/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, April 26, 2018 /CNW/ - OceanaGold Corporation
(TSX/ASX: OGC) (the "Company") is pleased to release its financial
and operational results for the quarter ended 31 March 2018. Details of the consolidated
financial statements and the Management Discussion and Analysis
("MD&A") are available on the Company's website at
www.oceanagold.com
Key Highlights
- Commenced permitting of a 10-year mine life extension at
Waihi.
- Consolidated production of 125,646 ounces of gold and 3,889
tonnes of copper.
- Consolidated All-In Sustaining Costs ("AISC") of $799 per ounce and Cash Costs of $483 per ounce on sales of 127,473 ounces of gold
and 3,192 tonnes of copper.
- Revenue of $196.7 million with an
EBITDA of $100.9 million and a net
profit of $44.5 million.
- Didipio nominated for awards in environmental excellence,
workplace practices, education and literacy programs and community
projects at the 10th Annual Global CSR Awards.
- Welcomed Dr. Nora Scheinkestel and Ian
Reid to the Board of Directors as Non-Executive
Directors.
Mick Wilkes, President and CEO
said, "I am very pleased with the start we've had to the year with
good production and cash flow generation. We continue to deliver
EBITDA margins at or near the top of the gold mining industry while
delivering another strong return on invested capital for the
quarter." He added, "At Waihi, we achieved a major milestone by
starting the permitting process for a 10-year mine life extension
through the Martha Project. We have received positive feedback and
response in our engagements with the community and this close
engagement will continue during the permitting process."
"Operationally, gold production was generally in-line with our
expectations, despite a severe cold weather event that impacted the
Haile operation early in the year. In the
Philippines, ramp-up of the underground operations is
progressing to plan."
"As we continue through this exciting phase of the Company, we
recognise that we have some important commitments to deliver on and
I have tremendous confidence in our plan, our team and our vision,
to achieve consistent positive results. Our business is in great
shape, with a strong balance sheet, clear strategy and high quality
assets."
Table 1 – Production and Cost Results Summary
|
|
|
|
|
|
Quarter ended 31
Mar 2018
|
Haile
|
Didipio
|
Waihi
|
Macraes
|
Consolidated
|
Q1
2018
|
Q4 2017
|
Gold
Produced
|
Ounces
|
37,049
|
25,656
|
18,522
|
44,419
|
125,646
|
166,211
|
Gold Sales
|
Ounces
|
32,645
|
31,551
|
20,983
|
42,295
|
127,473
|
168,586
|
Average Gold
Price
|
US$/ounce
|
1,336
|
1,368
|
1,326
|
1,329
|
1,340
|
1,275
|
Copper
Produced
|
Tonnes
|
–
|
3,889
|
–
|
–
|
3,889
|
3,687
|
Copper
Sales
|
Tonnes
|
–
|
3,192
|
–
|
–
|
3,192
|
4,842
|
Average Copper
Price
|
US$/pound
|
–
|
3.03
|
–
|
–
|
3.03
|
3.17
|
|
|
|
|
|
|
|
|
Cash Costs
|
US$/ounce
|
481
|
125
|
665
|
663
|
483
|
300
|
All-In Sustaining
Costs
|
US$/ounce
|
952
|
231
|
824
|
1,095
|
799
|
564
|
Table 2 – Financial Summary
|
|
|
|
Quarter ended 31
Mar 2018
(US$m)
|
Q1
Mar 31
2018(2)
|
Q4
Dec 31
2017
|
Q1
Mar 31
2017(1)
|
Revenue
|
196.7
|
246.1
|
161.8
|
Cost of sales,
excluding depreciation and amortisation
|
(84.7)
|
(85.3)
|
(56.8)
|
General and
administration – other
|
(12.3)
|
(12.7)
|
(9.0)
|
Foreign currency
exchange gain/(loss)
|
0.6
|
0.2
|
(0.2)
|
Gain on sale of
available-for-sale assets
|
-
|
-
|
5.3
|
Other
income/(expense)
|
0.6
|
0.3
|
0.6
|
EBITDA (excluding
gain/(loss) on undesignated
hedges and
impairment charge)
|
100.9
|
148.6
|
101.7
|
Depreciation and
amortization
|
(51.4)
|
(60.4)
|
(36.4)
|
Net interest expense
and finance costs
|
(3.8)
|
(4.0)
|
(4.5)
|
EBIT (excluding
gain/(loss) on undesignated hedges
and impairment
charge)
|
45.8
|
84.2
|
60.8
|
Income tax (expense)
/ benefit on earnings
|
(7.2)
|
9.5
|
(1.3)
|
Earnings after
income tax and before gain/(loss) on
undesignated
hedges and impairment charge
|
38.6
|
93.7
|
59.5
|
Impairment
charge
|
-
|
-
|
(17.7)
|
Gain/(loss) on fair
value of undesignated hedges
|
6.0
|
(5.8)
|
(7.9)
|
Tax (expense) /
benefit on gain/loss on undesignated hedges
|
-
|
0.8
|
2.2
|
Share of loss from
equity accounted associates
|
(0.1)
|
(0.1)
|
(0.1)
|
Net
Profit
|
44.5
|
88.6
|
36.0
|
Basic earnings per
share
|
$0.07
|
$0.14
|
$0.06
|
Diluted earnings per
share
|
$0.07
|
$0.14
|
$0.06
|
(1)
|
For the quarter
ended March 31, 2017, all revenue and costs reported do not include
the Haile operations as these have been capitalised as commercial
production was declared effective from October 1,
2017.
|
(2)
|
The Company's
consolidated financial results for the quarter ended March 31, 2018
reflect adjustments on adoption of IFRS 15 effective from January
1, 2018.
|
On a consolidated basis, the Company produced 125,646 ounces of
gold and 3,889 tonnes of copper, down from the previous quarter,
which was expected and previously forecast.
Consolidated All-In Sustaining Costs for the first quarter were
$799 per ounce and cash costs were
$483 per ounce on sales of 127,473
ounces of gold and 3,192 tonnes of copper. The quarter-on-quarter
increase in unit costs was expected and related to lower gold
sales. Unit costs are expected to decrease as the year
progresses.
At the end of the first quarter the Company recorded revenue of
$196.7 million, which was lower than
the previous quarter and due to decreased gold sales, partially
offset by higher average gold realized prices.
EBITDA for the first quarter was $100.9
million while net profit was $44.5
million, both strong results and continued demonstration of
high margins. EBITDA margin for the quarter was 51%, which reflects
the high-margin structure of the business.
The Company's cash balance increased to $89.1 million excluding $71.4 million in marketable securities. At the
end of the first quarter, the Company had immediate available
liquidity of $119.3 million. The
cash balance increase from the previous quarter was driven by lower
capital expenditure while each operation continued to generate
strong cash flows with an average AISC margin of $541 per ounce sold. Additionally, during the
quarter, the Company purchased $4.3
million of equity in Gold Standard Ventures to maintain its
equity ownership position of 15.6%.
During the first quarter, the Company's total credit facilities
stood at $230 million of which
$200 million was drawn. The Company's
net debt decreased by 12% to $146.4
million.
On March 28, 2018, the Company
commenced the permitting process for a 10-year mine life extension
at Waihi while at Haile, the Company is preparing to commence
permitting the expansion in the middle of the year. At Didipio,
ramp-up of underground operations continues to progress as planned
while development of panel two continued during the quarter.
Exploration activities continue to be a major focus for the
Company. Extensive drill programs at Haile and Waihi in particular,
are focused on multiple targets within the existing operating
footprint and across greenfield opportunities.
During the first quarter, the Company's joint venture partner
Mirasol Resources completed the first stage of drilling at the La
Curva Project in Argentina, with
assays confirming the presence of a large gold and silver system
within the Castora Trend. An additional 3,000 metres of drilling is
expected to commence in the second quarter of 2018.
First Quarter 2018 Results and Webcast
The Company will host a conference call / webcast to discuss the
results at 7:30 am on 27 April 2018 (Melbourne, Australia time) / 5:30 pm on 26 April
2018 (Toronto, Canada
time).
Webcast Participants
To register, please copy and paste the link below into your
browser:
https://event.on24.com/wcc/r/1631737/723AE3A068B2C9D59CFC87B9A16F8A2F
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
Philippines, New Zealand
and the United States. The
Company's assets encompass the 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 which
is made up of a series of open pit mines and the Frasers
underground mine. In the United
States, the Company operates the Haile Gold Mine, a
top-tier, long-life, high-margin asset located in South Carolina. OceanaGold also has a
significant pipeline of organic growth and exploration
opportunities in the Americas and Asia-Pacific regions.
OceanaGold has operated sustainably over the past 27 years with
a proven track-record for environmental management and community
and social engagement. The Company has a strong social license to
operate and works collaboratively with its valued stakeholders to
identify and invest in social programs that are designed to build
capacity and not dependency.
In 2018, the Company expects to produce 480,000 to 530,000
ounces of gold and 15,000 to 16,000 tonnes of copper with All-In
Sustaining Costs that range from $725
to $775 per ounce sold.
SOURCE OceanaGold Corporation