Oceanagold Announces First Quarter Financial and Operational Results
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MEDIA RELEASE
26 April 2018
OCEANAGOLD ANNOUNCES FIRST QUARTER FINANCIAL AND OPERATIONAL
RESULTS
(All financial figures in US Dollars unless otherwise stated)
(MELBOURNE) OceanaGold Corporation (TSX/ASX: OGC) (the “Company”) is pleased to release its
financial and operational results for the quarter ended 31 March 2018. 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
Commenced permitting of a 10-year mine life extension at Waihi.
Consolidated production of 125,646 ounces of gold and 3,889 tonnes of copper.
Consolidated All-In Sustaining Costs (“AISC”) of $799 per ounce and Cash Costs of $483 per ounce
on sales of 127,473 ounces of gold and 3,192 tonnes of copper.
Revenue of $196.7 million with an EBITDA of $100.9 million and a net profit of $44.5 million.
Didipio nominated for awards in environmental excellence, workplace practices, education and
literacy programs and community projects at the 10th Annual Global CSR Awards.
Welcomed Dr. Nora Scheinkestel and Ian Reid to the Board of Directors as Non-Executive Directors.
Mick Wilkes, President and CEO said, “ I am very pleased with the start we’ve had to the year with good
production and cash flow generation. We continue to deliver EBITDA margins at or near the top of the gold
mining industry while delivering another strong return on invested capital for the quarter .” He added, “At
Waihi, we achieved a major milestone by starting the permitting process for a 10 -year mine life extension
through the Martha Project. We have received positive feedback and response in our engagements with the
community and this close engagement will continue during the permitting process.”
“Operationally, gold production was generally in -line with our expectations , despite a severe cold weather
event that impact ed the Haile operation early in the year. In the Philippines, ramp -up of the underground
operations is progressing to plan.”
“As we continue through this exciting phase of the Company, we recognise that we have some important
commitments to deliver on and I have tremendous confidence in our plan, our team and our vision, to achieve
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consistent positive results. Our business is in great shape , with a strong balance sheet, clear strategy and
high quality assets.”
Table 1 – Production and Cost Results Summary
Quarter ended 31 Mar 2018 Haile Didipio Waihi Macraes
Consolidated
Q1 2018 Q4 2017
Gold Produced Ounces 37,049 25,656 18,522 44,419 125,646 166,211
Gold Sales Ounces 32,645 31,551 20,983 42,295 127,473 168,586
Average Gold Price US$/ounce 1,336 1,368 1,326 1,329 1,340 1,275
Copper Produced Tonnes – 3,889 – – 3,889 3,687
Copper Sales Tonnes – 3,192 – – 3,192 4,842
Average Copper
Price US$/pound – 3.03 – – 3.03 3.17
Cash Costs US$/ounce 481 125 665 663 483 300
All-In Sustaining
Costs US$/ounce 952 231 824 1,095 799 564
Table 2 – Financial Summary
Quarter ended 31 Mar 2018
(US$m)
Q1
Mar 31 2018(2)
Q4
Dec 31 2017
Q1
Mar 31 2017(1)
Revenue 196.7 246.1 161.8
Cost of sales, excluding depreciation and amortisation (84.7) (85.3) (56.8)
General and administration – other (12.3) (12.7) (9.0)
Foreign currency exchange gain/(loss) 0.6 0.2 (0.2)
Gain on sale of available-for-sale assets - - 5.3
Other income/(expense) 0.6 0.3 0.6
EBITDA (excluding gain/(loss) on undesignated
hedges and impairment charge) 100.9 148.6 101.7
Depreciation and amortization (51.4) (60.4) (36.4)
Net interest expense and finance costs (3.8) (4.0) (4.5)
EBIT (excluding gain/(loss) on undesignated hedges
and impairment charge) 45.8 84.2 60.8
Income tax (expense) / benefit on earnings (7.2) 9.5 (1.3)
Earnings after income tax and before gain/(loss) on
undesignated hedges and impairment charge 38.6 93.7 59.5
Impairment charge - - (17.7)
Gain/(loss) on fair value of undesignated hedges 6.0 (5.8) (7.9)
Tax (expense) / benefit on gain/loss on undesignated
hedges - 0.8 2.2
Share of loss from equity accounted associates (0.1) (0.1) (0.1)
Net Profit 44.5 88.6 36.0
Basic earnings per share $0.07 $0.14 $0.06
Diluted earnings per share $0.07 $0.14 $0.06
(1) For the quarter ended March 31, 2017, all revenue and costs reported do not include the Haile operations as these
have been capitalised as commercial production was declared effective from October 1, 2017.
(2) The Company’s consolidated financial results for the quarter ended March 31, 2018 reflect adjustments on adoption of
IFRS 15 effective from January 1, 2018.
On a consolidated basis, the Company produced 125,646 ounces of gold and 3,889 tonnes of copper, down
from the previous quarter, which was expected and previously forecast.
Consolidated All-In Sustaining Costs for the first quarter were $799 per ounce and cash costs were $483 per
ounce on sales of 127,473 ounces of gold and 3,192 tonnes of copper. T he quarter-on-quarter increase in
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unit costs was expected and related to lower gold sales. Unit costs are expected to decrease as the year
progresses.
At the end of the first quarter the Company recorded revenue of $196.7 million, which was lower than the
previous quarter and due to decreased gold sales, partially offset by higher average gold realized prices.
EBITDA for the first quarter was $100.9 million while net profit was $44.5 million, both strong result s and
continued demonstration of high margins. EBITDA margin for the quarter was 51%, which reflects the high -
margin structure of the business.
The Company’s cash balance increased to $89.1 million excluding $71.4 million in marketable securities. At
the end of the first quarter, the Company had immediate available liquidity of $119.3 million . The cash
balance increase from the previous quarter was driven by lower capital expenditure while each operation
continued to generate strong cash flows with an average AISC margin of $5 41 per ounce sold. Additionally,
during the quarter, the Company purchased $4.3 million of equity in Gold Standard Ventures to maintain its
equity ownership position of 15.6%.
During the first quarter, the Company’s total credit facilities stood at $230 million of which $200 million was
drawn. The Company’s net debt decreased by 12% to $146.4 million.
On March 28, 2018, the Company commenced the permitting process for a 10 -year mine life extension at
Waihi while at Haile, the Company is preparing to commence permitting the expansion in the middle of the
year. At Didipio, ramp-up of underground operations continues to progress as planned while development of
panel two continued during the quarter.
Exploration activities continue to be a major focus for the Company. Extensive drill programs at Haile and
Waihi in particular, are focused on multiple targets within the existing operating footprint and across greenfield
opportunities.
During the first quarter, the Company’s joint venture partner Mirasol Resources completed the first stage of
drilling at the La Curva Project in Argentina, with assays confirming the presence of a large gold and silver
system within the Castora Trend. An additional 3,000 metres of dri lling is expected to commence in the
second quarter of 2018.
First Quarter 2018 Results and Webcast
The Company will host a conference call / webcast to discuss the results at 7:30 am on 27 April 2018
(Melbourne, Australia time) / 5:30 pm on 26 April 2018 (Toronto, Canada time).
Webcast Participants
To register, please copy and paste the link below into your browser:
https://event.on24.com/wcc/r/1631737/723AE3A068B2C9D59CFC87B9A16F8A2F
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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 Media Relations
Sam Pazuki
Tel: +1 416 915 3123
Melissa Bowerman
Tel: +61 3 9656 5300
Jeffrey Sansom
Tel: +61 3 9656 5300
[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 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.
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OceanaGold has operated sustainably over the past 27 years 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 expects to produce 480,000 to 530,000 ounces of gold and 15,000 to 16,000 tonnes
of copper with All-In Sustaining Costs that range from $725 to $775 per ounce sold.
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