Thursday, October 27, 2011


27 October 2011

(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the “Company”) reported EBITDA (earnings before interest, taxes, depreciation and amortisation) of $43.3 million, a 31% increase on the previous quarter.

In its Third Quarter 2011 Results released today, the Company reported revenue for the quarter of $103.5 million from a record average gold price received of $1,706 per ounce. This represents a 9% increase on the previous quarter and a 24% improvement on the same period last year. Revenue for Year-to-date (YTD) 2011 reached $289.0 million and was another notable gain, exceeding the 2010 result of $211.8 million by 36% and again driven by higher gold prices.

The Company’s cash operating margin was also a beneficiary of the higher gold price received during the quarter, reaching $750 per ounce sold, a 20% increase on the previous quarter.

Gold sales for the quarter were 60,646 ounces with cash costs of $956 per ounce, slightly higher than the previous quarter at $921 per ounce.

The Company’s Didipio Project in the Philippines also made solid progress throughout the quarter with construction activities progressing to plan. By the end of the quarter, 90% of the senior management for the operations team were in place as the Company begins to establish the operating platform and team in advance of expected project commissioning in Q4 2012.

OceanaGold CEO, Mick Wilkes, said the Company’s third quarter results were buoyed by the strong leverage to a rising gold price.

“We are pleased with the operational improvements we have achieved at Macraes and Frasers over the past quarter and continue to work on getting the Reefton operations back in line with expectations. Despite some weather related events at Didipio, progress there is tracking well and we are looking forward to achieving some key benchmarks such as pouring concrete at the project before the end of 2011,” he said.

Other highlights from the OceanaGold Third Quarter 2011 Results include:

• Posted net earnings of $10.9 million, a 163% increase on the previous quarter result of $4.1 million and a YTD 2011 total of $29.8 million.

• Produced 59,090 ounces of gold for the quarter and 186,749 ounces of gold for YTD 2011.

• Increased total ore mined to 2,024,496 tonnes, a 15% gain on the previous quarter.

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