/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. 30, 2020 /CNW/ - OceanaGold Corporation
(TSX: OGC | ASX: OGC) (the "Company") is pleased to release
its unaudited full year and fourth quarter 2019 production and
costs for the year ended 31 December
2019, 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 2019 audited financial and operational
results before TSX market open on Thursday
February 20, 2020 (Toronto Eastern Standard Time).
Key Highlights
- Gold production from the United
States and New Zealand
operations increased by nearly 20% quarter-on-quarter on the back
of stronger production from Haile and Macraes.
- Haile gold production increased by 26% quarter-on-quarter with
46,420 ounces produced in the fourth quarter.
- Annual gold production of 470,601 ounces including 108,151
ounces produced in the fourth quarter, in-line with revised 2019
consolidated production guidance of 460,000 to 480,000 ounces.
- Annual copper production of 10,255 tonnes of copper, in line
with revised 2019 consolidated production guidance of 10,000 to
11,000 tonnes.
- Full year 2019 All-In Sustaining Costs ("AISC")1 of
$1,061 per ounce including
$980 per ounce in the fourth quarter,
compared to 2019 revised AISC guidance of $1,040 to $1,090
per ounce sold.
- Full year 2019 cash costs of $733
per ounce sold including $757 per
ounce sold in the fourth quarter, compared to revised 2019 guidance
of $710 to $760 per ounce sold.
- Continued to advance Martha Underground with approximately 830
metres of development and construction of the raise bore between
the 800-RL and 920-RL drives completed in the fourth quarter.
- Achieved a Total Recordable Injury Frequency Rate ("TRIFR") of
3.6 per million hours worked compared to 4.5 per million hours
worked in 2018.
___________________________
|
1 AISC are
unaudited, consolidated figures.
|
Mick Wilkes, President and CEO
said, "We are pleased to report a stronger quarter-on-quarter
operating performance from Macraes and Haile in particular. Despite
the weather challenges we experienced and worked through, Haile
managed to achieve its annual production range by delivering a 26%
increase in gold production from the third quarter while continuing
to demonstrate continuous productivity improvements and lower unit
costs."
"For 2019, the Haile process plant milled 3.2 million tonnes
which met our expectations and is currently operating at an
annualised throughput rate of 3.5 million tonnes per annum. We will
continue to push throughput rates higher as we shift our focus to
achieving better recoveries. We are pleased with the progress made
on the expansion of Haile throughout the year and have the right
team in place to deliver further efficiencies and lower unit costs
while meeting our targets for the further ramp up in annual
production."
"In New Zealand, steady
production at Waihi was complemented by a 20% quarter-on-quarter
increase in production from Macraes. We continued to advance
development of the Martha Underground which we expect will deliver
first production in the second quarter of 2021 with a significant
mine life that we expect will take us into the next decade. The
Waihi District Study is on track for completion in the first half
of this year, and we expect it to outline additional details
including timelines, production rates and costs from the multiple
source feeds including Martha Underground and WKP."
"Last year was challenging for us particularly in the Philippines. We continue to have positive
engagement with the National Government and we continue to see very
strong support from our local communities. The FTAA renewal is
currently with the Office of the President for review, and we
remain committed to providing the market with updates related to
the advancement of the renewal and other impacts related to
Didipio's operating status."
"We are focused on resolving the suspension of Didipio as soon
as we can, executing at our operations and the timely delivery of
key projects. We are progressing and prioritising our robust
project pipeline in New Zealand
and North America in accordance
with our principle to always pursue opportunities that can deliver
strong economic returns."
Table 1 – Fourth
Quarter and Full Year Operational Results
|
Quarter ended 31
Dec 2019
|
Haile
|
Didipio
|
Waihi
|
Macraes
|
Consolidated
|
Q4
2019
|
Q3 2019
|
Gold
Produced
|
koz
|
46.4
|
0.4
|
15.8
|
45.5
|
108.2
|
107.5
|
Gold Sales
|
koz
|
42.3
|
-
|
18.6
|
46.4
|
107.3
|
94.3
|
Average Gold
Price
|
US$/oz
|
1,497
|
-
|
1,476
|
1,485
|
1,404
|
1,414(2)
|
Copper
Produced
|
kt
|
-
|
0.1
|
-
|
-
|
0.1
|
2.3
|
Copper
Sales
|
kt
|
-
|
-
|
-
|
-
|
-
|
-
|
Average Copper
Price
|
US$/lb
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Total Ore
Mined
|
kt
|
1,365
|
-
|
100
|
1,841
|
3,306
|
2,057
|
Tonnes
Processed
|
kt
|
863
|
23
|
97
|
1,466
|
2,449
|
3,026
|
Gold Grade
Processed
|
g/t
|
2.09
|
0.67
|
5.82
|
1.03
|
1.59
|
1.34
|
Gold
Recovery
|
%
|
80.0
|
89.9
|
86.7
|
81.6
|
86.4
|
82.4
|
|
|
|
|
|
|
|
|
Cash Costs
|
US$/oz
|
772
|
-
|
646
|
788
|
757
|
828
|
All-In Sustaining
Costs(1)
|
US$/oz
|
1,014
|
-
|
741
|
1,039
|
980
|
1,122
|
Full Year
2019
|
Haile
|
Didipio
|
Waihi
|
Macraes
|
Consolidated
|
2019
|
2018
|
Gold
Produced
|
koz
|
146.1
|
83.9
|
68.1
|
172.5
|
470.6
|
533.3
|
Gold Sales
|
koz
|
143.3
|
60.2
|
69.2
|
175.8
|
448.4
|
532.7
|
Average Gold
Price
|
US$/oz
|
1,415
|
-
|
1,392
|
1,391
|
1,360
|
1,268
|
Copper
Produced
|
kt
|
-
|
10.3
|
-
|
-
|
10.3
|
15.0
|
Copper
Sales
|
kt
|
-
|
6.9
|
-
|
-
|
6.9
|
14.5
|
Average Copper
Price
|
US$/lb
|
-
|
2.84
|
-
|
-
|
2.84
|
3.05
|
|
|
|
|
|
|
|
|
Total Ore
Mined
|
Kt
|
3,217
|
1,173
|
433
|
6,456
|
11,280
|
10,518
|
Tonnes
processed
|
Kt
|
3,204
|
2,656
|
435
|
5,917
|
12,212
|
12,219
|
Gold grade
processed
|
g/t
|
1.80
|
1.11
|
5.61
|
1.04
|
1.42
|
1.59
|
Recovery
|
%
|
78.6
|
88.3
|
86.6
|
82.5
|
84.4
|
86.0
|
|
|
|
|
|
|
|
|
Cash Costs
|
US$/oz
|
859
|
481
|
682
|
736
|
733
|
489
|
All-In Sustaining
Costs(1)
|
US$/oz
|
1,262
|
694
|
825
|
1,115
|
1,061
|
767
|
|
|
(1)
|
AISC for each
operation accounts for corporate general and administrative
allocations
|
(2)
|
Realised gains and
losses on gold hedging are included in the consolidated average
gold price.
|
For 2019, the Company achieved a TRIFR of 3.6 per million hours
worked, which compares to 4.5 per million hours worked in 2018. The
improvement year-on-year reflects significant improvements in
health and safety performance at Haile and Macraes and continued
reinforcement of strong health and safety behaviours across the
business.
On a consolidated basis, the Company produced 470,601 ounces of
gold for the full year 2019, including 108,151 ounces in the fourth
quarter. Gold production from Haile and the New Zealand operations increased nearly 20%
quarter-on-quarter. Copper production for 2019 was 10,255 tonnes
while silver production was 385,853 ounces. Full year gold and
copper production were within the Company's revised 2019 production
guidance ranges.
The Company also achieved its revised 2019 cost guidance with
AISC of $1,061 per ounce on sales of
448,430 ounces of gold and 6,901 tonnes of copper. The Company's
AISC for the fourth quarter was $980
per ounce on sales of 107,330 ounces of gold and no copper sales.
The AISC decreased 13% quarter-on-quarter on lower costs across
each operation and from higher gold sales.
Haile Gold Mine, United
States
The Haile Gold Mine produced 146,131 ounces of gold, including
46,420 ounces in the fourth quarter. Haile gold production
increased 11% year-on-year as a result of higher mill feed which
was partially offset by a lower average grade. Quarter-on-quarter
gold production increased 26% due largely to higher mill feed and
head grade and better gold recoveries.
AISC for the full year 2019 at Haile was $1,262 per ounce sold with costs significantly
higher in the first half of the year related to the weather impacts
to the operation. Reported AISC at Haile includes $50 per ounce in corporate general and
administrative ("G&A") allocations. For the fourth quarter,
Haile's reported AISC was $1,014 per
ounce sold of which $57 per ounce was
allocated for corporate G&A.
Mining operations in the fourth quarter were focused on
completing ore mining from Snake phase 1 while continuing to mine
ore from Red Hill. The Company
continued to pre-strip Ledbetter phase 1 and Snake phase 2 with ore
mining from lower grade benches now taking place. In the fourth
quarter, the Haile operation mined 7.94 million tonnes of material
including 1.37 million tonnes of ore representing
quarter-on-quarter increases of 5% and 104% respectively. Mining
operations were supported by the increased number of larger Komatsu
730-E haul trucks of which ten were operational as at the end of
the year.
For the full year, the Haile operation processed 3.2 million
tonnes of ore representing a 34% increase from 2018 and in-line
with the Company's ramp up plans. The year-on-year increase related
to investments made by the Company to debottleneck the process
plant, which continues to achieve daily throughput rates that
annualise to over 3.5 million tonnes. A primary focus for plant
operations in the first quarter of 2020 will be to commission the
final components of the new fine grinding circuit and achieve
average gold recoveries in the mid-80% range for the full year.
On the back of the upgraded fleet, workforce stability and
productivity improvements, the Haile operation reduced its mining
unit costs by 11% quarter-on-quarter and 44% from the first quarter
of 2019. The processing unit costs decreased 9% quarter-on-quarter
and 12% from the first quarter of 2019. The AISC and cash costs
continued to trend lower with quarter-on-quarter decreases of 8%
and 13% respectively and decreases of 43% and 34% respectively from
the first quarter of 2019.
Looking ahead, the Company expects increased gold production
with continued decrease in AISC for 2020. Production in the second
half of the year is expected to deliver two-thirds of the year's
gold output at significantly lower AISC than the first half. The
variability in production and costs relate to mine sequencing
whereby mined and processed grades increase as the year progresses.
The fourth quarter is expected to deliver the highest production
while the first quarter is expected to have the lowest production
for the year.
The Company continues to enhance open pit operations by
accelerating mining activities. The Company expects to have 15
Komatsu 730-E haul trucks in operation in the second quarter to
support the mining activities. For 2020, the Company will bring
forward mining of the Haile and Mill Zone phase 2 pits, both
previously scheduled for mining in 2021. With enhanced open pit
operations, the Company is further optimising the Horseshoe
underground design to incorporate a larger expected resource and
longer mine life, plus reviewing the mining method to potentially
improve project economics. To achieve this, portal development may
be deferred to start in 2021.
Waihi Gold Mine, New
Zealand
At Waihi, the operation produced 68,082 ounces of gold,
including 15,778 ounces in the fourth quarter, which was relatively
flat quarter-on-quarter. For the year, AISC was $825 per ounce on sales of 69,186 ounces of gold
and $741 per ounce on sales of 18,649
ounces of gold in the fourth quarter. Waihi's reported full year
AISC includes approximately $72 per
ounce in corporate G&A allocations. For the fourth quarter,
corporate G&A allocations accounted for $75 per ounce of the reported AISC.
Looking ahead, mining from Correnso Deeps is expected to be
completed in the first quarter with processing temporarily shutting
down at that point. Mining of narrow veins in the Correnso area
will continue for the duration of the year with this ore stockpiled
ahead of processing in the fourth quarter. Following completion of
processing of this ore, the process plant will be shut down
temporarily and is expected to restart in the second quarter of
2021 with ore sourced exclusively from Martha Underground. The
Waihi operation is expected to produce approximately 12,000 ounces
of gold in the first quarter of 2020 with an additional 8,000
ounces in the fourth quarter. The Waihi district study is currently
underway and expected to be completed in the first half of 2020.
This preliminary economic assessment will provide longer-term
production rates, costs and schedules related to the Waihi
District, including Martha Underground and WKP.
Macraes, New Zealand
At Macraes, the operation produced 172,475 ounces of gold,
including 45,505 ounces in the fourth quarter. The 20%
quarter-on-quarter increase in production was attributable to a
higher head grade from Coronation stage 5 and the Frasers
Underground. AISC was $1,115 per
ounce on sales of 175,819 ounces of gold for the full year and
$1,039 per ounce of sales on 46,355
ounces of gold sold in the fourth quarter. Macraes reported full
year AISC includes approximately $57
per ounce in corporate G&A allocations. For the fourth quarter,
corporate G&A allocations accounted for $63 per ounce of the reported AISC.
Looking ahead, the Company expects steady production and flat
AISC from Macraes while plans to increase the mine life are
progressing well. The Company is currently working on a
pre-feasibility study in relation to an underground mine at Golden
Point and expects to complete this study in the second half of
2020.
Didipio, Philippines
In the Philippines, Didipio
produced 83,913 ounces of gold and 10,255 tonnes of copper in 2019
before processing was suspended in October. The Company continues
to work constructively with regulatory stakeholders related to the
renewal of Didipio's FTAA, which is currently under review with the
Office of the President with no specific timeline on when a
decision will be made. The mine currently remains in a state of
operational readiness.
The Didipio operation continues to receive strong community
support. A community coalition comprising Indigenous Peoples from
the host community of Didipio and 10 adjacent communities have held
numerous rallies to demonstrate their support for the continued
operation of the mine. The most recent, held at Malacañang (the
Presidential Palace) in Manila.
Full Year Results and Webcast
The Company will release its financial and operational results
for the fourth quarter and full year ending 31 December 2019 before the TSX market open on
Thursday February 20, 2020
(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 Friday February 21,
2020 (Melbourne, Australia
Time) / 4:30 pm on Thursday February 20,
2020 (Toronto, Canada
time).
Webcast Participants
To register, please copy and paste the link below into your
browser:
https://event.on24.com/wcc/r/2176515/C9CEED65CE90A57B28C14F899D74EC51
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
United Kingdom: 0 800 652
2435
Switzerland: 0 800 312 635
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 2019, the Company produced 470,601 ounces of gold and 10,255
tonnes of copper at All-In Sustaining Costs of $1,061 per ounce sold.
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