/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. 24, 2022 /CNW/ - OceanaGold
Corporation (TSX: OGC) (ASX: OGC) (the "Company") is pleased
to announce its preliminary full year and fourth quarter 2021
operational results for the year ended December 31, 2021. The numbers contained in this
document are unaudited and subject to finalisation. The Company
will release its complete 2021 audited financial and operational
results after TSX market close on Wednesday
February 23, 2022 (Toronto Eastern Standard Time).
Key Highlights
- Consolidated full year gold production increased 20%
year-on-year with 362,807 ounces produced.
- Consolidated fourth quarter 2021 gold production of 106,591
ounces, a 35% increase quarter-on-quarter.
- Unaudited consolidated All-In Sustaining Costs ("AISC") for the
full year of $1,247 per ounce and
cash costs of $742 per ounce on gold
sales of 381,562 ounces.
- Unaudited consolidated AISC for the fourth quarter of
$1,326 per ounce on 105,336 ounces of
gold sold.
- Haile exceeded full year production guidance with an annual
record of 189,975 ounces of gold produced.
- Didipio exceeded full year production guidance with 14,863
ounces of gold and 2,323 tonnes of copper produced over only two
months; ramp-up to full production tracking ahead of schedule.
- Cash balance increased to $133
million with total immediate available liquidity increasing
to $163 million.
Scott Sullivan, Acting CEO of
OceanaGold said, "We finished the year with a strong fourth quarter
of production, backed by solid operational performances from Haile,
which delivered a record annual gold output and Didipio, where
ramp-up is advancing ahead of schedule. We are delivering on our
commitments by achieving our full year consolidated guidance and
generating positive free cash flow for the first time in over two
years."
"OceanaGold is focused on delivering value to shareholders over
the long term by consistently executing our business plans and
making prudent investment decisions geared to maximise the value of
our operations. Although we have made significant improvements to
the business over the past several months, we have more work ahead
of us to implement additional changes and regain our status as one
of the premier gold miners in the industry. I have full confidence
that we will achieve this and regain our favoured market position
over the short, medium and long term."
Table 1 – Fourth Quarter and Full Year 2021 Operational
Results
Full Year
2021
|
|
Haile
|
Didipio
|
Waihi
|
Macraes
|
Consolidated
|
|
2021
|
2020
|
Production, Sales
& Costs
|
|
|
|
|
|
|
|
Gold
Produced
|
koz
|
190.0
|
14.9
|
27.7
|
130.3
|
362.8
|
301.7
|
Gold Sales
|
koz
|
195.0
|
29.9
|
26.4
|
130.3
|
381.6
|
310.5
|
Average Gold
Price
|
US$/oz
|
1,801
|
1,809
|
1,776
|
1,864
|
1,821
|
1,597
(1)
|
Copper
Produced
|
kt
|
-
|
2.3
|
-
|
-
|
2.3
|
-
|
Copper Sales
|
kt
|
-
|
5.1
|
-
|
-
|
5.1
|
-
|
Average Copper
Price
|
US$/lb
|
-
|
4.39
|
-
|
-
|
4.39
|
-
|
Cash Costs
|
US$/oz
|
649
|
(116)
|
1,293
|
968
|
742
|
866
|
Site AISC
(2)
|
US$/oz
|
1,060
|
(25)
|
1,701
|
1,468
|
1,247
|
1,278
|
Operating
Physicals
|
|
|
|
|
|
|
|
Material
Mined
|
kt
|
43,475
|
336
|
519
|
47,637
|
91,967
|
85,904
|
Waste Mined
|
kt
|
40,261
|
7
|
230
|
42,729
|
83,227
|
75,296
|
Ore Mined
|
kt
|
3,214
|
328
|
289
|
4,909
|
8,740
|
10,608
|
Mill Feed
|
kt
|
3,146
|
594
|
292
|
5,263
|
9,294
|
9,067
|
Mill Feed
Grade
|
g/t
|
2.21
|
0.88
|
3.23
|
0.93
|
1.44
|
1.27
|
Gold
Recovery
|
%
|
84.2
|
87.0
|
91.1
|
81.9
|
83.3
|
81.4
|
|
|
|
|
|
|
|
|
|
Quarter ended 31 Dec
2021
|
|
Haile
|
Didipio
|
Waihi
|
Macraes
|
Consolidated
|
|
Q4
2021
|
Q4
2020
|
Production, Sales
& Costs
|
|
|
|
|
|
|
|
Gold
Produced
|
koz
|
42.5
|
14.9
|
11.9
|
37.4
|
106.6
|
99.2
|
|
Gold Sales
|
koz
|
46.5
|
10.7
|
11.5
|
36.6
|
105.3
|
96.4
|
|
Average Gold
Price
|
US$/oz
|
1,787
|
1,928
|
1,791
|
1,799
|
1,806
|
1,726
(1)
|
|
Copper
Produced
|
kt
|
-
|
2.3
|
-
|
-
|
2.3
|
-
|
|
Copper Sales
|
kt
|
-
|
1.7
|
-
|
-
|
1.7
|
-
|
|
Average Copper
Price
|
US$/lb
|
-
|
4.74
|
-
|
-
|
4.74
|
-
|
|
Cash Costs
|
US$/oz
|
636
|
(236)
|
1,330
|
1,158
|
805
|
783
|
|
Site AISC
(2)
|
US$/oz
|
1,161
|
16
|
1,845
|
1,469
|
1,326
|
1,080
|
|
Operating
Physicals
|
|
|
|
|
|
|
|
|
Material
Mined
|
kt
|
10,483
|
336
|
228
|
12,387
|
23,433
|
21,574
|
|
Waste Mined
|
kt
|
9,776
|
7
|
113
|
10,862
|
20,759
|
17,770
|
|
Ore Mined
|
kt
|
707
|
328
|
115
|
1,525
|
2,674
|
3,804
|
|
Mill Feed
|
kt
|
843
|
594
|
119
|
1,528
|
3,084
|
2,374
|
|
Mill Feed
Grade
|
g/t
|
1.85
|
0.88
|
3.35
|
0.93
|
1.27
|
1.54
|
|
Gold
Recovery
|
%
|
82.7
|
87.0
|
92.6
|
81.6
|
83.4
|
84.1
|
|
(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.
|
(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.
|
For the full year, OceanaGold achieved its consolidated
production and cost guidance. On a consolidated basis, the Company
produced 362,807 ounces of gold and 2,323 tonnes of copper. Gold
production was approximately 20% higher over 2020 due to
significant year-on-year record gold output at Haile, the
successful re-start and continued ramp-up of operations at Didipio
and ramp-up of Martha Underground at Waihi, which was partially
offset by lower head grades and mill feed from Macraes. Fourth
quarter consolidated production was 106,591 ounces of gold, an
approximate 35% quarter-on-quarter increase on the back of a
greater output from the New
Zealand operations and increasing production contribution
from Didipio.
On a consolidated basis, the Company recorded an AISC of
$1,247 per ounce on gold sales of
381,562 ounces and copper sales of 5,104 tonnes. Fourth quarter
consolidated AISC was $1,326 per
ounce on gold sales of 105,336 ounces and copper sales of 1,748
tonnes. AISC was similar year-on-year with higher sales offset by
increased sustaining capital investments. The Company's AISC
increased 10% quarter-on-quarter on higher cash costs and
sustaining capital, which was partially offset by higher gold
sales.
Haile Gold Mine – United States
For the full year, Haile produced an annual record of 189,975
ounces of gold, exceeding its full year production guidance range
of 175,000 to 180,000 ounces, a range that was lifted twice over
the course of 2021. Haile's year-on-year production increased
nearly 40% as a result of higher grades mined and processed as well
as operational and productivity improvements implemented throughout
the year. Haile's fourth quarter gold production was 42,484 ounces,
slightly lower than the previous quarter as guided however, the
result exceeded expectation due to continued mining and processing
of higher grades. Full year AISC at Haile was $1,060 per gold ounce sold, well below its full
year AISC guidance range, while fourth quarter AISC was
$1,161 per ounce sold.
The Haile Technical Review is ongoing, and the Company now
expects to release the preliminary results of the study in the
first quarter. The Company continues to expect the SEIS Final
Record of Decision in the first quarter and anticipates receipt of
subsequent operating permits shortly thereafter. The permits are
necessary to allow underground mine development, expansion of the
operating footprint to accommodate the build-out of future waste
storage facilities and increased water discharge rates. As
previously guided, the ongoing delay in the finalisation of the
SEIS is impacting productivity at Haile, where mining rates are
limited by additional material and water re-handling, reducing
output and increasing costs. Upon receipt of the necessary permits,
the Company expects more efficient operations with fewer
constraints and lower mining unit costs to be delivered
progressively over a two-year period.
Didipio Gold-Copper Mine – Philippines
At Didipio, following the restart of processing in early
November, the operation produced 14,863 ounces of gold and 2,323
tonnes of copper, exceeding the Company's 2021 guidance range of
7,000 to 12,000 ounces of gold and 1,000 tonnes of copper.
Didipio's by-product AISC for the year was negative $25 per ounce on sales of 29,889 ounces of gold
and 5,104 tonnes of copper. Fourth quarter AISC was $16 per ounce on gold sales of 10,738 ounces and
copper sales of 1,748 tonnes. This included the sale of all
remaining pre-existing copper-gold concentrate inventory on hand.
The ramp-up of operations to full production rates is advancing
ahead of schedule.
Macraes Gold Mine – New
Zealand
At Macraes, the operation produced 130,287 ounces of gold for
the full year, including 37,385 ounces in the fourth quarter.
Although the full year result is below the lower end of guidance,
the quarter-on-quarter production increased 45% on the back of a
higher head grade and increased mill feed. Full year production was
impacted by inclement weather early in 2021 resulting in delayed
access to higher grade zones, mill disruptions related to mill
motor failures, geotechnical challenges at Coronation North and
COVID-19 restrictions in the second and third quarters. In the
fourth quarter, the operation delivered first production from
Golden Point Underground as expected.
Full year AISC was $1,468 per
ounce on 130,305 ounces of gold sold while fourth quarter AISC was
$1,469 per ounce on gold sales of
36,615 ounces. The Company expects Macraes to deliver a stronger
operational result in 2022 consistent with operational improvements
implemented in the second half of 2021 and the continued ramp-up of
the Golden Point Underground mine.
Waihi Gold Mine – New
Zealand
The Waihi operation produced 27,682 ounces of gold for the full
year, including 11,859 ounces in the fourth quarter, which was 57%
higher than the previous quarter. The production increase was
attributed to the continued ramp-up of mining rates from the Martha
Underground leading to higher mill feed where continuous processing
commenced at the end of the second quarter. Production was impacted
by various local and regional COVID-19 restrictions and isolation
requirements following the lifting of the Government mandated
lockdowns and from negative reconciliation, which was previously
flagged. The Company continues to increase drilling to assist mine
planning efforts and does not expect long-term impacts related to
the resource model.
For the full year, Waihi's AISC was $1,701 per ounce on gold sales of 26,373 ounces,
while fourth quarter AISC was $1,845
per ounce on 11,517 ounces of gold sold. Looking ahead to 2022, the
Company expects the continued ramp-up of operations at the Martha
Underground, with a significant increase to gold production and
decrease in costs.
2021 Full Year Results Webcast
The Company will host its 2021 Full Year Results Webcast at
5:30pm on Wednesday February 23, 2022
(Toronto, Eastern Standard Time) /
9:30am on Thursday February 24, 2022
(Melbourne, Eastern Daylight
Time).
Webcast Participants
To register, please copy and paste the link below into your
browser:
https://produceredition.webcasts.com/starthere.jsp?ei=1521715&tp_key=751b08e415
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
Germany: 0 800 724 0293
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 OceanaGold Corporate Company
Secretary, Liang Tang.
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 a significant 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