(1)	(101.6)	—	(101.6)
Total impairment loss, net of tax	282.1	671.1	953.2

1.There was no tax recovery associated with the impairment losses at Rainy River and Blackwater recorded during the fourth quarter of 2018 as the Company has not recognized any deferred tax assets as at December 31, 2018. Refer to Note 17 for further information.

XML

EXPENSES - Finance costs and income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Finance costs
Interest and accretion on senior unsecured notes(1)	$ 51.1	$ 53.2
Interest on Credit Facility	0.1	9.0
Accretion expense on decommissioning obligations (Note 18)	2.7	2.0
Loss on repayment of long-term debt (Note 11)	1.2	0.0
Other finance costs	7.5	4.8
Total finance costs	62.6	69.0
Finance income
Interest income	2.2	$ 1.5
Interest costs capitalised	$ 0.6

XML

BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Minera San Xavier S.A. de C.V. [Member]	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure of subsidiaries
Principal activity of subsidiary	Mining
Method used to account for subsidiary	Consolidated
Country of incorporation and operation	Mexico
Proportion of ownership interest in subsidiary	100.00%	100.00%

XML

CAPITAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2019

CAPITAL RISK MANAGEMENT

Schedule Of Capital

In the management of capital, the Company includes the components of equity, long-term debt, net of cash and cash equivalents, and investments.

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
CAPITAL (AS DEFINED ABOVE) IS SUMMARIZED AS FOLLOWS
Equity	961.3	944.5
Long-term debt	714.5	780.5
	1,675.8	1,725.0
Cash and cash equivalents	(83.4)	(103.7)
Total	1,592.4	1,621.3

XML

DERIVATIVE INSTRUMENTS - Swap contracts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
(LOSS) GAIN ON SWAP CONTRACTS
Realized	$ (3.0)	$ 12.6
Unrealized	(1.3)	0.9
Total (loss) gain	(4.3)	13.5
Gold
(LOSS) GAIN ON SWAP CONTRACTS
Realized	(3.2)	1.3
Unrealized	(0.4)	(0.8)
Total (loss) gain	(3.6)	0.5
Copper
(LOSS) GAIN ON SWAP CONTRACTS
Realized	0.2	11.3
Unrealized	(0.9)	1.7
Total (loss) gain	$ (0.7)	$ 13.0

XML

LONG-TERM DEBT - Credit Facility (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Adjusted EBITDA to Interest [Member]
Long Term Debt
Interest Coverage Ratio	4.3 : 1	4.5 : 1
Net Debt to Adjusted EBITDA [Member]
Long Term Debt
Leverage Ratio	3.1 : 1	2.6 : 1
Secured Debt To Adjusted Ebitda Member [Member]
Long Term Debt
Secured Leverage Ratio	0.7 : 1	0.4 : 1
Applicable Financial Covenant [Member] | Adjusted EBITDA to Interest [Member]
Long Term Debt
Interest Coverage Ratio	>3.0 : 1
Applicable Financial Covenant [Member] | Net Debt to Adjusted EBITDA [Member]
Long Term Debt
Leverage Ratio	<4.5 : 1
Applicable Financial Covenant [Member] | Secured Debt To Adjusted Ebitda Member [Member]
Long Term Debt
Secured Leverage Ratio	<2.0 : 1

XML

GOLD STREAM OBLIGATION - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) oz
GOLD STREAM OBLIGATION
Transaction price allocated to remaining performance obligations | $	$ 175
Gold stream obligation, rate of gold production to be delivered for initial threshold	6.50%
Gold stream obligation initial threshold quantity	230,000
Gold stream obligation rate of gold production to be delivered after initial threshold	3.25%
Gold stream obligation, rate of silver production to be delivered for initial threshold	60.00%
Gold stream obligation, silver production, initial threshold quantity	3,100,000
Gold stream obligation, rate of silver production to be delivered after initial threshold	30.00%
Average spot rate of gold or silver	25.00%
Term of the agreement	40 years

XML

SHARE CAPITAL (Details) - USD ($) $ in Millions		12 Months Ended
	Aug. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
SHARE CAPITAL
Balance		579,115,000	578,636,000
Common shares, beginning of period		$ 3,035.2	$ 3,036.5
Issuance of common shares on equity offering		$ 109.3	$ 0.3
Issuance of common shares	93,750,000	93,750,000
Issue of common shares		$ 106.7
Issuance of common shares under First Nations agreements		3,077,000	113,000
Issuance of shares under First Nations agreements and land purchases		$ 2.6	$ 0.3
Exercise of options and vested performance share units		15,000	366,000
Exercise of options and vested performance share units		$ 0.0	$ 0.3
Reversal of deferred tax recovery		$ 0.0	$ (1.9)
Reversal of deferred tax recovery			0
Balance		675,957,000	579,115,000
Common shares, end of period		$ 3,144.5	$ 3,035.2

XML

GOLD STREAM OBLIGATION (Tables)

12 Months Ended

Dec. 31, 2019

GOLD STREAM OBLIGATION

Schedule of Gold Stream Obligation

The following is a summary of the changes in the Company’s gold stream obligation:

(in millions of U.S. dollars)
CHANGE IN STREAM OBLIGATION
Balance, December 31, 2017	273.5
Settlements during the period	(15.0)
Fair value adjustments related to changes in the Company’s own credit risk(1)	(66.6)
Other fair value adjustments(2)	(11.7)
Balance, December 31, 2018	180.2
Less: current portion of gold stream obligation(3)	(18.3)
Non-current portion of gold stream obligation	161.9
Balance, December 31, 2018	180.2
Settlements during the period	(20.0)
Fair value adjustments related to changes in the Company’s own credit risk(1)	24.4
Other fair value adjustments(2)	(20.1)
Balance, December 31, 2019	164.5
Less: current portion of gold stream obligation(3)	(21.6)
Non-current portion of gold stream obligation	142.9

1. Fair value adjustments related to changes in the Company’s own credit risk are included in other comprehensive income.

2. Other fair value adjustments are included in the consolidated income statements.

3. The current portion of the gold stream obligation is included in trade and other payables on the statement of financial position.

XML

DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2019

DISCONTINUED OPERATIONS

Schedule of net earnings from Mesquite

The net earnings from Mesquite for the year ended December 31, 2018 are as follows:

	Year ended December 31
(in millions of U.S. dollars, except per share amounts)	2018
Revenues	146.1
Operating expenses	95.6
Depreciation and depletion	35.4
Revenue less cost of goods sold	15.1
Finance income	0.4
Finance costs	(0.4)
Other losses	—
Impairment loss on held-for-sale assets	(253.1)
Loss before taxes	(238.0)
Income tax recovery	83.9
Loss from discontinued operations, net of tax	(154.1)

Schedule of cash flow from operating, investing and financing activities of Mesquite

The following table provides details of the cash flow from operating, investing and financing activities of Mesquite for the year ended December 31, 2018:

	Year ended December 31
(in millions of U.S. dollars)	2018
OPERATING ACTIVITIES
Loss from discontinued operations	(154.1)
Adjustments for:
Depreciation and depletion	35.4
Income tax recovery	(83.9)
Finance income	(0.4)
Finance costs	0.4
Impairment loss on held-for-sale assets	253.1
	50.5
Change in non-cash operating working capital	(15.9)
Income taxes received	2.6
Cash generated from operations	37.2
INVESTING ACTIVITIES
Mining interests	(4.5)
Interest received	0.4
Cash used by investing activities	(4.1)
Change in cash and cash equivalents	33.1

XML

SEGMENTED INFORMATION (Tables)

12 Months Ended

Dec. 31, 2019

SEGMENTED INFORMATION

Schedule of operating segments

The Company manages its reportable operating segments by operating mines and development projects. Operating results of reportable operating segments are reviewed by the Company’s chief operating decision maker ("CODM") to make decisions about resources to be allocated to the segments and to assess their performance. Effective January 1, 2019, Cerro San Pedro is in the reclamation phase of its mine life cycle. As a result, the Company has grouped Cerro San Pedro with the Company's development and exploration properties that have no revenues or operating costs. The segmented information for the twelve months ended December 31, 2018 has been restated to reflect the Company's reportable operating segments for the twelve months ended December 31, 2019. The results from operations for these reportable operating segments are summarized in the following tables:

	Year ended December 31, 2019
	Rainy	New
(in millions of U.S. dollars)	River	Afton	Corporate	Other(1)	Total
OPERATING SEGMENT RESULTS
Gold revenues	354.2	80.2	—	—	434.4
Copper revenues	—	187.3	—	—	187.3
Silver revenues	4.7	4.2	—	—	8.9
Total revenues(2)	358.9	271.7	—	—	630.6
Operating expenses	258.4	113.5	—	—	371.9
Depreciation and depletion	93.9	146.7	—	—	240.6
Revenue less cost of goods sold	6.6	11.5	—	—	18.1
Corporate administration	—	—	17.6	—	17.6
Corporate restructuring(3)	—	—	1.1	—	1.1
Share-based payment expenses	—	—	1.7	—	1.7
Exploration and business development	1.4	3.1	1.1	—	5.6
(Loss) income from operations	5.2	8.4	(21.5)	—	(7.9)

1. Other includes balances relating to Cerro San Pedro, the development and exploration properties that have no revenues or operating costs.

2. Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the year ended December 31, 2019.

3. During 2019, the Company recognized restructuring charges of $1.1 million related to severance and other termination benefits.

	Year ended December 31, 2018
	Rainy	New
(in millions of U.S. dollars)	River	Afton	Corporate	Other(1)	Total
OPERATING SEGMENT RESULTS
Gold revenues	270.6	83.8	—	13.8	368.2
Copper revenues	—	226.1	—	—	226.1
Silver revenues	3.8	4.2	—	2.2	10.2
Total revenues(2)	274.4	314.1	—	16.0	604.5
Operating expenses	179.9	104.3	—	41.2	325.4
Depreciation and depletion	78.3	158.2	—	3.4	239.9
Revenue less cost of goods sold	16.2	51.6	—	(28.6)	39.2
Corporate administration	—	—	23.2	—	23.2
Corporate restructuring(3)	—	—	4.1	—	4.1
Share-based payment expenses	—	—	0.7	—	0.7
Asset impairment	836.6	—	—	218.2	1,054.8
Exploration and business development	0.5	0.5	1.9	0.1	3.0
(Loss) income from operations	(820.9)	51.1	(29.9)	(246.9)	(1,046.6)

1. Other includes balances relating to Cerro san Pedro, the development and exploration properties that have no revenues or operating costs.

2. Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the year ended December 31, 2018.

3. In 2018, the Company recognized a restructuring charge of approximately $4.1 million in severance and other termination benefits related to changes at the executive leadership level of the organization.

Schedule of segmented assets and liabilities

The following table presents the segmented assets and liabilities:

	Total assets		Total liabilities		Capital expenditures(1)
	As at	As at	As at	As at	Year ended
	December 31	December 31	December 31	December 31	December 31
(in millions of U.S. dollars)	2019	2018	2019	2018	2019	2018
SEGMENTED ASSETS AND LIABILITIES
Rainy River	1,078.4	986.0	334.9	313.6	185.9	170.6
New Afton	647.7	730.9	89.8	73.8	61.8	35.9
Blackwater	356.5	341.4	27.9	18.8	5.1	7.3
Other(2)	75.9	111.3	744.6	818.9	0.5	0.1
	2,158.5	2,169.6	1,197.2	1,225.1	253.3	213.9
Assets and liabilities held for sale and capital expenditures from discontinued operations (Note 16)	—	—	—	—	—	13.2
Total assets, liabilities and capital expenditures	2,158.5	2,169.6	1,197.2	1,225.1	253.3	227.1

1.Capital expenditures per consolidated statement of cash flows.

2.Other includes corporate balance, exploration properties and Cerro San Pedro.

Schedule of Information about major customers

The following table presents sales to individual customers exceeding 10% of annual sales for the following periods. The following five customers represent 89% (2018 – five customers representing 79%) of the Company’s sales revenue for the years ended December 31.

		Year ended December 31
(in millions of U.S. dollars)		2019
CUSTOMER	REPORTING SEGMENT
1	Rainy River	128.9
2	Rainy River	126.7
3	Rainy River	102.5
4	New Afton	100.9
5	New Afton	99.2
Total sales to customers exceeding 10% of annual sales		558.2

		Year ended December 31
(in millions of U.S. dollars)		2018
CUSTOMER	REPORTING SEGMENT
1	Rainy River	137.9
2	New Afton	109.9
3	New Afton	94.2
4	Rainy River	78.0
5	New Afton	70.7
Total sales to customers exceeding 10% of annual sales		490.7

XML

INCOME AND MINING TAXES (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
INCOME AND MINING TAXES
Current income and mining tax expense		$ 2.6	$ 4.1
Deferred income and mining tax expense	$ 1.9	(3.0)	(14.5)
Adjustments for deferred tax of prior year		(4.9)	4.7
Total income tax expense (recovery)		(0.4)	(10.4)
Canada [Member]
INCOME AND MINING TAXES
Current income and mining tax expense		2.2	4.2
Deferred income and mining tax expense		1.9	(19.2)
Foreign [Member]
INCOME AND MINING TAXES
Current income and mining tax expense		$ 0.4	$ (0.1)

XML

MINING INTERESTS - Additional information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Gross carrying amount [member]
Mining Interests
Refundable tax credits received	$ 2.0

XML

INVENTORIES (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
INVENTORIES
Stockpile ore	$ 32.6	$ 74.3
Work-in-process	8.3	7.7
Finished goods	12.5	25.4
Supplies	56.6	49.3
Inventories	110.0	156.7
Less: non-current inventories	0.0	(14.9)
Total current inventories	$ 110.0	$ 141.8

XML

SHARE CAPITAL - Additional information (Details) $ / shares in Units, $ in Millions, $ in Millions			1 Months Ended	12 Months Ended
	Aug. 30, 2019 CAD ($) $ / shares shares	Aug. 30, 2019 USD ($) shares	Mar. 31, 2017 USD ($)	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 USD ($)
SHARE CAPITAL
Deferred tax expense (income)			$ 1.9	$ (3.0)	$ (14.5)
Issuance of common shares | shares	93,750,000	93,750,000		93,750,000
Shares issued in equity offering, price per share | $ / shares	$ 1.60
Net proceeds on equity offering		$ 106.7		$ 106.7	0.0
Gross proceeds on equity offering	$ 150.0
Share-based payment expenses recognized in operating expenses				$ 1.0	$ 0.0

XML

DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS

12 Months Ended

Dec. 31, 2019

DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS

DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS

1. DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS

New Gold Inc. (“New Gold” or the “Company”) is an intermediate gold mining company engaged in the development and operation of mineral properties. The assets of the Company, directly or through its subsidiaries, are comprised of the Rainy River Mine in Canada (“Rainy River”), the New Afton Mine in Canada (“New Afton”) and the Cerro San Pedro Mine in Mexico (“Cerro San Pedro”). The Company also owns the Blackwater project in Canada (“Blackwater”). The Company completed the sale of the Peak Mines in Australia (“Peak Mines”) in early April 2018 and completed the sale of the Mesquite Mine in the United States (“Mesquite”) in October 2018.

The Company is a corporation governed by the Business Corporations Act (British Columbia). The Company’s shares are listed on the Toronto Stock Exchange and the NYSE American under the symbol NGD.

The Company’s registered office is located at 1100 Melville Street, Suite 610, Vancouver, British Columbia, V6E 4A6, Canada.

XML

FINANCIAL RISK MANAGEMENT

12 Months Ended

Dec. 31, 2019

FINANCIAL RISK MANAGEMENT

FINANCIAL RISK MANAGEMENT

22. FINANCIAL RISK MANAGEMENT

The Company examines the various financial instrument risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include credit risk, liquidity risk, market risk and other price risks. Where material, these risks are reviewed and monitored by the Board of Directors.

(a) Credit risk

Credit risk is the risk of an unexpected loss if a party to the Company’s financial instruments fails to meet its contractual obligations. The Company’s financial assets are primarily composed of cash and cash equivalents, and trade and other receivables. Credit risk is primarily associated with trade and other receivables; however, it also arises on cash and cash equivalents, gold and copper price options, and foreign exchange forward contracts. To mitigate exposure to credit risk, the Company has established policies to limit the concentration of credit risk, to ensure counterparties demonstrate minimum acceptable credit worthiness, and to ensure liquidity of available funds.

The Company closely monitors its financial assets and does not have any significant concentration of credit risk. The Company sells its gold exclusively to large international organizations with strong credit ratings. The historical level of customer defaults is minimal and, as a result, the credit risk associated with gold and copper concentrate trade receivables at December 31, 2019 is not considered to be high.

The Company’s maximum exposure to credit risk is as follows:

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
CREDIT RISK EXPOSURE
Cash and cash equivalents	83.4	103.7
Trade and other receivables	23.7	35.9
Total financial instrument exposure to credit risk	107.1	139.6

A significant portion of the Company’s cash and cash equivalents is held in large Canadian financial institutions. Short-term investments (including those presented as part of cash and cash equivalents) are composed of financial instruments issued by Canadian banks with high investment-grade ratings and the governments of Canada and the U.S.

The Company employs a restrictive investment policy as detailed in the capital risk management section, which is described in Note 21.

The aging of trade and other receivables is as follows:

	As at December 31
	0-30	31-60	61-90	91-120	Over 120	2019	2018
(in millions of U.S. dollars)	days	days	days	days	days	Total	Total
AGING TRADE AND OTHER RECEIVABLES
Rainy River	4.5	—	—	—	1.0	5.5	8.8
New Afton	3.4	—	—	2.9	—	6.3	8.3
Cerro San Pedro	0.5	0.1	0.1	0.1	0.6	1.4	5.1
Blackwater	—	—	—	—	0.3	0.3	0.3
Corporate	10.2	—	—	—	—	10.2	13.4
Total trade and other receivables	18.6	0.1	0.1	3.0	1.9	23.7	35.9

The Company sells its gold and copper concentrate production from New Afton to five different customers under off-take contracts.

The Company is not economically dependent on a limited number of customers for the sale of its gold and other metals because gold and other metals can be sold through numerous commodity market traders worldwide.

(b) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk through the management of its capital structure and financial leverage, as outlined in Note 21.

The following table shows the contractual maturities of debt commitments. The amounts presented represent the future undiscounted principal and interest cash flows, and therefore, do not equate to the carrying amounts on the consolidated statements of financial position.

	As at December 31
				After	2019	2018
(in millions of U.S. dollars)	< 1 year	1-3 years	4-5 years	5 years	Total	Total
DEBT COMMITMENTS
Trade and other payables	150.0	—	—	—	150.0	112.6
Long-term debt	—	430.3	—	300.0	730.3	800.0
Interest payable on long-term debt	44.2	85.1	38.3	7.1	174.7	242.9
Gold stream obligation	22.0	49.9	54.9	65.9	192.7	267.5
Total debt commitments	216.2	565.3	93.2	373.0	1,247.7	1,423.0

The Company’s future operating cash flow and cash position are highly dependent on metal prices, including gold and copper, as well as other factors. Taking into consideration the Company’s current cash position, volatile equity markets, and global uncertainty in the capital markets, the Company is continually reviewing expenditures and assessing business opportunities to enhance liquidity in order to ensure adequate liquidity and flexibility to support its growth strategy, including the development of its projects, while continuing production at its current operations. A period of continuous low gold and copper prices may necessitate the deferral of capital expenditures which may impact the timing of development work and project completion, as well as production from mining operations. In addition, in such a price environment, the Company may be required to adopt one or more alternatives to increase liquidity.

(c) Currency Risk

The Company operates in Canada and Mexico. As a result, the Company has foreign currency exposure with respect to items not denominated in U.S. dollars. The three main types of foreign exchange risk for the Company can be categorized as follows:

(i) Transaction exposure

The Company’s operations sell commodities and incur costs in different currencies. This creates exposure at the operational level, which may affect the Company’s profitability as exchange rates fluctuate.

(ii) Exposure to currency risk

The Company is exposed to currency risk through the following assets and liabilities denominated in currencies other than the U.S. dollar: cash and cash equivalents, investments, accounts receivable, accounts payable and accruals, reclamation and closure cost obligations.

The currencies of the Company’s financial instruments and other foreign currency denominated liabilities, based on notional amounts, were as follows:

	As at December 31, 2019
(in millions of U.S. dollars)	CAD	MXN
EXPOSURE TO CURRENCY RISK
Cash and cash equivalents	11.0	0.3
Trade and other receivables	7.0	0.9
Income tax (payable) receivable	(0.3)	4.6
Trade and other payables	(86.8)	(13.5)
Deferred tax liability	(48.3)	—
Reclamation and closure cost obligations	(93.3)	(1.4)
Share units	(1.9)	—
Total exposure to currency risk	(212.6)	(9.1)

	As at December 31, 2018
(in millions of U.S. dollars)	CAD	MXN
EXPOSURE TO CURRENCY RISK
Cash and cash equivalents	12.9	0.6
Trade and other receivables	9.9	4.9
Income tax receivable	—	4.6
Trade and other payables	(105.0)	(14.1)
Deferred tax liability	(54.5)	—
Reclamation and closure cost obligations	(72.6)	(13.5)
Performance share units and restricted share units	(0.5)	—
Total exposure to currency risk	(209.8)	(17.5)

(iii) Translation exposure

The Company’s functional and reporting currency is U.S. dollars. The Company’s operations translate their operating results from the host currency to U.S. dollars. Therefore, exchange rate movements in the Canadian dollar and Mexican peso can have a significant impact on the Company’s consolidated operating results. A 10% strengthening (weakening) of the U.S. dollar against the following currencies would have decreased (increased) the Company’s net loss from the financial instruments presented by the amounts shown below.

	Year ended December 31
(in millions of U.S. dollars)	2019	2018
IMPACT OF 10% CHANGE IN FOREIGN EXCHANGE RATES
Canadian dollar	21.3	21.0
Mexican peso	0.9	1.8

(d) Interest Rate Risk

Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The majority of the Company’s outstanding debt obligations are fixed and are therefore not exposed to changes in market interest rates. The Credit Facility interest is variable and a 1% change in interest rates would not result in a material difference in interest paid for the year ended December 31, 2019 as only $30.0 million was drawn on the Credit Facility late in 2019.

The Company is exposed to interest rate risk on its cash and cash equivalents. Interest earned on cash and cash equivalents is based on prevailing money market and bank account interest rates which may fluctuate. A 1.0% change in the interest rate would result in a difference of approximately $0.8 million in interest earned by the Company for the year ended December 31, 2019. The Company has not entered into any derivative contracts to manage this risk.

(e) Metal and Input Price Risk

The Company’s earnings, cash flows and financial condition are subject to price risk due to fluctuations in the market price of gold, silver and copper.

For the year ended December 31, 2019, the Company’s revenue and cash flows were impacted by gold prices and copper prices. Metal price declines could cause continued development of, and production from, the Company’s properties to be uneconomic. There is a time lag between the shipment of gold and copper and final pricing, and changes in pricing can impact the Company’s revenue and working capital position. The Company’s exposure to changes in gold and copper prices has been significantly reduced as the Company has entered into gold and copper price option contracts (whereby it sold a series of call option contracts and purchased a series of put option contracts) to reduce exposure to changes in gold and copper prices. The details of the remaining contracts as at December 31, 2019 can be found in Note 14.

Reserve calculations and mine plans using significantly lower gold, silver, copper and other metal prices could result in significant reductions in mineral reserve and resource estimates and revisions in the Company’s life-of-mine plans, which in turn could result in material write-downs of its investments in mining properties and increased depletion, reclamation and closure charges. Depending on the price of gold or other metals, the Company may determine that it is impractical to commence or, if commenced, to continue commercial production at a particular site. Metal price fluctuations also create adjustments to the provisional prices of sales made in previous periods that have not yet been subject to final pricing, and these adjustments could have an adverse impact on the Company’s financial results and financial condition. Any of these factors could result in a material adverse effect on the Company’s results of operations and financial condition.

The Company is also subject to price risk for fluctuations in the cost of energy, principally electricity and purchased petroleum products. The Company’s costs are affected by the prices of commodities and other inputs it consumes or uses in its operations. The prices of such commodities and inputs are influenced by supply and demand trends affecting the mining industry in general and other factors outside the Company’s control. Increases in the price for materials consumed in the Company’s mining and production activities could materially adversely affect its results of operations and financial condition.

An increase in gold and copper prices would decrease the Company’s net loss whereas an increase in fuel and electricity prices would increase the Company’s net loss. A 10% change in commodity prices and fuel and electricity prices would impact the Company’s net earnings before taxes and other comprehensive income before taxes as follows:

	Year ended December 31, 2019		Year ended December 31, 2018
		Other		Other
	Net	Comprehensive	Net	Comprehensive
(in millions of U.S. dollars)	Earnings	Income	Earnings	Income
IMPACT OF 10% CHANGE IN COMMODITY PRICES
Gold price	19.0	—	37.6	—
Copper price	20.7	—	6.5	—
Fuel and electricity price	7.0	—	5.5	—

XML

RECLAMATION AND CLOSURE COST OBLIGATIONS

12 Months Ended

Dec. 31, 2019

RECLAMATION AND CLOSURE COST OBLIGATIONS

RECLAMATION AND CLOSURE COST OBLIGATIONS

18. RECLAMATION AND CLOSURE COST OBLIGATIONS

Changes to the reclamation and closure cost obligations are as follows:

	Rainy	New		Cerro San
(in millions of U.S. dollars)	River	Afton	Mesquite	Pedro	Blackwater	Total
CHANGES TO RECLAMATION AND CLOSURE COST OBLIGATIONS
Balance - December 31, 2017	63.4	11.6	20.5	19.2	9.4	124.1
Reclamation expenditures	(0.3)	—	—	(0.9)	—	(1.2)
Unwinding of discount	1.5	0.2	0.4	0.1	0.2	2.4
Revisions to expected cash flows	(6.1)	(0.3)	(0.9)	1.5	(0.5)	(6.3)
Foreign exchange movement	(4.9)	(0.8)	—	0.1	(0.8)	(6.4)
Less: amounts reclassified as held for sale and sold	—	—	(20.0)	—	—	(20.0)
Balance - December 31, 2018	53.6	10.7	—	20.0	8.3	92.6
Less: current portion of closure costs (Note 7)	—	—	—	(6.5)	—	(6.5)
Non-current portion of closure costs	53.6	10.7	—	13.5	8.3	86.1
Balance - December 31, 2018	53.6	10.7	—	20.0	8.3	92.6
Reclamation expenditures	(0.2)	—	—	(8.6)	—	(8.8)
Unwinding of discount	1.1	0.2	—	1.2	0.2	2.7
Revisions to expected cash flows	9.7	6.4	—	(0.6)	0.5	16.0
Foreign exchange movement	2.8	0.7	—	0.6	0.4	4.5
Balance - December 31, 2019	67.0	18.0	—	12.6	9.4	107.0
Less: current portion of closure costs (Note 7)	(1.4)	—	—	(10.9)	—	(12.3)
Non-current portion of closure costs	65.6	18.0	—	1.7	9.4	94.7

Each period the Company reviews cost estimates and other assumptions used in the valuation of the obligations at each of its mining properties and development properties to reflect events, changes in circumstances and new information available. Changes in these cost estimates and assumptions have a corresponding impact on the fair value of the obligation. The fair values of the obligations are measured by discounting the expected cash flows using a discount factor that reflects the risk-free rate of interest. The Company prepares estimates of the timing and amount of expected cash flows when an obligation is incurred. Expected cash flows are updated to reflect changes in facts and circumstances. The principal factors that can cause expected cash flows to change are: the construction of new processing facilities; obligations realized through additional ore bodies mined; changes in the quantities of material in reserves and a corresponding change in the LOM plan; changing ore characteristics that impact required environmental protection measures and related costs; changes in water quality that impact the extent of water treatment required; and changes in laws and regulations governing the protection of the environment. The fair value of an obligation is recorded when it is incurred.

The majority of the expenditures are expected to occur between 2020 and 2030. The discount rates used in estimating the site reclamation and closure cost obligations were between 1.8% and 5.4% for the year ended December 31, 2019 (2018 – 1.9% and 7.1%), and the inflation rate used was between 1.4% and 3.3% for the year ended December 31, 2019 (2018 – 1.4% and 3.3%).

Regulatory authorities in certain jurisdictions require that security be provided to cover the estimated reclamation and remediation obligations. As at December 31, 2019, letters of credit totalling $118.9 million (2018 - $110.8 million) had been issued to various regulatory agencies to satisfy financial assurance requirements for this purpose. The letters of credit are secured by the revolving Credit Facility (Note 11 (c)), and the annual fees are 1.50% of the value of the outstanding letters of credit.

XML

FINANCIAL RISK MANAGEMENT- Exposure to currency risk (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Exposure to currency risk
Cash and cash equivalents	$ 83.4	$ 103.7	$ 216.2
Deferred tax liability	(48.3)	(56.3)
Reclamation and closure cost obligations	(107.0)	(92.6)	$ (124.1)
Canada, Dollars | Currency risk [member]
Exposure to currency risk
Cash and cash equivalents	11.0	12.9
Trade and other receivables	7.0	9.9
Income tax (payable) receivable	(0.3)
Trade and other payables	(86.8)	(105.0)
Deferred tax liability	(48.3)	(54.5)
Reclamation and closure cost obligations	(93.3)	(72.6)
Performance share units and restricted share units	(1.9)	(0.5)
Total exposure to currency risk	(212.6)	(209.8)
Mexico, Pesos | Currency risk [member]
Exposure to currency risk
Cash and cash equivalents	0.3	0.6
Trade and other receivables	0.9	4.9
Income tax (payable) receivable	4.6	4.6
Trade and other payables	(13.5)	(14.1)
Deferred tax liability	0.0
Reclamation and closure cost obligations	(1.4)	(13.5)
Performance share units and restricted share units	0.0	0.0
Total exposure to currency risk	$ (9.1)	$ (17.5)

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net loss	$ (73.5)	$ (1,240.5)
Other comprehensive income
(Loss) gain on revaluation of gold stream obligation	(24.4)	66.6
Deferred income tax related to gold stream obligation	4.7	(21.6)
Total other comprehensive (loss) income	(19.7)	45.0
Total comprehensive loss	$ (93.2)	$ (1,195.5)

XML

FAIR VALUE MEASUREMENT - Summary of financial assets and liabilities by category (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Long-term debts [Member]
FINANCIAL LIABILITIES
Financial liabilities, at fair value	$ 707.7	$ 652.9
Gold stream obligation [Member]
FINANCIAL LIABILITIES
Financial liabilities, at fair value	164.5	182.4
Cash and cash equivalents
FINANCIAL ASSETS
Financial assets, at fair value	83.4	103.7
Trade and other receivables [Member]
FINANCIAL ASSETS
Financial assets, at fair value	14.5	36.6
Investment [Member]
FINANCIAL ASSETS
Financial assets, at fair value	0.5	0.8
Proceeds due from income tax refunds at Mesquite [Member]
FINANCIAL ASSETS
Financial assets, at fair value	9.0	8.5
Deferred share units [Member]
FINANCIAL LIABILITIES
Financial liabilities, at fair value	1.1	0.3
Financial liabilities at amortised cost, category [member] | Long-term debts [Member]
FINANCIAL LIABILITIES
Financial liabilities, at fair value	714.5	780.5
Financial liabilities at amortised cost, category [member] | Trade and other receivables [Member]
FINANCIAL LIABILITIES
Financial liabilities, at fair value	111.3	101.3
Financial liabilities at fair value through profit or loss, category [member] | Level 1 of fair value hierarchy [member] | Restricted share units [Member]
FINANCIAL LIABILITIES
Financial liabilities, at fair value	0.5	0.3
Financial liabilities at fair value through profit or loss, category [member] | Level 1 of fair value hierarchy [member] | Deferred share units [Member]
FINANCIAL LIABILITIES
Financial liabilities, at fair value	0.0	0.3
Financial liabilities at fair value through profit or loss, category [member] | Level 2 of fair value hierarchy [member] | Gold price option contracts [Member]
FINANCIAL LIABILITIES
Financial liabilities, at fair value	26.4	4.8
Financial liabilities at fair value through profit or loss, category [member] | Level 3 of fair value hierarchy [member] | Gold stream obligation [Member]
FINANCIAL LIABILITIES
Financial liabilities, at fair value	164.5	182.4
Financial liabilities at fair value through profit or loss, category [member] | Level 3 of fair value hierarchy [member] | Performance Share Units [Member]
FINANCIAL LIABILITIES
Financial liabilities, at fair value	0.2	0.2
Financial assets at amortised cost, category [member] | Cash and cash equivalents
FINANCIAL ASSETS
Financial assets, at fair value	83.4	103.7
Financial assets at amortised cost, category [member] | Trade and other receivables [Member]
FINANCIAL ASSETS
Financial assets, at fair value	14.5	36.6
Financial assets at amortised cost, category [member] | Level 3 of fair value hierarchy [member] | Proceeds due from income tax refunds at Mesquite [Member]
FINANCIAL ASSETS
Financial assets, at fair value	9.0	8.5
Financial assets at fair value through profit or loss, category [member] | Level 1 of fair value hierarchy [member] | Investment [Member]
FINANCIAL ASSETS
Financial assets, at fair value	0.5	0.8
Financial assets at fair value through profit or loss, category [member] | Level 2 of fair value hierarchy [member] | Provisionally priced contracts [Member]
FINANCIAL ASSETS
Financial assets, at fair value	1.5	(1.6)
Financial assets at fair value through profit or loss, category [member] | Level 2 of fair value hierarchy [member] | Gold and copper swap contracts [Member]
FINANCIAL ASSETS
Financial assets, at fair value	(1.3)	0.9
Financial assets at fair value through profit or loss, category [member] | Level 2 of fair value hierarchy [member] | Copper price option contracts [Member]
FINANCIAL ASSETS
Financial assets, at fair value	$ 0.0	$ 0.7

XML

DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 2019

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

14. DERIVATIVE INSTRUMENTS

	As at	As at
	December 31	December 31
(in millions of U.S. dollars)	2019	2018
DERIVATIVE ASSETS
Unsettled provisionally priced concentrate derivatives, and swap contracts(2)	0.2	—
Copper price option contracts	—	0.7
Total derivative assets	0.2	0.7
DERIVATIVE LIABILITIES
Unsettled provisionally priced concentrate derivatives, and swap contracts(2)	—	0.7
Gold price option contracts(1)	26.4	4.8
Total derivative liabilities	26.4	5.5

1. As at December 31, 2019,gold price option contracts are included within trade and other payables in the statement of financial position. As at December 31, 2018, copper price option contracts are included within prepaids and other in the statement of financial position and gold price option contracts are included within trade and other payables in the statement of financial position.

2. Unsettled provisionally priced concentrate derivatives are included within trade and other receivables in the statement of financial position.

(a) Provisionally priced contracts

The Company had provisionally priced sales for which price finalization is outstanding at December 31, 2019. Realized and unrealized non-hedged derivative gains (losses) on the provisional pricing of concentrate sales are classified as revenue, with the unsettled provisionally priced concentrate derivatives included in trade and other receivables. The Company enters into gold and copper swap contracts to reduce exposure to gold and copper prices. Realized and unrealized gains (losses) are recorded in revenue, with the unsettled gold and copper swaps included in trade and other receivables.

The following tables summarize the realized and unrealized gains (losses) on provisionally priced sales:

	Year ended December 31, 2019
(in millions of U.S. dollars)	Gold	Copper	Total
GAIN (LOSS) ON THE PROVISIONAL PRICING OF CONCENTRATE SALES
Realized	2.2	(1.7)	0.5
Unrealized	0.5	1.0	1.5
Total gain (loss)	2.7	(0.7)	2.0

	Year ended December 31, 2018
(in millions of U.S. dollars)	Gold	Copper	Total
GAIN (LOSS) ON THE PROVISIONAL PRICING OF CONCENTRATE SALES
Realized	(1.2)	(7.7)	(8.9)
Unrealized	1.1	(2.7)	(1.6)
Total (loss) gain	(0.1)	(10.4)	(10.5)

The following tables summarize the realized and unrealized gains (losses) on gold and copper swap contracts:

	Year ended December 31, 2019
(in millions of U.S. dollars)	Gold	Copper	Total
(LOSS) GAIN ON SWAP CONTRACTS
Realized	(3.2)	0.2	(3.0)
Unrealized	(0.4)	(0.9)	(1.3)
Total (loss) gain	(3.6)	(0.7)	(4.3)

	Year ended December 31, 2018
(in millions of U.S. dollars)	Gold	Copper	Total
(LOSS) GAIN ON SWAP CONTRACTS
Realized	1.3	11.3	12.6
Unrealized	(0.8)	1.7	0.9
Total gain (loss)	0.5	13.0	13.5

The following table summarizes the net exposure to the impact of movements in market commodity prices for provisionally priced sales:

	As at December 31	As at December 31
	2019	2018
VOLUMES SUBJECT TO FINAL PRICING NET OF OUTSTANDING SWAPS
Gold ounces (000s)	0.9	0.8
Copper pounds (millions)	0.5	1.6

(b)  Copper price option contracts

In December 2018, the Company entered into copper price option contracts by purchasing put options at an average strike price of $2.50 per pound and selling call options at an average strike price of $3.00 per pound for 21,600 tonnes (approximately 47.6 million pounds) of copper production during 2019. The Company entered into these contracts at no premium and therefore incurred no investment costs upon initiation. As at December 31, 2019, these copper price option contracts are expired.

(c)  Gold price option contracts

In December 2018, the Company entered into gold price option contracts by purchasing put options at an average strike price of $1,230 per ounce and selling call options at an average strike price of $1,300 per ounce for 192,000 ounces of gold production between January 2019 and December 2019. In the second quarter of 2019, the Company further entered into gold price option contracts by purchasing put options and selling call options at average strike prices outlined in the table below.

The call options sold and put options purchased are treated as derivative financial instruments and marked to market at each reporting period on the consolidated statement of financial position with changes in fair value recognized in other gains and losses. Realized gains and losses as a result of the exercise of the Company’s call and put options up to an amount not exceeding the Company’s production of gold ounces for the reporting period are recorded as an adjustment to revenue. The exercise of options on gold ounces in excess of the Company’s gold production for the reporting period are recorded as other gains and losses.

	Quantity			Exercise price	Fair value  - asset
	outstanding		Remaining term	($/oz)	(liability) (1)
GOLD PRICE OPTION CONTRACTS OUTSTANDING
Gold call contracts - sold	72,000	oz	January 2020 – June 2020	1,355	(12.6)
Gold call contracts - sold	96,000	oz	July 2020 – December 2020	1,415	(14.1)
Gold put contracts - purchased	168,000	oz	January 2020 – December  2020	1,300	0.3

1. The Company presents the fair value of its put and call options on a net basis on the consolidated statements of financial position. The Company has a legally enforceable right to set off the amounts under its option contracts and intends to settle on a net basis.

(d)  Foreign exchange forward contracts

In 2019, the Company entered into foreign exchange forward contracts in order to hedge the Company's spending in Canadian dollars. The Company has hedged $20.0 million U.S. dollars per month at average Canadian dollar to U.S. dollar foreign exchange rate of 1.34. These contracts were treated as derivative financial instruments and marked-to-market at each reporting period on the consolidated statement of financial position with changes in fair value recognized in other gains and losses. The Company entered into these contracts at no premium and therefore incurred no investment costs upon initiation. As at December 31, 2019, these foreign exchange forward contracts are expired.