OceanaGold (OGC) Q2 2024 earnings summary

Executive summary

• Q2 2024 gold production totaled 98,200 ounces and copper production was 2,800 tonnes, with output at Didipio and Waihi weaker but full-year guidance maintained and over 60% of production expected in H2.

• Safety incidents included a fatality at Didipio and a serious injury, prompting intensified safety programs and operational reviews.

• Achieved a net cash position at quarter-end, supported by $31 million free cash flow and proceeds from the Didipio IPO and Blackwater asset sale.

• Declared a $0.01 per share semi-annual dividend and introduced a share buyback program as part of capital allocation strategy.

Financial highlights

• Q2 2024 revenue was $251.2 million, driven by record-average realized gold prices.

• Free cash flow for Q2 was $31.2 million, including proceeds from asset sales.

• Adjusted EBITDA for Q2 was $109.0 million; adjusted net profit was $30.6 million.

• Adjusted EPS was $0.04; operating cash flow per share was $0.14.

• All-in sustaining costs (AISC) for Q2 were $2,131/oz, above guidance due to lower sales and higher maintenance.

Outlook and guidance

• On track to meet full-year consolidated production, cost, and capital guidance, with production more than 60% weighted to H2.

• AISC expected to decrease as production increases in H2.

• Guidance reaffirmed, with management targeting the midpoint despite H1 underperformance at smaller sites.

• Didipio and Waihi are forecast to improve in H2, with Didipio at the lower end of guidance.

• Waihi North Project NI 43-101 PFS scheduled for Q4 2024; Didipio NI 43-101 expected in Q1 2025.