OceanaGold (OGC) Q4 2023 earnings summary

Executive summary

• Delivered 2023 production guidance for a third consecutive year, producing 477 koz of gold and 14.2 kt of copper; 2024 guidance targets 510–570 koz of gold.

• Reported record annual revenue of $1.0B, adjusted EBITDA of $410M and positive free cash flow after growth capital.

Financial highlights

• 2023 adjusted EBITDA was $410M, with an approximately 40% margin; free cash flow after growth capital was $42.4M.

• Operating cash flow per share was $0.56; adjusted EPS was $0.16.

• Net debt was $170M and leverage ratio was 0.41x at year-end.

• Total 2023 capex was $353M, within revised guidance of $330–385M.

Outlook and guidance

• 2024 guidance: 510–570 koz gold, 12–14 kt copper, AISC of $1,475–$1,600/oz and $50–65M growth capital; production midpoint implies 13% growth from 2023.

• Three-year outlook targets gold production of 540–600 koz in 2025 and 620–680 koz in 2026, with AISC of $1,425–$1,575/oz and $1,250–$1,400/oz, respectively.

• Production is expected to increase through 2024 while AISC decreases quarter over quarter.

• 2024 exploration plans include 32,000 m at Haile, 31,000 m at Didipio, 25,000 m at Martha underground and 11,300 m at Wharekirauponga.