/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR
DISTRIBUTION TO US NEWSWIRE SERVICES./
(All figures in US Dollars unless otherwise stated)
MELBOURNE, Jan. 21, 2014 /CNW/ - OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the "Company") is pleased to release its fourth quarter report for
the quarter ended 31 December 2013, in accordance with the Australian
Securities Exchange ("ASX") Listing Rule 5.1. Please note that the
numbers contained in this document are unaudited and subject to
finalisation. As a Toronto Stock Exchange ("TSX") issuer, the Company
will release its complete full year 2013 audited financial and
operational results on 20 February 2014. A conference call to discuss
the results will take place on 21 February 2014 (Australian Eastern
Daylight Time).
Key Highlights
-
Record full year gold production of 325,732 ounces in 2013, slightly
ahead of guidance.
-
Strong copper production with 23,059 tonnes produced for the year
exceeding top end of 2013 copper production guidance.
-
Cash costs net of copper by-products of $426 per ounce for the full
year, lower than the 2013 cash cost guidance.
-
All-In Sustaining Costs ("AISC") of $868 per ounce for the full year.
-
Reduced debt by $45 million during the quarter.
Mick Wilkes, Managing Director and CEO commented, "I am pleased to
report a very strong finish to 2013 with record gold production for
OceanaGold. The Company exceeded its 2013 gold and copper production
guidance at lower than planned costs on the back of strong fourth
quarter production from both our New Zealand and Philippine operations.
We continue to drive down our cost profile while increasing cash
margins." He went on to say, "Last year was a challenging year for the
gold sector with a significant decrease in the gold price. Against that
environment, we transformed the Company by successfully commissioning
the high grade, low cost Didipio Mine in the Philippines, and reducing
our cost base in New Zealand where we responded to the new economic
realities in a decisive manner by optimising mine schedules and
identifying operational efficiencies."
Mr Wilkes continued, "Looking ahead into 2014, we expect increasing free
cash flow generation to be used to further strengthen our balance sheet
and position the Company for greater shareholder value. We expect
Didipio to continue to ramp-up well with increased production and mill
throughput to achieve its 3.5 Mtpa planned capacity by the end of the
year. We will also continue to work closely with all of our
stakeholders to deliver positive results in a safe and sustainable
manner."
Operations Overview
- Table 1 -
Q4 & Full Year 2013 Production and Cost Results Summary
|
|
|
|
|
Q4 & FY2013 Production and Cost Results Summary | Didipio | New Zealand | Group |
Q4 2013 Results |
|
|
|
|
Gold Produced
| ounces |
27,713
|
87,506
|
115,219
|
Copper Produced
| tonnes |
7,536
|
-
|
7,536
|
Cash Costs
| $ per ounce |
(1,081)
|
550
|
210
|
Full Year 2013 Results |
|
|
|
|
Gold Produced
| ounces |
66,277
|
259,455
|
325,732
|
Copper Produced
| tonnes |
23,059
|
-
|
23,059
|
Cash Costs
| $ per ounce |
(1,078)
|
740
|
426
|
All-In Sustaining Costs
| $ per ounce |
(688)
|
1,194
|
868
|
In the fourth quarter, strong performance across all operations resulted
in a record 115,219 ounces of gold produced, a 54% increase from the
previous quarter on account of processing higher grade ore across all
operations. Fourth quarter copper production of 7,536 tonnes was 23%
higher than in the previous quarter. For the full year 2013, the
Company achieved record gold production of 325,732 ounces, slightly
exceeding the Company's 2013 gold production guidance range of 285,000
to 325,000 ounces. The Company exceeded its 2013 copper production
range of 18,000 to 20,000 tonnes with 23,059 tonnes produced.
In the Philippines, the Didipio Mine produced 27,713 ounces of gold and
7,536 tonnes of copper in the fourth quarter because of increased mill
feed tonnage, higher gold and copper grades processed and better
recoveries. For the full year, Didipio achieved its gold production
guidance with 66,277 ounces of gold produced and exceeded its copper
production guidance with 23,059 tonnes produced. In 2014, the operation
is set to continue ramping up production and throughput rates to its
3.5 Mtpa planned capacity.
In New Zealand, strong performance at Macraes and Reefton resulted in a
combined fourth quarter gold production of 87,506 ounces, a 54%
increase from the previous quarter. This increase was attributable to
processing higher grade ore at both operations. For the full year, New
Zealand operations exceeded their gold production guidance with 259,455
ounces of gold produced.
Subsequent to the year end, the Company announced that in response to
the continued lower gold price environment, it re-optimised the mine
schedule at Macraes Open Pit and Frasers Underground. As a result, the
Macraes Open Pit mine life is now the end of 2017 while the Frasers
Underground is expected to end in mid-2015. Additionally, the Company
partially hedged gold production at Macraes utilising a zero-cost
collar hedge covering 208,000 ounces of gold over the next two years
with put options at NZ$1,500 per ounce and an equal number of call
options at NZ$1,600 per ounce.
The Company's full year preliminary unaudited cash costs net of copper
by-product credits were $426 per ounce, significantly lower than the
Company's 2013 cash cost guidance range of $550 to $650 per ounce. This
result is attributable to increased copper credits and cost reductions
employed throughout the year. The full year preliminary unaudited AISC
net of copper by-product credits was $868 per ounce, which was slightly
lower than forecasted. Didipio's 2013 net of copper by-product credits
AISC was negative ($688) per ounce, well below the Company's 2013 AISC
forecast for the operation.
During the quarter, the Company reduced its core debt by $45 million, at
the end of the quarter the Company's convertible notes matured and were
repaid in full and financed through cash and the term facility
specifically provided for this repayment. Effective 20 December 2013,
the Company had no convertible notes on its balance sheet.
Unaudited revenue for the fourth quarter was approximately $170 million
with approximately $25 million cash at year end.
Operating Statistics
- Table 2 -
Didipio Operating Statistics
|
|
|
|
|
Didipio Operating Statistics | Q4 Dec 31 2013 | Q3 Sep 30 2013 | Q2 Jun 30 2013 | Year 2013 |
|
|
|
|
|
Gold Produced (ounces)
|
27,713
|
18,011
|
13,676
|
66,277
|
Copper Produced (tonnes)
|
7,536
|
6,150
|
5,710
|
23,059
|
|
|
|
|
|
Gold Sold (ounces)
|
20,900
|
20,827
|
11,086
|
55,604
|
Copper Sold (tonnes)
|
6,461
|
8,207
|
5,073
|
21,290
|
|
|
|
|
|
Total Ore Mined (tonnes)
|
2,618,832
|
2,602,651
|
1,729,314
|
8,787,878
|
|
|
|
|
|
Ore Mined Grade Gold (grams/tonne)
|
0.69
|
0.58
|
0.55
|
0.58
|
Ore Mined Grade Copper (%)
|
0.53
|
0.55
|
0.64
|
0.58
|
|
|
|
|
|
Total Waste Mined (tonnes) including pre-strip
|
3,473,327
|
3,832,560
|
4,342,999
|
14,398,928
|
|
|
|
|
|
Mill Feed (dry milled tonnes)
|
729,121
|
672,921
|
727,550
|
2,578,295
|
|
|
|
|
|
Mill Feed Grade Gold (grams/tonne)
|
1.33
|
0.97
|
0.75
|
0.94
|
Mill Feed Grade Copper (%)
|
1.09
|
0.97
|
0.91
|
0.98
|
|
|
|
|
|
Recovery Gold (%)
|
88.7
|
86.2
|
77.5
|
83.0
|
Recovery Copper (%)
|
95.0
|
94.2
|
87.3
|
91.5
|
- Table 3 -
Combined New Zealand Operating Statistics
|
|
|
|
|
|
|
Combined Operating Statistics for New Zealand Operations | Q4 Dec 31 2013 | Q3 Sep 30 2013 | Q4 Dec 31 2012 | Year 2013 | Year 2012 | Year 2011 |
|
|
|
|
|
|
|
Gold Produced (ounces)
|
87,506
|
56,686
|
76,844
|
259,455
|
232,909
|
252,499
|
Gold Sold (ounces)
|
79,510
|
54,762
|
69,761
|
252,477
|
230,119
|
249,261
|
|
|
|
|
|
|
|
Total Ore Mined (tonnes)
|
2,559,315
|
2,315,658
|
2,219,617
|
8,650,072
|
6,872,686
|
8,103,693
|
|
|
|
|
|
|
|
Ore Mined Grade (grams/tonne)
|
1.53
|
1.25
|
1.60
|
1.31
|
1.34
|
1.21
|
|
|
|
|
|
|
|
Total Waste Mined (tonnes)
including pre-strip
|
12,436,112
|
13,900,056
|
14,059,837
|
56,544,293
|
54,580,473
|
59,176,017
|
|
|
|
|
|
|
|
Mill Feed (dry milled tonnes)
|
1,824,732
|
1,835,140
|
1,826,880
|
7,290,217
|
7,432,375
|
7,588,354
|
|
|
|
|
|
|
|
Mill Feed Grade (grams/tonne)
|
1.79
|
1.20
|
1.59
|
1.35
|
1.20
|
1.25
|
|
|
|
|
|
|
|
Recovery (%)
|
83.2
|
80.1
|
82.8
|
81.3
|
81.0
|
82.9
|
- Table 4 -
Macraes and Reefton Operating Statistics
|
|
|
|
|
|
|
Macraes Goldfield Operating Statistics | Q4 Dec 31 2013 | Q3 Sep 30 2013 | Q4 Dec 31 2012 | Year 2013 | Year 2012 | Year 2011 |
|
|
|
|
|
|
|
Gold Produced (ounces)
|
68,419
|
42,199
|
58,872
|
198,820
|
169,609
|
174,851
|
|
|
|
|
|
|
|
Total Ore Mined (tonnes)
|
2,026,193
|
1,878,700
|
1,815,587
|
6,962,730
|
5,558,056
|
6,589,904
|
|
|
|
|
|
|
|
Ore Mined Grade (grams/tonne)
|
1.55
|
1.19
|
1.57
|
1.27
|
1.29
|
1.07
|
|
|
|
|
|
|
|
Total Waste Mined (tonnes)
including pre-strip
|
7,838,100
|
9,061,894
|
9,496,424
|
38,725,444
|
36,363,043
|
44,407,352
|
|
|
|
|
|
|
|
Mill Feed (dry milled tonnes)
|
1,412,920
|
1,493,679
|
1,454,089
|
5,811,868
|
5,789,255
|
5,817,001
|
|
|
|
|
|
|
|
Mill Feed Grade (grams/tonne)
|
1.79
|
1.10
|
1.52
|
1.30
|
1.12
|
1.12
|
|
|
|
|
|
|
|
Recovery (%)
|
84.1
|
79.7
|
83.2
|
81.4
|
81.1
|
83.3
|
Reefton Goldfield Operating Statistics | Q4 Dec 31 2013 | Q3 Sep 30 2013 | Q4 Dec 31 2012 | Year 2013 | Year 2012 | Year 2011 |
|
|
|
|
|
|
|
Gold Produced (ounces)
|
19,087
|
14,487
|
17,972
|
60,635
|
63,300
|
77,648
|
|
|
|
|
|
|
|
Total Ore Mined (tonnes)
|
533,122
|
436,958
|
404,030
|
1,687,342
|
1,314,630
|
1,513,789
|
|
|
|
|
|
|
|
Ore Mined Grade (grams/tonne)
|
1.45
|
1.51
|
1.71
|
1.47
|
1.56
|
1.80
|
|
|
|
|
|
|
|
Total Waste Mined (tonnes) including pre-strip
|
4,598,012
|
4,838,162
|
4,563,413
|
17,818,849
|
18,217,430
|
14,768,665
|
|
|
|
|
|
|
|
Mill Feed (dry milled tonnes)
|
411,812
|
341,461
|
372,791
|
1,478,349
|
1,643,120
|
1,771,353
|
|
|
|
|
|
|
|
Mill Feed Grade (grams/tonne)
|
1.79
|
1.61
|
1.84
|
1.57
|
1.48
|
1.67
|
|
|
|
|
|
|
|
Recovery (%)
|
80.3
|
81.8
|
81.1
|
81.1
|
80.6
|
81.4
|
Sustainability
In the fourth quarter, the Didipio Mine was awarded the "Most
Environment Compliant" by the Environment Management Bureau, a
supporting body of the Department of Environment and Natural Resources
("DENR") in the Philippines for demonstrating outstanding performance
and safeguard of the environment. In the quarter, the Didipio Emergency
Response Team ("ERT") worked closely with the Philippine Mine Safety
and Environment Association ("PMSEA") and other international groups
and played a critical role in the rescue and relief efforts in two
major natural disasters that devastated the Visayas region in the
Philippines: the earthquake on the island of Bohol and Typhoon Haiyan
(Yolanda) in Tacloban City.
In 2014, the Company will continue to advance its sustainability
programs and its partnerships. Together with the International
RiverFoundation ("IRF"), the Company will promote effective river basin
management and educate communities on the adverse environmental impacts
of small scale mining methods on local waterways. Through its long and
successful track record of developing and operating gold mines in
partnerships with local communities, the Company will seek to develop
and invest in a number of community initiatives in El Salvador. The
Company will engage key stakeholders in El Salvador to unlock the
significant opportunity that exists at El Dorado for the Salvadoran
people.
Full Year 2014 Production Guidance
In 2014, the Company is planning to produce 275,000 to 305,000 ounces of
gold at cash costs of $400 to $450 per ounce net of copper by-product
credits and AISC of $750 to $850 per ounce net of copper by-product
credits. Copper production from Didipio is expected to be between
21,000 to 24,000 tonnes of copper in concentrate.
- Table 5 -
2014 Production and Cost Guidance
|
|
|
|
|
2014 Company Guidance | Didipio | New Zealand | Group |
Gold Production
| ounces |
85,000 - 95,000
|
190,000 - 210,000
|
275,000 - 305,000
|
Copper Production
| tonnes |
21,000 - 24,000
|
--
|
21,000 - 24,000
|
Cash Costs | $ per ounce |
($725) - ($650)1 |
$840 - $9252 |
$400 - $4501,2 |
All-In Sustaining Costs3 | $ per ounce |
($240) - ($210)1 |
$1,170 - $1,2902 |
$750 - $8501,2 |
- Net of copper by-product credits at $3.20/lb copper
- NZD/USD $0.80 exchange rate
- Based on the World Gold Council methodology. Expansionary and growth
capital expenditures are excluded from the AISC
Full Year 2013 Results Release and Conference Call
The Company will release its full 2013 financial and operational results
on Thursday 20 February 2014 and host a conference call / webcast to
discuss the results at 8:30am on Friday21 February 2014 (Melbourne,
Australia time) / 4:30pm on Thursday20 February 2014 (Toronto, Canada
time).
Webcast Participants
To register, please copy and paste the link below into your browser:
http://event.on24.com/r.htm?e=742124&s=1&k=2C441BCEAD9FC313B78E477166E1F2FB
Teleconference Participants (required for those who wish to ask
questions)
Local (toll free) dial in numbers are:
Australia: 1 800 157 854
New Zealand: 0 800 441 025
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 from 11:30am on Friday 21 February
(Melbourne, Australia time) / 7.30pm on Thursday 20 February (Toronto,
Canada time).
About OceanaGold
OceanaGold Corporation is a significant multinational gold producer with
mines located on the South Island of New Zealand and in the
Philippines. The Company's assets encompass New Zealand's largest gold
mining operation at the Macraes goldfield in Otago which is made up of
the Macraes Open Pit and the Frasers Underground mines. Additionally,
on the west coast of the South Island, the Company operates the Reefton
Open Pit mine. OceanaGold's Didipio Mine in northern Luzon, Philippines
commenced commercial production on 1 April 2013 and is expected to
produce 100,000 ounces of gold and 14,000 tonnes of copper per year on
average over the next 15 years. Late in 2013, the Company added the El
Dorado gold-silver Project, in El Salvador to its portfolio of assets
through the acquisition of Pacific Rim Mining Corp. In 2014, the
Company expects to produce 275,000 to 305,000 ounces of gold from the
combined New Zealand and Philippine operations and 21,000 to 24,000
tonnes of copper from the Philippine operations.
OceanaGold is listed on the Toronto, Australian and New Zealand stock
exchanges under the symbol OGC.
Cautionary Statement
Statements in this release may be forward-looking statements or
forward-looking information within the meaning of applicable securities
laws. 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 such as production forecasts are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ materially from those reflected in
the forward-looking statements. They include, among others, 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 such forward-looking statements and, subject to applicable
securities laws, the Company undertakes no obligation to update such
statements. Such forward-looking statements 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. Accordingly, readers should not place undue
reliance on forward-looking statements. The information contained in
this release is not investment or financial product advice.
NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR
DISTRIBUTION TO US NEWSWIRE SERVICES.
SOURCE OceanaGold Corporation
<p> <b>OceanaGold Corporation </b> </p> <p> <u>Investor Relations - Melbourne </u><br/> Nova Young<br/> Tel: +61(3) 9656 5300 </p> <p> <u>Investor Relations - Toronto</u><br/> Sam Pazuki<br/> Tel: +1 416 915 3123 </p> <p> <a href="mailto:info@oceanagold.com">info@oceanagold.com</a> | <a href="http://www.oceanagold.com">www.oceanagold.com</a> </p>