/NOT FOR DISSEMINATION OR DISTRIBUTION IN
THE UNITED STATES AND NOT FOR
DISTRIBUTION TO US NEWSWIRE SERVICES./
(All financial figures in US Dollars unless
otherwise stated)
MELBOURNE, Jan. 18, 2018 /CNW/ - OceanaGold Corporation
(TSX/ASX: OGC) (the "Company") is pleased to release its
full year and fourth quarter 2017 production report for the year
ended 31 December 2017, in accordance
with the Australian Securities Exchange ("ASX") Listing Rule 5.1.
Note that the numbers contained in this document are unaudited and
subject to finalisation. The Company will release its complete 2017
audited financial and operational results before market open on
Thursday February 22, 2018 (Toronto
Eastern Standard Time).
Key Highlights
- Record annual and quarterly gold production of 574,606 ounces
and 166,211 ounces respectively.
- Annual copper production of 18,351 tonnes including 3,687
tonnes in the fourth quarter.
- Achieved consolidated production and cost range for a sixth
consecutive year.
- Consolidated annual gold sales of 555,632 ounces and copper
sales of 18,091 tonnes including 168,586 ounces of gold and 4,842
tonnes of copper in the fourth quarter.
- Unaudited consolidated All-In Sustaining Costs ("AISC") of
$617 per ounce sold and cash costs of
$349 per ounce sold.
- Increased cash balance from $61
million as at September 30,
2017 to $73 million and
reduced net debt to $167 million
following debt facility repayments of approximately $73 million.
- Didipio received the inaugural ASEAN award for Best Practices
in Sustainable Resource Development in Mineral Processing.
Mick Wilkes, President and CEO
said, "We are very pleased to report a strong finish to 2017 for
OceanaGold as we achieved record quarterly production leading to
the sixth consecutive year that we have achieved our annual
guidance. We strengthened our balance sheet as our drawn credit
facilities reduced to $200 million
following repayments of approximately $73
million from cash flows in the fourth quarter. At the same
time, we increased our cash position to $73
million." He added, "The Haile operation delivered a strong
quarter with recoveries above 80% and mill availability around 90%
as expected in its first full quarter of commercial operations. The
process plant is operating at nameplate capacity and we expect to
commence permitting of the expansion in the second quarter."
"In first quarter of 2018, we expect to commence the permitting
process for mine life extensions at Waihi while at Didipio, ore
from the first underground stope has been mined and stockpiled at
surface, ready for processing. Although production at Didipio will
be lower in 2018 compared to last year, the ramp-up of the
underground is progressing well and we expect a return to stronger
production in 2019 and beyond."
"We look ahead to 2018 where we have many catalysts across our
business and we will continue to advance our exploration program to
create organic value for our shareholders. As always, we continue
to employ a strict discipline and approach to investment of any
nature by focusing on margin and returns."
Table 1 –
Unaudited 2017 Production and Cost Results Summary
|
|
|
|
|
|
|
|
|
|
Didipio
|
Waihi
|
Macraes
|
Haile
|
Consolidated
|
Fourth Quarter
2017 Results
|
|
|
|
|
|
Q4
2017
|
Q3 2017
|
Gold
Produced
|
Ounces
|
39,256
|
31,761
|
45,060
|
50,134
|
166,211
|
136,043
|
Copper
Produced
|
Tonnes
|
3,687
|
–
|
–
|
–
|
3,687
|
4,387
|
Gold Sales
|
Ounces
|
43,345
|
30,054
|
45,922
|
49,265
|
168,586
|
131,071
|
Copper
Sales
|
Tonnes
|
4,842
|
–
|
–
|
–
|
4,842
|
3,273
|
Cash Costs
|
$ per
ounce
|
(72)
|
436
|
613
|
272
|
306
|
416
|
All-In Sustaining
Costs (1)
|
$ per
ounce
|
155
|
680
|
933
|
509
|
564
|
748
|
Full Year 2017
Results (2)
|
|
|
|
|
|
2017
|
2016
|
Gold
Produced
|
Ounces
|
176,790
|
119,084
|
160,266
|
118,466
|
574,606
|
416,741
|
Copper
Produced
|
Tonnes
|
18,351
|
–
|
–
|
–
|
18,351
|
21,123
|
Gold Sales
|
Ounces
|
167,653
|
117,721
|
160,726
|
109,532
|
555,632
|
437,146
|
Copper
Sales
|
Tonnes
|
18,091
|
–
|
–
|
–
|
18,091
|
21,413
|
Cash Costs
|
$ per
ounce
|
(92)
|
471
|
743
|
272
|
349
|
452
|
All-In Sustaining
Costs (1)
|
$ per
ounce
|
70
|
759
|
1,115
|
509
|
617
|
708
|
|
|
|
|
|
|
|
|
Notes:
|
1.
|
AISC for Haile,
and the consolidated group, includes only the period post
declaration of commercial operations at Haile (effective from
October 1, 2017). In the nine months to September 30, 2017, all
Haile revenue and costs were
capitalised.
|
2.
|
Full year 2017
consolidated gold production and sales reflect full year production
and sales volumes from Haile.
|
Table 2 – 2017
Production and Cost Guidance
|
|
|
|
|
|
|
|
|
|
Didipio
|
Waihi
|
Macraes
|
Haile
(1)
|
Consolidated
|
Gold
Production
|
Ounces
|
150,000 –
160,000
|
110,000 -
120,000
|
180,000 –
190,000
|
110,000 –
130,000
|
550,000 –
600,000
|
Copper
Production
|
Tonnes
|
18,000 –
19,000
|
–
|
–
|
–
|
18,000 –
19,000
|
All-In Sustaining
Costs (2)
|
$ per
ounce
|
$70 – $120
|
$740 –
$790
|
$950 –
$1,000
|
$600 –
$650
|
$600 –
$650
|
|
Notes:
|
1.
|
Production and
costs prior to declaration of commercial production will be
capitalised as part of mining assets and reflected on the balance
sheet.
|
2.
|
AISC calculation
conforms to the methodology outlined by the World Gold Council. It
includes all cash costs, corporate G&A, maintenance capital
expenditures, capitalised mining expenditures and exploration. It
excludes development capital expenditures such as the development
of the Haile Gold Mine and Didipio Underground.
|
|
|
Assumptions
|
- NZD:USD exchange rate of 0.70, Copper
price: $2.50 / lb on average for full year.
|
Operations
On a consolidated basis, the Company produced 574,606 ounces of
gold in 2017, which was 38% higher year-on-year and on account of
new production from the Haile Gold Mine and record annual gold
production from Didipio. Fourth quarter 2017 gold production of
166,211 ounces was 22% higher than in the previous quarter and due
to increased production at Didipio, Macraes and Haile. Copper
production in the fourth quarter was 3,687 tonnes.
On a consolidated basis, the Company recorded sales of 555,632
ounces of gold and 18,091 tonnes of copper including sales of
168,586 ounces of gold and 4,842 tonnes of copper in the fourth
quarter. Consolidated unaudited AISC of $617 per ounce sold was within the guidance range
while consolidated unaudited cash costs were $349 per ounce sold.
In the United States, the Haile
Gold Mine produced 118,466 ounces of gold, including 50,134 ounces
of gold in the fourth quarter. The quarter-on-quarter 60% increase
in production was mainly attributable to higher mill feed and
improved recoveries. Fourth quarter recoveries averaged 82.6%
compared to 70% achieved on average over the first nine months of
2017. The process plant is operating at or above nameplate capacity
and the Company expects to exceed nameplate throughput in 2018.
Production at Haile for 2018 is expected to be stronger than
in 2017.
In the Philippines, Didipio
achieved record annual gold production and exceeded the top end of
its 2017 gold production guidance range with 176,790 ounces
produced, including 39,256 ounces produced in the fourth quarter,
while copper production for the year was 18,351 tonnes including
3,687 tonnes in the fourth quarter. Underground ore from
panel one is available for processing while development of panel
two in the underground has commenced and expected to be completed
in 2019. Production at Didipio in 2018 is expected to be lower as
mill feed will be predominately sourced from lower-grade stockpiles
as the underground operations ramp-up.
In New Zealand, Waihi produced
119,084 ounces of gold, including 31,761 ounces of gold produced in
the fourth quarter. The quarter-on-quarter decrease in production
was previously forecast and a result of a lower head grade.
Production at Waihi for 2018 is expected to be lower than in 2017
due to mine sequencing where lower grades from the underground will
be processed.
At Macraes, the operation produced 160,266 ounces of gold,
including 45,060 ounces of gold produced in the fourth quarter. The
quarter-on-quarter increase in production was attributable to a
higher head grade however, production was lower than guided due to
delays in accessing higher grade ore from Coronation North.
Production at Macraes for 2018 is expected to be higher as the
operation is now into higher grade ore at Coronation North, which
will be the main source feed for the year.
Full Year Results and Webcast
The Company will release its financial and operational results
for the fourth quarter and full year ending 31 December 2017 before the TSX market open on
Thursday 22 February 2018
(Toronto, Canada time) / after
market close on Thursday February 22,
2018 (Melbourne, Australian
Eastern Standard Daylight Time). The results will be posted on
OceanaGold's website at www.oceanagold.com
The Company will host a conference call / webcast to discuss the
results at 8:30 am on Friday February 23,
2018 (Melbourne, Australia
time) / 4:30 pm on Thursday February 22,
2018 (Toronto, Canada
time).
Webcast Participants
To register, please copy and paste the link below into your
browser:
https://event.on24.com/wcc/r/1584080/D7F74FF71B7866EBDD89C79EEF6878B9
Teleconference Participants (required for those who wish
to ask questions)
Local (toll free) dial in numbers are:
Australia: 1 800 076 068
New Zealand: 0 800 453 421
Canada & North America: 1 888 390 0546
All other countries (toll): + 1 416 764 8688
Playback of Webcast
If you are unable to attend the call, a recording will be
available for viewing on the Company's website.
About OceanaGold
OceanaGold Corporation is a mid-tier, high-margin, multinational
gold producer with assets located in the
United States, Philippines
and New Zealand. The Company's
assets encompass its flagship operation, the Haile Gold Mine
located in South Carolina,
United States. In the Philippines, the Company operates the
top-tier Didipio Gold-Copper Mine located on the island of Luzon in
the Philippines. On the North
Island of New Zealand, the Company
operates the high-grade Waihi Gold Mine while on the South Island
of New Zealand, the Company
operates the largest gold mine in the country at the Macraes
Goldfield. OceanaGold also has a significant pipeline of organic
growth and exploration opportunities in the Americas and
Asia-Pacific regions.
OceanaGold has operated sustainably since 1990 with a proven
track-record for environmental management and community and social
engagement. The Company has a strong social license to operate and
is focused on further enhancing its social performance by working
collaboratively with its valued stakeholders to identify and invest
in social programs that are designed to build capacity and not
dependency.
Cautionary Statement for Public Release
Certain information contained in this public release may be
deemed "forward-looking" within the meaning of applicable
securities laws. Forward-looking statements and information relate
to future performance and reflect the Company's expectations
regarding the generation of free cash flow, execution of business
strategy, future growth, future production, estimated costs,
results of operations, business prospects and opportunities of
OceanaGold Corporation and its related subsidiaries. Any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "expects" or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans", "estimates" or
"intends", or stating that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved) are not statements of historical fact and may be
forward-looking statements. Forward-looking statements are subject
to a variety of risks and uncertainties which could cause actual
events or results to differ materially from those expressed in the
forward-looking statements and information. They include, among
others, the accuracy of mineral reserve and resource estimates and
related assumptions, inherent operating risks and those risk
factors identified in the Company's most recent Annual Information
Form prepared and filed with securities regulators which is
available on SEDAR at www.sedar.com under the Company's name. There
are no assurances the Company can fulfil forward-looking statements
and information. Such forward-looking statements and information
are only predictions based on current information available to
management as of the date that such predictions are made; actual
events or results may differ materially as a result of risks facing
the Company, some of which are beyond the Company's control.
Although the Company believes that any forward-looking statements
and information contained in this press release is based on
reasonable assumptions, readers cannot be assured that actual
outcomes or results will be consistent with such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements and information. The Company expressly
disclaims any intention or obligation to update or revise any
forward-looking statements and information, whether as a result of
new information, events or otherwise, except as required by
applicable securities laws. The information contained in this
release is not investment or financial product advice.
SOURCE OceanaGold Corporation