OceanaGold FY2009 Financial and Operational Results

/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES/

MELBOURNE, Australia, Feb. 17 /CNW/ - OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the "Company") is releasing summary financial results (unaudited) for the year ending December 31, 2009. This release follows the fourth quarter production report released on January 22nd which outlined record gold sales for the year of 300,044 ounces, an increase of 14% compared to FY2008. Cash operating costs for the year were US$411 per ounce, a 23% improvement on FY2008. Audited Financial Statements together with the Management Discussion & Analysis report for FY2009 will be released by month end.

    
    Key highlights include:

        Gold sales                                300,044 ounces
        Cash cost per ounce sold                  US$411 per ounce
        Cash flow from operations                 US$94.2 million
        Cash and cash equivalents at year end     US$42.4 million
        Net earnings                              US$54.5 million
    

Paul Bibby, CEO commented, "Last year was a record year for the Company with both gold sales and cash costs finishing ahead of guidance issued at the beginning of 2009. The New Zealand operations have now demonstrated consistent operating performance over the past six quarters and this provides a stable production platform for the Company moving forward."

The following table summarises key operational metrics for Q4 2009 and FY2009.

    
    -------------------------------------------------------------------------
                                      Third     Fourth       Year       Year
                                    Quarter    Quarter      Ended      Ended
                                       2009       2009       2009       2008
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    Gold Production
    ---------------
    Ounces Produced                  70,020     72,094    300,391    259,182
    Ounces Sold                      71,492     72,140    300,044    264,124
    Cash operating cost (US$/oz)        473        485        411        532
    Total operating cost (US$/oz)       722        750        630        722
    Average price received (US$/oz)     838        927        790        822

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    Macraes, NZ
    -----------
    Ounces Produced                  48,065     47,470    213,049    183,680
    Mill Feed (dry milled tonnes) 1,396,186  1,410,198  5,635,537  5,545,008
    Mill Feed grade (grams/tonnes)     1.38       1.33       1.47       1.31

    -------------------------------------------------------------------------
    Reefton, NZ
    -----------
    Ounces Produced                  21,955     24,624     87,342     76,132
    Mill Feed (dry milled tonnes)   309,762    347,316  1,278,176  1,192,954
    Mill Feed grade (grams/tonnes)     2.55       2.62       2.60       2.47

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    -------------------------------------------------------------------------
                         CONSOLIDATED BALANCE SHEET
    -------------------------------------------------------------------------
                           As at December 31 2009

    Unaudited
    -------------------------------------------------------------------------
    (in thousands of United States dollars)                  2009       2008
                                                            $'000      $'000
    -------------------------------------------------------------------------
    ASSETS
    Current assets
    Cash and cash equivalents                              42,423      9,711
    Accounts receivable and other receivables               3,460      2,680
    Inventories                                            25,315     21,910
    Other Assets                                            1,257      2,454
    Future income tax assets                                9,006      8,936
    -------------------------------------------------------------------------
    Total current assets                                   81,461     45,691

    Non-current assets
    Inventories                                            33,133     18,763
    Derivatives                                                 -      1,997
    Future income tax assets                                8,684     31,175
    Property, plant and equipment                         118,156    131,377
    Mining assets                                         546,272    400,987
    -------------------------------------------------------------------------
    Total non-current assets                              706,245    584,299
    -------------------------------------------------------------------------
    TOTAL ASSETS                                          787,706    629,990
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities
    Accounts payable and accrued liabilities               29,996     24,459
    Employee benefits                                       2,358      1,726
    Derivatives                                            89,875     48,780
    Interest-bearing loans and borrowings                  62,794     14,087
    Asset retirement obligation                                38         53
    -------------------------------------------------------------------------
    Total current liabilities                             185,061     89,105

    Non-current liabilities
    Other long term obligations                             2,778      3,284
    Derivatives                                                 -     80,066
    Future income tax liabilities                          77,753     61,457
    Interest-bearing loans and borrowings                 120,880    142,625
    Asset retirement obligation                             8,621      6,797
    -------------------------------------------------------------------------
    Total non-current liabilities                         210,032    294,229
    -------------------------------------------------------------------------
    TOTAL LIABILITIES                                     395,093    383,334
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY
    Share Capital                                         354,915    334,975
    Reserves                                               37,698    (88,319)
    -------------------------------------------------------------------------
    TOTAL SHAREHOLDERS' EQUITY                            392,613    246,656
    -------------------------------------------------------------------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY            787,706    629,990
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                     CONSOLIDATED PROFIT & LOSS STATEMENT
    -------------------------------------------------------------------------
                     For the year ended December 31 2009

    Unaudited
    -------------------------------------------------------------------------
    (in thousands of United States dollars)                  2009       2008
                                                            $'000      $'000
    -------------------------------------------------------------------------
    Revenue
    Gold sales                                            237,057    217,214
    Other income                                                -        279
    -------------------------------------------------------------------------
                                                          237,057    217,493
    Cost of sales, excluding depreciation and
     amortisation                                        (121,310)  (138,154)
    Depreciation and amortisation                         (66,181)   (50,547)
    General & administration                               (9,179)   (15,338)
    -------------------------------------------------------------------------
                                                           40,387     13,454
    Other expenses
    Net Interest                                          (14,389)   (18,056)
    Gain/(loss) on fair value of undesignated hedges       58,241    (73,408)
    Sundry expense                                           (390)     2,387
    -------------------------------------------------------------------------
    Earnings/(loss) before income taxes                    83,849    (75,623)
    Income taxes benefit/(expense)                        (29,337)    20,888
    -------------------------------------------------------------------------
    Net earnings/(loss)                                    54,512    (54,735)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                       CONSOLIDATED CASH FLOW STATEMENT
    -------------------------------------------------------------------------
                       For year ended December 31 2009

    Unaudited
    -------------------------------------------------------------------------
    (in thousands of United States dollars)                  2009       2008
                                                            $'000      $'000
    -------------------------------------------------------------------------
    Operating activities
    Net earnings/(loss)                                    54,512    (54,735)
    Charges/(credits) not affecting cash
      Depreciation and amortisation expense                66,181     50,547
      Other Non Cash items                                  2,025      4,548
      Non-cash derivative expenses                        (58,241)    73,408
      Future tax expense/(benefit)                         29,337    (20,888)
      Increase/(Decrease) in working capital                  369     (5,155)
    -------------------------------------------------------------------------
    Net cash provided by operating activities              94,183     47,725
    -------------------------------------------------------------------------

    Investing activities
    Proceeds from sale of property, plant and equipment        27         46
    Payments for property, plant and equipment             (6,696)    (2,974)
    Payments for mining assets: exploration and evaluation (2,168)    (5,381)
    Payments for mining assets: development                (3,022)   (56,373)
    Payments for mining assets: in production
     (infrastructure,prestrip)                            (59,154)   (43,634)
    -------------------------------------------------------------------------
    Net cash (used) for investing activities              (71,013)  (108,316)
    -------------------------------------------------------------------------

    Financing activities
    Proceeds on issue of capital stock                     19,576          -
    Payments for interest bearing liabilities             (16,643)   (23,228)
    Settlement of derivatives                                   -    (25,906)
    -------------------------------------------------------------------------
    Net cash provided by / (used for) financing activities  2,933    (49,134)
    -------------------------------------------------------------------------

    Effect of exchange rate changes on cash                 6,609       (401)
    -------------------------------------------------------------------------
    Net increase / (decrease) in cash and cash equivalents 32,712   (110,126)
    Cash and cash equivalents at beginning of period        9,711    119,837
    -------------------------------------------------------------------------
    Cash and cash equivalents at end of period             42,423      9,711
    -------------------------------------------------------------------------
    

Webcast

Details of the Company's FY2009 results webcast will be made available next week.

About OceanaGold

OceanaGold Corporation is a significant Pacific Rim 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 complex 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 produced more than 300,000 oz of gold from the New Zealand Operations in 2009 and expects to produce 270,000 - 290,000 oz in 2010(1). The Company also owns the Didipio Gold-Copper Project in northern Luzon, Philippines.

OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges under the symbol OGC.

(1) For further information on production guidance, see January 22, 2010 press release.

Cautionary Statement

Statements in this release may be forward-looking statements or forward-looking information within the meaning of applicable securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including, among others, the accuracy of mineral reserve and resource estimates and related assumptions, inherent operating risks, production guidance and those risk factors identified in the Company's Annual Information Form prepared and filed with securities regulators in respect of its most recently completed financial year. There are no assurances the Company can fulfil such forward-looking statements and, subject to applicable securities laws, the Company undertakes no obligation to update such statements. Such forward-looking statements are only predictions based on current information available to management as of the date that such predictions are made; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control. Accordingly, readers should not place undue reliance on forward-looking statements. It is also noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.

SOURCE OceanaGold Corporation

For further information: For further information: Mr Darren Klinck, Vice President, Corporate and Investor Relations, Tel: +61(3) 9656 5300


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