(All financial figures in US Dollars unless otherwise stated)
(MELBOURNE) OceanaGold Corporation (TSX: OGC) (ASX: OGC) (the “Company”) reported its financial and operational results for the quarter ended March 31, 2020. This follows the release of the Company’s operational results on May 6, 2020. 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
• First quarter revenue was $138.2 million with Earnings before Interest, Depreciation and Amortisation (“EBITDA”) of $42.4 million.
• First quarter net loss of $26.0 million and an adjusted net loss of $10.7 million representing an adjusted earnings per share of ($0.02).
• Operating cash flow of $120.6 million in the first quarter with full diluted cash flow per share before working capital of $0.07 and $0.19 per share inclusive of gold presale.
• Total immediate available liquidity of $177.4 million; net debt decreased from $179.4 million to $121.1 million.
• Proactive steps taken to increase cash reserves, including draw down of the remaining $50 million on the revolving credit facility, $78.5 million gold presale, and $22.7 million divestment of a non-core equity position.
• Consolidated gold production of 80,707 ounces at consolidated All-In Sustaining Costs (“AISC”) of $1,218 per ounce on sales of 91,388 ounces of gold.
• Full year 2020 guidance reaffirmed.
Michael Holmes, President and CEO of OceanaGold said, “With the first quarter of 2020 complete, we look ahead to the remainder of the year where, in the second half in particular, we expect increased production at lower All-In Sustaining Costs. At Haile, mined and processed grades are expected to increase progressively with two-thirds of Haile’s annual gold output expected in the second half with the fourth quarter being the strongest quarter. At Macraes, second quarter production is expected to be lower than in the first quarter due to the impact of the five-week New Zealand Government enforced COVID-19 lockdown. However, with production now effectively back to capacity we are targeting a rebound in the second half of the year.”
“Our organic growth projects continue to advance, with first production from the Martha Underground expected in the second quarter of 2021. We are progressing the Waihi District Study which will highlight the initial value of the Waihi District while we continue to target further expansion through exploration. The market release of the Waihi District Study is expected in the second or third quarter. At Macraes, the Golden Point Underground Study continues to progress, and we expect the results to be released in the second half of the year.”
“We maintain our 2020 guidance, however we acknowledge that the continued risks associated with COVID-19 remain elevated and could further impact our operational performance. We will continue to monitor these risks while strictly enforcing the protocols and safeguards we have in place at each of our operations which have proven successful to-date.”
Table 1 – Production and Cost Results Summary
Quarter ended 31 Mar 2020
Haile Didipio Waihi Macraes Consolidated Q1 2020 Q4 2019
Gold Produced koz 29.4 - 12.2 39.2 80.7 108.2
Gold Sales koz 33.3 6.8 13.5 37.8 91.4 107.3
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