OceanaGold achieves record quarterly gold production in the first quarter 2017
OceanaGold Corporation (TSX/ASX: OGC) (the "Company") is pleased to release its financial and operational results for the quarter ended 31 March 2017. Details of the consolidated financial statements and the Management Discussion and Analysis ("MD&A") are available on the Company's website.Key Highlights
- Record quarterly consolidated gold production of 147,956 ounces of gold.
- Consolidated All-In Sustaining Costs of $521 per ounce on sales of 114,022 ounces of gold (excluding Haile) and 4,148 tonnes of copper.
- Revenue of $161.8 million and record quarterly EBITDA of $101.7 million.
- Net profit after tax of $36.0 million after recognising an impairment charge of $17.7 million on the mining assets held in El Salvador. Quarterly net profit before impairment was $53.7 million.
- Strong balance sheet with immediate liquidity of $85.8 million including $70.6 million in cash.
- Successfully transitioned the Haile Gold Mine from the Commissioning team to the Operations team.
- Didipio was the recipient of top award for "Best Workplace", second place for "Environmental Excellence" and third place for "Best Community Program" at the Global CSR Summit Awards held in Malaysia.
Mick Wilkes, President and CEO said, "I am pleased to announce another strong quarter of financial and operational performance for OceanaGold. We achieved record quarterly gold production on the back of record production at Didipio and the commencement of production at our newest asset Haile. I am also pleased to report that we have handed over operational control and responsibility of the Haile Gold Mine to the Operations team as we move closer to commercial production."
"We continue to advance the Haile Optimisation Study, which is on track for completion by mid-year, while driving our extensive exploration program across our asset portfolio."
He added, "With our strong balance sheet, high quality assets, with significant organic growth opportunities and industry leading margins, we are well positioned to further deliver on our objective to enhance further value for our stakeholders."
On a consolidated basis, during the first quarter of 2017 the Company achieved a quarterly production record 147,956 ounces of gold driven by strong production from Didipio and commencement of production from the Haile Gold Mine. The Company also produced 5,955 tonnes of copper representing a 58% quarter-on quarter increase.
On a consolidated basis, and excluding Haile gold sales, the Company recorded an AISC of $521 per ounce on sales of 114,022 ounces of gold and 4,148 tonnes of copper while consolidated cash costs were $306 per ounce sold.
In the first quarter, the Company achieved revenue of $161.8 million, which was 10% higher than in the previous quarter due to a significant increase in gold sales. The quarter-on-quarter increase was partly offset by lower copper sales.
The Company achieved record quarterly EBITDA of $101.7 million, up 52% quarter-on-quarter, primarily driven by stronger revenue, lower operating and general and administrative ("G&A") costs.
The Company achieved a net profit, before impairment, of $53.7 million, which was 26% higher than in the previous quarter. The Company recognised an impairment charge of $17.7 million on the mining assets held in El Salvador. The net profit after impairment was $36.0 million.
Cash flows from operating activities for the first quarter were lower compared to the previous quarter mainly due to an increase in working capital at Didipio from a build-up of concentrate inventories and a provisional income tax payment of $7.0 million made by the Waihi Gold Mine.
At the end of the first quarter of 2017, the Company had immediate available liquidity of $85.8 million which included a cash balance of $70.6 million, excluding $90.2 million in marketable securities from strategic investments. During the quarter, the Company drew down $12.0 million from its revolving credit facility and repaid $3.6 million of finance lease repayments. At the end of the quarter, total debt stood at $332.8 million.
In March 2017, the Didipio Mine received the top award for "Best Workplace Practices", second place award for Environmental Excellence and third place award for Best Community Program at the annual Global CSR Summit Awards in Malaysia, which recognises corporate social responsibility excellence across multiple industries. In addition, during the quarter, the Mines and Geosciences Bureau of the Department of Environment and Natural Resources ("DENR") selected the Didipio Mine for Best Practices in Mineral Processing and the Philippines' entry to the First ASEAN Mineral Awards, to be held in Myanmar in late 2017.