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$54.5 million
Paul Bibby, CEO commented, "Last year was a record year for the Company with both gold sales and cash costs finishing ahead of guidance issued at the beginning of 2009. The New Zealand operations have now demonstrated consistent operating performance over the past six quarters and this provides a stable production platform for the Company moving forward."
The following table summarises key operational metrics for Q4 2009 and FY2009.
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Third Fourth Year Year
Quarter Quarter Ended Ended
2009 2009 2009 2008
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Gold Production
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Ounces Produced 70,020 72,094 300,391 259,182
Ounces Sold 71,492 72,140 300,044 264,124
Cash operating cost (US$/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
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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
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Reefton, NZ
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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
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As at December 31 2009
Unaudited
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(in thousands of United States dollars) 2009 2008
$'000 $'000
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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
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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
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Total non-current assets 706,245 584,299
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TOTAL ASSETS 787,706 629,990
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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
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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
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Total non-current liabilities 210,032 294,229
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TOTAL LIABILITIES 395,093 383,334
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SHAREHOLDERS' EQUITY
Share Capital 354,915 334,975
Reserves 37,698 (88,319)
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TOTAL SHAREHOLDERS' EQUITY 392,613 246,656
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 787,706 629,990
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CONSOLIDATED PROFIT & LOSS STATEMENT
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For the year ended December 31 2009
Unaudited
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(in thousands of United States dollars) 2009 2008
$'000 $'000
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Revenue
Gold sales 237,057 217,214
Other income - 279
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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)
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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
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Earnings/(loss) before income taxes 83,849 (75,623)
Income taxes benefit/(expense) (29,337) 20,888
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Net earnings/(loss) 54,512 (54,735)
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CONSOLIDATED CASH FLOW STATEMENT
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For year ended December 31 2009
Unaudited
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(in thousands of United States dollars) 2009 2008
$'000 $'000
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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)
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Net cash provided by operating activities 94,183 47,725
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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)
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Net cash (used) for investing activities (71,013) (108,316)
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Financing activities
Proceeds on issue of capital stock 19,576 -
Payments for interest bearing liabilities (16,643) (23,228)
Settlement of derivatives - (25,906)
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Net cash provided by / (used for) financing activities 2,933 (49,134)
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Effect of exchange rate changes on cash 6,609 (401)
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Net increase / (decrease) in cash and cash equivalents 32,712 (110,126)
Cash and cash equivalents at beginning of period 9,711 119,837
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Cash and cash equivalents at end of period 42,423 9,711
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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.
For further information: Mr Darren Klinck, Vice President, Corporate and Investor Relations, Tel: +61(3) 9656 5300
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