By: Philippine Resources February 28, 2023

Photo credit: OceanaGold

OceanaGold Corporation reported its financial and operational results for the three months and full year ended December 31, 2022. 

Gerard Bond, President and CEO of OceanaGold said, "2022 was a successful year on multiple fronts for OceanaGold. We achieved record low safety outcomes, outperformed at Haile, returned Didipio to full production ahead of schedule, delivered on group guidance and generated strong free cash flow, which allowed us to reduce net debt by nearly $70 million. We also successfully progressed our organic growth projects, notably the completion of the permitting process for the Haile underground expansion and delivered some exciting exploration results."

"Looking ahead to 2023 and beyond, our focus is to deliver on our near-mine, lower risk, organic growth profile, notably the Haile expansion project. Our three-year outlook is for production growth to over 600,000 ounces of gold by 2025, with a projected improvement in margins and declining capital spending leading to a significant increase in projected free cash flow in that period. Additionally, we will continue to invest in the exciting exploration opportunities across the business, with a focus on near-mine high return targets at Didipio, Haile and Wharekirauponga."

"This strong operational and financial performance in 2022, strengthened balance sheet and the confidence we have in our outlook has resulted in the Board determining to reinstate the Company's dividend policy and pay a  $0.01 per share semi-annual dividend payable in April 2023." 

Full-Year 2022 Highlights

  • Achieved a record low full year recordable injury frequency rate of 2.3 per million hours worked.
  • Achieved consolidated full year guidance with gold production of 472,201 ounces at All-In Sustaining Costs ("AISC") of $1,407 per ounce on gold sales of 469,045 ounces.
  • Fourth quarter consolidated gold production of 120,918 ounces at AISC of $1,602 per ounce on gold sales of 118,667 ounces.
  • Full year revenue of $967.4 million, EBITDA of $382.1 million and Net Profit of $132.6 million.
  • Fourth quarter revenue of $238.4 million, EBITDA of $109.3 million and Net Profit of $41.0 million.
  • Full year adjusted earnings of $0.21 per share and operating cash flow of $0.54 per share, including $0.04 and $0.12 cents per share respectively in the fourth quarter.
  • Generated full year free cash flow of $57.7 million, including $2.7 million in the fourth quarter.
  • Repaid $100 million of the Company's revolving credit facility, reducing drawn bank debt to $150 million.
  • Net debt of $170.2 million as at December 31, 2022, at a leverage ratio of 0.45 times.
  • Haile SEIS Record of Decision and Mine Operating Permit received, completing the permitting process for the expansion.
  • Dividends reinstated, with a semi-annual dividend of $0.01 approved and payable in April 2023.

2023 Guidance and Multi-Year Outlook

  • Consolidated 2023 gold production guidance of 460,000 to 510,000 ounces and 12,000 to 14,000 tonnes of copper.
  • Consolidated 2023 AISC guidance of $1,425 to $1,525 per ounce sold including cash costs of $800 to $900 per ounce sold, both on a by-product basis.
  • Multi-year consolidated gold production and AISC outlook of:
    • 550,000 to 600,000 ounces of gold and 12,000 to 14,000 tonnes of copper at an AISC of $1,300 to $1,450 per ounce sold in 2024; and
    • 580,000 to 630,000 ounces of gold and 12,000 to 14,000 tonnes of copper at an AISC of $1,100 to $1,250 per ounce sold in 2025.
  • Three-year gold production growth rate of approximately 9% per year from 2022 at a decreasing AISC.


Article courtesy of Oceangold. The full press release can be found HERE

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