1. OceanaGold reported record quarterly Free Cash Flow of $147 million. 2. Share buybacks and dividend doubled indicates strong financial position. 3. Expected 20% gold production growth by 2026 enhances future outlook. 4. Leadership change with COO departure could impact operational consistency. 5. Strong financial metrics suggest robust shareholder returns and investment.
Strong free cash flow and future growth projections are positive. Similar past results led to price increases for OCANF.
Financial results and growth projections directly impact investor sentiment and price movement for OCANF.
Expected production growth and financial strength suggest sustained positive performance, reminiscent of past growth trends.
VANCOUVER, BC, Feb. 19, 2025 /PRNewswire/ - OceanaGold Corporation (TSX: OGC) (OTCQX: OCANF) ("OceanaGold" or the "Company") reported its operational and financial results for the three months and year ended December 31, 2024. The condensed interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") are available at www.oceanagold.com.
Gerard Bond, President and CEO of OceanaGold, said "The fourth quarter was tremendous, delivering numerous operational and Company records, highlighted by record quarterly Free Cash Flow of $147 million. These strong results were driven by record production at Haile and a strong performance by both Macraes and Waihi. We continued to invest at all four operations while increasing shareholders' ownership of the Company by fully repaying the credit facility and actively buying back shares, finishing the year with net cash of $192 million. In 2024 we also successfully completed a number of major milestones notably the OceanaGold Philippines IPO, the ramp-up of Haile's Horseshoe underground mine, and the release of exceptional results in the Waihi District pre-feasibility study.
Looking forward, we expect another year of strong Free Cash Flow in 2025, and a significant step-up in gold production and Free Cash Flow in 2026. We will continue to invest in our organic growth and exploration projects and increase capital returns to our shareholders via the dividend and share-buyback programs. I am also very excited by the value enhancing catalysts we have in 2025, such as obtaining the permits and commencing construction at the high-grade Wharekirauponga underground mine, and further exploration success at each of our sites."
The Company maintains a strong multi-year outlook, with 20% growth in gold production from 2024 levels by 2026.
| 2025 | 2026 |
|---|---|
| Gold production: 450 - 520 koz | 550 - 620 koz |
| Copper production: 13 - 15 kt | 13 - 15 kt |
| AISC: $1,900 - $2,050/oz | $1,400 - $1,600/oz |
| Growth & Exploration Capital: $120 - $130 M | $190 - $215 M |
The Company advises that David Londono, Chief Operating Officer Americas, is leaving OceanaGold to return to Colombia for family reasons. His last day with the Company will be April 4, 2025. David has been a valued member of OceanaGold since he joined Haile in July 2021 and has guided Haile through operational improvements, permitting of the Haile expansion and mostly recently delivery of the Horseshoe Underground mine into production.
Bhuvanesh Malhotra, Chief Technical and Projects Officer, will permanently assume David's executive accountabilities for the Haile Gold Mine upon David's departure. Mr. Malhotra has been with the company since early 2024 and has over 25 years of experience in operational and technical roles across multiple commodities and mining methods, driving safety performance, operational excellence, and sustainable transformational change.
The Company is pleased to announce a doubling of the annual dividend payment, to $0.01 per common share payable quarterly.
The Board has also approved the repurchase of up to $100 million of common shares in 2025. Under the current NCIB ("Normal Course Issuer Bid") program announced in July 2024, the Company had repurchased 8.8 million common shares as of December 31, 2024.
OceanaGold declared a $0.01 per share dividend in February 2025, payable in April 2025. Shareholders of record at the close of business in each jurisdiction on March 5, 2025 (the "Record Date") will be entitled to receive payment of the dividend on April 25, 2025. The dividend payment applies to holders of record of the Company's common shares traded on the Toronto Stock Exchange.
Senior management will host a conference call/webcast to discuss the quarterly results on Thursday February 20th at 10:00 am Eastern Time.
To register, please copy and paste the link into your browser: https://app.webinar.net/xO8eQlPQnKN
Toll-free North America: +1 888-510-2154
International: +1 437-900-0527
If you are unable to attend the call, a recording will be made available on the Company's website.
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.
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, and other 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.
Adjusted Net Profit/(Loss) and Adjusted Earnings/(Loss) per share are used by Management to measure the underlying operating performance of the Company.
This report contains comprehensive data tables, financial highlights, and operational updates that can further elaborate on OceanaGold's performance throughout the year. For detailed financial reconciliation, additional context, and cautionary information, we advise reviewing the complete financial disclosures available.
SOURCE OceanaGold Corporation