/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES./
(All financial figures in US Dollars unless otherwise stated)
VANCOUVER, BC, Oct. 26, 2022 /CNW/ – OceanaGold Corporation (TSX: OGC) (“OceanaGold” or the “Company”) reported its financial and operational results for the three months ended September 30, 2022. 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 “We safely and responsibly delivered to plan in the third quarter. Haile continued its strong operational performance, Didipio delivered another steady quarter at full mining rates, and Waihi delivered the expected operational and financial improvement as mining progressed into higher confidence areas. Unfortunately Macraes experienced record rainfall in July which impeded its access to ore and gold production. We continue to expect stronger gold production in the fourth quarter and remain on track to achieve our full year guidance.”
“With the Haile SEIS and the Section 401 Water Certification Notice having been published, the SEIS Final Record of Decision and all associated permits are now expected to be received in the fourth quarter. An approved early works program has enabled us to commence initial development of the Haile underground. To date we have developed approximately 50 metres of the production portal and decline and work on the two ventilation portals is progressing well. We remain on track to get first underground ore from Haile in the fourth quarter of 2023, which underpins our significant near term gold production growth.”
Highlights
-
Total recordable injury frequency rate of 2.3 at September 30, 2022, a 15% improvement over the previous quarter.
-
Third quarter production of 104,953 ounces of gold and 3,581 tonnes of copper.
-
Third quarter All-in Sustaining Costs (“AISC”) of $1,554 per ounce on gold sales of 111,390 ounces.
-
Third quarter revenue of $214 million and EBITDA of $40 million.
-
Adjusted earnings of $0.01 per share and operating cash flow of $0.08 per share for the third quarter.
-
Third quarter free cash flow as expected at –$17.1 million. Year-to-date free cash flow of $55.0 million.
-
Net debt of $174 million as at September 30, 2022, at a leverage ratio of 0.48 times.
-
Haile Supplemental Environmental Impact Statement published, and approval granted for early works on the Haile Underground main access portal and ventilation tunnels, initial works commenced.
-
Waihi produced 13,690 ounces of gold in the third quarter, a 67% improvement quarter-on-quarter, and generated positive free cash flow.
-
On track to deliver 2022 consolidated production and cost guidance.
-
Mr. Alan Pangbourne joined the Company as a non-executive director effective October 1, 2022.
-
The Company ceased trading on the ASX effective August 31, 2022.
Table 1 – Production and Cost Results Summary
|
Quarter ended 30 September 2022 |
Haile |
Didipio |
Waihi |
Macraes |
Consolidated Q3 2022 Q3 2021 |
||
|
Production, Sales & Costs |
|||||||
|
Gold Produced |
koz |
36.5 |
25.4 |
13.7 |
29.4 |
105.0 |
79.2 |
|
Gold Sales |
koz |
40.1 |
29.2 |
13.5 |
28.7 |
111.4 |
97.4 |
|
Average Gold Price |
US$/oz |
1,718 |
1,627 |
1,732 |
1,732 |
1,699 |
1,797 |
|
Copper Produced |
kt |
— |
3.6 |
— |
— |
3.6 |
— |
|
Copper Sales |
kt |
— |
3.7 |
— |
— |
3.7 |
3.4 |
|
Average Copper Price (2) |
US$/lb |
— |
3.14 |
— |
— |
3.14 |
4.19 |
|
Cash Costs |
US$/oz |
1,175 |
818 |
1,067 |
1,298 |
1,100 |
636 |
|
Site AISC (1) |
US$/oz |
1,552 |
913 |
1,601 |
1,924 |
1,554 |
1,200 |
|
Operating Physicals |
|||||||
|
Material Mined |
kt |
8,172 |
389 |
240 |
11,281 |
20,082 |
22,023 |
|
Waste Mined |
kt |
7,033 |
40 |
134.0 |
9,740 |
16,947 |
20,429 |
|
Ore Mined |
kt |
1,139 |
349 |
105.9 |
1,541 |
3,135 |
1,595 |
|
Mill Feed |
kt |
890 |
1,044 |
107 |
1,413 |
3,454 |
2,250 |
|
Mill Feed Grade |
g/t |
1.55 |
0.86 |
4.26 |
0.83 |
1.13 |
1.30 |
|
Gold Recovery |
% |
82.3 |
87.6 |
93.4 |
78.4 |
82.6 |
82.1 |
|
Capital Expenditures |
|||||||
|
General Operations |
US$m |
7.4 |
1.9 |
0.2 |
9.4 |
18.9 |
6.5 |
|
Pre-strip & Capitalised Mining |
US$m |
6.5 |
0.4 |
5.7 |
7.1 |
19.7 |
39.1 |
|
Growth |
US$m |
5.1 |
2.5 |
2.3 |
2.5 |
12.4 |
39.9 |
|
Exploration |
US$m |
1.0 |
0.4 |
3.2 |
0.8 |
5.4 |
5.8 |
|
Total Capital Expenditures |
US$m |
20.0 |
5.2 |
11.4 |
19.8 |
56.4 |
91.2 |
|
Year to date 30 September 2022 |
Haile |
Didipio |
Waihi |
Macraes |
Consolidated YTD 2022 YTD 2021 |
||
|
Production, Sales & Costs |
|||||||
|
Gold Produced |
koz |
134.7 |
84.1 |
28.6 |
103.9 |
351.3 |
256.2 |
|
Gold Sales |
koz |
133.1 |
84.9 |
28.6 |
103.9 |
350.4 |
276.2 |
|
Average Gold Price |
US$/oz |
1,844 |
1,798 |
1,806 |
1,839 |
1,828 |
1,827 |
|
Copper Produced |
kt |
— |
10.9 |
— |
— |
10.9 |
— |
|
Copper Sales |
kt |
— |
11.2 |
— |
— |
11.2 |
3.4 |
|
Average Copper Price (2) |
US$/lb |
— |
3.79 |
— |
— |
3.79 |
4.19 |
|
Cash Costs |
US$/oz |
847 |
449 |
1,460 |
1,064 |
865 |
719 |
|
Site AISC (1) |
US$/oz |
1,320 |
515 |
2,228 |
1,564 |
1,338 |
1,218 |
|
Operating Physicals |
|||||||
|
Material Mined |
kt |
27,907 |
1,299 |
680 |
35,056 |
64,942 |
68,534 |
|
Waste Mined |
kt |
25,045 |
111 |
422 |
29,089 |
54,667 |
62,468 |
|
Ore Mined |
kt |
2,863 |
1,189 |
258 |
5,967 |
10,277 |
6,066 |
|
Mill Feed |
kt |
2,654 |
2,978 |
258 |
4,350 |
10,240 |
6,211 |
|
Mill Feed Grade |
g/t |
1.92 |
0.99 |
3.68 |
0.93 |
1.27 |
1.52 |
|
Gold Recovery |
% |
81.8 |
88.3 |
93.6 |
79.8 |
83.1 |
83.3 |
|
Capital Expenditures |
|||||||
|
General Operations |
US$m |
22.2 |
4.5 |
1.3 |
21.1 |
49.1 |
21.4 |
|
Pre-strip & Capitalised Mining |
US$m |
36.8 |
0.7 |
17.8 |
24.6 |
79.9 |
86.0 |
|
Growth |
US$m |
15.6 |
6.1 |
11.4 |
8.2 |
41.3 |
130.1 |
|
Exploration |
US$m |
2.9 |
0.5 |
9.4 |
3.8 |
16.6 |
18.0 |
|
Total Capital Expenditures |
US$m |
77.5 |
11.8 |
39.9 |
57.7 |
186.9 |
255.4 |
|
(1) |
Site AISC are exclusive of corporate general and administrative expenses, Consolidated AISC is inclusive of corporate general and administrative expenses. Cash Costs and All-In Sustaining Costs are reported on ounces sold and net of by-product credits. |
|
(2) |
The Average Copper Price Received calculated includes marked to market revaluations on unfinalized shipments as well as final adjustments on prior period shipments per accounting requirements. During the quarter ended 30 June 2022 and 30 September 2022, the shipments made recorded an average sale price of $3.91/lb and $3.64/lb respectively. |
|
Notes: |
|
|
• |
Consolidated capital includes rehabilitation and closure costs at Reefton and corporate capital projects not related to a specific operating region; these totalled $0.7 million and $0.2 million respectively in the third quarter. |
|
• |
Capital and exploration expenditure by location includes related regional greenfield exploration where applicable. |
Table 2 – Financial Summary
|
Quarter ended 30 September 2022 |
Q3 30 Sep 2022 |
Q2 30 Jun 2022 |
Q3 30 Sep 2021 |
YTD 30 Sep 2022 |
YTD |
|||
|
Revenue |
213.9 |
229.4 |
204.6 |
729.0 |
536.1 |
|||
|
Cost of sales, excluding depreciation and amortisation |
(143.1) |
(119.9) |
(87.4) |
(377.4) |
(225.4) |
|||
|
General and administration – indirect taxes (2) |
(3.4) |
(3.8) |
(4.1) |
(11.7) |
(4.2) |
|||
|
General and administration – idle capacity charges (1) |
— |
— |
(16.0) |
— |
(27.4) |
|||
|
General and administration – other |
(12.3) |
(14.5) |
(9.7) |
(37.9) |
(33.6) |
|||
|
Foreign currency exchange gain/(loss) |
(15.7) |
(16.7) |
(0.9) |
(30.5) |
(5.3) |
|||
|
Other income/(expense) |
0.7 |
0.2 |
2.7 |
1.3 |
0.9 |
|||
|
EBITDA (excluding impairment expense) |
40.1 |
74.7 |
89.2 |
272.8 |
241.1 |
|||
|
Depreciation and amortisation |
(46.3) |
(47.1) |
(49.9) |
(148.7) |
(126.2) |
|||
|
Net interest expense and finance costs |
(1.6) |
(0.7) |
(2.9) |
(5.1) |
(8.3) |
|||
|
Earnings before income tax (excluding impairment expense) |
(7.8) |
26.9 |
36.4 |
119.0 |
106.6 |
|||
|
Income tax (expense)/benefit on earnings |
1.4 |
(6.3) |
8.5 |
(23.0) |
(13.0) |
|||
|
Earnings after income tax (excluding impairment expense) |
(6.4) |
20.6 |
44.9 |
96.0 |
93.6 |
|||
|
Write off exploration/property expenditure / investment (3) |
— |
(1.2) |
— |
(4.4) |
(1.3) |
|||
|
Net Profit/(loss) after Tax |
(6.4) |
19.4 |
44.9 |
91.6 |
92.3 |
|||
|
Basic earnings/(loss) per share |
$(0.01) |
$0.03 |
$0.06 |
$0.13 |
$0.13 |
|||
|
Earnings/(loss) per share – fully diluted |
$(0.01) |
$0.03 |
$0.06 |
$0.13 |
$0.13 |
|||
|
(1) |
The Company did not record any revenue or cost of sales from the Didipio mine during the six months ended 30 June 2021. General and Administration – idle capacity charges reflect non-production costs related to maintaining Didipio’s operational readiness to October 31, 2021. |
|
(2) |
Represents production-based taxes in the Philippines, specifically excise tax, local business and property taxes. |
|
(3) |
There was a $1.2m write-off related to the Sam’s Creek investment as at 30 June 2022. |
Table 3 – Cash flow Summary
|
Quarter ended 30 September 2022 |
Q3 30 Sep 2022 |
Q2 30 Jun 2022 |
Q3 30 Sep 2021 |
YTD 30 Sep 2022 |
YTD |
|||
|
Cash flows from Operating Activities |
45.0 |
79.7 |
69.0 |
268.5 |
152.4 |
|||
|
Cash flows used in Investing Activities |
(55.1) |
(63.6) |
(83.2) |
(190.6) |
(236.0) |
|||
|
Cash flows from / (used) in Financing Activities |
(6.9) |
(57.3) |
43.5 |
(72.9) |
31.4 |
|||
|
Free Cash Flow |
(17.1) |
8.8 |
29.3 |
55.0 |
(52.2) |
|||
Operations
As expected, consolidated third quarter production of 104,953 ounces of gold was lower when compared to the previous quarter with the 7% quarter-on-quarter reduction mainly due to lower grades at Didipio, Macraes and Haile, partially offset by stronger production from Waihi. When compared to the corresponding period in 2021, the current quarter production was 33% higher, largely due to the resumption of operations at Didipio. The Company has produced 351,283 ounces of gold and 10,885 tonnes of copper year-to-date (“YTD”), a 37% increase in gold production compared to the corresponding period in 2021. The improvement reflects consistent 2022 operating performance against plan, including at Didipio which was not operating in the prior comparative period.
In the third quarter, the Company recorded an AISC of $1,554 per ounce on sales of 111,390 ounces of gold and 3,718 tonnes of copper. YTD the Company has recorded an AISC of $1,338 per ounce on sales of 350,378 ounces of gold and 11,168 tonnes of copper.
Haile produced 36,482 ounces of gold in the third quarter at an AISC of $1,552 per ounce and cash costs of
$1,175 per ounce. The quarter-on-quarter increase in AISC was due to the expected reduction in mined grade resulting in lower production combined with inflationary cost impacts particularly reagents, mechanical parts and labour. YTD Haile has produced 134,689 ounces of gold. Mining at the Haile pit phase 1 was completed at the end of the third quarter, with mining now transitioned to the Mill Zone and Ledbetter Phase 2 areas.
During the quarter the United States Army Corp of Engineers (“ACOE”) published the Haile Supplemental Environmental Impact Statement (“SEIS”), after which the SEIS underwent a scheduled 30-day public comment period, with no material comments received. The ACOE has advised the Company that all comments received in the review period have been adequately addressed and…
Read More:OceanaGold Reports Third Quarter 2022 Financial Results
2022-10-26 21:05:00
