Reuters writes that Executive Chairman Randall Oliphant said New Gold Inc (NGD.TO) is benefiting from near record high copper and silver prices, which are helping lower its gold production costs.
“For 2011, we expect production to increase to between 380,000 and 400,000 ounces,” Oliphant said. “And we have targeted costs of $430 to $450 an ounce.”
Oliphant noted that the cost targets are based on copper at $3.75 a pound and silver at $23 an ounce, both well below today’s spot prices.
“In fact, at today’s metal prices, our costs would be well below $400 an ounce, in the high $300s, which would give us a margin of over $1,000 an ounce,” said Oliphant, who was speaking on the sidelines of the PDAC mining convention in Toronto on Tuesday evening.
