OceanaGold Reports First Quarter 2024 Operating and Financial Results
(All financial figures in
At Haile, the Horseshoe underground is ramping up on schedule with full mining rates expected to be achieved by mid-year, at the same time as we begin to access a higher proportion of open pit ore from Ledbetter pit, which positions Haile for a very strong second half. Similarly at Macraes, we have been stripping
The Company delivered exciting exploration results across our portfolio, including the first underground drilling into Horseshoe Extension at Haile, high grade results at the growing Wharekirauponga deposit in
The balance sheet remains strong and we plan to apply the proceeds expected from the
† See "Non-IFRS Financial Information" in the MD&A. |
Highlights
- On-track to meet full-year 2024 consolidated production, cost and capital guidance.
- 12MMA Total Recordable Injury Frequency Rate ("TRIFR") has remained steady at 1.0 per 200,000 hours worked at
March 31, 2024 . - Produced 104,800 ounces of gold and 3,000 tonnes of copper in the first quarter.
-
All-In Sustaining Cost ("AISC")† of
$1,823 per ounce for the first quarter. - Gold sales of 116,800 ounces for Q1, which includes 12,000 ounces of 2023 production.
-
Revenue of
$270.3 million , driven by record average realized gold price of$2,092 per ounce. -
Ended the quarter with Net Debt† of
$81.8 million (excludes finance leases) at a Leverage Ratio† of 0.21x. - Released updated Mineral Reserves and Mineral Resources, including Indicated Resource growth to 1 million ounces of gold (2.0 million tonnes at 15.9 g/t) at Wharekirauponga and initial Mineral Reserves of 380,000 ounces (4.0 million tonnes at 2.9 g/t) at Palomino at Haile.
-
Released updated technical report for Haile which, based on Mineral Reserves only, is expected to produce 2.3 million ounces of gold over a 12-year mine life at average gold production of 192,000 ounces per year with a life of mine average AISC† of
$1,200 per ounce. -
Received regulatory approvals and permit to sell for the Initial Public Offering of 20% of
OceanaGold Philippines Inc. , which holds Didipio. Listing is expected to be completed onMay 13 , with proceeds applied to reduceOceanaGold's bank debt, further strengthening the balance sheet. - Announced the sale of the
Blackwater Project inNew Zealand for$30 million in cash, with closing subject to regulatory approval. -
Semi-annual dividend of
$0.01 per share was paid onApril 26, 2024 .
† See "Non-IFRS Financial Information" in the MD&A. |
Table 1 – Production and Cost Results Summary
Quarter ended |
|
Haile |
Didipio |
Waihi |
Macraes |
Consolidated |
||
Q1 2024 |
Q4 2023 |
Q1 2023 |
||||||
Production, Sales & Costs |
|
|
|
|
|
|
|
|
Gold Produced |
koz |
34.7 |
26.3 |
11.4 |
32.3 |
104.8 |
129.8 |
118.1 |
Gold Sales |
koz |
41.2 |
31.8 |
11.6 |
32.2 |
116.8 |
118.8 |
112.0 |
Average Gold Price |
$/oz |
2,092 |
2,136 |
2,096 |
2,046 |
2,092 |
1,993 |
1,919 |
Copper Produced |
kt |
— |
3.0 |
— |
— |
3.0 |
3.8 |
3.5 |
Copper Sales |
kt |
— |
3.2 |
— |
— |
3.2 |
3.9 |
3.3 |
Average Copper Price1 |
$/lb |
— |
3.90 |
— |
— |
3.90 |
3.80 |
4.29 |
Cash Costs† |
$/oz |
1,569 |
742 |
1,601 |
1,016 |
1,194 |
987 |
861 |
AISC†2 |
$/oz |
1,987 |
946 |
2,393 |
1,814 |
1,823 |
1,658 |
1,567 |
Operating Physicals |
|
|
|
|
|
|
|
|
Material Mined |
kt |
5,425 |
454 |
244 |
12,820 |
18,943 |
20,785 |
22,816 |
Waste Mined |
kt |
5,314 |
39 |
113 |
11,981 |
17,447 |
18,158 |
19,615 |
Ore Mined |
kt |
110 |
415 |
131 |
839 |
1,495 |
2,627 |
3,202 |
|
kt |
813 |
942 |
132 |
1,665 |
3,552 |
3,671 |
3,095 |
|
g/t |
1.76 |
0.98 |
2.96 |
0.73 |
1.12 |
1.27 |
1.39 |
Gold Recovery |
% |
75.3 |
88.6 |
91.4 |
82.1 |
82.1 |
86.5 |
84.8 |
Capital Expenditures3 |
|
|
|
|
|
|
|
|
Sustaining |
$M |
7.8 |
4.6 |
2.5 |
5.6 |
20.5 |
22.2 |
20.7 |
Pre-strip & Capitalized Mining |
$M |
8.2 |
1.9 |
5.5 |
18.7 |
34.3 |
41.6 |
42.0 |
Growth |
$M |
9.0 |
1.9 |
1.6 |
0.7 |
13.2 |
13.0 |
16.1 |
Exploration |
$M |
1.8 |
0.4 |
3.3 |
0.6 |
6.1 |
7.2 |
4.3 |
Total Capital Expenditures |
$M |
26.8 |
8.8 |
12.9 |
25.6 |
74.1 |
84.0 |
83.1 |
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 |
2 |
AISC is 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. |
3 |
Capital and exploration expenditure by location includes related regional greenfield exploration where applicable. Corporate capital projects not related to a specific operating region totaled |
Table 2 – Financial Summary
|
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
Revenue |
$M |
270.3 |
267.3 |
243.9 |
Cash Costs† |
$/oz |
1,194 |
987 |
861 |
AISC† |
$/oz |
1,823 |
1,658 |
1,567 |
Adjusted EBITDA† |
$M |
80.9 |
91.6 |
102.1 |
Adjusted net profit† |
$M |
3.7 |
6.6 |
41.0 |
Net (loss) profit |
$M |
(5.3) |
(18.9) |
38.9 |
(Loss) earnings per share |
$/share |
|
|
|
Adjusted earnings per share† |
$/share |
|
|
|
Table 3 - Cash flow Summary
$M, except per share amounts |
Q1 2024 |
Q4 2023 |
Q1 2023 |
Cash flows from Operating Activities |
75.3 |
94.8 |
65.2 |
Cash flows used in Investing Activities |
(73.5) |
(78.7) |
(81.6) |
Cash flows from (used in) Financing Activities |
19.2 |
(13.9) |
(6.6) |
Free Cash Flows† |
1.8 |
16.1 |
(16.4) |
Operating Cash Flow per share† |
|
|
|
Operations
The Company produced 104,800 ounces of gold and 3,000 tonnes of copper in the first quarter of 2024. First quarter gold production was 19% lower than the previous quarter and 11% lower than the corresponding quarter in 2023. The decrease compared to the previous quarter was largely driven by expected lower mill feed grade at Didipio (previous quarter included more high grade stope ore) and a planned 5-day process plant shutdown, Waihi (localized geotechnical constraints limiting access to high grade stopes) and Macraes (planned utilization of low grade stockpile feed), partially off-set by higher grade underground ore feed at Haile. The decrease compared to the corresponding quarter in 2023 was largely driven by lower grade at Haile (compared with access to higher grade open pit ore in the first quarter of 2023), lower grade at all other operations, partially off-set by higher mill throughput at both Macraes and Waihi.
Gold sales in the first quarter of 2024 are consistent with the previous quarter and the corresponding quarter in 2023, due to the reduction of inventory and timing of sales at Haile and Didipio.
Financial
Revenue
The Company recorded first quarter consolidated revenue of
First quarter revenue was 11% above the corresponding period in 2023, reflecting higher gold sold at Macraes, combined with a 9% higher average realized gold price, partly offset by lower gold sales volumes from Didipio in line with the mine plan.
AISC†
The Company recorded a first quarter AISC† of
Adjusted EBITDA†
First quarter Adjusted EBITDA† was
First quarter Adjusted EBITDA† was 21% lower than the corresponding quarter in 2023 as higher revenues were offset by higher cost of sales across the operations and accrual of the Additional Government Share at Didipio, along with higher foreign exchange losses compared with other income in 2023.
Net profit (loss)
The first quarter unadjusted net loss of
First quarter of 2024 unadjusted net loss represents a decrease in profitability of
† See "Non-IFRS Financial Information" in the MD&A. |
Conference Call
Senior management will host a conference call / webcast to discuss the quarterly results on
Webcast Details:
To register, please copy and paste the link into your browser: https://app.webinar.net/ejwKB7YEJy6
Conference Call Details:
International: +1 416-764-8688
If you are unable to attend the call, a recording will be made available on the Company's website.
Cautionary Statement for Public Release
This public release contains certain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws which may include, but is not limited to, statements with respect to the future financial and operating performance of the Company, its mining projects, the future price of gold, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and resource estimates, costs of production, estimates of initial capital, sustaining capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of the development of new mines, costs and timing of future exploration and drilling programs, timing of filing of updated technical information, anticipated production amounts, requirements for additional capital, governmental regulation of mining operations and exploration operations, timing and receipt of approvals, consents and permits under applicable legislation, environmental risks, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. All statements in this public release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as "may", "plans", "expects", "projects", "is expected", "scheduled", "potential", "estimates", "forecasts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases, or may be identified by statements to the effect that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks include, among others: future prices of gold; general business; economic and market factors (including changes in global, national or regional financial, credit, currency or securities markets); changes or developments in global, national or regional political and social conditions; changes in laws (including tax laws) and changes in IFRS or regulatory accounting requirements; the actual results of current production, development and/or exploration activities; conclusions of economic evaluations and studies; fluctuations in the value of
The Company's forward-looking statements are based on the applicable assumptions and factors Management considers reasonable as of the date hereof, based on the information available to Management at such time. These assumptions and factors include, but are not limited to, assumptions and factors related to: the Company's ability to carry on current and future operations, including: development and exploration activities; the timing, extent, duration and economic viability of such operations, including any mineral resources or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company's ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the price and market for outputs, including gold; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.
The Company's forward-looking statements are based on the opinions and estimates of Management and reflect their current expectations regarding future events and operating performance and speak only as of the date hereof. The Company does not assume any obligation to update forward-looking statements if circumstances or Management's beliefs, expectations or opinions should change other than as required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits or liabilities the Company will derive therefrom. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.
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