OceanaGold Reports Strong 2023 Performance and Positive Outlook for 2024
OceanaGold today announced its operational and financial results for the fourth quarter and the full year ended December 31, 2023. The company successfully met its 2023 production guidance, achieving a total gold production of 477,313 ounces and copper production of 14,172 tonnes, aligning with initial projections for the year. This performance was bolstered by significant contributions from all four of its operations, particularly the Haile mine's Horseshoe Underground mine and Didipio mine, which surpassed its increased guidance for the year.
2023 was marked by the commencement of production at the Horseshoe Underground mine at Haile and exceeded production expectations at both Didipio and Macraes operations. The company reported an All-In Sustaining Cost (AISC) of $1,587 per ounce, consistent with revised guidance, and recorded a historic revenue of $1.0 billion, fueled by robust sales and record average realized gold prices. OceanaGold ended the year with a net debt of $170.1 million and a leverage ratio of 0.41x, following the successful refinancing of its revolving credit facility.
Looking ahead to 2024, OceanaGold anticipates approximately a 13% increase in gold production, with forecasts ranging between 510,000 to 570,000 ounces and 12,000 to 14,000 tonnes of copper. The company expects a reduction in the unit cost of gold production, with AISC guidance set between $1,475 to $1,600 per ounce sold. This year is set to be transformational for OceanaGold, with a projected organic growth of at least 30% through 2026, driven by expansions at Haile and Macraes.
In addition to operational advancements, OceanaGold plans to initiate a public offering of 20% of OceanaGold Philippines, which operates the Didipio mine, in mid-2024. The proceeds are intended to reduce the company's debt and fortify its financial standing. Furthermore, OceanaGold has declared a semi-annual dividend of $0.01 per share, payable in April 2024, underscoring its commitment to delivering shareholder value amidst a robust growth trajectory.
