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OGC $2.720 +$0.260 +10.57% @ Wed 30 Apr 2014 11:14 AM Sydney time
OGC Announces Record Q1 Earnings in 2014
MEDIA RELEASE
29 April 2014
OCEANAGOLD ANNOUNCES RECORD QUARTERLY EARNINGS IN FIRST QUARTER 2014
(All figures in US Dollars unless otherwise stated)
(MELBOURNE) OceanaGold Corporation (TSX: OGC, ASX: OGC, NZX: OGC) (the “Company”) today released its first quarter 2014 financial and operating results for the quarter ending March 31, 2014. Details of the consolidated financial statements and the Management Discussion and Analysis (“MDA”) are available on the Company’s website at
www.oceanagold.com
Key Highlights
• Record quarterly revenue of $170.4 million, EBITDA of $101.0 million and net profit of $58.9 million.
• Strengthened balance sheet through net repayment of borrowings of $20 million and increased cash and available facilities to $92.1 million including $42.1 million in cash.
• Gold production of 86,568 ounces, including record quarterly gold production of 30,480 ounces from Didipio.
• Copper production of 6,479 tonnes with copper sales of 7,752 tonnes.
• Company cash costs of $170 per ounce and All-In Sustaining Costs of $450 per ounce both net of by-product credits.
• Over 10 million man hours worked without a lost time injury at the Didipio operation.
The Company reported record quarterly revenue of $170.4 million, EBITDA of $101.0 million and net profit of $58.9 million on sales of 94,050 ounces of gold and 7,752 tonnes of copper for the first quarter of 2014. As a result, the Company has increased its liquidity position through cash and available credit facilities to approximately $92 million including $42 million in cash after a net repayment of borrowings of $20 million.
For the first quarter of 2014, the Company’s overall cash costs were $170 per ounce and All-In-Sustaining Costs (“AISC”) were $450 per ounce both net of by-product credits. Didipio’s cash costs on a co-product basis were $483 per ounce on 78,619 gold equivalent ounces sold for the first quarter, while its co-product AISC was $556 per gold equivalent ounce sold. For the first quarter, New Zealand’s cash costs were $584 per ounce on 57,786 ounces of gold sold while its AISC was $941 per ounce sold.
The Didipio operations in the Philippines reported record quarterly gold production of 30,480 ounces along with copper production of 6,479 tonnes. In the first quarter, the Company made four shipments of copper-gold concentrate totalling 30,152 dry metric tonnes to markets in Asia. Debottlenecking of the process plant to achieve the planned 3.5 Mtpa throughput rate is advancing well and on schedule for completion by the end of the year. As at the end of the first quarter, the Didipio operation recorded over 10 million man hours worked without a lost time injury.
Also in the Philippines, the Company received the support and official consent from the National Commission of Indigenous Peoples (“NCIP”) to conduct exploration activities at the Mayag tenement in northern Mindanao. This was a major milestone for the Company as it demonstrated the successful completion of its free and prior informed consent process with the local indigenous groups and brings the Company closer to receiving exploration permits for its Mayag tenement.
In New Zealand, gold production for the first quarter was 56,088 ounces which was expected and lower than the previous quarter on account of a lower mill feed and processing lower grade ore. The re-optimisation of the Macraes mine plan in early 2014 has resulted in mining less material than in previous quarters which has significantly lowered operating costs and improved margins in the lower gold price environment.
Subsequent to the quarter end on April 19 2014, a pit wall failure at the Macraes open pit resulted in a temporary suspension of mining operations to reinstate access to the underground mine and to develop a new mine plan for the open pit. The process plant remained operational and continued to operate uninterrupted drawing on stockpile ore reserves. On April 24 2014, production from the underground recommenced. The Company does not expect an impact to its 2014 production guidance for its New Zealand operations.
Mick Wilkes, Managing Director and CEO commented on the first quarter 2014 results, “We had another strong quarter of production and financial results with record quarterly revenue, EBITDA and net earnings on the back of higher sales and lower operating costs. We continued to strengthen our balance sheet through the repayment of $20 million of debt and build-up of our treasury.” He went on to say, “The Didipio process plant is well on track to increase throughput rates to 3.5 Mtpa by the end of the year and will continue generating strong free cash flows.”
Mr. Wilkes added, “For the remainder of the year, we will continue to further strengthen the balance sheet by repaying debt to enhance shareholder value and position the Company for new value-add opportunities. We remain steadfast on the health and safety of our employees as demonstrated by the 10 million plus man hours worked without a lost time injury at Didipio and we will continue to work closely with all of our stakeholders to deliver positive results in a safe and sustainable manner.”
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