25 WWWNEW G O L D C O M TSXNGD NY SE Am er ic an NG D NONGAAP F I NANCIAL PERF ORMANCE MEASURES T o tal Cash Costs per Gold Equiv a lent Ounce Total cash costs per gold equi val ent ounce is a nonGAAP measure that is a comm on financial perfo rman ce measure in the gold minin g industry bu t with no sta ndard meani ng unde r IFRS New Gold repo rts total ca sh cost s o n a sal e s b a s is a nd not o n a pro d u c tio n basi s The Comp an y bel ieve s that in addition to co nve n tional m easure s p r ep ared i n acco rdan ce with IF RS ce rtain in ve stors u s e th is inform ation to eval uate th e Com pan y s perfo rman ce and abilit y to gene rate liq ui dity thro ugh o peratin g cash flow to fund future capital expe nditu re s and working capital n eed s Ne w Gol d belie ve s that this mea s u r e along with sales is a key indi ca tor of a Com pany s ability to generate operating earni ngs and cash flow from its mining operation s Total ca sh costs a r e inte nded to pro v i de addition al information only an d do not have an y standa rdized meanin g und er IFRS an d may not be comp ara b le to similar measures p r ese n ted b y other mini ng comp anie s T hey shoul d n o t be con s id ered in i s olati on or a s a substitute for measures of perfo rman ce prep ared in a c cord an ce with IFRS The measure is n o t necessa rily indicative of ca sh flo w fro m ope ration s unde r IFRS o r ope rating co sts p r e s ented under IF RS Tot a l ca sh co st f i gure s a r e cal c ulat e d in ac cor dan ce with a stand a r d de vel ope d by Th e Gol d Institute a worl dwi de a s so ciation of supplie rs of go ld and gold p r odu cts th at ceased o perati ons i n 20 02 Adoption of the standa rd i s volu ntary a nd the co st measure s presented ma y no t be comp a r a b le to other si milarl y titled measures of other com p anie s Total ca sh co sts i n clu de min e site op erati ng cost s such as mining pro c e ssi ng a nd ad minist ration cost s royaltie s p r od uction ta xe s and reali z ed gain s an d lo sses on fue l contract s but are e x clu s ive of amorti zati on re clam ati on ca pital an d exploration co sts a nd n e t of byprodu ct sale s Total cash co sts are then divid ed by gol d equi valent oun ce s sold to arri ve at the total cash cost s per equi valent o u n ce sold In addition to gold the Com pan y pro d u c e s co ppe r and silv er Gold e quivalent ou n c e s of cop p e r and sil v er prod uced or sold in a quarter are com p u t ed using a consi s tent rati o of copper a nd silve r pri c es to the gold price and m u ltiplying thi s ratio by the p ound s of co p per a nd sil v e r oun ce s pro duced or sol d durin g that quarte r Notwithstandi ng th e impa ct of coppe r an d sil v er sal e s a s a Com pan y f o cu se d on g o l d pro d u c tion Ne w Gold aims to asse ss the economi c results of its operation s in relation to gold whi c h is the primary driv er of Ne w Gold s bu sin e ss Ne w Gol d belie ve s t h is met r ic i s of int e re st t o it s in v e st or s who i n ve st in t he Comp an y pri m aril y a s a gold mini ng Comp an y T o det ermine the rele va nt co st s a s so ci at ed wit h g o l d equi valent o u n ce s Ne w G o ld belie ve s it is app rop r iat e to reflect all operating co sts that are e x tra c ted in its operation s Previ o u s ly New Gol d cal c ulated total cash co sts pe r ounce for Ra iny Ri ve r an d Cerro San Pe dro n e t of by prod uct silver sale s revenu e Ne w Gol d has cal c ul at e d Ne w A f t on t o t a l ca sh co st s p e r o u n c e net of b y prod uct sil v e r and cop p e r sales revenu e for com parative pu rpo s e s Total ca sh co sts pe r gold o unce net of byprodu ct sa les and are divide d by gold ounce s sold to arrive at a per oun ce fig u re Ne w Gol d notes that in conn ectio n with New Afton the copp e r byprodu ct reve nue was suffici e n tly large to result in a negative total cash co st on a single mine ba sis To pro v id e ad ditional information to investors New Go ld ha s al so calculated to tal cash co sts at New Afton on an indivi du al cop ro du ct basi s whi c h a pportio n s t he ca sh co sts to each metal produ ced on a percenta ge of re ven ue b a si s and sub s eq uentl y di vi des th e am ou nt by th e total gold oun ce s silver oun ce s o r po und s of copp er sol d as the ca se may be to arri ve at pe r oun ce or p e r poun d figure s