/NOT FOR DISSEMINATION OR DISTRIBUTION IN
THE UNITED STATES AND NOT FOR
DISTRIBUTION TO US NEWSWIRE SERVICES./
(All financial figures are unaudited and
denominated in US Dollars unless otherwise stated)
BRISBANE, Australia,
Jan. 18, 2021 /CNW/ - OceanaGold
Corporation (TSX: OGC) (ASX: OGC) (the "Company") is pleased
to announce its preliminary full year and fourth quarter 2020
operational results for the year ended 31
December 2020. The numbers contained in this document are
unaudited and subject to finalisation. The Company will release its
complete 2020 audited financial and operational results after TSX
market close on Thursday February 18,
2021 (Toronto Eastern Standard Time).
Key Highlights
- Achieved consolidated full year gold production of 301,675
ounces including 99,155 ounces produced in the fourth quarter.
- Unaudited consolidated All-In Sustaining Costs ("AISC") for the
full year of $1,276 per ounce sold
and cash costs of $866 per ounce
sold.
- Haile produced 48,988 ounces of gold in the fourth quarter and
137,413 ounces for the full year.
- Martha Underground progressing to first production in the
second quarter of 2021.
- Completed new, four-year $250
million revolving credit facility with December 31, 2024 maturity date.
- Ended the full year with immediately available liquidity of
$229 million, including $179 million of cash on hand and $50 million in undrawn credit facilities.
- Philippines Office of the President instructed government
agencies to finalise terms and conditions of the Didipio FTAA
renewal.
Michael Holmes, President and CEO
of OceanaGold said, "We delivered a strong fourth quarter of
production, consistent with our core value to deliver on our
commitments. Despite the ongoing risks associated with the COVID-19
global pandemic in the United
States, Haile achieved its full year production guidance
with 137,413 gold ounces produced including 48,988 ounces in the
fourth quarter. The risks associated with the management of
COVID-19 remain, and we are focussed on keeping our workforce safe
while delivering on our commitments. We expect the continued mining
of high-grade zones at Haile through the first half of 2021."
"In New Zealand, both Macraes
and Waihi operations delivered on full year production guidance
with 144,487 and 19,775 ounces of gold, respectively. Development
of the Martha Underground continues to advance, and we expect first
production at the end of the second quarter. Meanwhile at Macraes,
development of Golden Point Underground is progressing well with
first production on-track for the fourth quarter. Over 30,000
metres were drilled in the Waihi District through 2020 with fourth
quarter activities focussed on resource conversion drilling at
Martha Underground and Wharekirauponga."
"In December, the Company met with Philippine Government
officials, as instructed by the Office of the President, to
finalise the terms and conditions of the FTAA renewal. We expect
the renewal will be returned to the Office of the President for
review and approval in the near-term. Didipio is a world-class
operation that employs thousands of Filipinos and is a significant
source of economic benefit to the National Government as well as
the local communities of Nueva
Vizcaya and Quirino. We look forward to working with
stakeholders and Government officials to safely restart operations
and continue the significant socio-economic benefits when the
renewal has been approved. OceanaGold is a responsible gold mining
Company that is focussed on operating to the highest social and
environmental international standards and considers Didipio the
template for responsible mining globally."
"Looking ahead to 2021, we expect stronger year-on-year
production. Our robust organic growth pipeline is advancing to
plan, and we are excited to bring Martha Underground into full
production in the second quarter. Exploration remains a critical
part of the OceanaGold story, and we will continue to invest in the
drill bit to discover and convert ounces at each of our operations.
OceanaGold is a dynamic and resilient gold miner with an exciting
future, and we look forward to releasing our inaugural multi-year
guidance on February 18 and hosting a
webcast to better define the future of the business."
Table 1 – Fourth Quarter and Full Year 2020
Operational Results
Quarter ended 31 Dec
2020
|
Haile
|
Didipio
|
Waihi
|
Macraes
|
Consolidated
|
Q4 2020
|
Q4 2019
|
Gold
Produced
|
koz
|
49.0
|
-
|
7.6
|
42.6
|
99.2
|
108.2
|
Gold Sales
|
koz
|
46.7
|
-
|
7.5
|
42.2
|
96.4
|
107.3
|
Average Gold
Price(1)
|
US$/oz
|
1,877
|
-
|
1,826
|
1,669
|
1,648
|
1,404
|
Copper
Produced
|
kt
|
-
|
-
|
-
|
-
|
-
|
0.1
|
Copper
Sales
|
kt
|
-
|
-
|
-
|
-
|
-
|
-
|
Average Copper
Price
|
US$/lb
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Material
Mined
|
kt
|
9,956
|
-
|
53.4
|
11,565
|
21,574
|
19,924
|
Waste
Mined
|
kt
|
8,661
|
-
|
0.8
|
9,108
|
17,770
|
16,617
|
Ore Mined
|
kt
|
1,295
|
-
|
52.6
|
2,456
|
3,804
|
3,306
|
Mill Feed
|
kt
|
844
|
-
|
80
|
1,450
|
2,374
|
2,449
|
Mill Feed
Grade
|
g/t
|
2.17
|
-
|
3.29
|
1.08
|
1.54
|
1.59
|
Gold
Recovery
|
%
|
83.2
|
-
|
89.7
|
84.2
|
84.1
|
86.4
|
|
|
|
|
|
|
|
|
Cash Costs
|
US$/oz
|
672
|
-
|
1,017
|
864
|
783
|
757
|
Site All-In
Sustaining Costs(2)
|
US$/oz
|
904
|
-
|
955(3)
|
1,140
|
1,075
|
980
|
Full Year 31 Dec
2020
|
Haile
|
Didipio
|
Waihi
|
Macraes
|
Consolidated
|
2020
|
2019
|
Gold
Produced
|
koz
|
137.4
|
-
|
19.8
|
144.5
|
301.7
|
470.6
|
Gold Sales
|
koz
|
138.5
|
6.8
|
21.0
|
144.2
|
310.5
|
448.4
|
Average Gold
Price(1)
|
US$/oz
|
1,774
|
1,672
|
1,663
|
1,696
|
1,573
|
1,360
|
Copper
Produced
|
kt
|
-
|
-
|
-
|
-
|
-
|
10.3
|
Copper
Sales
|
kt
|
-
|
-
|
-
|
-
|
-
|
6.9
|
Average Copper
Price
|
US$/lb
|
-
|
-
|
-
|
-
|
-
|
2.84
|
|
|
|
|
|
|
|
|
Material
Mined
|
kt
|
38,323
|
-
|
131.3
|
47,450
|
85,904
|
78,408
|
Waste
Mined
|
kt
|
34,922
|
-
|
2.8
|
40,371
|
75,296
|
67,128
|
Ore Mined
|
kt
|
3,401
|
-
|
128.5
|
7,079
|
10,608
|
11,280
|
Mill Feed
|
kt
|
3,511
|
-
|
137
|
5,419
|
9,067
|
12,212
|
Mill Feed
Grade
|
g/t
|
1.52
|
-
|
5.03
|
1.01
|
1.27
|
1.42
|
Gold
Recovery
|
%
|
79.5
|
-
|
89.0
|
82.2
|
81.4
|
84.4
|
|
|
|
|
|
|
|
|
Cash Costs
|
US$/oz
|
945
|
443
|
641
|
844
|
866
|
733
|
Site All-In
Sustaining Costs(2)
|
US$/oz
|
1,345
|
444
|
583(3)
|
1,204
|
1,276
|
1,061
|
(1)
|
Realised gains and
losses on gold hedging are included in the consolidated average
gold price. Realised gains and losses on gold hedging are not
included in the site average gold prices. Macraes' average gold
price are based on revenue including the gold prepay unwind for
September to December.
|
(2)
|
Site AISC are
exclusive of Corporate general and administrative expenses and have
been restated in prior periods accordingly; Consolidated AISC is
inclusive of Corporate general and administrative
expenses.
|
(3)
|
The lower AISC
(relative to Cash Costs) at Waihi reflects the inclusion of some
proceeds from the sale of sustaining assets during the periods and
the associated low sales volume.
|
The Company produced 301,675 ounces of gold, including 99,155
ounces in the fourth quarter. Gold production for the fourth
quarter increased 57% quarter-on-quarter due to significantly
higher production at Haile and Macraes attributable to higher head
grades.
On a consolidated basis, the Company delivered AISC of
$1,276 per ounce on annual sales of
310,531 ounces of gold including fourth quarter AISC of
$1,075 per ounce on sales of 96,398
ounces of gold. AISC decreased 37% quarter-on-quarter on higher
gold sales.
Haile produced 137,413 ounces of gold, including 48,988 ounces
in the fourth quarter, a 73% quarter-on-quarter increase. In the
quarter, the Company accessed higher grade zones of the open pits
and increased mine utilisation rates despite continued challenges
related to COVID-19. As of 2020 year-end, the Haile operation was
impacted by 63 positive COVID-19 cases with over 500 workers
self-isolating for a two-week period at some point since the
beginning of March 2020. The two-week
isolation periods and other strict protocols were implemented to
safeguard the health and wellbeing of the workforce while at site.
Mining of active high-grade zones is expected to continue through
the first half of 2021 before grades reduce in the second half
consistent with the open pit mine sequence.
In New Zealand, Macraes
produced 144,487 ounces of gold, including 42,564 ounces in the
fourth quarter. The quarter-on-quarter increase primarily
reflects higher head grades from mining at Coronation North phase 4
and Gay Tan phase 2. Resumption of
processing at Waihi in the fourth quarter delivered 7,604 ounces of
gold production and 19,775 ounces of gold for the full year.
Development of Martha Underground continues to progress to first
production by the end of the second quarter of 2021. Underground
development advanced 2,276 metres in the fourth quarter and
totalled 7,371 metres for the full year. Mining and processing of
narrow vein ore from Correnso will continue in the first quarter of
2021 before the process plant is shut down for upgrades. Processing
will resume with ore feed exclusively from the Martha Underground
later in the second quarter.
In the Philippines, the Company
had multiple meetings with national government officials in
December 2020 to finalise the terms
of the FTAA renewal, and the renewal is expected to be endorsed to
the Office of the President for approval. The Company will continue
to engage with government officials and will work with stakeholders
for a safe restart of operations at Didipio. The timeline for the
renewal remains uncertain and achieving steady state production
will be dependent on the timing of the renewal and workforce
recruitment efforts.
The Company will release multi-year guidance on Thursday February 18, 2021 after TSX market close
(Toronto Eastern Standard time) / Friday
February 19, 2021 (Brisbane Eastern Standard Time) in
conjunction with the Company's full year and fourth quarter 2020
financial and operational results.
2021 Investor Update and 2020 Full Year Results
Webcast
The Company will host its 2021 Investor Day and 2020 Full Year
Results Webcast at 5:00pm on Thursday
February 18, 2021 (Toronto,
Eastern Standard Time) / 8:00am on Friday
February 19, 2021 (Brisbane, Eastern Standard Time).
Webcast Participants
To register, please copy and paste the link below into your
browser:
https://produceredition.webcasts.com/starthere.jsp?ei=1421371&tp_key=ef24d5a1a9
Teleconference Participants (required for those who wish to
ask questions)
Local (toll free) dial in numbers are:
Canada & North America: 1 888 390 0546
Australia: 1 800 076 068
New Zealand: 0 800 453 421
United Kingdom: 0 800 652
2435
Switzerland: 0 800 312 635
All other countries (toll): + 1 416 764 8688
If you are unable to attend the call, a recording will be
available for viewing on the Company's website.
Authorised for release to market by Acting OceanaGold Corporate
Company Secretary, Chris Hansen.
www.oceanagold.com | Twitter:
@OceanaGold
About OceanaGold
OceanaGold is a multinational gold producer committed to the
highest standards of technical, environmental and social
performance. For 30 years, we have been contributing to
excellence in our industry by delivering sustainable environmental
and social outcomes for our communities, and strong returns for our
shareholders. Our global exploration, development, and operating
experience has created an industry-leading pipeline of organic
growth opportunities and a portfolio of established operating
assets including Didipio Mine in the
Philippines; Macraes and Waihi operations in New Zealand; and Haile
Gold Mine in the United States of
America.
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, achievement of
guidance, 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
outbreak of an infectious disease, the accuracy of mineral reserve
and resource estimates and related assumptions, inherent operating
risks 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.
SOURCE OceanaGold Corporation