OceanaGold Corporation (TSX: OGC) (OTCQX: OCANF) reported its operational and financial results for the three and nine months ended September 30, 2024. The condensed interim consolidated financial statements and Management’s Discussion and Analysis are available at www.oceanagold.com.

Highlights

• Produced 134,900 ounces of gold and 3,400 tonnes of copper, a 37% increase in gold production from the prior quarter.
• Increased quarterly production from all sites, including record gold production from Haile.
• All-In Sustaining Cost^† improved to $1,729 per ounce, based on 124,800 ounces sold.
• Net Profit of $61 million and EPS of $0.08 (Adjusted EPS^† of $0.09).
• EBITDA margin of 45%.
• Achieved Free Cash Flow^† inflection point with $66 million generated during the quarter,
• Repaid $40 million on the credit facility during the quarter and $25 million in October.
• Repurchased $7.8 million of common shares, under the share buy back program.
• Net Cash^† increased to $72 million at September 30, 2024.
• Expect to deliver a strong fourth quarter, with consolidated gold production between 142,000 and 162,000 ounces and consolidated AISC between $1,400and $1,650 per ounce in the quarter.

Gerard Bond, President and CEO of OceanaGold, said “We are pleased to have delivered higher gold production in the quarter, with Haile delivering a record 64,900 ounces. Record high gold prices helped drive an increase in Free Cash Flow generation of nearly $100 million year to date, which allowed us to continue to strengthen the balance sheet and increase capital returns to our shareholders.

Looking ahead, the fourth quarter should be our strongest of the year and we expect to continue to generate substantial Free Cash Flow. This will enable us to continue to advance our organic growth opportunities, such as the Waihi North Project, while also   delivering returns for our shareholders.”

Conference Call and Webcast:

Senior management will host a conference call / webcast to discuss the quarterly results on Thursday November 7, 2024 at 10:00 am Eastern Time.

To register, please copy and paste the link into your browser: https://app.webinar.net/X9WPjZkrnl2 

Toll-free North America: +1 888-510-2154

International: +1 437-900-0527

If you are unable to attend the call, a recording will be made available on the Company’s website.

Non-IFRS Financial Information

Adjusted Net Profit/(Loss) and Adjusted Earnings/(Loss) per share

These are used by Management to measure the underlying operating performance of the Company. Management believes these measures provide information that is useful to investors because they are important indicators of the strength of the Company’s operations and the performance of its core business. Accordingly, such measures are intended to provide additional information and should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS. Adjusted Net Profit/(Loss) is calculated as Net Profit/(Loss) less the impact of impairment expenses, write-downs, foreign exchange (gains)/losses, gain on sale of assets, OGP listing costs and restructuring costs related to transitioning certain corporate activities from Australia to Canada.

Prior to the first quarter of 2024, Adjusted Net Profit/(Loss) was calculated using an adjustment for a specific portion of unrealized foreign exchange gains/losses rather than the total foreign exchange gain/loss. The comparative quarters have been recalculated adjusting for all foreign exchange gains/ losses.

The following table provides a reconciliation of Adjusted Net Profit/(Loss) and Adjusted Earnings/(Loss) per share:

EBITDA and Adjusted EBITDA

The Company’s Management believes that Adjusted EBITDA is a valuable indicator of its ability to generate liquidity by producing operating cash flows to fund working capital needs, service debt obligations and fund capital expenditures. EBITDA is defined as earnings before interest, tax, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA less the impact of impairment expenses, write-downs, gains/losses on disposal of assets, listing costs, foreign exchange gains/losses and other non-recurring costs.

Prior to the first quarter of 2024, Adjusted EBITDA was calculated using an adjustment for a specific portion of unrealized foreign exchange gains/losses rather than the total foreign exchange gain/loss. The comparative quarters have been recalculated adjusting for all foreign exchange gains/losses.

The following table provides a reconciliation of EBITDA and Adjusted EBITDA:

Cash Costs and AISC

Cash Costs are a common financial performance measure in the gold mining industry; however, it has no standard meaning under IFRS. Management uses this measure to monitor the performance of its mining operations and its ability to generate positive cash flows, both on an individual site basis and an overall company basis. Cash Costs include mine site operating costs plus indirect taxes and selling cost net of by-product sales and are then divided by ounces sold. In calculating Cash Costs, the Company includes copper and silver by-product credits as it considers the cost to produce the gold is reduced as a result of the by-product sales incidental to the gold production process, thereby allowing Management and other stakeholders to assess the net costs of gold production. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.

Management believes that the AISC measure provides additional insight into the costs of producing gold by capturing all of the expenditures required for the discovery, development and sustaining of gold production and allows the Company to assess its ability to support capital expenditures to sustain future production from the generation of operating cash flows, both on an individual site basis and an overall company basis, while maintaining current production levels. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow per ounce sold. AISC is calculated as the sum of cash costs, capital expenditures and exploration costs that are sustaining in nature and corporate G&A costs. AISC is divided by ounces sold to arrive at AISC per ounce.

The following table provides a reconciliation of consolidated Cash Costs and AISC:

The following tables provides a reconciliation of Cash Costs and AISC for each operation:

Haile

Didipio

Macraes

Waihi

Net Cash/(Debt)

Net Cash/(Debt) has been calculated as total debt less cash and cash equivalents. Management believes this is a useful indicator to be used in conjunction with other liquidity and leverage ratios to assess the Company’s financial health. Prior to 2024, lease liabilities were included in the calculation of Net Cash/(Debt). The change in respect of 2024 is consistent with the generally adopted approach to the calculation of Net Cash/(Debt). The comparative quarters have been recalculated excluding lease liabilities.

The following table provides a reconciliation of Net Cash/(Debt):

Operating Cash Flow per share

Operating Cash Flow per share before working capital movements is calculated as the cash flows provided by operating activities adjusted for changes in working capital then divided by the fully diluted adjusted weighted average number of common shares issued and outstanding.

The following table provides a reconciliation of total fully diluted cash Operating Cash Flow per share:

Free Cash Flow

Free Cash Flow has been calculated as cash flows from operating activities, less cash flow used in investing activities. Management believes Free Cash Flow is a useful indicator of the Company’s ability to generate cash flow and operate net of all expenditures, prior to any financing cash flows. Free Cash Flow per share is calculated as the Free Cash Flow divided by the fully diluted adjusted weighted average number of common shares issued and outstanding.

The following table provides a reconciliation of Free Cash Flow:

About OceanaGold  

OceanaGold is a growing intermediate gold and copper producer committed to safely and responsibly maximizing the generation of Free Cash Flow from our operations and delivering strong returns for our shareholders. We have a portfolio of four operating mines: the Haile Gold Mine in the United States of America; Didipio Mine in the Philippines; and the Macraes and Waihi operations in New Zealand.