OceanaGold (OGC) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly gold production of 134,900 ounces, up 37% from Q2, with all sites increasing output and Haile delivering record production at lower unit costs.

• Generated $66 million in free cash flow, not including 10,000 ounces of gold produced but not sold, and net cash increased to $72 million by quarter-end.

• Record revenue of $345 million and net profit of $61 million, with adjusted EPS of $0.09, more than double the prior quarter.

• Progressed key growth projects, including Waihi North PFS and exploration at Haile and WKP, and advanced safety initiatives following two fatalities at DPO.

• Record high gold prices contributed to strong financial performance and increased shareholder returns.

Financial highlights

• Q3 revenue reached a record $345 million, with adjusted EBITDA of $163 million and a margin of 45%.

• All-in sustaining cost (AISC) improved to $1,729/oz, a 19% decrease from the previous quarter, driven by higher sales and byproduct credits.

• Free cash flow for Q3 was $66 million, with year-to-date free cash flow close to $100 million.

• Net cash position increased to $72 million, compared to net debt of $76.5 million at end-2023.

• Adjusted EPS of $0.09, up from $0.04 in the previous quarter.

Outlook and guidance

• Q4 expected to be the strongest quarter of the year for production and cost, with projected gold output of 142,000–162,000 ounces and AISC of $1,400–$1,650/oz.

• Full-year consolidated gold production guidance revised to 480,000–500,000 ounces, about 4% below the original range, and AISC updated to $1,725–$1,825/oz.

• Total capital expenditure for the year updated to $380–$395 million, mainly due to additional water treatment at Haile and mine development at Waihi.

• Expect to meet annual production guidance at Haile and Macraes, with strong Q4 anticipated across all sites.

• Management anticipates continued strong Free Cash Flow and further balance sheet strengthening.