Oceanagold Achieves Consolidated Guidance FOR Seventh Consecutive Year
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MEDIA RELEASE
24 January 2019
OCEANAGOLD ACHIEVES CONSOLIDATED GUIDANCE FOR SEVENTH
CONSECUTIVE YEAR
(MELBOURNE) 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 201 8, 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 201 8 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 operat ional and financial
performance. For the seventh straight year, we delivered on our production and cost guidance, a n
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 p ermitting 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
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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, w e except to continue to generate good cash flows and consistent strong
returns like we ha ve 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 target s 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 wa s partially offset by stronger production
from Macraes.
Full year 2018 copper production was 1 5.0k 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.
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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 11 5.0k ounces of gold including 23 .3k ounces in the fourth quarter.
Copper production for the year was 1 5.0k tonnes including 2 .9k tonnes in the fourth quarter. Quarter-on-
quarter production decreased as expected and previously forecast due to lower mill fee d. Ramp -up of
underground operations and de velopment 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
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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 C ompany’s website.
- ENDS -
For further information please contact:
Investor Relations Media Relations
Sam Pazuki
Tel: +1 416 915 3123
Melissa Bowerman
Tel: +61 459 900 099
[email protected] [email protected]
www.oceanagold.com | Twitter: @OceanaGold
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 Phil ippines. 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 op en 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 work s
collaboratively with its valued stakeholders to identify and invest in social programs that are designed to build
capacity and not dependency.
In 2018, t he 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
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Cautionary Statement for Public Release
Certain information contained in this public release may be deemed “forward -looking” within the meaning of
applicable securities la ws. 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 ope rations, 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 eve nts 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 stat ements 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 r isks
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 a ctual 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.
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