Thursday, July 26, 2012

OGC Announces Second Quarter 2012 Results

(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the “Company”) has reported EBITDA (earnings before interest, taxes, depreciation and amortisation) of $25.6 million, a 10% increase on the previous quarter.
In its Second Quarter 2012 Results released today, the Company also reported a 10% increase in gold production over the first quarter, with 55,709 ounces produced.
Revenue for the quarter was $86.7 million from an average gold price received of $1,613 per ounce, a 2% decrease over Q1 due to the lower gold price received offsetting higher ounces sold. Gold sales volumes for the second quarter remained solid reaching 53,756 ounces, versus the previous quarter’s 51,852 ounces.
A second quarter improvement in the operating cash cost per ounce to $1,029 against $1,126 in the first quarter was due to favourable foreign exchange rate movements and an increase in gold ounces produced.

First half 2012 revenue was $175.3 million from sales of 105,608 ounces of gold at a cash cost of $1,077 per ounce sold. The Company’s cash balance at June 30, 2012 was $73 million with credit approval secured for a $220 million facility, announced in July.

The Didipio Project in the Philippines continued to make strong progress throughout the period with construction now 70% complete and the Project is fully funded through to operations and on track for commissioning in fourth quarter 2012.

The Company invested $3.9 million on exploration during the quarter with $3.5 million incurred in New Zealand where positive results were encountered at its Blackwater Underground mine, the Macraes Open Pit reserve and the Round Hill deposit.
OceanaGold CEO, Mick Wilkes, said the Company’s second quarter results supported its expectation of quarter on quarter improvement in 2012.
“The New Zealand operations achieved good production improvement this quarter and remain on track to meet the full year guidance. Didipio construction is at peak levels and progressing on schedule to commission in the fourth quarter of 2012 and with the strong support from our new financial partners we are moving closer to achieving our long term strategic targets.

Other highlights from the OceanaGold Second Quarter 2012 Results include:

• Established a Toronto office and full time Investor Relations Manager (North America) to better service the Company’s TSX listing and North American investment community.

• Awarded a commendation from the Director of the Commission of Human Rights Region 02 in the Philippines as part of the Commission’s 25th anniversary.  

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