OceanaGold Reports Fourth Quarter and Full Year 2023 Operating and Financial Results
February 21, 2024 NEWS RELEASE
OceanaGold Reports Fourth Quarter and Full Year 2023 Operating
and Financial Results
(All financial figures in United States dollars unless otherwise stated)
(VANCOUVER) OceanaGold Corporation (TSX: OGC; OTCQX: OCANF) ("OceanaGold" or the
“Company”) reported its operational and financial results for the three months and full year ended
December 31, 2023. The consolidated financial statements and the Management Discussion and Analysis
(“MD&A”) are available at www.oceanagold.com.
Gerard Bond, President and CEO of OceanaGold, said "Strong fourth quarter gold production, driven by
increased quarter-on-quarter performance at all four of our operations, allowed us to deliver our full year
production guidance.
At Haile, the Horseshoe Underground mine increased its production of higher-grade ore feed and, with
the underground mine ramping up to full capacity and with access to ore in Ledbetter open pit improving
through the first half of 2024, we expect improved performance quarter on quarter from Haile over the
coming year. Didipio had an exceptional fourth quarter, beating increased guidance for the year due to
earlier access into higher grade areas of the mine. Both New Zealand sites rebounded with improved
fourth quarter performance, with Macraes also achieving the higher end of its increased production
guidance for the year.
2024 is a transformational year for OceanaGold as we begin to deliver production growth, both for 2024
and beyond. Our 3-year outlook remains robust with organic, near-mine production growth of at least
30%1 through 2026 at a declining AISC per ounce, which in turn underpins OceanaGold’s projected
improvement in Free Cash Flow generation.
This exciting profile positions the Company to continue strengthening the balance sheet, which we expect
to be further enhanced this year with the completion of the monetization of 20% of Didipio. We will also
continue to explore and invest in growth options such as Palomino and Wharekirauponga, especially with
the improved investment climate in New Zealand. All of this will be in service of increasing the value of
OceanaGold and improving returns to shareholders."
1
1 Based on the mid-point of production guidance. See Q4 2023 MD&A for more information
Highlights
Achieved 2023 Guidance, Safely and Responsibly
• Produced 477,313 ounces of gold and 14,172 tonnes of copper , in-line with original 2023
guidance, including delivering the Horseshoe Underground mine at Haile into production, and
exceeding original production guidance at Didipio and Macraes.
• All-In Sustaining Cost (“AISC”) 1 of $1,587 per ounce , in-line with updated 2023 guidance and
excluding 11,009 ounces of gold produced but not sold until early January 2024.
• Record full year revenue of $1.0 billion, driven by strong sales at record average realized gold
prices.
• Ended the year with Net Debt 1 of $170.1 million at a Leverage Ratio 1 of 0.41x, and refinanced
the revolving credit facility (the “Facility”) with extended maturity and improved terms.
• Released updated Reserves and Resources , including Indicated Resource growth to 1 million
ounces of gold at 15.9 g/t at Wharekirauponga and initial Reserves of 380,000 ounces at 2.9 g/t at
Palomino at Haile.
2024 Guidance and Three-Year Outlook
• ~13%2 increase in 2024 gold production, with production guidance of 510,000 to 570,000
ounces and 12,000 to 14,000 tonnes of copper, driven by growth at Haile.
• Lower unit cost of gold produced in 2024, with 2024 AISC 1 guidance of $1,475 to $1,600 per
ounce sold . AISC in the first quarter is expected to be higher than the fourth quarter of 2023,
decreasing significantly throughout the year as open pit mining transitions into ore at Haile and
Macraes throughout the year.
• Multi-year consolidated gold production growing by at least 30%3 from 2023 to 2026 at a
decreasing AISC1.
• Initial public offering of 20% of OceanaGold Philippines Inc., which holds Didipio , in
mid-2024. Proceeds will be applied to reduce OceanaGold’s debt, further strengthening the
balance sheet.
• Declared a $0.01 per share semi-annual dividend in February 2024, payable in April 2024.
1 Refer to “Non-IFRS Financial Information” in the MD&A
2 Derived by the mid-point of 2024 gold production guidance relative to 2023 actual gold production
3 By the mid-point of 2026 guidance relative to 2023 actual gold production
2
Table 1 – Production and Cost Results Summary
Quarter ended
December 31, 2023 Haile Didipio Waihi Macraes Consolidated
Q4 2023 Q3 2023 Q4 2022
Production, Sales & Costs
Gold Produced koz 37.6 42.8 13.3 36.1 129.8 99.0 120.9
Gold Sales koz 29.6 39.7 13.1 36.3 118.8 97.9 118.7
Average Gold Price US$/oz 1,996 2,039 1,975 1,947 1,993 1,934 1,769
Copper Produced kt — 3.8 — — 3.8 3.4 3.5
Copper Sales kt — 3.9 — — 3.9 3.1 3.5
Average Copper Price 1 US$/lb — 3.80 — — 3.80 3.76 3.91
Cash Costs US$/oz 1,521 549 1,345 901 987 1,003 880
Site AISC 2 US$/oz 2,570 737 1,829 1,468 1,658 1,911 1,602
Operating Physicals
Material Mined kt 7,253 448 265 12,819 20,785 19,741 23,283
Waste Mined kt 6,838 51 131 11,138 18,158 16,824 19,453
Ore Mined kt 415 397 134 1,681 2,627 2,917 3,830
Mill Feed kt 874 1,015 129 1,655 3,673 3,260 3,481
Mill Feed Grade g/t 1.62 1.43 3.44 0.82 1.27 1.12 1.28
Gold Recovery % 82.2 91.7 93.7 83.0 86.5 84.2 84.6
Capital Expenditures
Sustaining US$M 8.5 5.9 1.2 6.5 22.2 23.5 31.8
Pre-strip & Capitalized Mining US$M 20.9 1.6 4.0 15.1 41.6 47.2 37.9
Growth US$M 4.5 4.5 2.0 0.6 13.0 19.5 17.2
Exploration US$M 1.6 1.0 4.0 0.6 7.2 7.0 5.6
Total Capital Expenditures US$M 35.5 13.0 11.2 22.8 84.0 97.2 92.5
Year ended December 31, 2023 Haile Didipio Waihi Macraes Consolidated
2023 2022
Production, Sales & Costs
Gold Produced koz 152.5 138.5 49.3 137.0 477.3 472.2
Gold Sales koz 146.2 135.7 48.9 137.1 467.9 469.0
Average Gold Price US$/oz 1,953 1,974 1,950 1,940 1,955 1,813
Copper Produced kt — 14.2 — — 14.2 14.4
Copper Sales kt — 13.8 — — 13.8 14.7
Average Copper Price 1 US$/lb — 3.87 — — 3.87 3.82
Cash Costs US$/oz 884 614 1,300 996 883 869
Site AISC 2 US$/oz 1,921 730 1,914 1,570 1,587 1,407
Operating Physicals
Material Mined kt 33,197 1,735 981 48,386 84,300 88,227
Waste Mined kt 30,168 152 509 40,466 71,295 74,120
Ore Mined kt 3,030 1,583 473 7,920 13,006 14,109
Mill Feed kt 3,357 4,101 470 5,751 13,679 13,721
Mill Feed Grade g/t 1.72 1.16 3.48 0.90 1.27 1.27
Gold Recovery % 81.3 90.0 93.5 82.5 85.6 83.5
Capital Expenditures
Sustaining US$M 45.6 11.1 3.5 32.7 92.9 81.0
Pre-strip & Capitalized Mining US$M 99.2 4.3 22.7 45.5 171.7 117.7
Growth US$M 43.4 9.6 8.2 1.9 63.1 58.7
Exploration US$M 6.2 2.5 13.2 2.9 24.8 22.1
Total Capital Expenditures US$M 194.4 27.5 47.6 83.0 352.5 279.3
1 The Average Copper Price Received calculated includes mark-to-market revaluations on unfinalized shipments as well as final adjustments on
prior period shipments per accounting requirements
3
2 Site AISC are exclusive of corporate G&A expenses but include share based remuneration paid to eligible site employees, Consolidated AISC is
inclusive of corporate G&A expenses which includes share based remuneration paid to eligible non-operations corporate employees. Cash
Costs and AISC are reported on ounces sold and net of by-product credit basis. AISC is a non-IFRS measure. Refer to "Non-IFRS Financial
Information" section of the MD&A.
Notes:
• Consolidated capital excludes rehabilitation and closure costs at Reefton and Junction Reefs plus corporate capital projects not related to a
specific operating region; these totalled $0.7 million and $0.3 million respectively in the fourth quarter. Capital and exploration expenditure by
location excludes related regional greenfield exploration where applicable.
Table 2 – Financial Summary
(in US$M, except per share amounts) Q4 2023 Q3 2023 Q4 2022 2023 2022
Revenue 267.3 214.1 238.4 1,026.3 967.4
Cost of sales, excluding depreciation and amortization (145.9) (113.3) (129.0) (498.8) (506.4)
General and administration (10.3) (16.9) (13.8) (64.3) (51.7)
Indirect taxes 1 (8.2) (7.4) (3.5) (26.3) (15.2)
Additional Government Share 2 (6.4) (13.9) — (20.3) —
Foreign currency exchange gain/(loss) 3.0 (1.8) 5.2 (3.5) (25.1)
Other (expense)/income (4.8) 2.2 0.9 (4.1) 2.2
Adjusted EBITDA 3 94.6 63.0 98.2 410.1 371.0
Depreciation and amortization (71.8) (51.7) (52.5) (228.8) (201.2)
Net interest expense and finance costs (6.3) (4.4) (4.8) (21.0) (9.9)
Adjusted Net Profit before income tax 16.5 6.9 40.9 160.3 159.9
Income tax (expense)/benefit on earnings (6.9) (8.6) (11.0) (44.9) (34.0)
Adjusted Net Profit 3 9.6 (1.7) 29.9 115.4 125.9
Unrealized foreign exchange losses/(gains) on the Facility 3.9 (1.6) 11.1 1.7 10.9
Write-off of receivables/exploration/property expenditure/
investment 4 (38.3) (2.2) — (39.9) (4.4)
Tax benefit on write-down of indirect tax receivable 9.6 — — 9.6 —
Restructuring expense 5 (3.7) — — (3.7) —
Net (Loss)/Profit (18.9) (5.5) 41.0 83.1 132.6
(Loss)/Earnings per share - basic $(0.03) $(0.01) $0.06 $0.12 $0.19
Adjusted Earnings per share 3 $0.01 $0.00 $0.04 $0.16 $0.21
(Loss)/Earnings per share - diluted $(0.03) $(0.01) $0.05 $0.12 $0.18
1 Represents production-based taxes in the Philippines, specifically excise tax, local business and property taxes.
2 The Additional Government Share has been recognized in accordance with FTAA under which the Company’s Didipio mine in the Philippines
operates.
3 Adjusted EBITDA, Adjusted Net Profit and Adjusted Earnings per share are non-IFRS measures. Refer to "Non-IFRS Financial Information"
section of the MD&A.
4 As at December 31, 2023, there was a non-cash write-down of indirect tax receivables in the Philippines totalling $38.3 million. The loss was
primarily driven by the non-cash write-down relating to historic tax receivables in the Philippines (relating to Excise Taxes and VAT). The
Company had been seeking recovery of indirect taxes assessed between 2013 and 2019 which it believed were not due and payable at the
time, pursuant to the FTAA. These recovery actions were in various stages of court proceedings. Given the lack of definitive progress, ongoing
administrative costs incurred in respect of these recovery actions, and with the additional government share payments now current, the
Company has elected to write down these tax receivables and has commenced the process of discontinuing legal proceedings in these matters.
All these historic taxes paid have been included as part of the government share as at December 31, 2023. As these taxes have already been
paid and considered as part of the Government share, this write down of the receivable will not result in a cash payment. Were these taxes
recovered, it would have resulted in a cash refund to the Company and an associated credit to the Additional Government Share, also with no
net cash flow impact to the Company. There were two write-offs in 2022 totalling $4.4 million related to exploration projects in New Zealand and
the Sam’s Creek investment.
5 Represents costs related to the relocation of the corporate office from Australia to Canada.
4
Table 3 - Cash flow Summary
(in US$M) Q4 2023 Q3 2023 Q4 2022 2023 2022
Cash flows from Operating Activities 94.8 62.5 100.2 384.2 368.7
Cash flows used in Investing Activities (78.7) (92.1) (90.2) (341.8) (280.8)
Cash flows used in Financing Activities (13.9) (22.7) (57.3) (57.8) (130.2)
Free Cash Flows 1 16.1 (29.6) 2.7 42.4 57.7
Note: Free Cash Flow in 2023 has been calculated as Cash flows from Operating Activities, less Cash flows used in Investing Activities. In the prior
year, Free Cash Flow was calculated as Cash flows from Operating Activities, less Cash flows used in Investing Activities less finance lease principal
payments which are reported as part of cash flow used in financing activities in 2022.
Operations
The Company produced 129,830 ounces of gold and 3,848 tonnes of copper in the fourth quarter of 2023.
Fourth quarter gold production was 31% higher than the previous quarter and 7% higher than the
corresponding quarter in 2022. The quarter-on-quarter increase was driven by higher production at all
operations during the quarter and includes first production from the Horseshoe Underground at Haile. The
Company produced 477,313 ounces of gold and 14,172 tonnes of copper in 2023, which was broadly in
line with production in 2022.
The Company recorded a fourth quarter AISC1 of $1,658 per ounce on gold sales of 118,821 ounces. This
was a 13% reduction in AISC 1 compared to the previous quarter and a 3% increase compared to the
corresponding period in 2022. The quarter-on-quarter reduction was driven by 21% higher comparative
gold sales in the fourth quarter. For 2023, the Company recorded an AISC1 of $1,587 on sales of 467,895
ounces of gold.
Haile produced 37,566 ounces of gold in the fourth quarter. The 62% increase compared to the previous
quarter was primarily due to the addition of first production from the Horseshoe Underground. Haile’s
fourth quarter AISC1 was $2,570 per ounce, a reduction compared to the previous quarter largely driven
by the higher quarter-on-quarter gold sales. Annual 2023 production at Haile was 152,481 ounces of gold
at an AISC1 of $1,921 per ounce sold. The high AISC 1 of Haile in the fourth quarter reflects both the high
level of production stripping expenditures in the open pit and the fact that Horseshoe underground is still
in ramp up, whilst the full year AISC 1 outcome of Haile also reflects lower than estimated ore grades
encountered in the now-completed Mill Zone pit, as previously reported.
During the third quarter, first development ore was mined and stockpiled from the Horseshoe
Underground mine at Haile. First production ore was mined in mid-October and three stopes were mined
as planned during the fourth quarter of 2023.
Didipio produced 42,807 ounces of gold and 3,848 tonnes of copper in the fourth quarter . The 40%
increase in gold production compared to the previous quarter was mainly due to higher grade breccia
stopes being mined, which was facilitated by completion of the crown pillar strengthening project. Copper
production increased by 13% quarter-on-quarter. Didipio’s fourth quarter AISC1 was $737 per ounce on
gold sales of 39,734 ounces and 3,923 tonnes of copper, a 15% reduction from the previous quarter due
to higher sales. Annual 2023 production at Didipio was 138,527 ounces of gold and 14,172 tonnes of
copper at an AISC1 of $730 per ounce.
1 Refer to “Non-IFRS Financial Information” in the MD&A
5
Macraes produced 36,117 ounces of gold in the fourth quarter . The 4% increase compared to the
previous quarter resulted from record mill throughput achieved during the fourth quarter of 2023. Macraes
fourth quarter AISC1 was $1,468 per ounce, a 5% decrease compared to the previous quarter mainly due
to the higher quarter-on-quarter gold sales. Annual 2023 production at Macraes was 137,018 ounces of
gold at an AISC1 of $1,570 per ounce.
Waihi produced 13,340 ounces of gold for the fourth quarter. The 23% increase compared to the previous
quarter was driven by a 24% increase in feed grade, as mining of the remnant areas shifted into higher
grade zones. Waihi’s fourth quarter AISC 1 was $1,829 per ounce, a 17% reduction compared to the
previous quarter mainly driven by the higher quarter-on-quarter gold sales. Annual 2023 production at
Waihi was 49,286 ounces of gold at an AISC1 of $1,914 per ounce.
Financial
The Company recorded fourth quarter consolidated revenue of $267.3 million, a 25% increase compared
to the previous quarter largely driven by 21% higher quarter-on-quarter gold sales volumes across the
operations due to strong production, particularly from Didipio and Haile. Fourth quarter revenue was 12%
above the corresponding period in 2022, reflecting higher gold sold from Didipio combined with a 13%
higher average realized gold price which partly offset the lower gold sales volumes from Haile
underpinned by lower production.
The Company achieved record annual consolidated revenue of $1.0 billion, a 6% increase relative to the
previous year, mainly reflecting an 8% higher average realized gold price received.
Fourth quarter Adjusted EBITDA 1 was $94.6 million , a 50% increase relative to the previous quarter
mainly due to the 25% higher revenue. Fourth quarter Adjusted EBITDA 1 was 4% lower than the
corresponding quarter in 2022 as higher revenues were offset by higher cost of sales and accrual of the
Additional Government Share at Didipio, along with lower foreign exchange gains and net other expenses
compared with other income in 2022.
Annual consolidated Adjusted EBITDA1 was $410.1 million, a 11% increase compared to 2022, driven by
higher revenue and lower cost of sales which was partially offset by higher G&A costs, indirect taxes,
corporate restructuring costs and recognition of the Additional Government Share at Didipio.
Fourth quarter net loss was $18.9 million or $0.03 per share fully diluted, compared with a net loss of
$5.5 million and $0.01 per share fully diluted in the previous quarter. The net loss was primarily driven by
the non-cash write-down of historic tax receivables in the Philippines, totaling $38.3 million ($22.1 million
excise taxes and $16.2 million of value added taxes). The Company had been seeking recovery of
indirect taxes assessed and paid relating to periods from 2013 and 2019 which it believed were not due
and payable at the time, pursuant to the Financial or Technical Assistance Agreement (“FTAA”). These
recovery actions were in various stages of court proceedings. Given the lack of definitive progress,
ongoing administrative costs incurred in respect of these recovery actions, and with the Additional
Government Share payments now applicable, the Company has written down these indirect tax
receivables and has commenced the process of discontinuing legal proceedings in these matters. The
Additional Government Share calculation as at December 31, 2023 reflects these taxes paid. As these
taxes have already been paid and considered as part of the Government share, this write-down of the
indirect tax receivables will not result in a cash payment. Were these taxes recovered, it would have
1 Refer to “Non-IFRS Financial Information” in the MD&A
6
resulted in a cash refund to the Company and an associated credit to the Additional Government Share
also with no net cash flow impact to the Company.
Fourth quarter Adjusted Net Profit 1 was $9.6 million or $0.01 per share fully diluted compared with an
Adjusted Net Loss1 of $1.7 million or $0.00 per share in the previous quarter.
Annual Adjusted Net Profit 1 was $115.4 million, a 20% decrease compared to the previous year mainly
due to the first accrual of the Additional Government Share at Didipio of $20.3 million, expected to be paid
in April 2024.
Fourth quarter cash flows from operating activities were $94.8 million, which was 52% above the previous
quarter reflecting both the higher revenue and Adjusted EBITDA1.
Annual cash flows from operating activities totaled $384.2 million, which was 4% above the corresponding
period in 2022 due to higher revenue, partly offset by higher indirect tax and G&A costs.
Fourth quarter investing cash flow totaled $78.7 million, which was 15% below the previous quarter, due
primarily to lower pre-strip and capitalized mining and growth capital at Haile partly offset by higher
sustaining and growth capital at Didipio and pre-strip and capitalized mining spend at Macraes.
Annual investing cash flow of $341.8 million was 22% above the previous year due to higher pre-stripping
and capitalized mining costs and sustaining capital at Haile and Macraes.
Annual Free Cash Flow 1 was $42.4 million, of which $16.1 million was generated in the fourth quarter.
Following the completion of refinancing in December, as at December 31, 2023, the Company’s available
revolving credit facilities decreased to $200 million, with $135 million drawn and $65.0 million undrawn.
The Company had immediately available Liquidity 1 of $126.7 million including $61.7 million in cash as at
December 31, 2023. The debt structure includes an accordion feature of $50 million (i.e. pre-approved but
not committed capacity under the facility) and is excluded from Liquidity1.
The Company’s Net Debt 1 position, inclusive of lease liabilities, decreased to $170.1 million from
$171.6 million in the previous quarter. The Company’s Leverage Ratio 1 was 0.41x as at December 31,
2023.
1 Refer to “Non-IFRS Financial Information” in the MD&A
7
Outlook
The Company’s 2024 full year guidance is presented in the tables below.
Production & Costs2 Haile Didipio Waihi Macraes Consolidated
Gold Production koz 195 - 225 120 - 135 55 - 75 120 - 135 510 - 570
Copper Production kt - 12 - 14 - - 12 - 14
Cash Costs 1,3 $/oz 900 - 1,000 550 - 650 1,050 - 1,200 1,100 - 1,200 875 - 975
AISC1,3 $/oz 1,530 - 1,630 750 - 850 1,350 - 1,500 1,775 - 1,875 1,475 - 1,600
Capital
Investments2,4
(US$M)
Haile Didipio Waihi Macraes Consolidated 5 Included in
AISC 1
Pre-strip and
Capitalized Mining 75 - 85 5 - 8 8 - 12 55 - 65 140 - 160 140 - 160
Sustaining 50 - 55 20 - 25 10 - 15 30 - 35 105 - 115 105 - 115
Growth 20 - 25 10 - 15 5 - 10 7 - 11 50 - 65 — - —
Exploration 7 - 9 3 - 5 15 - 20 1 - 2 25 - 35 3 - 6
Total Investments 155 - 175 45 - 55 45 - 55 90 - 110 320 - 370 255 - 295
2 Assumes a New Zealand dollar to United States dollar exchange rate of 0.60.
3 Includes by-product credits based on copper price of $3.85/lb.
4 Excludes capital leases.
5 Includes corporate capital and excludes Reefton and Junction Reefs rehabilitation costs.
Consolidated gold production in 2024 is expected to be higher than 2023 driven by increases at Haile and
Waihi. The first quarter is expected to be the weakest of the year, with approximately 55% to 60% of
consolidated gold production weighted to the second half of the year. The production profile is driven by
sequencing of open pit mining at both Haile and Macraes, and the ramp-up of the Horseshoe
Underground at Haile. Consolidated AISC 1 profile follows the production trend and is expected to peak in
the first quarter, and then come down significantly quarter over quarter in 2024.
In 2024, Haile is expected to produce 195,000 to 225,000 ounces of gold at an AISC 1 of between $1,530
and $1,630 per ounce. Gold production is expected to be 60% to 65% weighted to the second half of the
year. Reflecting this profile, Haile’s AISC 1 is expected to be significantly above full-year guidance in the
first quarter and progressively reduce throughout the year. Mill feed ore sequencing at Haile includes a
higher proportion of low grade stockpiles in the first quarter while mining progresses into higher grade ore
in the Ledbetter pit in the second quarter and Horseshoe Underground reaches full target mining rates by
mid-year.
At Haile, total capital investment is expected to range between $155 million and $175 million . Pre-
stripping costs have been accelerated in 2024 to optimize the longer-term mine plan at Haile which is
expected to benefit 2025 and 2026. Capitalized mining costs relate to continued development in the
Horseshoe Underground mine. Sustaining capital includes a new lift and additional maintenance on the
TSF, construction of West PAG Phase 2 and 3, which has been accelerated to reduce overall costs and
improve mine flexibility, and on-going planned component replacement of the mobile fleet.
1 Refer to “Non-IFRS Financial Information” in the MD&A
8