/NOT FOR DISSEMINATION OR DISTRIBUTION IN
THE UNITED STATES AND NOT FOR
DISTRIBUTION TO US NEWSWIRE SERVICES. /
MELBOURNE, Jan. 24, 2019
/CNW/ - OceanaGold Corporation (TSX: OGC | ASX: OGC) (the
"Company") is pleased to release its full year and fourth quarter
2018 production report for the year ended 31
December 2018, 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 2018 audited financial and
operational results before TSX market open on Tuesday February 19, 2019 (Toronto Eastern
Standard Time).
Key Highlights
- Achieved 2018 consolidated production and cost guidance for the
seventh consecutive year.
- Annual gold production of 533.3k
ounces including 126.7k ounces
produced in the fourth quarter.
- Annual copper production of 15.0k
tonnes including 2.9k tonnes in the
fourth quarter.
- Consolidated annual gold sales of 532.7k ounces and copper sales of 14.5k tonnes including 132.2k ounces of gold and 3.1k tonnes of copper in the fourth quarter.
- Unaudited consolidated All-In Sustaining Costs ("AISC") of
$767 per ounce sold and cash costs of
$489 per ounce sold.
- Received the preliminary approval for the Martha Underground at
Waihi.
Mick Wilkes, President and CEO
said, "OceanaGold had another solid year of operational and
financial performance. For the seventh straight year, we delivered
on our production and cost guidance, an achievement that we're
proud of and further underpins our focus to consistently deliver on
our commitments and generate strong returns for shareholders."
He added, "We are pleased with the progress that we have made in
advancing the Martha Underground Project, which is expected to
deliver significant value to shareholders and continue to
contribute significant socio-economic benefits to Waihi and
New Zealand for the next decade.
At Haile, the expansion of the process plant continues to advance
well and we are currently commissioning the upgraded regrinding
circuit. The permitting process for the open pit expansion and
Horseshoe underground achieved an important milestone at the end of
2018 with the release of the notice of intent."
"Although we are generally pleased with the performance of our
operations, we were impacted by multiple storm events and sustained
high rainfall at Haile in the last quarter, which has hampered our
mining operations. Access to high grade zones of the ore body at
Mill Zone was impeded, resulting in a lower than expected head
grade while mine productivity decreased due to the wet weather
causing difficult working conditions in the pre-strip zones at the
new Snake and Red Hill pits. We
continue to work through these short-term challenges at Haile and
we do not expect a sustained impact on performance."
"Our business is solid. In 2019, we except to continue to
generate good cash flows and consistent strong returns like we have
generated over the past several years. We are well on our way to
deliver mine life extensions at our New
Zealand operations while expanding production at Haile. We
are excited about our exploration program that comprises several
significant drill targets associated with our existing assets and
increased exposure to proven gold provinces through equity
investments and joint ventures with exploration companies."
|
Quarter ended 31
Dec 2018
|
Haile
|
Didipio
|
Waihi
|
Macraes
|
Consolidated
|
Q4
2018
|
Q4 2017
|
Gold
Produced
|
koz
|
27.5
|
23.3
|
17.6
|
58.2
|
126.7
|
166.2
|
Gold Sales
|
koz
|
27.6
|
25.2
|
19.6
|
59.7
|
132.2
|
168.6
|
Average Gold
Price
|
US$/oz
|
1,236
|
1,279
|
1,229
|
1,226
|
1,239
|
1,275
|
Copper
Produced
|
kt
|
-
|
2.9
|
-
|
-
|
2.9
|
3.7
|
Copper
Sales
|
kt
|
-
|
3.1
|
-
|
-
|
3.1
|
4.8
|
Average Copper
Price
|
US$/lb
|
-
|
3.04
|
-
|
-
|
3.04
|
3.17
|
|
|
|
|
|
|
|
|
Cash Costs
|
US$/oz
|
814
|
466
|
620
|
469
|
563
|
300
|
All-In Sustaining
Costs
|
US$/oz
|
1,181
|
711
|
783
|
698
|
814
|
564
|
|
2018
|
Haile
|
Didipio
|
Waihi
|
Macraes
|
Consolidated
|
2018
|
2017
|
Gold
Produced
|
koz
|
131.8
|
115.0
|
83.5
|
203.0
|
533.3
|
574.6
|
Gold Sales
|
koz
|
130.5
|
116.9
|
86.5
|
198.9
|
532.7
|
555.6
|
Average Gold
Price
|
US$/oz
|
1,277
|
1,268
|
1,262
|
1,264
|
1,268
|
1,261
|
Copper
Produced
|
kt
|
-
|
15.0
|
-
|
-
|
15.0
|
18.4
|
Copper
Sales
|
kt
|
-
|
14.5
|
-
|
-
|
14.5
|
18.1
|
Average Copper
Price
|
US$/lb
|
|
3.05
|
|
|
3.05
|
2.78
|
|
|
|
|
|
|
|
|
Cash Costs
|
US$/oz
|
499
|
271
|
615
|
557
|
489
|
347
|
All-In Sustaining
Costs
|
US$/oz
|
903
|
427
|
763
|
879
|
767
|
617
|
On a consolidated basis, the Company produced 533.3k ounces of gold, including 126.7k ounces in the fourth quarter. Consolidated
gold production in 2018 represented higher production from Macraes
and Haile, with Haile in its first full year of commercial
operations, while production decreased year-on-year as expected at
Didipio and Waihi. Gold production for the fourth quarter of 2018
decreased quarter-on-quarter due to lower production at Didipio and
Waihi, which was expected, and to lower than expected production
from Haile due to the weather-related impacts. The decrease in
production was partially offset by stronger production from
Macraes.
Full year 2018 copper production was 15.0k tonnes, including 2.9k tonnes produced in the fourth quarter while
full year 2018 silver production was 486.8k ounces.
The Company achieved its 2018 cost guidance with AISC of
$767 per ounce on sales of
532.7k ounces of gold and
14.5k tonnes of copper. This
reflected a net increase in unit costs from the previous year due
to changes in the composition of sales volumes, particularly with
Haile's first full year of commercial operations.
In the United States, the Haile
Gold Mine produced 131.8k ounces of
gold, including 27.5k ounces in the
fourth quarter. In the quarter, multiple major storm events and
sustained rainfall hampered mining activities and access to higher
grade zones of the Mill Zone pit resulting in the processing of
lower grade ore. The impact to mining was partially offset by
higher mill utilisation and throughput. Expansion of the process
plant continues to advance with commissioning of the Tower Mill
currently underway and installation of the IsaMill near completion.
The Company expects to increase annual mill throughput rates to
above three million tonnes in 2019.
In the Philippines, Didipio
produced 115.0k ounces of gold
including 23.3k ounces in the fourth
quarter. Copper production for the year was 15.0k tonnes including 2.9k tonnes in the fourth quarter.
Quarter-on-quarter production decreased as expected and previously
forecast due to lower mill feed. Ramp-up of underground operations
and development of panel 2 continue to advance well and the Company
expects underground mining rates to double this year from 2018
rates.
In New Zealand, Waihi produced
83.5k ounces of gold, including
17.5k ounces in the fourth quarter.
The quarter-on-quarter decrease was expected and due mainly to a
lower head grade and less tonnage mined resulting in a lower mill
feed. Prior to the end of the year, the Company received a
preliminary approval for commencement of mining activities at
Martha Underground and stage 4 of the Martha open pit.
At Macraes, the operation produced 203.0k ounces of gold, including 58.2k ounces in the fourth quarter. The
quarter-on-quarter increase in production was attributable to a
higher head grade from Coronation North and slightly higher mill
feed. In the quarter, the Company continued to investigate the
opportunity to mine a standalone underground operation at Golden
Point and other initiatives designed to increase the mine life at
current commodity prices.
Full Year Results and Webcast
The Company will release its financial and operational results
for the fourth quarter and full year ending 31 December 2018 before the TSX market open on
Tuesday February 19, 2019
(Toronto, Canada 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 Wednesday February 20,
2019 (Melbourne, Australia
Time) / 4:30 pm on Tuesday February 19,
2019 (Toronto, Canada
time).
Webcast Participants
To register, please copy and paste the link below into your
browser:
https://event.on24.com/wcc/r/1920900/EB1D4754F01464F39B0D9DA9DBAAF325
Teleconference Participants (required for those who wish
to ask questions)
Local (toll free) dial in numbers are:
Canada & North America: 1 888 390 0546
Australia: 1 800 076 068
New Zealand: 0 800 453 421
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 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 2018, the Company produced 533.3k ounces of gold and 15.0k tonnes of copper with All-In Sustaining
Costs of $767 per ounce on gold sales
of 532.7k ounces and copper sales of
14.5k tonnes.
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