OCEANAGOLD ANNOUNCES FULL YEAR 2011 RESULT
(All References in US Dollars)
(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the “Company”) has delivered a 17% increase in EBITDA (earnings before interest, taxes, depreciation and amortisation) to $163.9 million on the previous year.
In its Full Year 2011 Results released today, the Company reported record full year revenue of $395.6 million from an average gold price received of $1,587 per ounce, a 29% increase on FY2010 revenue of $305.6 million. Revenue for fourth quarter 2011 of $106.6 million also exceeded the same quarter last year by 14%.
FY2011 gold sales were 249,261 ounces at an average cash cost of $875 per ounce.
The Company’s cash operating margin for the year expanded by 25% to $712 per ounce compared to the 2010 result of $570 per ounce.
Fourth quarter gold production of 65,750 ounces was an 11% increase on the previous quarter and brought FY2011 gold production to 252,499 ounces. This was slightly below our expectations for the quarter and the year.
Fourth quarter net earnings increased 31% on the previous quarter to $14.3 million resulting in a FY2011 result of $44.2 million which was comparable to FY2010.
Exploration expenditure for the year was $10.7 million with a focus on New Zealand. The Company announced an expanded resource and likely mine life extension to at least 2017 at Frasers Underground in the fourth quarter.
The Company’s Didipio Project in the Philippines also continued to make strong progress throughout the year meeting key construction milestones including commencement of concrete pouring, near completion of the construction accommodation camp, mobilisation by the mining contractor to site and the arrival of the first shipment of structural steel. All major construction contracts for the project have now been awarded or are in the process of being tendered.
OceanaGold CEO, Mick Wilkes, said “Our New Zealand operations posted relatively stable earnings in 2011 and continue to generate positive free cash flows. With the construction of the Didipio Project progressing according to plan and scheduled to commission in fourth quarter 2012 combined with exploration opportunities in New Zealand and the Philippines, the Company is on the right track to achieve its strategic targets.”
Other highlights from the OceanaGold Full Year 2011 Results include:
• Exited the year with a strong cash balance of $170.0 million, a 4% increase on the third quarter.
• Increased metallurgical recovery rate for the fourth consecutive year to 82.9% (versus 81.6% in FY2010).
• Mill throughput improved by 7% to 7.6Mt compared to the previous year
Conference Call / Webcast
The Company will host a conference call / webcast to discuss the FY2011 Financial Results. The call will take place at 8.30 am on Friday, 17 February (Melbourne, Australia time) / 4.30pm on Thursday 16 February (Toronto, Canada time). Details are available on the OceanaGold website at http://www.oceanagold.com.
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For further information please contact:
Ms Nova Young
Investor Relations Officer
Tel: +61(3) 9656 5300
OceanaGold Corporation is a significant Asia Pacific gold producer with projects located on the South Island of New Zealand and in the Philippines. The Company’s assets encompass New Zealand’s largest gold mining operation at the Macraes goldfield in Otago which is made up of the Macraes Open Pit and the Frasers Underground mines. Additionally on the west coast of the South Island, the Company operates the Reefton Open Pit mine. OceanaGold produces approximately 230,000 – 250,000 ounces of gold per annum from the New Zealand operations. The Company also owns the Didipio Project in northern Luzon, Philippines which is in construction and expected to commission in Q4 2012. Currently, Didipio is expected to produce 100,000 ounces of gold and 14,000 tonnes of copper per year over an estimated 16 year mine life.
OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges under the symbol OGC.