OceanaGold Reports Fourth Quarter and Full Year Operating Results
(All financial figures in U.S. dollars unless otherwise stated)
Highlights
- Production Guidance Met: Achieved record annual production at Haile Mine.
- Net Profit and Free Cash Flow: Record annual net profit of $192 million and free cash flow of $245 million.
- Dividend Plans: Announced doubling of the annual dividend and plans to repurchase up to $100 million of shares in 2025.
OceanaGold Corporation (TSX: OGC) (OTCQX: OCANF) announced its operational and financial results for the fourth quarter and the full year. This has been a strong year, marked by significant achievements and strategic planning for the future.
Fourth Quarter and Full Year Highlights
- Fourth quarter production totaled 150,900 ounces of gold and 3,100 tonnes of copper, a 12% increase in gold production from the previous quarter.
- Record production reported at Haile, and the best quarterly output at Waihi since commencing operations at Martha Underground in 2021.
- For the year 2024, production reached 488,800 ounces of gold and 12,300 tonnes of copper, surpassing the updated production guidance.
- All-In Sustaining Costs (AISC) recorded at $1,563 for Q4 and $1,777 per ounce for the full year.
- Quarterly revenue hit a record of $427 million, with annual revenue reaching $1.29 billion.
- Quarterly and annual net profit was $103 million and $192 million respectively.
- Adjusted earnings per share (EPS) rose to $0.15, a 67% increase over the prior quarter.
- Fourth quarter EBITDA margin recorded at 58%, with operating cash flow per share of $0.36.
- Achieved record quarterly free cash flow of $147 million, totaling $245 million for the year.
- Full repayment of $85 million revolving credit facility concluded in the quarter, arriving at a net cash of $192 million.
- 8.8 million common shares repurchased since July 2024, averaging CAD$3.79 per share.
- Doubled annual dividend to $0.01 per share, payable quarterly.
- Declared an initial mineral reserve of 4.1 million tonnes at 9.2 g/t, amounting to 1.21 million ounces of gold.
- Total mineral reserves increased by 27% to 6.2 million ounces, accounting for mining depletion.
Gerard Bond, President and CEO of OceanaGold, noted, "The fourth quarter was tremendous, highlighting record quarterly free cash flow of $147 million. These impressive results were driven by record production at Haile and strong performances by our other operations. We invested in our operations while enhancing shareholder ownership by repaying the credit facility and actively repurchasing shares. Looking to 2025, we anticipate another year of robust free cash flow and an increase in gold production amongst our various initiatives."
Future Outlook and Growth Strategy
The company is optimistic with a multi-year outlook projecting a 20% increase in gold production compared to 2024 levels by 2026. OceanaGold plans to continue investing in organic growth and exploration projects, while boosting capital returns to shareholders through dividends and stock repurchase programs.
Dividend and Share Buyback Program
The Board has approved the doubling of the annual dividend, now set at $0.01 per common share, payable quarterly. Furthermore, under the current Normal Course Issuer Bid program, the company aims to repurchase up to $100 million worth of common shares by 2025, enhancing shareholder value.
OceanaGold plans a dividend declaration in February, with payments anticipated in April 2025. Record date for eligibility is set for March.
Operational Updates
David Londono, COO Americas, will be exiting his position for personal reasons, with Bhuvanesh Malhotra stepping in to oversee the Haile Gold Mine's operations.
Frequently Asked Questions
What are the key highlights from OceanaGold's financial results?
The highlights include record production, net profit of $192 million, and free cash flow reaching $245 million.
What is OceanaGold's outlook for 2025?
OceanaGold expects strong free cash flow growth and an increase in gold production.
What changes are being made to the dividend program?
The company has doubled the annual dividend to $0.01 per share, payable quarterly.
Who is taking over as COO of OceanaGold?
Bhuvanesh Malhotra has been appointed the new COO of OceanaGold.
How does OceanaGold's performance affect shareholders?
OceanaGold's performance and strategic decisions are designed to enhance shareholder value through dividends and the share buyback program.
