OceanaGold (OGC) Q2 2024 earnings summary

Executive summary

• Q2 2024 gold production was 98,200 ounces and copper production was 2,800 tonnes, with production expected to be over 60% weighted to the second half of the year.

• Safety was a major focus following a fatality at Didipio and a serious injury, prompting enhanced safety programs and operational reviews; 12MMA TRIFR was 1.0.

• Achieved a net cash position of $30 million at quarter-end, supported by free cash flow and proceeds from the Didipio IPO (~$100M) and Blackwater asset sale ($30M).

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

Financial highlights

• Q2 2024 revenue was $251.2 million, driven by record-average realized gold prices, but down from $301.0 million in Q2 2023.

• Adjusted EBITDA for Q2 was $109.0 million; net profit was $34.0 million; adjusted net profit was $30.6 million.

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

• Free cash flow for Q2 was $31.2 million, including proceeds from the Blackwater project sale.

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

Outlook and guidance

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

• All-in sustaining costs are expected to decrease as production increases in H2.

• Free cash flow generation is expected to strengthen in H2, supported by higher grades and volumes.

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