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.

• Record quarterly production at Haile and strong free cash flow margin of $490/oz at an average realized gold price of $2,500/oz.

• Fourth quarter expected to be the strongest of the year, with higher production and lower costs anticipated.

• Safety improvements implemented following two fatalities at DPO, with increased hazard identification training and infield safety coaching.

Financial highlights

• Q3 revenue reached a record $345 million, with net profit of $61 million and adjusted EPS of $0.09, more than double the previous quarter.

• Adjusted EBITDA reached $163 million, with an EBITDA margin of 45%.

• All-in sustaining cost (AISC) improved to $1,729/oz, a 19% decrease from the prior quarter, driven by a 30% increase in gold sales and higher byproduct credits.

• Free cash flow for the quarter was $66 million, exceeding the cumulative free cash flow of the first half and all of last year.

• Net cash position increased to $72 million at quarter-end.

Outlook and guidance

• Q4 production expected to be 142,000–162,000 ounces, the strongest quarter of the year, with all sites contributing.

• Full-year consolidated gold production guidance revised to 480,000–500,000 ounces, about 4% below the original range.

• Full-year AISC guidance updated to $1,725–$1,825/oz; Q4 AISC expected to be the lowest of the year at $1,400–$1,650/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.

• Copper production guidance remains unchanged.