Oceanagold Achieves Record Annual GOLD Production and Achieves 2017 Guidance FOR Sixth Consecutive Year
1
MEDIA RELEASE
18 January 2018
OCEANAGOLD ACHIEVES RECORD ANNUAL GOLD PRODUCTION AND
ACHIEVES 2017 GUIDANCE FOR SIXTH CONSECUTIVE YEAR
(All financial figures in US Dollars unless otherwise stated)
(MELBOURNE) OceanaGold Corporation ( TSX/ASX: OGC) (the “Company”) is pleased to release its full
year and fourth quarter 2017 production report for the year ended 31 December 201 7, 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 7 audited
financial and operational resul ts before market open on Thursday February 22, 2018 (Toronto Eastern
Standard Time).
Key Highlights
Record annual and quarterly gold production of 574,606 ounces and 166,211 ounces respectively.
Annual copper production of 18,351 tonnes including 3,687 tonnes in the fourth quarter.
Achieved consolidated production and cost range for a sixth consecutive year.
Consolidated annual gold sales of 555,632 ounces and copper sales of 18,091 tonnes including
168,586 ounces of gold and 4,842 tonnes of copper in the fourth quarter.
Unaudited consolidated All -In Sustaining Costs (“AISC”) of $617 per ounce sold and cash costs of
$349 per ounce sold.
Increased cash balance from $61 million as at September 30, 2017 to $73 million and reduced net
debt to $167 million following debt facility repayments of approximately $73 million.
Didipio r eceived the inaugural ASEAN award for Best Practices in Sustainable Resource
Development in Mineral Processing.
Mick Wilkes, President and CEO said, “We are very pleased to report a strong finish to 2017 for OceanaGold
as we achieved record quarterly production leading to the sixth consecutive year that we have achieved our
annual guidance. We strengthened our balance sheet as our drawn credit facilities reduced to $200 million
following repayments of approximately $73 million from cash flows in the fourth quarter . At the same time,
we increased our cash position to $ 73 million.” He added, “The Haile operation delivered a strong quarter
with recoveries above 80% and mill availability around 90% as expected in its first full quarter of commercial
operations. The process plant is operating at nameplate capacity and we expect to commence permitting of
the expansion in the second quarter.”
2
“In first quarter of 2018, we expect to commence the permitting process for mine life extensions at Waihi
while at Didipio, ore from the first underground stope has been mined and stockpiled at surface , ready for
processing. Although production at Didipio will be lower in 2018 compared to last year, the ramp-up of the
underground is progressing well and we expect a return to stronger production in 2019 and beyond.”
“We look ahead to 2018 where we have many catalysts across our business and we will continue to advance
our exploration program to create organic value for our shareholders. As always, we continue to employ a
strict discipline and approach to investment of any nature by focusing on margin and returns.”
Table 1 – Unaudited 2017 Production and Cost Results Summary
Didipio Waihi Macraes Haile Consolidated
Fourth Quarter 2017 Results Q4 2017 Q3 2017
Gold Produced Ounces 39,256 31,761 45,060 50,134 166,211 136,043
Copper Produced Tonnes 3,687 – – – 3,687 4,387
Gold Sales Ounces 43,345 30,054 45,922 49,265 168,586 131,071
Copper Sales Tonnes 4,842 – – – 4,842 3,273
Cash Costs $ per ounce (72) 436 613 272 306 416
All-In Sustaining Costs (1) $ per ounce 155 680 933 509 564 748
Full Year 2017 Results (2) 2017 2016
Gold Produced Ounces 176,790 119,084 160,266 118,466 574,606 416,741
Copper Produced Tonnes 18,351 – – – 18,351 21,123
Gold Sales Ounces 167,653 117,721 160,726 109,532 555,632 437,146
Copper Sales Tonnes 18,091 – – – 18,091 21,413
Cash Costs $ per ounce (92) 471 743 272 349 452
All-In Sustaining Costs (1) $ per ounce 70 759 1,115 509 617 708
Notes:
1. AISC for Haile, and the consolidated group, includes only the period post declaration of commercial operations at Haile (effective from October 1,
2017). In the nine months to September 30, 2017, all Haile revenue and costs were capitalised.
2. Full year 2017 consolidated gold production and sales reflect full year production and sales volumes from Haile.
Table 2 – 2017 Production and Cost Guidance
Didipio Waihi Macraes Haile (1) Consolidated
Gold Production Ounces 150,000 – 160,000 110,000 - 120,000 180,000 – 190,000 110,000 – 130,000 550,000 – 600,000
Copper Production Tonnes 18,000 – 19,000 – – – 18,000 – 19,000
All-In Sustaining Costs (2) $ per ounce $70 – $120 $740 – $790 $950 – $1,000 $600 – $650 $600 – $650
Notes:
1. Production and costs prior to declaration of commercial production will be capitalised as part of mining assets and reflected on the balance sheet.
2. AISC calculation conforms to the methodology outlined by the World Gold Council. It includes all cash costs, corporate G&A, maintenance capital
expenditures, capitalised mining expenditures and exploration. It excludes development capital expenditures such as the devel opment of the Haile
Gold Mine and Didipio Underground.
Assumptions
NZD:USD exchange rate of 0.70, Copper price: $2.50 / lb on average for full year.
3
Operations
On a consolidated basis, the Company produced 574,606 ounces of gold in 2017, which was 38% higher
year-on-year and on account of new production from the Haile Gold Mine and record annual gold production
from Didipio. Fourth quarter 2017 gold production of 166,211 ounces was 22% higher than in the previous
quarter and due to increas ed production at Didipio, Macraes and Haile . Copper production in the fourth
quarter was 3,687 tonnes.
On a consolidated basis, the Company recorded sales of 555,632 ounces of gold and 18,091 tonnes of
copper including sales of 168,586 ounces of gold and 4 ,842 tonnes of copper in the fourth quarter.
Consolidated unaudited AISC of $ 617 per ounce sold was within the guidance range while consolidated
unaudited cash costs were $349 per ounce sold.
In the United States, the Haile Gold Mine produced 118,466 ounces of gold, including 50,134 ounces of gold
in the fourth quarter. The quarter-on-quarter 60% increase in production was mainly attributable to higher
mill feed and improved recoveries. Fourth quarter recoveries averaged 82.6% compared to 70% achieved
on average over the first nine months of 2017. The process plant is operating at or above nameplate capacity
and the Company expects to exceed nameplate throughput in 2018. Production at Haile for 2018 is expected
to be stronger than in 2017.
In the Philippines, Didipio achieved record annual gold production and exceeded the top end of its 2017 gold
production guidance range with 176,790 ounces produced, including 39,256 ounces produced in the fourth
quarter, while copper production for the year was 18,351 tonnes including 3,687 tonnes in the fourth quarter.
Underground ore from panel one is available for processing while development of panel two in the
underground has commenced and expected to be completed in 2019. Production at Didipio in 2018 is
expected to be lower as mill feed will be predominately sourc ed from low er-grade stockpiles as the
underground operations ramp-up.
In New Zealand, Waihi produced 119,084 ounces of gold, including 31,761 ounces of gold produced in the
fourth quarter. The quarter-on-quarter decrease in production was previously forecast and a result of a lower
head grade. Production at Waihi for 2018 is expected to be lower than in 2017 due to mine sequencing where
lower grades from the underground will be processed.
At Macraes, the operation produced 160,266 ounces of gold , including 45,060 ounces of gold produced in
the fourth quarter. The quarter -on-quarter increase in production was attributable to a higher head grade
however, production was lower than guided due to delays in accessing higher grade ore from Coronation
North. Production at Macraes for 2018 is expected to be higher as the operation is now into higher grade ore
at Coronation North, which will be the main source feed for the year.
Full Year Results and Webcast
The Company will release its financial and operational results for the fourth quarter and full year ending 31
December 2017 before the TSX market open on Thursday 22 February 2018 (Toronto, Canada time) / after
market close on Thursday February 22, 2018 (Melbourne, Australian Eastern Standard Daylight Time). The
results will be posted on OceanaGold’s website at www.oceanagold.com
4
The Company will host a conference call / webcast to discuss the results at 8:30 am on Friday February 23,
2018 (Melbourne, Australia time) / 4:30 pm on Thursday February 22, 2018 (Toronto, Canada time).
Webcast Participants
To register, please copy and paste the link below into your browser:
https://event.on24.com/wcc/r/1584080/D7F74FF71B7866EBDD89C79EEF6878B9
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.
- ENDS -
For further information please contact:
Investor Relations
Sam Pazuki
Tel: +1 416 915 3123
Jeffrey Sansom
Tel: +61 3 9656 5300
[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
United States, Philippines and New Zealand. The Company’s assets encompass its flagship operation, the
Haile Gold Mine located in South Carolina, United States. In the Philippines, the Company operates the top-
tier Didipio Gold-Copper Mine located on the i sland 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,
2
the Company operates the largest gold mine in the country at the Macraes Goldfield. OceanaG old 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 is focused
on further enhancing its social performance by working collaboratively with its valued stakeholders to identify
and invest in social programs that are designed to build capacity and not dependency.
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 pe rformance 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 ph rases 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 fo rward-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 inform ation. 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 C ompany, 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.
NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION
TO US NEWSWIRE SERVICES.