/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, Oct. 26, 2017 /CNW/ - OceanaGold Corporation
(TSX/ASX: OGC) (the "Company") is pleased to release its financial
and operational results for the quarter ended 30 September 2017. 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
- Consolidated production of 408,394 ounces of gold and 14,664
tonnes of copper in the nine months ended 30
September 2017, including 136,043 ounces of gold and 4,387
tonnes of copper in the third quarter.
- Consolidated year-to-date All-In Sustaining Cost of
$644 per ounce on sales of 326,778
ounces of gold (excluding Haile) and 13,249 tonnes of copper.
- Consolidated third quarter All-In Sustaining Cost of
$748 per ounce on sales of 98,565
ounces of gold (excluding Haile) and 3,273 tonnes of copper.
- Recorded revenue of $478.3
million with EBITDA of $259.8
million and a net profit of $83.1
million in the first nine months of 2017 including revenue
of $144.8 million with an EBITDA of
$73.4 million and a net profit of
$21.7 million in the third
quarter.
- Declared a semi-annual dividend of $0.01 per common share or CHESS Depository
Interests (CDIs).
- Ended the quarter with immediate liquidity of $118.4 million including $61.2 million in cash.
- Initial significant gold intercepts beneath the open pit at
Waihi including 18.1m @ 7.9 g/t (true width) and 11.1m @ 8.1 g/t
(true width).
- Subsequent to the quarter end, declared commercial production
at the Haile Gold Mine, effective 1 October
2017.
Mick Wilkes, President and CEO of
OceanaGold said, "I am pleased with our third quarter performance
with higher gold production and steady financial results. In
particular, I am very pleased that the technical issues that were
identified within the Haile process plant during the second quarter
were resolved leading to the commencement of commercial production
at the start of the fourth quarter." He added, "We continue to
ramp-up operations at Haile with positive results and expect
stronger production again next quarter. We also expect stronger
production from Macraes as we begin to process higher grade ore
from Coronation North, steady production at Waihi, partially offset
by reduced production from Didipio as we process lower grade
stockpile ore, and advance the development of the underground mine
toward first production."
"The Board of Directors is also pleased to declare our second
2017 semi-annual dividend of $0.01
per share which reflects our confidence in our business and
commitment to provide a return to our valued
shareholders."
Table 1
– Production and Cost Results
Summary
|
|
|
|
|
|
|
|
|
|
|
Didipio
|
Waihi
|
Macraes
|
Haile
(2)
|
Consolidated
|
Third Quarter 2017
Results
|
|
|
|
|
Q3
2017
|
Q2 2017
|
Gold
Produced
|
ounces
|
31,887
|
35,904
|
36,878
|
31,374
|
136,043
|
124,396
|
Copper
Produced
|
tonnes
|
4,387
|
-
|
-
|
-
|
4,387
|
4,322
|
Gold Sales
|
ounces
|
25,656
|
36,167
|
36,742
|
32,506
|
131,071(3)
|
129,750
(3)
|
Copper
Sales
|
tonnes
|
3,273
|
-
|
-
|
-
|
3,273
|
5,828
|
Cash Costs
|
$ per
ounce
|
(113)
|
410
|
792
|
-
|
416
|
401
|
All-In Sustaining
Costs (1)
|
$ per
ounce
|
137
|
659
|
1,262
|
-
|
748
|
681
|
First Nine Months
2017 (September 30 2017)
|
YTD
Sep
30
2017
|
YTD Sep
30 2016
|
Gold
Produced
|
ounces
|
137,534
|
87,323
|
115,205
|
68,332
|
408,394
|
314,313
|
Copper
Produced
|
tonnes
|
14,664
|
-
|
-
|
-
|
14,664
|
17,358
|
Gold Sales
|
ounces
|
124,308
|
87,667
|
114,804
|
60,267
|
387,046
(3)
|
331,489
(3)
|
Copper
Sales
|
tonnes
|
13,249
|
-
|
-
|
-
|
13,249
|
16,453
|
Cash Costs
|
$ per
ounce
|
(101)
|
483
|
795
|
-
|
371
|
477
|
All-In Sustaining
Costs (1)
|
$ per
ounce
|
40
|
786
|
1,188
|
-
|
644
|
730
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
1.
|
In the first nine
months of 2017, all revenue and costs reported do not include the
Haile operations. These have been capitalised as commercial
production was declared after the end of the third quarter
(effective from October 1, 2017).
|
2.
|
Haile gold mine
commenced selling gold in February 2017. Revenue from the sale of
gold is treated as pre-production income.
|
3.
|
Consolidated 2017
gold sales ounces include gold sales from Haile.
|
|
|
Table 2 –
Consolidated Financial Summary*
|
|
|
|
|
|
|
$'000
|
Q3
Sep
30
2017
|
Q2
Jun
30
2017
|
Q3
Sep
30
2016
|
YTD
Sep
30
2017
|
YTD
Sep
30
2016
|
Revenue
|
144,849
|
171,650
|
150,388
|
478,299
|
481,202
|
Cost of sales,
excluding depreciation and amortisation
|
(59,490)
|
(73,767)
|
(77,524)
|
(190,091)
|
(229,055)
|
General &
administration – other
|
(13,429)
|
(14,513)
|
(11,361)
|
(36,892)
|
(39,294)
|
Foreign currency
exchange gain/(loss)
|
201
|
647
|
(604)
|
627
|
2,664
|
Gain on sale of
available-for-sale assets
|
-
|
-
|
-
|
5,314
|
-
|
Other
income/(expense)
|
1,268
|
728
|
669
|
2,558
|
1,209
|
Earnings before
interest, tax, depreciation and
amortisation
(EBITDA) (excluding gain/(loss) on
undesignated
hedges and impairment charge)
|
73,399
|
84,745
|
61,568
|
259,815
|
216,726
|
Depreciation and
amortisation
|
(44,372)
|
(51,171)
|
(31,973)
|
(131,946)
|
(93,757)
|
Net interest expense
and finance costs
|
(4,296)
|
(4,292)
|
(2,538)
|
(13,145)
|
(7,261)
|
Earnings before
income tax and gain/(loss) on
undesignated
hedges and impairment charge
|
24,731
|
29,282
|
27,057
|
114,724
|
115,708
|
Tax on
earnings
|
(3,314)
|
(4,538)
|
(2,587)
|
(9,170)
|
(13,392)
|
Earnings after
income tax and before gain/(loss)
on undesignated
hedges and impairment charge
|
21,417
|
24,744
|
24,470
|
105,554
|
102,316
|
Impairment
charge
|
-
|
-
|
-
|
(17,654)
|
-
|
Gain/(loss) on fair
value of undesignated hedges
|
611
|
1,075
|
8,852
|
(6,188)
|
(11,280)
|
Tax (expense)/benefit
on gain/loss on undesignated
hedges
|
(171)
|
(301)
|
(2,478)
|
1,733
|
3,158
|
Share of
profit/(loss) from equity accounted associates
|
(111)
|
(161)
|
(151)
|
(337)
|
(315)
|
Net
Profit
|
21,746
|
25,357
|
30,693
|
83,108
|
93,879
|
Basic earnings per
share
|
$0.04
|
$0.04
|
$0.05
|
$0.14
|
$0.15
|
CASH
FLOWS
|
|
|
|
|
|
Cash flows from
Operating Activities
|
38,169
|
88,391
|
29,440
|
178,903
|
152,599
|
Cash flows used in
Investing Activities
|
(50,495)
|
(71,696)
|
(116,342)
|
(188,101)
|
(342,578)
|
Cash flows (used in)
/ from Financing Activities
|
(13,676)
|
(6,635)
|
70,607
|
(9,766)
|
85,467
|
Note:
|
In this third quarter
2017 MD&A, all revenue and costs reported do not include the
Haile operations as these have been capitalised as commercial
production was declared after the end of the third quarter
(effective from October 1, 2017).
|
On a consolidated basis, including attributable production from
the Haile Gold Mine ("Haile"), the Company produced 408,394 ounces
of gold and 14,664 tonnes of copper in the first nine months of
2017, including 136,043 ounces of gold and 4,387 tonnes of copper
in the third quarter. The quarter-on-quarter increase in
consolidated gold production was driven by higher production from
Haile and Waihi, partially offset by lower production from Didipio
as previously forecast.
Increased production from Haile follows the changes made to the
process plant to address the issues reported just prior to the
start of the third quarter. As the quarter progressed, throughput
and recoveries continued to improve and as a result, the Company
announced commercial production at Haile effective October 1, 2017.
In New Zealand, production at
Waihi increased by 40% compared to the previous quarter on the back
of mining higher grade zones in the underground. At Macraes,
production was lower than expected due to equipment availability at
both the surface operations and underground resulting in lower
average grades in ROM ore processed. At Didipio, decreased
quarter-on-quarter production was expected and previously forecast
as lower grade stockpiled ore remained the sole source of mill
feed.
On a consolidated basis for the first nine months of 2017, and
excluding Haile gold sales, the Company recorded an AISC of
$644 per ounce on sales of 326,778
ounces of gold and 13,249 tonnes of copper. During the third
quarter, the Company recorded an AISC of $748 per ounce on sales of 98,565 ounces of gold
and 3,273 tonnes of copper.
Revenue for the first nine months of 2017 was $478.3 million with an EBITDA of $259.8 million and a net profit of $83.1 million. For the third quarter, revenue was
$144.8 million while EBITDA was
$73.4 million and net profit
$21.7 million. Revenues and cash flow
was impacted by timing delays in sales of both gold/copper
concentrate and gold Dore from Didipio around quarter end.
Operating cash flow for the first nine months of the year was
$178.9 million including $38.2 million in the third quarter. The decrease
in operating cash flow from the second quarter was primarily due to
lower revenue related to the timing of quarterly sales from Didipio
as well negative working capital movements, including increased
inventories and trade creditors and decreased trade payables.
At the end of the third quarter of 2017, the Company had
immediate available liquidity of $118.4
million which included a cash balance of $61.2 million. In addition, $69.9 million of marketable securities were held
in strategic investments. During the quarter, the Company repaid
$12.0 million of its $300 million revolving credit facility.
Dividend
The Company also announces the second semi-annual dividend
payment for 2017 of $0.01 per common
share or CDI. Shareholders of record at the close of business in
each jurisdiction on 8 November 2017
(the "Record Date") will be entitled to receive payment of the
dividend on 22 December 2017. The
dividend payment applies to holders of record of the Company's
common shares traded on the Toronto Stock Exchange and holders of
CDIs on the Australian Securities Exchange.
Table 3 – Dividend
Key Dates
|
|
|
|
Date
|
Last date for
processing requests to convert securities between stock
exchanges before the
Record Date 1
|
Friday, 3 November
2017
|
Common Shares (TSX)
and CDIs (ASX) trade on an ex-dividend basis
|
Tuesday, 7 November
2017
|
Record
Date
|
Wednesday, 8
November 2017
|
Processing
recommences for requests to convert securities between
stock exchanges
1
|
Thursday, 9 November
2017
|
Dividend Payment
Date
|
Friday, 22
December 2017
|
At the election of the security holder, the Company will pay the
dividend in US Dollars, Australian Dollars, New Zealand Dollars, or
British Pounds Sterling for ASX listed CDIs, and US Dollars,
Canadian Dollars or British Pounds Sterling for TSX listed common
shares.
Computershare will mail shareholders the relevant materials, and
election of payment currency must be made by 15 December 2017. Please refer to the end of this
media release for important information relating to Australian
income tax and Canadian withholding tax.
Third Quarter 2017 Results Webcast
The Company will host a conference call / webcast to discuss the
results at 8:00 am on Friday
27 October 2017 (Melbourne, Australian Eastern Daylight Time) /
5:00 pm on Thursday 26 October 2017 (Toronto, Eastern Daylight Time).
Webcast Participants
To register, please copy and paste the link below into your
browser:
http://event.on24.com/r.htm?e=1521491&s=1&k=A62BB6A3DCE1A27A1AFC4DEDB629B6E2
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.
_________________________________
|
1 The
Company has received a temporary waiver of the relevant ASX
Settlement Operating Rules. Under the waiver, the processing of
transfers of Common Shares and CDIs between stock exchanges, lodged
on or after 3 November 2017, will be deferred until after the
Record Date of 8 November 2017.
|
|
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 its flagship operation, 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 recently commissioned the Haile Gold
Mine, a top-tier 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 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
works collaboratively with its valued stakeholders to identify and
invest in social programs that are designed to build capacity and
not dependency.
In 2017, the Company expects to produce 550,000 to 600,000
ounces of gold and 18,000 to 19,000 tonnes of copper with sector
leading All-In Sustaining Costs that range from $600 to $650 per ounce sold.
Tax Information for Dividend
Australian Income Tax
For Australian income tax
purposes, the dividend is unfranked and there is no amount of
Conduit Foreign Income per security for this dividend payment.
Canadian Withholding Tax
Holders of Common Shares or
CDIs are advised that this dividend is designated by the Company to
be an "eligible dividend" pursuant to subsection 89(14) of the
Income Tax Act (Canada) and
corresponding provincial legislation. As the dividend
originates from Canada,
withholding tax at the rate of 25% will be deducted from dividends
paid to non-Canadian residents unless the shareholder or CDI holder
is a resident of a country with a tax treaty with Canada, in which event a lower withholding
rate may apply. Such shareholders or CDI holders must certify
their non-resident status by completing the relevant forms required
by the Canada Revenue Agency. The Company will mail every holder
further information following the Record Date.
Information contained in this media release is based on the
directors' current expectations and may be subject to change. If
any of the dates should change, the revised dates will be announced
by media release and will be available from www.oceanagold.com.
Competent/Qualified Person's Statement
The exploration results were prepared in accordance with the
standards set out in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves' ("JORC Code") and in accordance with National Instrument
43-101 – Standards of Disclosure for Mineral Projects of the
Canadian Securities Administrators ("NI 43-101"). The JORC Code is
the accepted reporting standard for the Australian Stock Exchange
Limited ("ASX"). Information relating to Waihi exploration results
in this document has been verified by, is based on and fairly
represents information compiled by or prepared under the
supervision of Lorrance Torckler, a Fellow of the Australasian
Institute of Mining and Metallurgy and an employee of OceanaGold.
Mr Torckler has sufficient experience that is relevant to the style
of mineralisation and type of deposit under consideration and to
the activity being undertaken to qualify as a Competent Person as
defined in the JORC Code and is a Qualified Persons for the
purposes of the NI 43 101. Mr Torckler consents to the inclusion in
this public report of the matters based on their information in the
form and context in which it appears.
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, sovereign risks,
risk of suspension 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 because 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 because 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