Exhibit
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Description
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NEW GOLD INC.
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By:
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/s/ Lisa Damiani |
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Date: April 24, 2019
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Lisa Damiani
General Counsel, Executive Vice President,
Government Relations and Corporate Secretary
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CONDENSED CONSOLIDATED INCOME STATEMENTS |
2
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
3
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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
4
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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
5
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
6
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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
7
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1. Description of business and nature of operations
|
7
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2. Basis of preperation and significant accounting policies
|
7
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3. Expenses
|
9
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4. Trade and other receivables
|
10
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5. Trade and other payables
|
11
|
6. Inventories
|
11
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7. Mining interests
|
12
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8. Long-term debt
|
14
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9. Gold stream obligation
|
16
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10. Leases
|
17
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11. Derivative instruments
|
18
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12. Share capital
|
21
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13. Discontinued operations
|
23
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14. Income and mining taxes
|
24
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15. Reclamation and closure cost obligations
|
24
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16. Supplemental cash flow information
|
25
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17. Segmented information
|
26
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18. Fair value measurement
|
29
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19. Commitments and contingencies
|
31
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1
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WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||||||
(in millions of U.S. dollars, except per share amounts)
|
Note
|
2019
|
2018
|
|||||||||
Revenues
|
167.9
|
147.5
|
||||||||||
Operating expenses
|
3
|
86.9
|
89.1
|
|||||||||
Depreciation and depletion
|
61.2
|
56.1
|
||||||||||
Revenue less cost of goods sold
|
19.8
|
2.3
|
||||||||||
Corporate administration
|
5.3
|
5.4
|
||||||||||
Share-based payment expenses
|
12
|
0.3
|
1.4
|
|||||||||
Exploration and business development
|
0.4
|
0.6
|
||||||||||
Income (loss) from operations
|
13.8
|
(5.1
|
)
|
|||||||||
Finance income
|
3
|
0.5
|
0.4
|
|||||||||
Finance costs
|
3
|
(15.3
|
)
|
(16.6
|
)
|
|||||||
Other losses
|
3
|
(8.7
|
)
|
(8.2
|
)
|
|||||||
Loss before taxes
|
(9.7
|
)
|
(29.5
|
)
|
||||||||
Income tax expense
|
14
|
(3.7
|
)
|
(1.4
|
)
|
|||||||
Loss from continuing operations(1)
|
(13.4
|
)
|
(30.9
|
)
|
||||||||
Earnings from discontinued operations, net of tax(1)
|
13
|
-
|
1.4
|
|||||||||
Net loss
|
(13.4
|
)
|
(29.5
|
)
|
||||||||
Loss from continuing operations per share
|
||||||||||||
Basic
|
12
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(0.02
|
)
|
(0.05
|
)
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|||||||
Diluted
|
12
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(0.02
|
)
|
(0.05
|
)
|
|||||||
Net loss per share
|
||||||||||||
Basic
|
12
|
(0.02
|
)
|
(0.05
|
)
|
|||||||
Diluted
|
12
|
(0.02
|
)
|
(0.05
|
)
|
|||||||
Weighted average number of shares outstanding (in millions)
|
||||||||||||
Basic
|
12
|
579.1
|
578.7
|
|||||||||
Diluted
|
12
|
579.1
|
578.7
|
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 13 for further details.
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2
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WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||||||
(in millions of U.S. dollars)
|
Note
|
2019
|
2018
|
|||||||||
Net loss
|
(13.4
|
)
|
(29.5
|
)
|
||||||||
Other comprehensive income
|
||||||||||||
(Loss) gain on revaluation of gold stream obligation
|
9
|
(2.9
|
)
|
6.0
|
||||||||
Deferred income tax related to derivative contracts and gold stream obligation
|
9
|
1.0
|
(2.0
|
)
|
||||||||
Total other comprehensive income (loss)
|
(1.9
|
)
|
4.0
|
|||||||||
Total comprehensive loss
|
(15.3
|
)
|
(25.5
|
)
|
3
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WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
As at
March 31
|
As at
December 31
|
|||||||
(in millions of U.S. dollars)
|
Note
|
2019
|
2018
(Note 2c)
|
|||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
132.3
|
103.7
|
||||||
Trade and other receivables
|
4
|
26.7
|
35.9
|
|||||
Inventories
|
6
|
127.7
|
141.8
|
|||||
Current income tax receivable
|
4.7
|
4.3
|
||||||
Prepaid expenses and other
|
5.4
|
4.7
|
||||||
Total current assets
|
296.8
|
290.4
|
||||||
Non-current inventories
|
6
|
15.9
|
14.9
|
|||||
Mining interests
|
7
|
1,845.7
|
1,853.4
|
|||||
Other
|
13
|
10.4
|
10.9
|
|||||
Total assets
|
2,168.8
|
2,169.6
|
||||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Trade and other payables
|
5
|
125.5
|
130.9
|
|||||
Current income tax payable
|
0.8
|
-
|
||||||
Total current liabilities
|
126.3
|
130.9
|
||||||
Reclamation and closure cost obligations
|
15
|
89.8
|
86.1
|
|||||
Gold stream obligation
|
9
|
167.5
|
161.9
|
|||||
Long-term debt
|
8
|
781.2
|
780.5
|
|||||
Deferred tax liabilities (note 2c)
|
14
|
56.3
|
56.3
|
|||||
Lease obligations
|
10
|
17.8
|
8.9
|
|||||
Other
|
0.5
|
0.5
|
||||||
Total liabilities
|
1,239.4
|
1,225.1
|
||||||
Equity
|
||||||||
Common shares
|
12
|
3,035.2
|
3,035.2
|
|||||
Contributed surplus
|
105.2
|
105.0
|
||||||
Other reserves
|
4.2
|
6.1
|
||||||
Deficit (note 2c)
|
(2,215.2)
|
(2,201.8)
|
||||||
Total equity
|
929.4
|
944.5
|
||||||
Total liabilities and equity
|
2,168.8
|
2,169.6
|
4
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||||||
(in millions of U.S. dollars)
|
Note
|
2019
|
2018
|
|||||||||
COMMON SHARES
|
||||||||||||
Balance, beginning of period
|
3,035.2
|
3,036.5
|
||||||||||
Common share issuance
|
12
|
-
|
0.2
|
|||||||||
Balance, end of period
|
3,035.2
|
3,036.7
|
||||||||||
CONTRIBUTED SURPLUS
|
||||||||||||
Balance, beginning of period
|
105.0
|
103.2
|
||||||||||
Equity settled share-based payments
|
0.2
|
1.1
|
||||||||||
Balance, end of period
|
105.2
|
104.3
|
||||||||||
OTHER RESERVES
|
||||||||||||
Balance, beginning of period
|
6.1
|
(38.9
|
)
|
|||||||||
(Loss) gain on revaluation of gold stream obligation (net of tax) | 9 | (1.9 | ) | 4.0 | ||||||||
Balance, end of period
|
4.2
|
(34.9
|
)
|
|||||||||
DEFICIT
|
||||||||||||
Balance, beginning of period (Note 2c)
|
(2,201.8
|
)
|
(961.3
|
)
|
||||||||
Net loss
|
(13.4
|
)
|
(29.5
|
)
|
||||||||
Balance, end of period
|
(2,215.2
|
)
|
(990.8
|
)
|
||||||||
Total equity
|
929.4
|
2,115.3
|
5
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WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March
|
||||||||||||
(in millions of U.S. dollars)
|
Note
|
2019
|
2018
|
|||||||||
OPERATING ACTIVITIES
|
||||||||||||
Loss from continuing operations
|
(13.4
|
)
|
(30.9
|
)
|
||||||||
Adjustments for:
|
||||||||||||
Foreign exchange loss
|
3
|
1.9
|
19.9
|
|||||||||
Reclamation and closure costs paid
|
15
|
(3.1
|
)
|
(0.2
|
)
|
|||||||
Depreciation and depletion
|
61.4
|
55.9
|
||||||||||
Other non-cash adjustments
|
16
|
7.2
|
(11.4
|
)
|
||||||||
Income tax expense
|
14
|
3.7
|
1.4
|
|||||||||
Finance income
|
3
|
(0.5
|
)
|
(0.4
|
)
|
|||||||
Finance costs
|
3
|
15.3
|
16.6
|
|||||||||
72.5
|
50.9
|
|||||||||||
Change in non-cash operating working capital
|
16
|
3.2
|
(10.2
|
)
|
||||||||
Income taxes paid
|
(1.4
|
)
|
(1.0
|
)
|
||||||||
Operating cash flows generated from continuing operations(1)
|
74.3
|
39.7
|
||||||||||
Operating cash flows generated from discontinued operations
|
13
|
-
|
25.4
|
|||||||||
Cash generated from operations
|
74.3
|
65.1
|
||||||||||
INVESTING ACTIVITIES
|
||||||||||||
Mining interests
|
(50.4
|
)
|
(68.2
|
)
|
||||||||
Proceeds from sale of Mesquite, net of transaction costs and other adjustments
|
13
|
12.0
|
-
|
|||||||||
Proceeds from sale of assets
|
-
|
0.3
|
||||||||||
Interest received
|
0.4
|
0.2
|
||||||||||
Investing cash flows used by continuing operations(1)
|
(38.0
|
)
|
(67.7
|
)
|
||||||||
Investing cash flows used by discontinued operations
|
13
|
-
|
(9.1
|
)
|
||||||||
Cash used by investing
activities
|
(38.0
|
)
|
(76.8
|
)
|
||||||||
FINANCING ACTIVITIES
|
||||||||||||
Lease payments
|
(2.1
|
)
|
-
|
|||||||||
Cash settlement of gold stream obligation
|
9
|
(4.6
|
)
|
(3.6
|
)
|
|||||||
Interest paid
|
(1.3
|
)
|
(3.1
|
)
|
||||||||
Cash used by financing activities
|
(8.0
|
)
|
(6.7
|
)
|
||||||||
Effect of exchange rate changes on cash and cash equivalents
|
0.3
|
(0.8
|
)
|
|||||||||
Cash and cash equivalents sold or classified as held-for-sale
|
-
|
(5.7
|
)
|
|||||||||
Change in cash and cash equivalents
|
28.6
|
(24.9
|
)
|
|||||||||
Cash and cash equivalents, beginning of period
|
103.7
|
216.2
|
||||||||||
Cash and cash equivalents, end of period
|
132.3
|
191.3
|
||||||||||
Cash and cash equivalents are comprised of:
|
||||||||||||
Cash
|
88.1
|
141.4
|
||||||||||
Short-term money market instruments
|
44.2
|
49.9
|
||||||||||
|
132.3
|
191.3
|
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 13 for further details.
|
6
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
7
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
8
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
OPERATING EXPENSES BY NATURE
|
||||||||
Raw materials and consumables
|
28.3
|
39.3
|
||||||
Salaries and employee benefits
|
27.6
|
28.7
|
||||||
Contractors
|
16.8
|
17.1
|
||||||
Repairs and maintenance
|
10.6
|
10.3
|
||||||
General and administrative
|
6.4
|
5.9
|
||||||
Leases
|
1.0
|
1.4
|
||||||
Royalties
|
1.0
|
1.0
|
||||||
Drilling and analytical
|
0.3
|
0.4
|
||||||
Other
|
3.1
|
1.2
|
||||||
Total production expenses
|
95.1
|
105.3
|
||||||
Less: Production expenses capitalized
|
(17.7
|
)
|
(8.0
|
)
|
||||
Add (less): Change in inventories
|
9.5
|
(8.2
|
)
|
|||||
Total operating expenses
|
86.9
|
89.1
|
Three months ended March 31
|
||||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
FINANCE COSTS
|
||||||||
Interest on senior unsecured notes
|
13.2
|
13.2
|
||||||
Interest on Credit Facility
|
-
|
2.8
|
||||||
Accretion expense on decommissioning obligations (Note 15)
|
0.4
|
0.2
|
||||||
Other finance costs
|
1.7
|
0.4
|
||||||
Total finance costs
|
15.3
|
16.6
|
||||||
FINANCE INCOME
|
||||||||
Interest income
|
0.5
|
0.4
|
9
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
OTHER GAINS AND LOSSES
|
||||||||
Rainy River Underground project costs(1)
|
(1.7
|
)
|
-
|
|||||
Loss on foreign exchange
|
(1.9
|
)
|
(19.9
|
)
|
||||
Other loss on disposal of assets
|
(0.1
|
)
|
-
|
|||||
Gain on revaluation of investments
|
0.5
|
-
|
||||||
Unrealized (loss) gain on revaluation of gold stream obligation (Note 9)
|
(4.7
|
)
|
3.3
|
|||||
Settlement and gain on revaluation of gold price option contracts
|
1.1
|
-
|
||||||
Settlement and (loss) gain on revaluation of copper price option contracts
|
(3.1
|
)
|
6.8
|
|||||
Revaluation of CSP’s reclamation and closure cost obligation and social closure costs(2)
|
(1.0
|
)
|
-
|
|||||
Gain on additional proceeds realized from collection of amounts receivable associated with Mesquite sale(3)
|
2.1
|
-
|
||||||
Other
|
0.1
|
1.6
|
||||||
Total other losses
|
(8.7
|
)
|
(8.2
|
)
|
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 gains and losses.
|
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 is also recognized within other gains and losses.
|
3.
|
In the first quarter of 2019, the Company collected the outstanding working capital
proceeds due from the sale of Mesquite, as well as a portion of the proceeds due from income tax refunds at Mesquite. Additional proceeds collected in excess of the amounts accrued as at December 31, 2018 were recognized within other
gains and losses.
|
As at
March 31
|
As at
December 31
|
|||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||
TRADE AND OTHER RECEIVABLES
|
||||||
Trade receivables
|
17.6
|
9.5
|
||||
Sales tax receivable
|
8.5
|
14.0
|
||||
Unsettled provisionally priced concentrate derivatives and swap contracts (Note 11)
|
(0.1)
|
(0.7)
|
||||
Proceeds due from the sale of Mesquite, excluding income tax refund receivable (Note 13)
|
-
|
11.2
|
||||
Other
|
0.7
|
1.9
|
||||
Total trade and other receivables
|
26.7
|
35.9
|
10
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
As at
March 31
|
As at
December 31
|
|||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
TRADE AND OTHER PAYABLES
|
||||||||
Trade payables
|
36.5
|
47.1
|
||||||
Interest payable
|
19.4
|
6.9
|
||||||
Accruals
|
42.0
|
47.3
|
||||||
Current portion of reclamation and closure cost obligations (Note 15)
|
5.8
|
6.5
|
||||||
Current portion of gold stream obligation (Note 9)
|
15.7
|
18.3
|
||||||
Derivative liabilities (Note 11)
|
6.1
|
4.8
|
||||||
Total trade and other payables
|
125.5
|
130.9
|
As at
March 31
|
As at
December 31
|
|||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
INVENTORIES
|
||||||||
Stockpile ore
|
70.8
|
74.3
|
||||||
Work-in-process
|
8.9
|
7.7
|
||||||
Finished goods(1)
|
10.8
|
25.4
|
||||||
Supplies
|
53.1
|
49.3
|
||||||
143.6
|
156.7
|
|||||||
Less: non-current inventories(2)
|
(15.9
|
)
|
(14.9
|
)
|
||||
Total current inventories
|
127.7
|
141.8
|
1.
|
The amount of inventories recognized in operating expenses for the three months ended March
31, 2019 was $84.0 million (2018 - $86.2 million).
|
2.
|
Non-current inventories consist of low-grade stockpiled inventories at Rainy River.
|
11
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Mining Properties
|
||||||||||||||||||||
Depletable
|
Non- depletable
|
Plant &
equipment
|
Construction 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
|
4.8
|
5.1
|
6.1
|
31.2
|
47.2
|
|||||||||||||||
Disposals
|
-
|
(0.1
|
)
|
-
|
-
|
(0.1
|
)
|
|||||||||||||
Transfers
|
101.3
|
-
|
-
|
(101.3
|
)
|
-
|
||||||||||||||
As at March 31, 2019
|
1,368.8
|
372.6
|
1,197.5
|
57.1
|
2,996.0
|
|||||||||||||||
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 period
|
27.2
|
-
|
27.6
|
-
|
54.8
|
|||||||||||||||
Disposals
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Sale of Mesquite(1)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
As at March 31, 2019
|
744.2
|
-
|
406.1
|
-
|
1,150.3
|
|||||||||||||||
CARRYING AMOUNT
|
||||||||||||||||||||
As at December 31, 2018
|
545.7
|
367.6
|
812.9
|
127.2
|
1,853.4
|
|||||||||||||||
As at March 31, 2019
|
624.6
|
372.6
|
791.4
|
57.1
|
1,845.7
|
1.
|
Refer to Note 13 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.
|
As at March 31, 2019
|
||||||||||||||||||||
(in millions of U.S. dollars)
|
Depletable
|
Non- depletable
|
Plant & equipment
|
Construction in progress
|
Total
|
|||||||||||||||
MINING INTEREST BY SITE
|
||||||||||||||||||||
New Afton
|
400.4
|
27.6
|
180.8
|
23.4
|
632.2
|
|||||||||||||||
Rainy River
|
224.2
|
15.8
|
593.7
|
33.7
|
867.4
|
|||||||||||||||
Blackwater
|
-
|
328.1
|
14.9
|
-
|
343.0
|
|||||||||||||||
Other(1)
|
-
|
1.1
|
2.0
|
-
|
3.1
|
|||||||||||||||
Carrying amount as at March 31, 2019
|
624.6
|
372.6
|
791.4
|
57.1
|
1,845.7
|
1.
|
Other includes corporate balances and exploration properties.
|
12
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
As at December 31, 2018
|
||||||||||||||||||||
(in millions of U.S. dollars)
|
Depletable
|
Non- depletable
|
Plant & equipment
|
Construction 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 as at December 31, 2018
|
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 interests are fully amortized as at December 31, 2018.
|
13
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
As at
March 31
|
As at
December 31
|
|||
(in millions of U.S. dollars)
|
2019
|
2018
|
||
LONG-TERM DEBT
|
||||
Senior unsecured notes - due November 15, 2022 (a)
|
495.6
|
495.3
|
||
Senior unsecured notes - due May 15, 2025 (b)
|
285.6
|
285.2
|
||
Total long-term debt
|
781.2
|
780.5
|
●
|
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 (%)
|
2018
|
102.08%
|
2019
|
101.04%
|
2020 and thereafter
|
100.00%
|
14
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
●
|
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%
|
Twelve months ended
March 31
|
Twelve months ended
December 31
|
||
Financial Covenant
|
2019
|
2018
|
|
FINANCIAL COVENANTS
|
|||
Minimum interest coverage ratio (Adjusted EBITDA to interest)
|
>3.0 : 1
|
4.7 : 1
|
4.5 : 1
|
Maximum leverage ratio (net debt to Adjusted EBITDA)
|
<4.5 : 1
|
2.5 : 1
|
2.6 : 1
|
Maximum secured leverage ratio (secured debt to Adjusted EBITDA)
|
<2.0 : 1
|
0.5 : 1
|
0.4 : 1
|
15
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
(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
|
(4.6
|
)
|
||
Fair value adjustments related to
changes in the Company’s own credit risk(1)
|
2.9
|
|||
Other fair value adjustments(2)
|
4.7
|
|||
Balance, March 31, 2019
|
183.2
|
|||
Less: current portion of gold stream obligation(3)
|
(15.7
|
)
|
||
Non-current portion of gold stream obligation
|
167.5
|
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.
|
16
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
(in millions of U.S. dollars)
|
||||
RIGHT-OF-USE ASSETS
|
||||
Balance, December 31, 2018
|
20.8
|
|||
Additions
|
12.2
|
|||
Depreciation
|
(1.0)
|
|||
Disposals
|
-
|
|||
Balance, March 31, 2019
|
32.0
|
As at March 31, 2019
|
||||
(in millions of U.S. dollars)
|
||||
MATURITY ANALYSIS FOR LEASES(3)
|
||||
Less than 1 year
|
10.1
|
|||
Between 1 and 3 years
|
11.0
|
|||
Between 3 and 5 years
|
8.1
|
|||
More than 5 years
|
-
|
|||
Total undiscounted lease payments(1)
|
29.2
|
|||
Carrying value of lease liabilities
|
26.9
|
|||
Less: current portion of lease liabilities(2)
|
(9.1
|
)
|
||
Non-current portion of lease liabilities
|
17.8
|
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.
|
3.
|
In addition to the lease commitments included in this maturity analysis, the Company has committed to a
Corporate office lease which will commence in the second quarter of 2019.
|
17
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
As at
March 31
|
As at
December 31
|
|||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
DERIVATIVE ASSETS
|
||||||||
Copper price option contracts(1)
|
-
|
0.7
|
||||||
Total derivative assets
|
-
|
0.7
|
||||||
DERIVATIVE LIABILITIES
|
||||||||
Unsettled provisionally priced concentrate derivatives, and swap contracts(2)
|
0.1
|
0.7
|
||||||
Copper price option contracts(1)
|
2.4
|
-
|
||||||
Gold price option contracts(1)
|
3.7
|
4.8
|
||||||
Total derivative liabilities
|
6.2
|
5.5
|
1.
|
As at March 31, 2019, copper and 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.
|
Three months ended March 31, 2019
|
||||||||||||
(in millions of U.S. dollars)
|
Gold
|
Copper
|
Total
|
|||||||||
GAIN (LOSS) ON THE PROVISIONAL PRICING OF CONCENTRATE SALES
|
||||||||||||
Realized
|
0.9
|
3.1
|
4.0
|
|||||||||
Unrealized
|
(0.1
|
)
|
1.1
|
1.0
|
||||||||
Total gain
|
0.8
|
4.2
|
5.0
|
Three months ended March 31, 2018
|
||||||||||||
(in millions of U.S. dollars)
|
Gold
|
Copper
|
Total
|
|||||||||
GAIN (LOSS) ON THE PROVISIONAL PRICING OF CONCENTRATE SALES
|
||||||||||||
Realized
|
0.5
|
(1.5
|
)
|
(1.0
|
)
|
|||||||
Unrealized
|
-
|
(2.0
|
)
|
(2.0
|
)
|
|||||||
Total gain (loss)
|
0.5
|
(3.5
|
)
|
(3.0
|
)
|
18
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31, 2019
|
||||||||||||
(in millions of U.S. dollars)
|
Gold
|
Copper
|
Total
|
|||||||||
(LOSS) GAIN ON SWAP CONTRACTS
|
||||||||||||
Realized
|
(0.6
|
)
|
(4.1
|
)
|
(4.7
|
)
|
||||||
Unrealized
|
0.2
|
(1.3
|
)
|
(1.1
|
)
|
|||||||
Total loss
|
(0.4
|
)
|
(5.4
|
)
|
(5.8
|
)
|
Three months ended March 31, 2018
|
||||||||||||
(in millions of U.S. dollars)
|
Gold
|
Copper
|
Total
|
|||||||||
(LOSS) GAIN ON SWAP CONTRACTS
|
||||||||||||
Realized
|
(0.4
|
)
|
2.0
|
1.6
|
||||||||
Unrealized
|
0.1
|
2.5
|
2.6
|
|||||||||
Total (loss) gain
|
(0.3
|
)
|
4.5
|
4.2
|
As at March 31
|
As at December 31
|
|||||||
2019
|
2018
|
|||||||
VOLUMES SUBJECT TO FINAL PRICING NET OF OUTSTANDING SWAPS
|
||||||||
Gold ounces (000s)
|
1.9
|
0.8
|
||||||
Copper pounds (millions)
|
1.6
|
1.6
|
Quantity outstanding
|
Remaining term
|
Exercise price ($/lb)
|
Fair value - asset (liability) (1)
|
|||
COPPER PRICE OPTION CONTRACTS OUTSTANDING
|
||||||
Copper call contracts - sold
|
16,200 tonnes
|
April – December 2019
|
3.00
|
(2.8)
|
||
Copper put contracts - purchased
|
16,200 tonnes
|
April – December 2019
|
2.50
|
0.4
|
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.
|
19
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Quantity
outstanding
|
Remaining term |
Exercise price
($/lb)
|
Fair value - asset
(liability) (1)
|
|||||||
GOLD PRICE OPTION CONTRACTS OUTSTANDING | ||||||||||
Gold call contracts - sold
|
144,000 oz
|
April – December 2019
|
1,300
|
(4.5
|
)
|
|||||
Gold put contracts - purchased
|
144,000 oz
|
April – December 2019
|
1,230
|
0.8
|
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.
|
20
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
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
|
||||||
Balance at March 31, 2019
|
579,115
|
3,035.2
|
1.
|
In 2017, the Company closed a bought deal financing and related agreements and recognized a
deferred tax recovery of $1.9 million. This deferred tax recovery was reversed in 2018.
|
Three months ended March 31
|
||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||
SHARE-BASED PAYMENT EXPENSES
|
||||
Stock option expense (i)
|
0.2
|
0.6
|
||
Performance share unit expense
|
-
|
0.8
|
||
Restricted share unit expense(1)
|
0.4
|
0.4
|
||
Shares issued under First Nations agreements(1)
|
-
|
0.3
|
||
Total share-based payment expenses
|
0.6
|
2.1
|
1.
|
For the three months ended March 31, 2019 $0.3 million of share-based payment expenses were
recognized in operating expenses (2018 - $0.5 million).
|
21 |
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Number of options |
Weighted average
exercise price
|
||||||
(000s)
|
C$/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
|
2,250
|
1.17
|
|||||
Forfeited
|
(340)
|
3.83
|
|||||
Expired
|
(1,130)
|
6.33
|
|||||
Balance at March 31, 2019
|
9,408
|
3.41
|
Three months ended March 31
|
||||||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||||||
CALCULATION OF LOSS PER SHARE
|
||||||||||||
Loss from continuing operations
|
(13.4
|
)
|
(30.9
|
)
|
||||||||
Net loss
|
(13.4
|
)
|
(29.5
|
)
|
||||||||
Basic weighted average number of shares outstanding
(in millions)
|
579.1 | 578.7 | ||||||||||
Dilution of securities:
|
||||||||||||
Stock options
|
-
|
-
|
||||||||||
Diluted weighted average number of shares outstanding
(in millions)
|
579.1 | 578.7 |
||||||||||
Loss from continuing operations per share:
|
||||||||||||
Basic
|
(0.02
|
)
|
(0.05
|
)
|
||||||||
Diluted
|
(0.02
|
)
|
(0.05
|
)
|
||||||||
Net loss per share:
|
||||||||||||
Basic
|
(0.02
|
)
|
(0.05
|
)
|
||||||||
Diluted
|
(0.02
|
)
|
(0.05
|
)
|
Three months ended March 31
|
||||||
(in millions of units)
|
2019
|
2018
|
||||
EQUITY SECURITIES EXCLUDED FROM THE CALCULATION OF DILUTED EARNINGS PER SHARE
|
||||||
Stock options
|
9.4
|
11.8
|
22
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
23
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
CURRENT INCOME AND
MINING TAX EXPENSE
|
||||||||
Canada
|
1.8
|
-
|
||||||
|
1.8
|
-
|
||||||
DEFERRED INCOME AND MINING TAX EXPENSE
|
||||||||
Canada
|
1.9
|
1.4
|
||||||
|
1.9
|
1.4
|
||||||
Total income tax expense
|
3.7
|
1.4
|
(in millions of U.S. dollars)
|
Rainy River
|
New Afton
|
Mesquite
|
Cerro San 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 5)
|
-
|
-
|
-
|
(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
|
-
|
-
|
-
|
(3.1
|
)
|
-
|
(3.1
|
)
|
||||||||||||||||
Unwinding of discount
|
0.3
|
0.1
|
-
|
-
|
-
|
0.4
|
||||||||||||||||||
Revisions to expected cash flows
|
2.8
|
0.1
|
-
|
0.6
|
0.5
|
4.0
|
||||||||||||||||||
Foreign exchange movement
|
1.1
|
0.2
|
-
|
0.2
|
0.2
|
1.7
|
||||||||||||||||||
Balance – March 31, 2019
|
57.8
|
11.1
|
-
|
17.7
|
9.0
|
95.6
|
||||||||||||||||||
Less: current portion of closure costs (Note 5)
|
-
|
-
|
-
|
(5.8
|
)
|
-
|
(5.8
|
)
|
||||||||||||||||
Non-current portion of closure costs
|
57.8
|
11.1
|
-
|
11.9
|
9.0
|
89.8
|
24 |
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||
CHANGE IN NON-CASH OPERATING WORKING CAPITAL
|
||||||
Trade and other receivables
|
(4.8)
|
(1.3)
|
||||
Inventories
|
5.5
|
(12.5)
|
||||
Prepaid expenses and other
|
(1.0)
|
(0.4)
|
||||
Trade and other payables
|
3.5
|
4.0
|
||||
Total change in non-cash operating working capital
|
3.2
|
(10.2)
|
Three months ended March 31
|
||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||
OTHER NON-CASH ADJUSTMENTS
|
||||||
Unrealized loss (gain) on concentrate contracts
|
0.1
|
(2.5)
|
||||
Equity settled share-based payment expense
|
0.2
|
1.2
|
||||
Loss on disposal of assets
|
0.1
|
-
|
||||
Settlement and gain on revaluation of gold price option contracts
|
(1.1)
|
-
|
||||
Unrealized loss (gain) on gold stream obligation
|
4.7
|
(3.3)
|
||||
Settlement and loss (gain) on revaluation of copper price option contracts
|
3.1
|
(6.8)
|
||||
Revaluation of CSP’s reclamation and closure cost obligation
|
0.6
|
-
|
||||
Other non-cash adjustments
|
(0.5)
|
-
|
||||
Total other non-cash adjustments
|
7.2
|
(11.4)
|
25
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31, 2019
|
||||||||||||||||||||
(in millions of U.S. dollars)
|
Rainy River
|
New Afton
|
Corporate
|
Other(1)
|
Total
|
|||||||||||||||
OPERATING SEGMENT RESULTS
|
||||||||||||||||||||
Gold revenues
|
91.5
|
22.8
|
-
|
-
|
114.3
|
|||||||||||||||
Copper revenues
|
-
|
51.5
|
-
|
-
|
51.5
|
|||||||||||||||
Silver revenues
|
1.0
|
1.1
|
-
|
-
|
2.1
|
|||||||||||||||
Total revenues(2)
|
92.5
|
75.4
|
-
|
-
|
167.9
|
|||||||||||||||
Operating expenses
|
57.3
|
29.6
|
-
|
-
|
86.9
|
|||||||||||||||
Depreciation and depletion
|
21.7
|
39.5
|
-
|
-
|
61.2
|
|||||||||||||||
Revenue less cost of goods sold
|
13.5
|
6.3
|
-
|
-
|
19.8
|
|||||||||||||||
Corporate administration
|
-
|
-
|
5.3
|
-
|
5.3
|
|||||||||||||||
Share-based payment expenses
|
-
|
-
|
0.3
|
-
|
0.3
|
|||||||||||||||
Exploration and business development
|
0.1
|
0.2
|
0.1
|
-
|
0.4
|
|||||||||||||||
Income (loss) from operations
|
13.4
|
6.1
|
(5.7
|
)
|
-
|
13.8
|
1.
|
Other includes balances relating to the development properties and properties in the
reclamation phase of the mine life cycle.
|
2.
|
Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales for the three months ended March 31, 2019. |
26
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31, 2018
|
||||||||||||||||||||||||
(in millions of U.S. dollars)
|
Rainy River
|
New Afton
|
Corporate
|
Other(1)
|
Discontinued Operations(3)
|
Total
|
||||||||||||||||||
OPERATING SEGMENT RESULTS
|
||||||||||||||||||||||||
Gold revenues
|
54.3
|
22.2
|
-
|
6.4
|
-
|
82.9
|
||||||||||||||||||
Copper revenues
|
-
|
61.2
|
-
|
-
|
-
|
61.2
|
||||||||||||||||||
Silver revenues
|
1.0
|
1.1
|
-
|
1.3
|
-
|
3.4
|
||||||||||||||||||
Total revenues(2)
|
55.3
|
84.5
|
-
|
7.7
|
-
|
147.5
|
||||||||||||||||||
Operating expenses
|
51.6
|
28.3
|
-
|
9.2
|
-
|
89.1
|
||||||||||||||||||
Depreciation and depletion
|
17.5
|
37.8
|
-
|
0.8
|
-
|
56.1
|
||||||||||||||||||
Revenue less cost of goods sold
|
(13.8
|
)
|
18.4
|
-
|
(2.3
|
)
|
-
|
2.3
|
||||||||||||||||
Corporate administration
|
-
|
-
|
5.4
|
-
|
-
|
5.4
|
||||||||||||||||||
Share-based payment expenses
|
-
|
-
|
1.4
|
-
|
-
|
1.4
|
||||||||||||||||||
Exploration and business development
|
0.2
|
0.1
|
0.2
|
0.1
|
-
|
0.6
|
||||||||||||||||||
(Loss) income from operations
|
(14.0
|
)
|
18.3
|
(7.0
|
)
|
(2.4
|
)
|
-
|
(5.1
|
)
|
1.
|
Other includes balances relating to the development properties and properties in the
reclamation phase of the mine life cycle.
|
2.
|
Segmented revenue reported above represents revenue generated from external customers.
There were no inter-segment sales for the three months ended March 31, 2018.
|
3.
|
Refer to Note 13 for further information on discontinued operations
|
27
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Total assets
|
Total liabilities
|
Capital expenditures(1)
|
||||||||||||||||||||||
As at
March 31
|
As at
December 31
|
As at
March 31
|
As at
December 31
|
Three months ended
March 31
|
||||||||||||||||||||
(in millions of U.S. dollars)
|
2019
|
2018
(note 2c)
|
2019
|
2018
(note 2c)
|
2019
|
2018
|
||||||||||||||||||
SEGMENTED ASSETS AND LIABILITIES
|
||||||||||||||||||||||||
Rainy River
|
994.8
|
986.0
|
313.4
|
313.6
|
38.4
|
59.1
|
||||||||||||||||||
New Afton
|
696.1
|
730.9
|
78.2
|
73.8
|
10.5
|
7.2
|
||||||||||||||||||
Blackwater
|
343.9
|
341.4
|
20.2
|
18.8
|
1.4
|
1.9
|
||||||||||||||||||
Other(2)
|
134.0
|
111.3
|
827.6
|
818.9
|
0.1
|
-
|
||||||||||||||||||
Total assets, liabilities and capital expenditures
|
2,168.8
|
2,169.6
|
1,239.4
|
1,225.1
|
50.4
|
68.2
|
||||||||||||||||||
Capital expenditures from discontinued operations (Note 13)
|
-
|
-
|
-
|
-
|
-
|
9.2
|
||||||||||||||||||
Total assets, liabilities and capital expenditures
|
2,168.8
|
2,169.6
|
1,239.4
|
1,225.1
|
50.4
|
77.4
|
1.
|
Capital expenditures per condensed consolidated statement of cash flows.
|
2.
|
Other includes corporate, exploration properties and properties in the reclamation phase of
the mine life cycle.
|
28
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
29
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
As at March 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
|
132.3
|
103.7
|
||||||||||||||
Trade and other receivables
|
Financial assets at amortized cost
|
26.8
|
36.6
|
||||||||||||||
Provisionally priced contracts
|
Financial instruments at FVTPL
|
2
|
1.1
|
2
|
(1.6
|
)
|
|||||||||||
Gold and copper swap contracts
|
Financial instruments at FVTPL
|
2
|
(1.2
|
)
|
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 Instruments at FVTPL
|
3
|
7.6
|
3
|
8.5
|
||||||||||||
Investments
|
Financial instruments at FVTPL
|
1
|
1.3
|
1
|
0.8
|
||||||||||||
FINANCIAL LIABILITIES
|
|||||||||||||||||
Trade and other payables(1)
|
Financial liabilities at amortized cost
|
97.9
|
101.3
|
||||||||||||||
Long-term debt
|
Financial liabilities at amortized cost
|
781.2
|
780.5
|
||||||||||||||
Gold stream obligation
|
Financial instruments at FVTPL
|
3
|
183.2
|
3
|
182.4
|
||||||||||||
Performance share units
|
Financial instruments at FVTPL
|
3
|
0.2
|
3
|
0.2
|
||||||||||||
Restricted share units
|
Financial instruments at FVTPL
|
1
|
0.3
|
1
|
0.3
|
||||||||||||
Copper price option contracts
|
Financial instruments at FVTPL
|
2
|
2.4
|
2
|
-
|
||||||||||||
Gold price option contracts
|
Financial instruments at FVTPL
|
2
|
3.7
|
2
|
4.8
|
1.
|
Trade and other payables exclude the short-term portion of reclamation and closure cost
obligations, the short-term portion of the gold stream obligation and derivative liabilities.
|
2.
|
Proceeds due from income tax refunds at Mesquite are included in other non-current assets on the condensed
consolidated statement of financial position.
|
30
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
As at March 31, 2019
|
As at December 31, 2018
|
|||||||||||||||
(in millions of U.S. dollars)
|
Carrying value
|
Fair value
|
Carrying value
|
Fair value
|
||||||||||||
FINANCIAL ASSETS
|
||||||||||||||||
Cash and cash equivalents
|
132.3
|
132.3
|
103.7
|
103.7
|
||||||||||||
Trade and other receivables
|
26.8
|
26.8
|
36.6
|
36.6
|
||||||||||||
Provisionally priced contracts
|
1.1
|
1.1
|
(1.6
|
)
|
(1.6
|
)
|
||||||||||
Gold and copper swap contracts
|
(1.2
|
)
|
(1.2
|
)
|
0.9
|
0.9
|
||||||||||
Investments
|
1.3
|
1.3
|
0.8
|
0.8
|
||||||||||||
Copper price option contracts
|
-
|
-
|
0.7
|
0.7
|
||||||||||||
Proceeds due from income tax refunds at Mesquite(2)
|
7.6
|
7.6
|
8.5
|
8.5
|
||||||||||||
FINANCIAL LIABILITIES
|
||||||||||||||||
Trade and other payables(1)
|
97.9
|
97.9
|
101.3
|
101.3
|
||||||||||||
Long-term debt
|
781.2
|
686.5
|
780.5
|
652.9
|
||||||||||||
Gold stream obligation
|
183.2
|
183.2
|
182.4
|
182.4
|
||||||||||||
Performance share units
|
0.2
|
0.2
|
0.2
|
0.2
|
||||||||||||
Restricted share units
|
0.3
|
0.3
|
0.3
|
0.3
|
||||||||||||
Copper price option contracts
|
2.4
|
2.4
|
-
|
-
|
||||||||||||
Gold price option contracts
|
3.7
|
3.7
|
4.8
|
4.8
|
1.
|
Trade and other payables exclude the short-term portion of reclamation and closure cost
obligation, the short-term portion of the gold stream obligation and derivative liabilities.
|
2.
|
Proceeds due from income tax refunds at Mesquite are included in other non-current assets on the condensed
consolidated statement of financial position.
|
31
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
|
Exhibit 99.2 |
1
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
OUR BUSINESS |
1
|
OPERATING AND FINANCIAL HIGHLIGHTS |
3
|
OUTLOOK FOR 2019 |
5
|
KEY PERFORMANCE DRIVERS |
5
|
FINANCIAL RESULTS |
7
|
REVIEW OF OPERATING MINES |
11
|
DEVELOPMENT AND EXPLORATION REVIEW |
16
|
FINANCIAL CONDITION REVIEW |
17
|
NON-GAAP FINANCIAL PERFORMANCE MEASURES |
23
|
ENTERPRISE RISK MANAGEMENT AND RISK FACTORS |
33
|
CRITICAL JUDGMENTS AND ESTIMATION UNCERTAINTIES |
35
|
ACCOUNTING POLICIES |
35
|
CONTROLS AND PROCEDURES |
36
|
CAUTIONARY NOTES |
37
|
2
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
CONTINUING OPERATING INFORMATION
|
||||||||
Gold equivalent (ounces)(3):
|
||||||||
Produced (1)
|
123,263
|
119,075
|
||||||
Sold (1)
|
134,699
|
117,282
|
||||||
Gold (ounces):
|
||||||||
Produced (1)
|
79,398
|
63,771
|
||||||
Sold (1)
|
89,312
|
64,154
|
||||||
Copper (millions of pounds):
|
||||||||
Produced (1)
|
19.5
|
22.2
|
||||||
Sold (1)
|
20.2
|
21.3
|
||||||
Revenue (1)
|
||||||||
Gold ($/ounce)
|
1,278
|
1,296
|
||||||
Copper ($/pound)
|
2.56
|
2.86
|
||||||
Average realized price(1) (2)
|
||||||||
Gold ($/ounce)
|
1,301
|
1,331
|
||||||
Copper ($/pound)
|
2.79
|
3.14
|
||||||
Operating expenses per gold eq. ounce sold ($/ounce)
|
645
|
760
|
||||||
Total cash costs per gold eq. ounce sold ($/ounce) (2)
|
697
|
828
|
||||||
All-in sustaining costs per gold eq. ounce sold ($/ounce) (2)
|
1,083
|
1,373
|
1.
|
Production is shown on a total contained basis while sales are shown on a net payable basis, including final
product inventory and smelter payable adjustments,
where applicable. |
2.
|
The Company uses certain non-GAAP financial performance measures throughout this MD&A. Average realized
price, total cash costs and all-in sustaining costs per gold equivalent ounce sold and total cash costs and all-in sustaining costs on a co-product basis are non-GAAP financial performance measures with no standard meaning under IFRS.
For further information and a detailed reconciliation, please refer to the “Non-GAAP Financial Performance Measures” section of this MD&A.
|
3.
|
Gold equivalent ounces include silver ounces and copper ounces produced converted to a gold equivalent based
on a ratio of the average spot market prices for the commodities for each period. For pricing assumptions, please refer to the “Review of Operating Mines” section of this MD&A.
|
3
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||
FINANCIAL INFORMATION FROM CONTINUING OPERATIONS
|
||||
Revenue
|
167.9
|
147.5
|
||
Operating margin(1)
|
81.0
|
58.4
|
||
Revenue less cost of goods sold
|
19.8
|
2.3
|
||
Net loss
|
(13.4)
|
(30.9)
|
||
Adjusted net loss (1)
|
(1.8)
|
(17.9)
|
||
Operating cash flows
|
74.3
|
39.7
|
||
Operating cash flows before changes in non-cash operating working capital(1)
|
71.1
|
49.9
|
||
Capital expenditures (sustaining) (1)
|
42.6
|
55.5
|
||
Capital expenditures (growth) (1)
|
7.8
|
12.7
|
||
Total assets
|
2,168.8
|
3,951.5
|
||
Cash and cash equivalents
|
132.3
|
191.3
|
||
Long-term debt
|
781.2
|
1,008.4
|
||
Non-current liabilities excluding long-term debt
|
331.9
|
618.8
|
||
SHARE DATA
|
||||
Loss per share from operations:
|
||||
Basic ($)
|
(0.02)
|
(0.05)
|
||
Diluted ($)
|
(0.02)
|
(0.05)
|
||
Adjusted net loss per basic share ($)(1)
|
(0.00)
|
(0.03)
|
||
Share price as at March 31 (TSX – Canadian dollars)
|
1.14
|
3.34
|
||
Weighted average outstanding shares (basic) (millions)
|
579.1
|
578.7
|
||
1.
|
The Company uses certain non-GAAP financial performance measures throughout this MD&A.
Operating margin, adjusted net earnings (loss), adjusted net earnings (loss) per basic share, capital expenditures (sustaining and growth) and operating cash flows before changes in non-cash operating working capital are non-GAAP
financial performance measures with no standard meaning under IFRS. For further information and a detailed reconciliation, please refer to the “Non-GAAP Financial Performance Measures” section of this MD&A.
|
4
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
5
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
6
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
FINANCIAL RESULTS
|
||||||||
Revenue
|
167.9
|
147.5
|
||||||
Operating expenses
|
86.9
|
89.1
|
||||||
Depreciation and depletion
|
61.2
|
56.1
|
||||||
Revenue less cost of goods sold
|
19.8
|
2.3
|
||||||
Corporate administration
|
5.3
|
5.4
|
||||||
Share-based payment expenses
|
0.3
|
1.4
|
||||||
Exploration and business development
|
0.4
|
0.6
|
||||||
Earnings (loss) from operations
|
13.8
|
(5.1
|
)
|
|||||
Finance income
|
0.5
|
0.4
|
||||||
Finance costs
|
(15.3
|
)
|
(16.6
|
)
|
||||
Other gains and losses
|
||||||||
Rainy River underground project costs
|
(1.7
|
)
|
-
|
|||||
Loss on foreign exchange
|
(1.9
|
)
|
(19.9
|
)
|
||||
Other loss on disposal of assets
|
(0.1
|
)
|
-
|
|||||
Gain on revaluation of investments
|
0.5
|
-
|
||||||
Unrealized (loss) gain on revaluation of gold stream obligation
|
(4.7
|
)
|
3.3
|
|||||
Settlement and (loss) gain on revaluation of copper price option contracts
|
(3.1
|
)
|
6.8
|
|||||
Settlement and gain on revaluation of gold price option contracts
|
1.1
|
-
|
||||||
Revaluation of CSP’s reclamation and closure cost obligation and social closure costs
|
(1.0
|
)
|
-
|
|||||
Gain on additional proceeds realized from collection of
amounts receivable associated with Mesquite sale
|
2.1
|
-
|
||||||
Other
|
0.1
|
1.6
|
||||||
Loss before taxes
|
(9.7
|
)
|
(29.5
|
)
|
||||
Income tax expense
|
(3.7
|
)
|
(1.4
|
)
|
||||
Loss from continuing operations
|
(13.4
|
)
|
(30.9
|
)
|
||||
Earnings from discontinued operations
|
-
|
1.4
|
||||||
Net loss
|
(13.4
|
)
|
(29.5
|
)
|
||||
Adjusted loss from continuing operations (1)
|
(1.8
|
)
|
(17.9
|
)
|
1.
|
The Company uses certain non-GAAP financial performance measures throughout this MD&A.
For a detailed description of each of the non-GAAP measures used in this MD&A and a detailed reconciliation, please refer to the “Non-GAAP Financial Performance Measures” section of this MD&A.
|
7
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
8
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
9
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
(in millions of U.S. dollars,
except where noted)
|
Q1
2019
|
Q4
2018
|
Q3
2018
|
Q2
2018
|
Q1
2018
|
Q4
2017
|
Q3
2017
|
Q2
2017 |
Q1
2017 |
|||||||||||||||||||||||||||
CONTINUING OPERATING
INFORMATION |
||||||||||||||||||||||||||||||||||||
Gold production from operations (ounces)(1)
|
79,398
|
97,428
|
77,533
|
76,751
|
63,711
|
58,070
|
29,520
|
30,842
|
30,577
|
|||||||||||||||||||||||||||
Gold sales from operations (ounces)(1)
|
89,312
|
84,421
|
76,653
|
72,774
|
64,154
|
54,170
|
28,479
|
27,245
|
30,760
|
|||||||||||||||||||||||||||
Revenue
|
167.9
|
157.4
|
147.1
|
152.5
|
147.5
|
123.5
|
93.0
|
84.8
|
87.3
|
|||||||||||||||||||||||||||
(Loss) earnings
|
(13.4
|
)
|
(742.5
|
)
|
(1.6
|
)
|
(310.6
|
)
|
(30.9
|
)
|
(226.9
|
)
|
26.7
|
11.1
|
31.1
|
|||||||||||||||||||||
Per share:
|
||||||||||||||||||||||||||||||||||||
Basic ($)
|
(0.02
|
)
|
(1.28
|
)
|
(0.00
|
)
|
(0.54
|
)
|
(0.05
|
)
|
(0.39
|
)
|
0.05
|
0.02
|
0.06
|
|||||||||||||||||||||
Diluted ($)
|
(0.02
|
)
|
(1.28
|
)
|
(0.00
|
)
|
(0.54
|
)
|
(0.05
|
)
|
(0.39
|
)
|
0.05
|
0.02
|
0.06
|
|||||||||||||||||||||
1.
|
A detailed discussion of production is included in the “Review of Operating Mines” section of this MD&A.
|
10
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
OPERATING INFORMATION
|
||||||||
Ore mined (thousands of tonnes)
|
1,416
|
3,267
|
||||||
Waste mined (thousands of tonnes)
|
8,635
|
6,852
|
||||||
Ore processed (thousands of tonnes)
|
1,775
|
1,578
|
||||||
Ratio of waste-to-ore
|
6.10
|
2.10
|
||||||
Average gold (grams/tonne)
|
1.19
|
1.08
|
||||||
Gold recovery rate (%)
|
90
|
81
|
||||||
Gold eq. (ounces)(3):
|
||||||||
Produced
|
62,278
|
40,016
|
||||||
Sold
|
71,483
|
41,621
|
||||||
Gold (ounces):
|
||||||||
Produced (1)
|
61,557
|
39,325
|
||||||
Sold (1)
|
70,695
|
40,880
|
||||||
Average gold realized price ($/ounce)
|
1,295
|
1,328
|
||||||
Operating expenses per gold eq. ounce sold ($/ounce)
|
801
|
1,240
|
||||||
Total cash costs per gold eq. ounce sold (2)
|
801
|
1,240
|
||||||
All-in sustaining costs per gold eq. sold (2)
|
1,330
|
2,427
|
||||||
FINANCIAL INFORMATION
|
||||||||
Revenue
|
92.5
|
55.3
|
||||||
Operating margin (2)
|
35.2
|
3.7
|
||||||
Revenue less cost of goods sold
|
13.5
|
(13.8
|
)
|
|||||
Capital expenditures (sustaining capital) (2)
|
34.6
|
48.9
|
||||||
Capital expenditures (growth capital) (2)
|
3.8
|
10.2
|
1.
|
Production is shown on a total contained basis while sales are shown on a net payable
basis, including final product inventory and smelter payable adjustments, where applicable.
|
2.
|
We use certain non-GAAP financial performance measures throughout our MD&A. Total cash costs and all-in
sustaining costs per gold eq ounce sold, average realized price, and operating margin and capital expenditures (sustaining capital, sustaining leases, and growth capital) are non-GAAP financial performance measures with no standard
meaning under IFRS. For further information and a detailed reconciliation, please refer to the “Non-GAAP Financial Performance Measures” section of this MD&A.
|
3.
|
Gold equivalent ounces for Rainy River includes silver ounces produced converted to a gold equivalent based
on a ratio of the average spot market prices for the commodities for each period. The ratio for Q1 2019 was calculated based on average spot market prices of $1,304 per gold ounce and $15.57 per silver ounce. The ratio for Q1 2018 was calculated based on average spot market prices of $1,329 per gold ounce and $16.77 per silver ounce.
|
11
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
12
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
13
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
OPERATING INFORMATION
|
||||||||
Ore mined (thousands of tonnes)
|
1,382
|
1,450
|
||||||
Ore processed (thousands of tonnes)
|
1,328
|
1,290
|
||||||
Average grade:
|
||||||||
Gold (grams/tonne)
|
0.50
|
0.57
|
||||||
Copper (%)
|
0.80
|
0.94
|
||||||
Recovery rate (%):
|
||||||||
Gold
|
83.2
|
84.1
|
||||||
Copper
|
83.2
|
83.2
|
||||||
Gold eq. (ounces)(4):
|
||||||||
Produced
|
60,986
|
73,717
|
||||||
Sold
|
63,216
|
69,914
|
||||||
Gold (ounces):
|
||||||||
Produced (1)
|
17,841
|
19,998
|
||||||
Sold (1)
|
18,617
|
18,485
|
||||||
Copper (millions of pounds):
|
||||||||
Produced (1)
|
19.5
|
22.2
|
||||||
Sold (1)
|
20.2
|
21.3
|
||||||
Revenue
|
||||||||
Gold ($/ounce)
|
1,215
|
1,218
|
||||||
Copper ($/pound)
|
2.56
|
2.86
|
||||||
Average realized price (1)(2):
|
||||||||
Gold ($/ounce)
|
1,327
|
1,336
|
||||||
Copper ($/pound)
|
2.79
|
3.14
|
||||||
Operating expenses per gold eq ounce sold ($/ounce)
|
468
|
405
|
||||||
Operating expenses per gold ounce sold ($/ounce) (3)
|
477
|
408
|
||||||
Operating expenses per copper pound sold ($/pound) (3)
|
1.00
|
0.96
|
||||||
Total cash costs per gold eq. sold ($/ounce) (2)
|
578
|
523
|
||||||
All-in sustaining costs per gold eq. sold ($/ounce) (2)
|
714
|
626
|
||||||
Total cash costs on a co-product basis (2)
|
||||||||
Gold ($/ounce)
|
589
|
527
|
||||||
Copper ($/pound)
|
1.24
|
1.24
|
||||||
All-in sustaining costs on a co-product basis (2)
|
||||||||
Gold ($/ounce)
|
727
|
631
|
||||||
Copper ($/pound)
|
1.53
|
1.48
|
||||||
FINANCIAL INFORMATION:
|
||||||||
Revenue
|
75.4
|
84.5
|
||||||
Operating margin (2)
|
45.8
|
56.2
|
||||||
Revenue less cost of goods sold
|
6.3
|
18.4
|
||||||
Capital expenditures (sustaining capital) (2)
|
7.9
|
6.6
|
||||||
Capital expenditures (growth capital) (2)
|
2.6
|
0.6
|
1.
|
Production is shown on a total contained basis while sales are shown on a net payable basis,
including final product inventory and smelter payable adjustments, where applicable.
|
2.
|
We use certain non-GAAP financial performance measures throughout our MD&A. Total cash
costs and all-in sustaining costs per gold ounce sold, total cash costs and all-in sustaining costs on a co-product basis, average realized price, operating margin, and capital expenditures (sustaining capital, sustaining leases, and
growth capital) are non-GAAP financial performance measures with no standard meaning under IFRS. For further information and a detailed reconciliation, please refer to the “Non-GAAP Financial Performance Measures” section of this
MD&A.
|
3.
|
Operating expenses are apportioned to each metal produced on a percentage of revenue basis.
For further information and a detailed reconciliation, please refer to the “Non-GAAP Financial Performance Measures” section of this MD&A.
|
4.
|
Gold equivalent ounces for New Afton includes silver ounces and copper pounds produced
converted to a gold equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q1 2019 was calculated based on average spot market prices of $1,304 per gold ounce, $15.57 per silver
ounce and $2.82 per copper pound. The ratio for Q1 2018 was calculated based on average spot market prices of $1,329 per gold ounce, $16.77 per silver ounce and $3.16 per copper pound.
|
14
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
15
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
●
|
The Provincial and Federal Environmental Assessment (“EA”) technical review stage continued.
|
● |
Advanced discussions with key First Nations on Participation Agreements (“PAs”).
|
● |
Advanced project trade-off studies.
|
16
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
|
As at March 31 | As at December 31 | ||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
BALANCE SHEET INFORMATION
|
||||||||
Cash and cash equivalents
|
132.3
|
103.7
|
||||||
Other current assets
|
164.5
|
186.7
|
||||||
Non-current assets
|
1,872.0
|
1,879.2
|
||||||
Total assets
|
2,168.8
|
2,169.6
|
||||||
Current liabilities
|
126.3
|
130.9
|
||||||
Non-current liabilities excluding long-term debt
|
331.9
|
313.7
|
||||||
Long-term debt
|
781.2
|
780.5
|
||||||
Total liabilities
|
1,239.4
|
1,225.1
|
||||||
Total equity
|
929.4
|
944.5
|
||||||
Total liabilities and equity
|
2,168.8
|
2,169.6
|
17
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
18
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended
March 31
|
Year ended
December 31
|
||
Financial
covenant
|
2019 | 2018 | |
FINANCIAL COVENANTS | |||
Minimum interest coverage ratio (Adjusted EBITDA to interest)
|
>3.0 : 1
|
4.7 : 1
|
4.5 : 1
|
Maximum leverage ratio (net debt to Adjusted EBITDA)
|
<4.5 : 1
|
2.5 : 1
|
2.6 : 1
|
Maximum secured leverage ratio (secured debt to Adjusted EBITDA)
|
<2.0 : 1
|
0.5 : 1
|
0.4 : 1
|
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
CASH FLOW INFORMATION
|
||||||||
Cash generated from continuing operations
|
74.3
|
39.7
|
||||||
Investing cash flows used by continuing operations (capital expenditures and other)
|
(50.0
|
)
|
(68.0
|
)
|
||||
Cash generated from investing activities (sale of Mesquite and other assets)
|
12.0
|
0.3
|
||||||
Cash used in financing activities
|
(8.0
|
)
|
(6.7
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
0.3
|
(0.8
|
)
|
|||||
Cash flows related to discontinued operations
|
-
|
10.6
|
||||||
Change in cash and cash equivalents
|
28.6
|
(24.9
|
)
|
19
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
CAPITAL EXPENDITURES BY SITE
|
||||||||
Rainy River
|
38.4
|
59.1
|
||||||
New Afton
|
10.5
|
7.2
|
||||||
Blackwater
|
1.4
|
1.9
|
||||||
Corporate
|
0.1
|
-
|
||||||
Capital expenditures from continuing operations
|
50.4
|
68.2
|
20
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
21
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
As at
March 31
|
As at
December 31
|
|||||||||||||||||||||||
(in millions of U.S. dollars, except where noted)
|
< 1 year
|
1-3 Years
|
4-5 Years
|
After 5 Years
|
2019
Total
|
2018
Total
|
||||||||||||||||||
CONTRACTUAL OBLIGATIONS
|
||||||||||||||||||||||||
Long-term debt
|
-
|
-
|
500.0
|
300.0
|
800.0
|
800.0
|
||||||||||||||||||
Interest payable on long-term debt
|
50.4
|
100.7
|
57.8
|
21.5
|
230.4
|
242.9
|
||||||||||||||||||
Total lease commitments
|
10.1
|
11.0
|
8.1
|
-
|
29.2
|
19.9
|
||||||||||||||||||
Capital expenditure commitments
|
62.9
|
0.3
|
-
|
-
|
63.2
|
27.2
|
||||||||||||||||||
Reclamation and closure cost obligations
|
6.0
|
19.6
|
10.0
|
81.3
|
116.9
|
116.6
|
||||||||||||||||||
Gold stream obligation
|
16.4
|
46.3
|
53.6
|
147.3
|
263.6
|
267.5
|
||||||||||||||||||
Total contractual obligations
|
145.8
|
177.9
|
629.5
|
550.1
|
1,503.4
|
1,474.1
|
22
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
23
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
24
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
25
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
CONSOLIDATED OPEX, CASH COST AND AISC FROM CONTINUING OPERATIONS RECONCILIATION
|
||||||||
Operating expenses
|
86.9
|
89.1
|
||||||
Gold equivalent ounces sold(2)
|
134,699
|
117,282
|
||||||
Operating expenses per gold equivalent ounce sold ($/ounce)
|
645
|
760
|
||||||
Operating expenses
|
86.9
|
89.1
|
||||||
Treatment and refining charges on concentrate sales
|
6.9
|
8.3
|
||||||
Adjustments(1)
|
-
|
(0.2
|
)
|
|||||
Total cash costs
|
93.8
|
97.1
|
||||||
Gold equivalent ounces sold(2)
|
134,699
|
117,282
|
||||||
Total cash costs per gold equivalent ounce sold ($/ounce)
|
697
|
828
|
||||||
Sustaining capital expenditures(3)
|
42.6
|
55.3
|
||||||
Sustaining exploration - expensed
|
0.3
|
0.4
|
||||||
Sustaining leases
|
2.1
|
-
|
||||||
Corporate G&A including share-based compensation(4)
|
5.5
|
6.6
|
||||||
Reclamation expenses
|
1.5
|
1.7
|
||||||
Total all-in sustaining costs
|
145.8
|
161.1
|
||||||
Gold equivalent ounces sold(2)
|
134,699
|
117,282
|
||||||
All-in sustaining costs per gold equivalent ounce sold ($/ounce)
|
1,083
|
1,373
|
1.
|
Adjustments include social closure costs incurred at Cerro San Pedro included in operating
expenses.
|
2.
|
Gold equivalent ounces includes silver ounces and copper pounds produced converted to a gold
equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q1 2019 was calculated based on average spot market prices of $1,304 per gold ounce, $2.82 per copper pound and $15.57 per
silver ounce. The ratio for Q1 2018 was calculated based on average spot market prices of $1,329 per gold ounce, $3.16 per copper pound and $16.77 per silver ounce.
|
3.
|
See “Total Sustaining Capital Expenditure Reconciliation” to reconcile sustaining capital
expenditures to mining interests per the statement of cash flows.
|
4.
|
Includes the sum of corporate administration costs and share-based payment expense per the
income statement, net of any non-cash depreciation within those figures.
|
26
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
RAINY RIVER OPEX, CASH COSTS AND AISC RECONCILIATION
|
||||||||
Operating expenses
|
57.3
|
51.6
|
||||||
Gold Equivalent Ounces sold (1)
|
71,483
|
41,621
|
||||||
Operating expenses per unit of gold sold ($/ounce)
|
801
|
1,240
|
||||||
Operating expenses
|
57.3
|
51.6
|
||||||
Total cash costs
|
57.3
|
51.6
|
||||||
Gold Equivalent Ounces sold
|
71,483
|
41,621
|
||||||
Total cash costs per Gold Equivalent Ounce sold ($/ounce)
|
801
|
1,240
|
||||||
Sustaining capital expenditures(2)
|
34.6
|
48.6
|
||||||
Sustaining leases
|
2.0
|
-
|
||||||
Reclamation expenses
|
1.2
|
0.8
|
||||||
Total all-in sustaining costs
|
95.1
|
101.0
|
||||||
Gold Equivalent Ounces sold (1)
|
71,483
|
41,621
|
||||||
All-in sustaining costs per Gold Equivalent Ounce sold ($/ounce)
|
1,330
|
2,427
|
1.
|
Gold equivalent ounces includes silver ounces produced converted to a gold
equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q1 2019 was calculated based on average spot market prices of $1,304 per gold ounce and $15.57 per silver ounce. The ratio
for Q1 2018 was calculated based on average spot market prices of $1,329 per gold ounce and $16.77 per silver ounce.
|
2.
|
See “Total Sustaining Capital Expenditure Reconciliation” to reconcile
sustaining capital expenditures to mining interests per the statement of cash flows.
|
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
NEW AFTON OPEX, CASH COSTS AND AISC RECONCILIATION ON A GOLD EQUIVALENT BASIS
|
||||||||
Operating expenses
|
29.6
|
28.1
|
||||||
Gold Equivalent Ounces sold (1)
|
63,216
|
69,914
|
||||||
Operating expenses per unit of gold sold ($/ounce)
|
468
|
405
|
||||||
Operating expenses
|
29.6
|
28.2
|
||||||
Treatment and refining charges on concentrate sales
|
6.9
|
8.3
|
||||||
Total cash costs
|
36.6
|
36.5
|
||||||
Gold Equivalent Ounces sold (1)
|
63,216
|
69,914
|
||||||
Total cash costs per Gold Equivalent Ounce sold ($/ounce)
|
578
|
523
|
||||||
Sustaining capital expenditures(2)
|
7.9
|
6.6
|
||||||
Sustaining exploration - expensed
|
0.2
|
0.1
|
||||||
Sustaining leases
|
0.1
|
-
|
||||||
Reclamation expenses
|
0.3
|
0.5
|
||||||
Total all-in sustaining costs
|
45.1
|
43.7
|
||||||
Gold Equivalent Ounces sold (1)
|
63,216
|
69,914
|
||||||
All-in sustaining costs per Gold Equivalent Ounce sold ($/ounce)
|
714
|
626
|
1.
|
Gold equivalent ounces includes silver ounces and copper pounds produced
converted to a gold equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for Q1 2019 was calculated based on average spot market prices of $1,304 per gold ounce $2.82 per copper
pound and $15.57 per silver ounce. The ratio for Q1 2018 was calculated based on average spot market prices of $1,329 per gold ounce, $3.16 per copper pound and $16.77 per silver ounce.
|
2.
|
See “Total Sustaining Capital Expenditure Reconciliation” to reconcile
sustaining capital expenditures to mining interests per the statement of cash flows.
|
27
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31, 2019
|
||||||||||||||||
(in millions of U.S. dollars, except where noted)
|
Gold
|
Copper
|
Silver
|
Total
|
||||||||||||
NEW AFTON OPEX, CASH COSTS AND AISC RECONCILIATION ON A CO-PRODUCT BASIS
|
||||||||||||||||
Operating expenses(1)
|
8.9
|
20.3
|
0.4
|
29.6
|
||||||||||||
Units of metal sold (ounces/millions of pounds/millions of ounces)
|
18,617
|
20.2
|
0.1
|
|||||||||||||
Operating expenses per unit of metal sold ($/ounce or pound)
|
477
|
1.00
|
5.78
|
|||||||||||||
Operating expenses
|
8.9
|
20.3
|
0.4
|
29.6
|
||||||||||||
Treatment and refining charges on concentrate sales
|
2.1
|
4.8
|
0.1
|
6.9
|
||||||||||||
Total cash costs
|
11.0
|
25.1
|
0.5
|
36.6
|
||||||||||||
By-product silver and copper sales
|
(57.6
|
)
|
||||||||||||||
Total cash costs net of by-product revenue
|
(21.1
|
)
|
||||||||||||||
Units of metal sold (ounces/millions of pounds/millions of ounces)
|
18,617
|
20.2
|
0.1
|
|||||||||||||
Total cash costs on a co-product basis(2) ($/ounce or pound)
|
589
|
1.24
|
7.14
|
|||||||||||||
Total cash costs per gold ounce sold ($/ounce)
|
(1,132
|
)
|
||||||||||||||
Total co-product cash costs
|
11.0
|
25.1
|
0.5
|
|||||||||||||
Total cash costs net of by-product revenue
|
(21.1
|
)
|
||||||||||||||
Sustaining capital expenditures(3)
|
2.4
|
5.4
|
0.1
|
7.9
|
||||||||||||
Sustaining exploration expense
|
-
|
0.1
|
-
|
0.1
|
||||||||||||
Sustaining leases
|
-
|
0.1
|
-
|
0.1
|
||||||||||||
Reclamation expenses
|
0.1
|
0.2
|
-
|
0.3
|
||||||||||||
Total co-product all-in sustaining costs
|
13.5
|
30.9
|
0.6
|
|||||||||||||
Total all-in sustaining costs net of by-product revenue
|
(12.5
|
)
|
||||||||||||||
All-in sustaining costs on a co-product basis(2) ($/ounce or pound)
|
727
|
1.53
|
8.81
|
|||||||||||||
All-in sustaining costs per gold ounce sold ($/ounce)
|
(673
|
)
|
1.
|
Operating expenses are apportioned to each metal produced on a percentage of revenue basis.
|
2.
|
Amounts presented on a co-product basis remove the impact of other metal sales that are
produced as a by-product of our gold production and apportions the cash costs to each metal produced on a percentage of revenue basis.
|
3.
|
See “Total Sustaining Capital Expenditure Reconciliation” to reconcile sustaining capital
expenditures to mining interests per the statement of cash flows.
|
Three months ended March 31, 2018
|
||||||||||||||||
(in millions of U.S. dollars, except where noted)
|
Gold
|
Copper
|
Silver
|
Total
|
||||||||||||
NEW AFTON OPEX, CASH COSTS AND AISC RECONCILIATION ON A CO-PRODUCT BASIS
|
||||||||||||||||
Operating expenses(1)
|
7.5
|
20.3
|
0.4
|
28.2
|
||||||||||||
Units of metal sold (ounces/millions of pounds/millions of ounces)
|
18,485
|
21.3
|
0.1
|
|||||||||||||
Operating expenses per unit of metal sold ($/ounce or pound)
|
408
|
0.96
|
5.01
|
|||||||||||||
Operating expenses
|
7.5
|
20.3
|
0.4
|
28.2
|
||||||||||||
Treatment and refining charges on concentrate sales
|
2.2
|
6.0
|
0.1
|
8.3
|
||||||||||||
Total cash costs
|
9.7
|
26.3
|
0.5
|
36.5
|
||||||||||||
By-product silver and copper sales
|
(68.0
|
)
|
||||||||||||||
Total cash costs net of by-product revenue
|
(31.5
|
)
|
||||||||||||||
Units of metal sold (ounces/millions of pounds/millions of ounces)
|
18,485
|
21.3
|
0.1
|
|||||||||||||
Total cash costs on a co-product basis(2) ($/ounce or pound)
|
527
|
1.24
|
6.46
|
|||||||||||||
Total cash costs per gold ounce sold ($/ounce)
|
(1,702
|
)
|
||||||||||||||
Total co-product cash costs
|
9.7
|
26.3
|
0.5
|
|||||||||||||
Total cash costs net of by-product revenue
|
(31.5
|
)
|
||||||||||||||
Sustaining capital expenditures(3)
|
1.8
|
4.7
|
0.1
|
6.6
|
||||||||||||
Sustaining exploration expense
|
0.1
|
0.1
|
-
|
0.2
|
||||||||||||
Reclamation expenses
|
0.1
|
0.4
|
-
|
0.5
|
||||||||||||
Total co-product all-in sustaining costs
|
11.7
|
31.5
|
0.6
|
|||||||||||||
Total all-in sustaining costs net of by-product revenue
|
(24.3
|
)
|
||||||||||||||
All-in sustaining costs on a co-product basis(2) ($/ounce or pound)
|
631
|
1.48
|
7.73
|
|||||||||||||
All-in sustaining costs per gold ounce sold ($/ounce)
|
(1,313
|
)
|
1.
|
Operating expenses are apportioned to each metal produced on a percentage of revenue basis.
|
2.
|
Amounts presented on a co-product basis remove the impact of other metal sales that are
produced as a by-product of our gold production and apportions the cash costs to each metal produced on a percentage of revenue basis.
|
3.
|
See “Total Sustaining Capital Expenditure Reconciliation” to reconcile sustaining capital
expenditures to mining interests per the statement of cash flow.
|
28
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
TOTAL SUSTAINING CAPITAL EXPENDITURES
|
||||||||
Mining interests per statement of cash flows
|
50.4
|
68.2
|
||||||
New Afton growth capital expenditures(1)
|
(2.6
|
)
|
(0.6
|
)
|
||||
Rainy River growth capital expenditures
|
(3.8
|
)
|
(10.2
|
)
|
||||
Blackwater growth capital expenditures
|
(1.4
|
)
|
(1.9
|
)
|
||||
Sustaining capital expenditures from continuing operations
|
42.6
|
55.5
|
1.
|
Growth capital expenditures at New Afton in the current period and
prior-year period relate to project advancement for the C-zone. Growth capital expenditures at Rainy River in the current period is primarily related to the payment of underground mine development working capital and the transfer of
infrastructure from the contractor and in the prior-year period related to the payment of working capital for project development (pre-commercial production).
|
●
|
Impairment losses;
|
|
● |
Inventory write-downs;
|
|
● |
Items included in “Other gains and losses” as per Note 3 of the Company’s consolidated financial statements; and
|
|
● |
Certain non-recurring items.
|
29
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
ADJUSTED LOSS FROM CONTINUING OPERATIONS RECONCILIATION
|
||||||||
Loss before taxes
|
(9.7
|
)
|
(29.5
|
)
|
||||
Other (gains) losses (1)
|
8.7
|
8.2
|
||||||
Adjusted net loss before taxes
|
(1.0
|
)
|
(21.3
|
)
|
||||
Income tax expense
|
(3.7
|
)
|
(1.4
|
)
|
||||
Income tax adjustments
|
2.9
|
4.8
|
||||||
Adjusted income tax (expense) recovery
|
(0.8
|
)
|
3.4
|
|||||
Adjusted net loss
|
(1.8
|
)
|
(17.9
|
)
|
||||
Adjusted loss per share (basic and diluted)
|
(0.00
|
)
|
(0.03
|
)
|
1.
|
Please refer to Note 3 of the Company’s unaudited condensed consolidated financial statements
for a detailed breakdown of other gains and losses.
|
Three months ended March 31
|
||||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
CASH RECONCILIATION FROM CONTINUING OPERATIONS
|
||||||||
Cash generated from operations
|
74.3
|
39.7
|
||||||
Add back (deduct): Change in non-cash operating working capital
|
(3.2
|
)
|
10.2
|
|||||
Cash generated from operations before changes in non-cash operating working capital
|
71.1
|
49.9
|
30
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
TOTAL OPERATING MARGIN
|
||||||||
Revenue
|
167.9
|
147.5
|
||||||
Less: Operating expenses
|
86.9
|
89.1
|
||||||
Total operating margin
|
81.0
|
58.4
|
|
||||||||
Three months ended March 31 | ||||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
RAINY RIVER OPERATING MARGIN
|
||||||||
Revenue
|
92.5
|
55.3
|
||||||
Less: Operating expenses
|
57.3
|
51.6
|
||||||
Rainy River operating margin
|
35.2
|
3.7
|
Three months ended March 31
|
||||||||
(in millions of U.S. dollars)
|
2019
|
2018
|
||||||
NEW AFTON OPERATING MARGIN
|
||||||||
Revenue
|
75.4
|
84.5
|
||||||
Less: Operating expenses
|
29.6
|
28.3
|
||||||
New Afton operating margin
|
45.8
|
56.2
|
31
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
TOTAL AVERAGE REALIZED PRICE FROM CONTINUING OPERATIONS
|
||||||||
Revenue from gold sales
|
114.3
|
82.9
|
||||||
Treatment and refining charges on gold concentrate sales
|
2.1
|
2.2
|
||||||
Gross revenue from gold sales
|
116.4
|
85.1
|
||||||
Gold ounces sold
|
89,312
|
64,154
|
||||||
Total average realized price per gold ounce sold ($/ounce)
|
1,301
|
1,331
|
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
RAINY RIVER AVERAGE REALIZED PRICE
|
||||||||
Revenue from gold sales
|
91.5
|
54.3
|
||||||
Gold ounces sold
|
70,695
|
40,880
|
||||||
Rainy River average realized price per gold ounce sold ($/ounce)
|
1,295
|
1,328
|
Three months ended March 31
|
||||||||
(in millions of U.S. dollars, except where noted)
|
2019
|
2018
|
||||||
NEW AFTON AVERAGE REALIZED PRICE
|
||||||||
Revenue from gold sales
|
22.8
|
22.2
|
||||||
Treatment and refining charges on gold concentrate sales
|
2.1
|
2.2
|
||||||
Gross revenue from gold sales
|
24.9
|
24.4
|
||||||
Gold ounces sold
|
18,617
|
18,485
|
||||||
New Afton average realized price per gold ounce sold ($/ounce)
|
1,327
|
1,336
|
32
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
●
|
the strength of the U.S. economy and the economies of other industrialized and developing nations;
|
|
● |
global or regional political or economic conditions;
|
|
● |
the relative strength of the U.S. dollar and other currencies;
|
|
● |
expectations with respect to the rate of inflation;
|
|
● |
interest rates;
|
|
● |
purchases and sales of gold by central banks and other large holders, including speculators;
|
|
● |
demand for jewellery containing gold; and
|
|
● |
investment activity, including speculation, in gold as a commodity.
|
33
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
Three months ended March 31
|
Three months ended March 31
|
|||||||||||||||
(in millions of U.S. dollars, except where noted)
|
2019
Net
Earnings (Loss)
|
2019
Other Comprehensive Income (Loss)
|
2018
Net
Earnings (Loss)
|
2018
Other Comprehensive Income (Loss)
|
||||||||||||
IMPACT OF 10% CHANGE IN COMMODITY PRICES
|
||||||||||||||||
Gold price
|
8.8
|
-
|
13.1
|
-
|
||||||||||||
Copper price
|
5.8
|
-
|
6.7
|
-
|
34
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
35
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
36
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
37
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
38
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
39
|
WW.NEWGOLD.COM TSX:NGD NYSE American:NGD |
I, Renaud Adams, Chief Executive Officer of New Gold Inc., certify the following: | ||
1.
|
Review: I have reviewed the interim financial report and interim MD&A (together, the
“interim filings”) of New Gold Inc. (the “issuer”) for the interim period ended March 31, 2019.
|
|
2.
|
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim
filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with
respect to the period covered by the interim filings.
|
|
3.
|
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim
financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for
the periods presented in the interim filings.
|
|
4.
|
Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing
and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings,
for the issuer.
|
|
5.
|
Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s
other certifying officer(s) and I have, as at the end of the period covered by the interim filings
|
(a)
|
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that | ||
(i) |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings
are being prepared; and
|
||
(ii) |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it
under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
||
(b) |
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
|
||
5.1
|
Control framework: The control framework the issuer’s other certifying officer(s) and I used
to design the issuer’s ICFR is Internal Control – Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission.
|
5.2
|
ICFR – material weakness relating to design: None
|
5.3
|
Limitation on scope of design: None
|
6.
|
Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the
issuer’s ICFR that occurred during the period beginning on January 1, 2019 and ended on March 31, 2019 that has materially affected, or is reasonably likely
to materially affect, the issuer’s ICFR.
|
Date:
|
April 25, 2019
|
/s/ Renaud Adams
|
|
Name:
|
Renaud Adams
|
Title:
|
Chief Executive Officer
|
1.
|
Review: I
have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of New Gold Inc.
(the “issuer”) for the interim period ended March 31, 2019.
|
||
2.
|
No
misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue
statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the
interim filings.
|
||
3.
|
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information
included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
||
4.
|
Responsibility: The
issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National
Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
|
||
5.
|
Design:
Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
|
||
(a)
|
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
||
(i)
|
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings
are being prepared; and
|
||
(ii)
|
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it
under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
||
(b)
|
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
|
|
5.1
|
Control framework:
The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Internal Control
– Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission.
|
|
5.2
|
ICFR – material
weakness relating to design: None
|
|
5.3
|
Limitation on scope
of design: None
|
|
6.
|
Reporting changes in
ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning
on January 1, 2019 and ended on March
31, 2019 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
|
Date:
|
April 25, 2019
|
|
/s/ Robert Chausse
|
||
Name:
|
Robert Chausse
|
|
Title:
|
Chief Financial Officer
|
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