Mr. Gerard Bond reports

OCEANAGOLD REPORTS FOURTH QUARTER AND FULL YEAR 2023 OPERATING AND FINANCIAL RESULTS

Oceanagold Corp. has released its operational and financial results for the three months and full year ended Dec. 31, 2023. The consolidated financial statements and the management discussion and analysis (MD&A) are available at the company's website. (All financial figures are in United States dollars unless otherwise stated.)

Gerard Bond, president and chief executive officer of Oceanagold, said, "Strong fourth quarter gold production, driven by increased quarter-on-quarter performance at all four of our operations, allowed us to deliver our full year production guidance.

"At Haile, the Horseshoe Underground mine increased its production of higher-grade ore feed and, with the underground mine ramping up to full capacity and with access to ore in Ledbetter open pit improving through the first half of 2024, we expect improved performance quarter on quarter from Haile over the coming year. Didipio had an exceptional fourth quarter, beating increased guidance for the year due to earlier access into higher-grade areas of the mine. Both New Zealand sites rebounded with improved fourth quarter performance, with Macraes also achieving the higher end of its increased production guidance for the year.

"Two thousand twenty-four is a transformational year for Oceanagold as we begin to deliver production growth, both for 2024 and beyond. Our three-year outlook remains robust with organic, near-mine production growth of at least 30 per cent through 2026 at a declining AISC per ounce, which in turn underpins Oceanagold's projected improvement in free cash flow generation.

"This exciting profile positions the company to continue strengthening the balance sheet, which we expect to be further enhanced this year with the completion of the monetization of 20 per cent of Didipio. We will also continue to explore and invest in growth options such as Palomino and Wharekirauponga, especially with the improved investment climate in New Zealand. All of this will be in service of increasing the value of Oceanagold and improving returns to shareholders."

Highlights

Achieved 2023 guidance, safely and responsibly

• Produced 477,313 ounces of gold and 14,172 tonnes of copper, in- line with original 2023 guidance, including delivering the Horseshoe Underground mine at Haile into production, and exceeding original production guidance at Didipio and Macraes.
• All-in sustaining cost (AISC) of $1,587 per ounce, in line with updated 2023 guidance and excluding 11,009 ounces of gold produced but not sold until early January, 2024.
• Record full year revenue of $1.0-billion, driven by strong sales at record average realized gold prices.
• Ended the year with net debt of $170.1-million at a leverage ratio of 0.41 times, and refinanced the revolving credit facility with extended maturity and improved terms.
• Released updated reserves and resources, including indicated resource growth, to one-million ounces of gold at 15.9 grams per tonne at Wharekirauponga and initial reserves of 380,000 ounces at 2.9 g/t at Palomino at Haile.

2024 guidance and three-year outlook

• About 13-per-cent increase in 2024 gold production, with production guidance of 510,000 to 570,000 ounces and 12,000 to 14,000 tonnes of copper, driven by growth at Haile.
• Lower unit cost of gold produced in 2024, with 2024 AISC guidance of $1,475 to $1,600 per ounce sold. AISC in the first quarter is expected to be higher than the fourth quarter of 2023, decreasing significantly throughout the year as open pit mining transitions into ore at Haile and Macraes throughout the year.
• Multiyear consolidated gold production growing by at least 30 per cent from 2023 to 2026 at a decreasing AISC.
• Initial public offering of 20 per cent of Oceanagold Philippines Inc., which holds Didipio, in mid-2024. Proceeds will be applied to reduce Oceanagold's debt, further strengthening the balance sheet.
• Declared a one-cent-per-share semi-annual dividend in February, 2024, payable in April, 2024.

Operations

The company produced 129,830 ounces of gold and 3,848 tonnes of copper in the fourth quarter of 2023. Fourth quarter gold production was 31 per cent higher than the previous quarter and 7 per cent higher than the corresponding quarter in 2022. The quarter-on-quarter increase was driven by higher production at all operations during the quarter and includes first production from the Horseshoe Underground at Haile. The company produced 477,313 ounces of gold and 14,172 tonnes of copper in 2023, which was broadly in line with production in 2022.

The company recorded a fourth quarter AISC of $1,658 per ounce on gold sales of 118,821 ounces. This was a 13-per-cent reduction in AISC compared with the previous quarter and a 3-per-cent increase compared with the corresponding period in 2022. The quarter-on-quarter reduction was driven by 21 per cent higher comparative gold sales in the fourth quarter. For 2023, the company recorded an AISC of $1,587 on sales of 467,895 ounces of gold.

Haile produced 37,566 ounces of gold in the fourth quarter. The 62-per-cent increase compared with the previous quarter was primarily due to the addition of first production from the Horseshoe Underground. Haile's fourth quarter AISC was $2,570 per ounce, a reduction compared with the previous quarter largely driven by the higher quarter-on-quarter gold sales. Annual 2023 production at Haile was 152,481 ounces of gold at an AISC of $1,921 per ounce sold. The high AISC of Haile in the fourth quarter reflects both the high level of production stripping expenditures in the open pit and the fact that Horseshoe underground is still in ramp-up, whilst the full year AISC outcome of Haile also reflects lower than estimated ore grades encountered in the now-completed Mill zone pit, as previously reported.

During the third quarter, first development ore was mined and stockpiled from the Horseshoe Underground mine at Haile. First production ore was mined in mid-October and three stopes were mined as planned during the fourth quarter of 2023. Didipio produced 42,807 ounces of gold and 3,848 tonnes of copper in the fourth quarter. The 40-per-cent increase in gold production compared with the previous quarter was mainly due to higher grade breccia stopes being mined, which was facilitated by completion of the crown pillar strengthening project. Copper production increased by 13 per cent quarter on quarter. Didipio's fourth quarter AISC was $737 per ounce on gold sales of 39,734 ounces and 3,923 tonnes of copper, a 15-per-cent reduction from the previous quarter due to higher sales. Annual 2023 production at Didipio was 138,527 ounces of gold and 14,172 tonnes of copper at an AISC of $730 per ounce.

Macraes produced 36,117 ounces of gold in the fourth quarter. The 4-per-cent increase compared with the previous quarter resulted from record mill throughput achieved during the fourth quarter of 2023. Macraes fourth quarter AISC was $1,468 per ounce, a 5-per-cent decrease compared with the previous quarter mainly due to the higher quarter-on-quarter gold sales. Annual 2023 production at Macraes was 137,018 ounces of gold at an AISC of $1,570 per ounce.

Waihi produced 13,340 ounces of gold for the fourth quarter. The 23-per-cent increase compared with the previous quarter was driven by a 24-per-cent increase in feed grade, as mining of the remnant areas shifted into higher grade zones. Waihi's fourth quarter AISC was $1,829 per ounce, a 17-per-cent reduction compared with the previous quarter mainly driven by the higher quarter-on-quarter gold sales. Annual 2023 production at Waihi was 49,286 ounces of gold at an AISC of $1,914 per ounce.

Financial

The company recorded fourth quarter consolidated revenue of $267.3-million, a 25-per-cent increase compared with the previous quarter largely driven by 21 per cent higher quarter-on-quarter gold sales volumes across the operations due to strong production, particularly from Didipio and Haile. Fourth quarter revenue was 12 per cent above the corresponding period in 2022, reflecting higher gold sold from Didipio combined with a 13-per-cent-higher average realized gold price which partly offset the lower gold sales volumes from Haile underpinned by lower production.

The company achieved record annual consolidated revenue of $1.0-billion, a 6-per-cent increase relative to the previous year, mainly reflecting an 8-per-cent-higher average realized gold price received.

Fourth quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $94.6-million, a 50-per-cent increase relative to the previous quarter mainly due to the 25-per-cent-higher revenue. Fourth quarter adjusted EBITDA was 4 per cent lower than the corresponding quarter in 2022 as higher revenues were offset by higher cost of sales and accrual of the additional government share at Didipio, along with lower foreign exchange gains and net other expenses compared with other income in 2022.

Annual consolidated adjusted EBITDA was $410.1-million, an 11-per-cent increase compared with 2022, driven by higher revenue and lower cost of sales which was partially offset by higher G&A (general and administrative) costs, indirect taxes, corporate restructuring costs and recognition of the additional government share at Didipio.

Fourth quarter net loss was $18.9-million or three cents per share fully diluted, compared with a net loss of $5.5-million and one cent per share fully diluted in the previous quarter. The net loss was primarily driven by the non-cash writedown of historic tax receivables in the Philippines, totalling $38.3-million ($22.1-million excise taxes and $16.2-million of value-added taxes). The company had been seeking recovery of indirect taxes assessed and paid relating to periods from 2013 and 2019 which it believed were not due and payable at the time, pursuant to the financial or technical assistance agreement (FTAA). These recovery actions were in various stages of court proceedings. Given the lack of definitive progress, continuing administrative costs incurred in respect of these recovery actions, and with the additional government share payments now applicable, the company has written down these indirect tax receivables and has commenced the process of discontinuing legal proceedings in these matters. The additional government share calculation as at Dec. 31, 2023, reflects these taxes paid. As these taxes have already been paid and considered as part of the government share, this writedown of the indirect tax receivables will not result in a cash payment. Were these taxes recovered, it would have resulted in a cash refund to the company and an associated credit to the additional government share also with no net cash flow impact to the company.

Fourth quarter adjusted net profit was $9.6-million or one cent per share fully diluted compared with an adjusted net loss of $1.7-million or zero cents per share in the previous quarter.

Annual adjusted net profit was $115.4-million, a 20-per-cent decrease compared with the previous year mainly due to the first accrual of the additional government share at Didipio of $20.3-million, expected to be paid in April, 2024.

Fourth quarter cash flows from operating activities were $94.8-million, which was 52 per cent above the previous quarter reflecting both the higher revenue and adjusted EBITDA.

Annual cash flows from operating activities totalled $384.2-million, which was 4 per cent above the corresponding period in 2022 due to higher revenue, partly offset by higher indirect tax and G&A costs.

Fourth quarter investing cash flow totalled $78.7-million, which was 15 per cent below the previous quarter, due primarily to lower prestrip and capitalized mining and growth capital at Haile partly offset by higher sustaining and growth capital at Didipio and prestrip and capitalized mining spend at Macraes.

Annual investing cash flow of $341.8-million was 22 per cent above the previous year due to higher prestripping and capitalized mining costs and sustaining capital at Haile and Macraes.

Annual free cash flow was $42.4-million, of which $16.1-million was generated in the fourth quarter.

Following the completion of refinancing in December, as at Dec. 31, 2023, the company's available revolving credit facilities decreased to $200-million, with $135-million drawn and $65.0-million undrawn. The company had immediately available liquidity of $126.7-million including $61.7-million in cash as at Dec. 31, 2023. The debt structure includes an accordion feature of $50-million (in example, preapproved but not committed capacity under the facility) and is excluded from liquidity.

The company's net debt position, inclusive of lease liabilities, decreased to $170.1-million from $171.6-million in the previous quarter. The company's leverage ratio was 0.41 times as at Dec. 31, 2023.

Outlook

The company's 2024 full year guidance is presented in the attached tables.

Consolidated gold production in 2024 is expected to be higher than 2023 driven by increases at Haile and Waihi. The first quarter is expected to be the weakest of the year, with approximately 55 per cent to 60 per cent of consolidated gold production weighted to the second half of the year. The production profile is driven by sequencing of open pit mining at both Haile and Macraes, and the ramp-up of the Horseshoe Underground at Haile. Consolidated AISC profile follows the production trend and is expected to peak in the first quarter, and then come down significantly quarter over quarter in 2024.

In 2024, Haile is expected to produce 195,000 to 225,000 ounces of gold at an AISC of between $1,530 and $1,630 per ounce. Gold production is expected to be 60 per cent to 65 per cent weighted to the second half of the year. Reflecting this profile, Haile's AISC is expected to be significantly above full-year guidance in the first quarter and progressively reduce throughout the year. Mill feed ore sequencing at Haile includes a higher proportion of low grade stockpiles in the first quarter while mining progresses into higher grade ore in the Ledbetter pit in the second quarter and Horseshoe Underground reaches full target mining rates by mid-year.

At Haile, total capital investment is expected to range between $155-million and $175-million. prestripping costs have been accelerated in 2024 to optimize the longer-term mine plan at Haile which is expected to benefit 2025 and 2026. Capitalized mining costs relate to continued development in the Horseshoe Underground mine. Sustaining capital includes a new lift and additional maintenance on the TSF, construction of West PAG phase 2 and 3, which has been accelerated to reduce overall costs and improve mine flexibility, and continuing planned component replacement of the mobile fleet.

Growth capital is expected to be between $20-million and $25-million in 2024 and relates to continuing decline development at Horseshoe Underground and an upgrade to electricity infrastructure. Exploration expenditure at Haile is expected to range between $7-million and $9-million, and will focus on resource definition and conversion of both the Horseshoe Underground and Ledbetter 4, in addition to several early stage targets.

In 2024, Didipio is expected to produce 120,000 to 135,000 ounces of gold and 12,000 to 14,000 tonnes of copper at an AISC between $750 and $850 per ounce. Gold and copper production is expected to be lower in the first and last quarters of the year due to planned mine grades.

At Didipio, total capital investment is expected to range between $45-million and $55-million. Sustaining capital for the year includes underground development, continuing TSF construction and purchases of new underground equipment in support of the underground optimization efforts. Exploration expenditure at Didipio in 2024 will focus on extension and conversion drilling in the underground as well as planned regional exploration activities.

In 2024, Macraes is expected to produce 120,000 to 135,000 ounces of gold at an AISC of between $1,775 and $1,875 per ounce. Gold production is expected to be approximately 55 per cent weighted to the second half of the year as mill feed ore sequencing has a higher proportion of low grade stockpiles until open pit mining reaches ore at Innes Mills 7. Underground mining will continue at Golden Point Underground (GPUG) and will wind-down at Frasers Underground (FRUG) by mid-year 2024. As a result of the open pit production profile, AISC is expected to follow the production trend, starting out higher in the first half and progressively reducing throughout the year. Approximately $100 per ounce of AISC in 2024 is expected to relate to the planned drawdown from ore stockpiles at Macraes, which is a non-cash item.

At Macraes, total capital investment is expected to range between $90-million and $110-million. Prestrip and capitalized mining costs are associated with Innes Mills 7, primarily in the first half of the year, underground development and a major planned component replacement of the mobile fleet.

In 2024, Waihi is expected to produce 55,000 to 75,000 ounces of gold, at an AISC of between $1,350 and $1,500 per ounce. The increase in production from 2023 is in line with the mine plan and reflects the expected larger ratio of ore from higher grade fresh stopes.

At Waihi, total capital investment is expected to range between $45-million and $55-million. Sustaining capital for the year primarily includes underground development and TSF expansion. The largest component of the investment at Waihi is exploration expenditure which is expected to be between $15-million and $20-million in 2024. Continuing exploration will continue to focus on resource growth, resource definition and conversion drilling of the Martha Underground and Wharekirauponga, with exploration spend expected to be approximately evenly distributed between operation and project. Growth capital is expected to range between $5-million and $10-million and includes study costs related to the Waihi North project.

Three-year outlook

The company's three year outlook is presented in the attached tables.

The company expects to deliver production growth of at least 30 per cent from 2023 through 2026 at a declining AISC.

On a consolidated basis, the company expects to produce 510,000 to 570,000 ounces of gold in 2024, increasing to 540,000 to 600,000 ounces in 2025 and 620,000 to 680,000 ounces in 2026. Consolidated AISC is expected to be $1,475 to $1,600 in 2024, decreasing to $1,425 to $1,575 per ounce in 2025 and $1,250 to $1,400 per ounce in 2026.

This three-year outlook reflects an increasing production trend at both Haile and Macraes over time, with a steady contribution from Didipio. Compared with the prior year outlook for this period, there has been a moderation of Waihi's production outlook to reflect the inherent risk with remnant mining. Mine plan optimization at Haile related to the Ledbetter pit, has shifted a portion of previously expected 2024 and 2025 gold production at Haile into 2026. The three-year outlook also now excludes the Round Hill open pit at Macraes, which as been removed from mineral reserves. The three-year outlook does not include the potential increase in production or the associated capital related to the underground optimization work at Didipio or the Palomino Underground at Haile.

Dividend

The company is pleased to announce a semi-annual dividend payment of one cent per common share. Shareholders of record at the close of business in each jurisdiction on March 7, 2024, will be entitled to receive payment of the dividend on April 26, 2024. The dividend payment applies to holders of record of the company's common shares traded on the Toronto Stock Exchange.

Dividends are payable in United States dollars, with the exception of Canadian residents who will be paid in Canadian dollars. Shareholders in other jurisdictions can elect to participate in Computershare's international payments service if they want to receive dividends in an alternative currency.

Conference call

Senior management will host a conference call/webcast to discuss the results on Thursday, Feb. 22, 2024, at 9 a.m. Eastern Time.

Conference call details

Toll-free North America:  1-888-390-0546

Toronto:   1-416-764-8688

Australia:  1-800-076-068

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

About Oceanagold Corp.

Oceanagold is a growing intermediate gold and copper producer committed to safely and responsibly maximizing the generation of free cash flow from its operations and delivering strong returns for its shareholders. The company has a portfolio of four operating mines: the Haile gold mine in the United States; Didipio mine in the Philippines; and the Macraes and Waihi operations in New Zealand.

We seek Safe Harbor.