OceanaGold Reports First Quarter 2025 Operating & Financial Results

Yahoo

07-05-2025

We are enthusiastic about our organic growth opportunities and exploration potential across all operations. This quarter we made significant progress on open pit waste stripping at Haile and Macraes to unlock access to higher-grade ore later this year, which sets us up for increased production in the fourth quarter and 2026. Our Waihi North Project, which includes the high-grade Wharekirauponga underground, is in the Fast-track permitting process, and we expect it to be approved by year-end. We also discovered the promising new Pisces mineralization at Haile and are investing for further exploration successes at each of our sites."
Gerard Bond, President and CEO of OceanaGold, said: "We are pleased with the strong and safe start to the year, with production and cost performance on track with our annual guidance. Our operational leverage to rising gold prices has provided substantial upside this quarter and positions us to generate another year of significant Free Cash Flow in 2025. This strong performance, combined with our exceptional financial position, provides us with the flexibility to continue investing in growth and drive increased shareholder returns.
Safely and responsibly produced 117,400 ounces of gold and 3,400 tonnes of copper, both increased by 12% from the prior corresponding quarter.
VANCOUVER, BC, May 7, 2025 /CNW/ - OceanaGold Corporation (TSX: OGC) (OTCQX: OCANF) ("OceanaGold" or the "Company") reported its operational and financial results for the three months ended March 31, 2025. The condensed interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") are available at www.oceanagold.com .
Story Continues
Share Buyback and Dividend
In the first quarter of 2025, the Company repurchased 7.0 million common shares for consideration of $19.6 million. For 2025, the Board approved the repurchase of up to $100 million of common shares under the Company's current NCIB ("Normal Course Issuer Bid") program announced in July 2024.
OceanaGold has declared a $0.01 per share dividend payable in June 2025. Shareholders of record at the close of business in each jurisdiction on May 21, 2025 (the "Record Date") will be entitled to receive payment of the dividend on June 20, 2025. The dividend payment applies to holders of record of the Company's common shares traded on the Toronto Stock Exchange.
Declaration of Dividend
Wednesday May 7, 2025
Record Date
Wednesday May 21, 2025
Dividend Payment Date
Friday June 20, 2025
Dividends are payable in United States dollars. Shareholders in other jurisdictions can elect to participate in Computershare's international payments service if they want to receive dividends in an alternative currency. This dividend qualifies as an 'eligible dividend' for Canadian income tax purposes.
Proposed Share Consolidation
The Company is seeking shareholder approval in the upcoming Annual General and Special Meeting in June to consolidate all issued and outstanding common shares on the basis of a consolidation ratio, to be determined by the Board, of up to three to one. The primary strategic rationale for this action is to raise the per share trading price of the common shares to more readily comply with minimum trading price requirements of a major U.S. exchange. This move is part of the Company's exploration of the potential benefits of a dual listing, which it believes could lead to increased access to potential investors, increased marketability and enhanced trading liquidity. The 2025 Annual General and Special Meeting of Shareholders will be held virtually on Wednesday, June 4, 2025, via a live webcast accessible on the day at: https://meetnow.global/MYZ5RD5 . Please note that the Company has refined some of the revisions to the Articles of the Company (Resolution 6). Shareholders are asked to consider and vote on the further amended Articles, available at: https://investors.oceanagold.com/annual-general-meetings and on SEDAR+ under the Company's name.
Results Overview
Q1 2025
Q4 2024
Q1 2024
Gold Produced1
Haile
koz
51.6
75.2
34.7
Didipio
koz
20.6
19.7
26.3
Macraes
koz
28.4
37.9
32.3
Waihi
koz
16.8
18.1
11.5
Total gold produced1
koz
117.4
150.9
104.8
Gold Sales
Haile
koz
57.2
73.9
41.2
Didipio
koz
17.8
20.8
31.8
Macraes
koz
23.7
36.6
32.2
Waihi
koz
15.9
19.0
11.6
Total gold sales
koz
114.6
150.3
116.8
Average Gold Price
$/oz
2,858
2,665
2,092
Copper Produced1 - Didipio
kt
3.4
3.1
3.0
Copper Sales - Didipio
kt
3.2
2.8
3.2
Average Copper Price
$/lb
4.27
4.16
3.90
Cash Costs†
Haile
$/oz
715
598
1,569
Didipio
$/oz
871
1,033
742
Macraes
$/oz
1,369
1,214
1,016
Waihi
$/oz
1,445
1,130
1,601
Consolidated Cash Costs†
$/oz
976
875
1,194
AISC†
Haile
$/oz
1,551
1,287
1,987
Didipio
$/oz
1,130
1,389
946
Macraes
$/oz
2,313
1,535
1,814
Waihi
$/oz
2,019
1,557
2,393
Consolidated AISC†
$/oz
1,796
1,563
1,823
Free Cash Flow†
$M
68.8
146.5
1.8
Net profit (loss)
$M
101.2
102.7
(5.3)
Adjusted net profit†
$M
102.2
107.6
3.7
Adjusted EBITDA†
$M
193.0
251.3
80.9
Earnings (loss) per share2
$/share
$0.14
$0.14
$(0.01)
Adjusted earnings per share†2
$/share
$0.14
$0.15
$0.01
Operating Cash Flow per share†
$/share
$0.28
$0.36
$0.11
Free Cash Flow per share†
$/share
$0.10
$0.20
$0.00
1 Production is reported on a 100% basis as all operations are controlled by OceanaGold.
2 Attributable to the shareholders of the Company.
† See "Non-IFRS Financial Information"
Conference Call and Webcast:
Senior management will host a conference call and webcast to discuss the quarterly results on Thursday, May 8, 2025 at 10:00 am EST (7:00 am PST). To participate in the conference call, please use one of the following methods:
Webcast: https://app.webinar.net/5bgEkA5kN1Q
Toll-free North America: [phone]
International: [phone]
If you are unable to attend the call, a recording will be made available on the Company's website.
About OceanaGold
OceanaGold is a growing intermediate gold and copper producer committed to safely and responsibly maximizing the generation of Free Cash Flow from our operations and delivering strong returns for our shareholders. We have a portfolio of four operating mines: the Haile Gold Mine in the United States of America; Didipio Mine in the Philippines; and the Macraes and Waihi operations in New Zealand.
Cautionary Statement for Public Release
This public release contains certain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws which may include, but is not limited to, statements with respect to the future financial and operating performance of the Company, its mining projects, the future price of gold, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and resource estimates, costs of production, estimates of initial capital, sustaining capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of the development of new mines, costs and timing of future exploration and drilling programs, timing of filing of updated technical information, anticipated production amounts, requirements for additional capital, governmental regulation of mining operations and exploration operations, timing and receipt of approvals, consents and permits under applicable legislation, environmental risks, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. All statements in this public release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as "may", "plans", "expects", "projects", "is expected", "scheduled", "potential", "estimates", "forecasts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases, or may be identified by statements to the effect that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks include, among others: future prices of gold; general business; economic and market factors (including changes in global, national or regional financial, credit, currency or securities markets); changes or developments in global, national or regional political and social conditions; changes in laws (including tax laws) and changes in IFRS or regulatory accounting requirements; the actual results of current production, development and/or exploration activities; conclusions of economic evaluations and studies; fluctuations in the value of the United States dollar relative to the Canadian dollar, the Australian dollar, the Philippines Peso or the New Zealand dollar; changes in project parameters as plans continue to be refined; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability or insurrection or war; labour force availability and turnover; adverse judicial decisions, inability or delays in obtaining financing or governmental approvals; inability or delays in the completion of development or construction activities or in the re-commencement of operations; legal challenges to mining and operating permits including the FTAA as well as those factors identified and described in more detail in the section entitled "Risk Factors" contained in the Company's most recent Annual Information Form and the Company's other filings with Canadian securities regulators, which are available on SEDAR+ at sedarplus.com under the Company's name. The list is not exhaustive of the factors that may affect the Company's forward-looking statements.
The Company's forward-looking statements are based on the applicable assumptions and factors Management considers reasonable as of the date hereof, based on the information available to Management at such time. These assumptions and factors include, but are not limited to, assumptions and factors related to: the Company's ability to carry on current and future operations, including: development and exploration activities; the timing, extent, duration and economic viability of such operations, including any mineral resources or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company's ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the price and market for outputs, including gold; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.
The Company's forward-looking statements are based on the opinions and estimates of Management and reflect their current expectations regarding future events and operating performance and speak only as of the date hereof. The Company does not assume any obligation to update forward-looking statements if circumstances or Management's beliefs, expectations or opinions should change other than as required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits or liabilities the Company will derive therefrom. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.
Non-IFRS Financial Information
Adjusted Net Profit/(Loss) and Adjusted Earnings/(Loss) per share
These are used by Management to measure the underlying operating performance of the Company. Management believes these measures provide information that is useful to investors because they are important indicators of the strength of the Company's operations and the performance of its core business. Accordingly, such measures are intended to provide additional information and should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS. Adjusted Net Profit/(Loss) is calculated as Net Profit/(Loss) less the impact of impairment expenses, write-downs, foreign exchange (gains)/losses, gain on sale of assets, OGP listing costs and restructuring costs related to transitioning certain corporate activities from Australia to Canada.
The following table provides a reconciliation of Adjusted Net Profit/(Loss) and Adjusted Earnings/(Loss) per share:
$M, except per share amounts
Q1 2025
Q4 2024
Q1 2024
Net profit (loss)
101.2
102.7
(5.3)
Foreign exchange loss
0.8
3.0
6.3
Write-down of assets
0.2
1.9
1.2
Restructuring costs
—
—
1.5
Adjusted net profit
102.2
107.6
3.7
Adjusted weighted average number of common shares - fully diluted
714.9
724.6
718.8
Adjusted earnings per share
0.14
0.15
0.01
EBITDA and Adjusted EBITDA
The Company's Management believes that Adjusted EBITDA is a valuable indicator of its ability to generate liquidity by producing operating cash flows to fund working capital needs, service debt obligations and fund capital expenditures. EBITDA is defined as earnings before interest, tax, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA less the impact of impairment expenses, write-downs, gains/losses on disposal of assets, listing costs, foreign exchange gains/losses and other non-recurring costs. EBITDA Margin is calculated as EBITDA divided by revenue.
Prior to the first quarter of 2024, Adjusted EBITDA was calculated using an adjustment for a specific portion of unrealized foreign exchange gains/losses rather than the total foreign exchange gain/loss. The comparative quarters have been recalculated adjusting for all foreign exchange gains/losses.
The following table provides a reconciliation of EBITDA, Adjusted EBITDA and EBITDA Margin:
$M
Q1 2025
Q4 2024
Q1 2024
Net profit (loss)
101.2
102.7
(5.3)
Depreciation and amortization
53.7
100.5
64.8
Net interest expense and finance costs
1.8
2.9
5.4
Income tax expense on earnings
35.3
40.3
7.0
EBITDA
192.0
246.4
71.9
Write-down of assets
0.2
1.9
1.2
Restructuring expense
—
—
1.5
Foreign exchange loss
0.8
3.0
6.3
Adjusted EBITDA
193.0
251.3
80.9
Revenue
359.9
427.3
270.3
EBITDA Margin
53 %
58 %
27 %
Cash Costs and AISC
Cash Costs are a common financial performance measure in the gold mining industry; however, it has no standard meaning under IFRS. Management uses this measure to monitor the performance of its mining operations and its ability to generate positive cash flows, both on an individual site basis and an overall company basis. Cash Costs include mine site operating costs plus indirect taxes and selling cost net of by-product sales and are then divided by ounces sold. In calculating Cash Costs, the Company includes copper and silver by-product credits as it considers the cost to produce the gold is reduced as a result of the by-product sales incidental to the gold production process, thereby allowing Management and other stakeholders to assess the net costs of gold production. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.
Management believes that the AISC measure provides additional insight into the costs of producing gold by capturing all of the expenditures required for the discovery, development and sustaining of gold production and allows the Company to assess its ability to support capital expenditures to sustain future production from the generation of operating cash flows, both on an individual site basis and an overall company basis, while maintaining current production levels. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow per ounce sold. AISC is calculated as the sum of Cash Costs, capital expenditures and exploration costs that are sustaining in nature and corporate G&A costs. AISC is divided by ounces sold to arrive at AISC per ounce.
Prior to the first quarter of 2025, Didipio's AISC calculation excluded local corporate G&A costs which is consistent with the calculation of AISC for the other operations. In order to align the Company's reporting of AISC with local reporting requirements in the Philippines, Management has included local corporate G&A costs in Didipio's AISC calculation beginning in the first quarter of 2025.
The following table provides a reconciliation of consolidated Cash Costs and AISC:
$M, except per oz amounts
Q1 2025
Q4 2024
Q1 2024
Cost of sales, excl. depreciation and amortization
142.9
155.1
160.7
Indirect taxes
4.8
7.6
5.6
Selling costs
2.8
3.2
3.9
Other cash adjustments
(3.4)
(4.7)
(0.8)
By-product credits
(35.3)
(29.7)
(29.9)
Total Cash Costs (net)
111.8
131.5
139.5
Sustaining capital and leases
82.1
77.8
56.8
Corporate general & administration
10.4
23.5
14.8
Onsite exploration and drilling
1.6
0.5
1.8
Total AISC
205.9
233.3
212.9
Gold sales (koz)
114.6
150.3
116.8
Cash Costs ($/oz)
976
875
1,194
AISC ($/oz)1
1,796
1,563
1,823
1
Excludes the Additional Government Share related to the FTAA at Didipio of $7.5 million, $(7.4) million and $7.5 million for the first quarter, fourth quarter and year to date 2025, respectively, as it is considered in nature of an income tax.
The following tables provides a reconciliation of Cash Costs and AISC for each operation:
Haile
$M, except per oz amounts
Q1 2025
Q4 2024
Q1 2024
Cash costs of sales
45.6
51.3
53.2
By-product credits
(1.9)
(0.8)
(0.7)
Inventory adjustments
(3.0)
(6.5)
12.0
Freight, treatment and refining charges
0.2
0.2
0.1
Total Cash Costs (net)
40.9
44.2
64.6
Sustaining and leases
10.4
20.5
9.0
Pre-strip and capitalized mining
36.4
30.5
8.2
Onsite exploration and drilling
0.8
—
—
Total AISC
88.5
95.2
81.8
Gold sales (koz)
57.2
73.9
41.2
Cash Costs ($/oz)
715
598
1,569
AISC ($/oz)
1,551
1,287
1,987
Didipio
$M, except per oz amounts
Q1 2025
Q4 2024
Q1 2024
Cash costs of sales
32.1
40.0
36.1
By-product credits
(31.2)
(27.0)
(28.2)
Royalties
1.6
0.8
1.4
Indirect taxes
4.7
5.2
5.6
Inventory adjustments
4.5
(1.7)
4.8
Freight, treatment and refining charges
3.8
4.2
3.9
Total Cash Costs (net)
15.5
21.5
23.6
Sustaining and leases
2.7
4.8
4.6
Pre-strip and capitalized mining
1.9
2.5
1.9
Onsite exploration and drilling
—
—
—
Total AISC
20.2
28.8
30.1
Gold sales (koz)
17.8
20.8
31.8
Cash Costs ($/oz)
871
1,033
742
AISC1 ($/oz)
1,130
1,389
946
1 Excludes the Additional Government Share of FTAA at Didipio of $7.5 million, $(7.4) million and $7.5 million for the first quarter, fourth quarter, and year to date 2025, respectively, as it is considered in nature of an income tax.
Macraes
$M, except per oz amounts
Q1 2025
Q4 2024
Q1 2024
Cash costs of sales
39.2
44.5
29.6
Less: by-product credits
(0.1)
0.2
—
Royalties
0.7
1.0
(0.1)
Inventory adjustments
(7.6)
(1.7)
3.0
Freight, treatment and refining charges
0.2
0.3
0.2
Total Cash Costs (net)
32.4
44.3
32.7
Sustaining and leases
9.4
5.9
6.4
Pre-strip and capitalized mining
12.3
5.1
18.7
Onsite exploration and drilling
0.6
0.2
0.6
Total AISC
54.7
55.5
58.4
Gold sales (koz)
23.7
36.6
32.2
Cash Costs ($/oz)
1,369
1,214
1,016
AISC ($/oz)
2,313
1,535
1,814
Waihi
$M, except per oz amounts
Q1 2025
Q4 2024
Q1 2024
Cash costs of sales
26.8
22.1
19.5
By-product credits
(2.1)
(2.1)
(1.0)
Royalties
0.5
0.5
0.3
Inventory adjustments
(2.3)
0.9
(0.2)
Add: Freight, treatment and refining charges
0.1
0.1
—
Total Cash Costs (net)
23.0
21.5
18.6
Sustaining and leases
4.3
2.9
2.5
Pre-strip and capitalized mining
4.7
5.6
5.5
Onsite exploration and drilling
0.2
0.3
1.2
Total AISC
32.2
30.3
27.8
Gold sales (koz)
15.9
19.0
11.6
Cash Costs ($/oz)
1,445
1,130
1,601
AISC ($/oz)
2,019
1,557
2,393
Net Cash/(Debt)
Net Cash/(Debt) has been calculated as total debt less cash and cash equivalents. Management believes this is a useful indicator to be used in conjunction with other liquidity and leverage ratios to assess the Company's financial health. Prior to 2024, lease liabilities were included in the calculation of Net Cash/(Debt). The change in respect of 2024 is consistent with the generally adopted approach to the calculation of Net Cash/(Debt). The comparative quarters have been recalculated excluding lease liabilities.
The following table provides a reconciliation of Net Cash/(Debt):
$M
March 31, 2025
December 31, 2024
Revolving credit facility
—
—
Fleet facility1
—
(2.8)
Unamortized transaction costs
—
1.2
Total debt
—
(1.6)
Cash and cash equivalents
227.6
193.5
Net Cash†
227.6
191.9
1 Fleet facility arrangement for mining equipment financing was fully repaid in March 2025. There are no additional amounts available under the fleet facility.
Operating Cash Flow per share
Operating Cash Flow per share before working capital movements is calculated as the cash flows provided by operating activities adjusted for changes in working capital then divided by the fully diluted adjusted weighted average number of common shares issued and outstanding.
The following table provides a reconciliation of total fully diluted cash Operating Cash Flow per share:
$M, except per share amounts
Q1 2025
Q4 2024
Q1 2024
Cash provided by operating activities
171.6
246.1
75.3
Changes in working capital
25.2
14.1
2.5
Cash flows provided by operating activities before changes in working capital
196.8
260.2
77.8
Adjusted weighted average number of common shares - fully diluted
714.9
724.6
718.8
Operating Cash Flow per share
$0.28
$0.36
$0.11
Free Cash Flow
Free Cash Flow has been calculated as cash flows from operating activities, less cash flow used in investing activities. Management believes Free Cash Flow is a useful indicator of the Company's ability to generate cash flow and operate net of all expenditures, prior to any financing cash flows. Free Cash Flow per share is calculated as the Free Cash Flow divided by the fully diluted adjusted weighted average number of common shares issued and outstanding.
The following table provides a reconciliation of Free Cash Flow:
$M, except per share amounts
Q1 2025
Q4 2024
Q1 2024
Cash flows provided by Operating Activities
171.6
246.1
75.3
Cash flows used in Investing Activities
(102.8)
(99.6)
(73.5)
Free Cash Flow
68.8
146.5
1.8
Adjusted weighted average number of common shares - fully diluted
714.9
724.6
718.8
Free Cash Flow per share
$0.10
$0.20
$—
OceanaGold Logo (CNW Group/OceanaGold Corporation)
Cision
View original content to download multimedia:https://www.prnewswire.com/news-releases/oceanagold-reports-first-quarter-2025-operating--financial-results-302449235.html
SOURCE OceanaGold Corporation
Cision
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2025/07/c9278.html