OceanaGold 2Q produced 130K Oz of gold

Aug 04, 2023

OceanaGold Corporation reported its operational and financial results for the three months ended June 30, 2023. The consolidated financial statements and the Management Discussion and Analysis reported & that said, Gerard Bond, President and CEO of OceanaGold, said “OceanaGold safely and responsibly delivered strong production outcomes at lower costs during the second quarter, generating strong Free Cash Flow.

Both New Zealand sites bounced back strongly, Didipio continued its steady performance, and we remain on schedule for first ore delivery from the Haile underground in the fourth quarter this year.

As we look ahead to the remainder of 2023, we are on track to deliver on our consolidated full-year production, cost and capital guidance and have a strong balance sheet enabling us to continue investing in the exciting organic growth and near-mine exploration projects we have throughout our portfolio, as well as pay a dividend in-line with our policy.”

Second Quarter Highlights reports,

1: The consolidated production of 130,055 ounces of gold. All-In Sustaining Costs of $1,318 per ounce on gold sales of 139,071 ounces.

2: Revenue of $301 million, EBITDA of $153 million and NPAT of $69 million.

The Company produced 130,055 ounces of gold in the second quarter of 2023. Second quarter gold production was 10% higher than the previous quarter and 16% higher than the corresponding quarter in 2022. The quarter-on-quarter increase was mainly driven by 48% higher gold production at Macraes as mill feed increased by 42% following the completion of repairs to the inlet trunnion of Mill Number 2 in late March.

Waihi’s second quarter gold production was also 44% higher, driven by increased ore production, as expected given the disruption to mining in the prior quarter due to record rainfall. The increase in production from the New Zealand operations was partially offset by 9% lower gold production at Haile related to lower mill feed grades, while Didipio was broadly flat quarter-on-quarter.

The Company has produced 248,179 ounces of gold year-to-date representing a 1% increase in gold production compared to the corresponding period in 2022.

The Company maintains its 2023 consolidated guidance and still expects to produce between 460,000 and 510,000 ounces of gold, with cash costs ranging between $800 and $900 per ounce and AISC ranging between $1,425 and $1,525 per ounce. The third quarter is expected to be the lowest production and the highest AISC quarter of the year.

At Haile, full year production is now expected to be towards the lower end of guidance of between 170,000 and 185,000 ounces of gold based on lower than expected ore grade in the lower levels of the Mill Zone pit mined during the quarter. Consequently AISC is expected to be toward the higher end of guidance of $1,500 to $1,600 per ounce.

As previously noted, the production profile at Haile is first half weighted, with the third quarter expected to be the lowest production quarter of the year based on the mine plan. The fourth quarter will also benefit from the introduction of higher grade underground ore feed.

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