OceanaGold achieves record quarterly gold production in the first quarter 2017

 

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(All financial figures in US Dollars unless otherwise stated)

MELBOURNE, April 27, 2017 /CNW/ - 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 at www.oceanagold.com

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.

First Quarter 2017 Results Webcast

The Company will host a conference call / webcast to discuss the results at 7:30 am on 28 April 2017 (Melbourne, Australia time) / 5:30 pm on 27 April 2017 (Toronto, Canada time).

Webcast Participants

To register, please copy and paste the link below into your browser:

http://event.on24.com/r.htm?e=1395283&s=1&k=59F2A5A5B4B914E41849E55CE67CFBC9

Teleconference Participants (required for those who wish to ask questions)

Local (toll free) dial in numbers are:

Australia: 1 800 076 068

New Zealand: 0 800 453 421

Canada & North America: 1 888 390 0546

All other countries (toll): + 1 416 764 8688

Playback of Webcast

If you are unable to attend the call, a recording will be available for viewing on the Company's website

About OceanaGold

OceanaGold Corporation is a mid-tier, high-margin, multinational gold producer with assets located in the Philippines, New Zealand and the United States. The Company's assets encompass its flagship operation, the Didipio Gold-Copper Mine located on the island of Luzon in the Philippines. On the North Island of New Zealand, the Company operates the high-grade Waihi Gold Mine while on the South Island of New Zealand, the Company operates the largest gold mine in the country at the Macraes Goldfield which is made up of a series of open pit mines and the Frasers underground mine. In the United States, the Company is currently commissioning the Haile Gold Mine, a top-tier asset located in South Carolina along the Carolina Terrane. The Company expects the Haile Gold Mine to commence commercial production in the second quarter of 2017. OceanaGold also has a significant pipeline of organic growth and exploration opportunities in the Americas, Asia-Pacific and Australasia regions.

OceanaGold has operated sustainably over the past 27 years with a proven track record for environmental management and community and social engagement. The Company has a strong social license to operate and works collaboratively with its valued stakeholders to identify and invest in social programs that are designed to build capacity and not dependency.

In 2017, the Company expects to produce 550,000 to 610,000 ounces of gold and 15,000 to 17,000 tonnes of copper with sector leading All-In Sustaining Costs that range from $600 to $650 per ounce sold.

Cautionary Statement for Public Release

Certain information contained in this public release may be deemed "forward-looking" within the meaning of applicable securities laws. Forward-looking statements and information relate to future performance and reflect the Company's expectations regarding the generation of free cash flow, execution of business strategy, future growth, future production, estimated costs, results of operations, business prospects and opportunities of OceanaGold Corporation and its related subsidiaries. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those expressed in the forward-looking statements and information. They include, among others, the accuracy of mineral reserve and resource estimates and related assumptions, inherent operating risks, sovereign risks, risk of suspension and those risk factors identified in the Company's most recent Annual Information Form prepared and filed with securities regulators which is available on SEDAR at www.sedar.com under the Company's name. There are no assurances the Company can fulfil forward-looking statements and information. Such forward-looking statements and information are only predictions based on current information available to management as of the date that such predictions are made; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control.Although the Company believes that any forward-looking statements and information contained in this press release is based on reasonable assumptions, readers cannot be assured that actual outcomes or results will be consistent with such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information, whether as a result of new information, events or otherwise, except as required by applicable securities laws. The information contained in this release is not investment or financial product advice.

SOURCEOceanaGold Corporation

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