New Gold Inc. (NGD)

[JohnCM]

Tommy. This article is the real deal!

"... and together we own about $80 million worth of stock in the company so we care a lot about how our shares do which is why we measure everything on a per share basis.

Our all-in sustaining cost which is the new metric that includes not only our operating cost but sustaining capital, exploration and admin costs should be about $900 an ounce this year. And again, we think that’s amongst the lowest in the industry so we feel very comfortable and even at today’s prices are still generating strong margins.

In terms of our outlook for this year, we will produce about 400,000 ounces of gold, about 80 million pounds of copper and about 1.3 million ounces of silver and you can see where our cash cost and all-in sustaining costs are going to be. But over the course of the past four years while costs in industry have gone up dramatically, our costs have actually been coming down in part and we have subject to all the same cost pressures as others, appreciating commodity, currencies, higher diesel prices, demand from labor and government from more and other input costs, but really our copper and our silver tend to act as a natural economic hedge for our company. Because commodity currencies generally appreciate when commodities appreciate and copper tends to move in line with that and seems to be quite correlated to oil as well.

And so by sort of having this dampening effect our costs have actually been coming down, so we used to be an average cost producer and today I think our costs are particularly on the cash cost basis in the order of $400 below average."