Energy Fuels Inc. press release

OceanaGold Reports Full Year 2022 Financial Results

2023-02-21

NYSE - New York Stock Exchange · Uranium · Vanadium · Rare Earth Elements · Titanium · Zirconium · United States · Corporate Finance

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And Provides 2023 Guidance and Multi-Year Outlook

(All financial figures in US Dollars unless otherwise stated)

VANCOUVER, BC , Feb. 21, 2023 /CNW/ - OceanaGold Corporation (TSX: OGC) ("OceanaGold" or the "Company") reported its financial and operational results for the three months and full year ended December 31, 2022. The consolidated financial statements and the Management Discussion and Analysis ("MD&A") are available at www.oceanagold.com .

Gerard Bond , President and CEO of OceanaGold said, "2022 was a successful year on multiple fronts for OceanaGold. We achieved record low safety outcomes, outperformed at Haile, returned Didipio to full production ahead of schedule, delivered on group guidance and generated strong free cash flow, which allowed us to reduce net debt by nearly $70 million . We also successfully progressed our organic growth projects, notably the completion of the permitting process for the Haile underground expansion and delivered some exciting exploration results."

"Looking ahead to 2023 and beyond, our focus is to deliver on our near-mine, lower risk, organic growth profile, notably the Haile expansion project. Our three-year outlook is for production growth to over 600,000 ounces of gold by 2025, with a projected improvement in margins and declining capital spending leading to a significant increase in projected free cash flow in that period. Additionally, we will continue to invest in the exciting exploration opportunities across the business, with a focus on near-mine high return targets at Didipio, Haile and Wharekirauponga."

"This strong operational and financial performance in 2022, strengthened balance sheet and the confidence we have in our outlook has resulted in the Board determining to reinstate the Company's dividend policy and pay a $0.01 per share semi-annual dividend payable in April 2023."

Full-Year 2022 Highlights

Achieved a record low full year recordable injury frequency rate of 2.3 per million hours worked. Achieved consolidated full year guidance with gold production of 472,201 ounces at All-In Sustaining Costs ("AISC") of $1,407 per ounce on gold sales of 469,045 ounces. Fourth quarter consolidated gold production of 120,918 ounces at AISC of $1,602 per ounce on gold sales of 118,667 ounces. Full year revenue of $967.4 million , EBITDA of $382.1 million and Net Profit of $132.6 million . Fourth quarter revenue of $238.4 million , EBITDA of $109.3 million and Net Profit of $41.0 million . Full year adjusted earnings of $0.21 per share and operating cash flow of $0.54 per share, including $0.04 and $0.12 cents per share respectively in the fourth quarter. Generated full year free cash flow of $57.7 million , including $2.7 million in the fourth quarter. Repaid $100 million of the Company's revolving credit facility, reducing drawn bank debt to $150 million . Net debt of $170.2 million as at December 31, 2022 , at a leverage ratio of 0.45 times. Haile SEIS Record of Decision and Mine Operating Permit received, completing the permitting process for the expansion. Dividends reinstated, with a semi-annual dividend of $0.01 approved and payable in April 2023 .

2023 Guidance and Multi-Year Outlook

Consolidated 2023 gold production guidance of 460,000 to 510,000 ounces and 12,000 to 14,000 tonnes of copper. Consolidated 2023 AISC guidance of $1,425 to $1,525 per ounce sold including cash costs of $800 to $900 per ounce sold, both on a by-product basis. Multi-year consolidated gold production and AISC outlook of: Three-year gold production growth rate of approximately 9% per year from 2022 at a decreasing AISC.

Table 1 – Production and Cost Results Summary

| Quarter ended 31 December 2022 | | Haile | Didipio | Waihi | Macraes | Consolidated | | | Q4 2022 | Q4 2021 | | | | | | | | Production, Sales & Costs | | | | | | | | | Gold Produced | koz | 41.5 | 29.1 | 10.5 | 39.8 | 120.9 | 106.6 | | Gold Sales | koz | 42.3 | 24.5 | 11.2 | 40.6 | 118.7 | 105.3 | | Average Gold Price | US$/oz | 1,737 | 1,858 | 1,731 | 1,760 | 1,769 | 1,806 | | Copper Produced | kt | — | 3.5 | — | — | 3.5 | 2.3 | | Copper Sales | kt | — | 3.5 | — | — | 3.5 | 1.7 | | Average Copper Price (2) | US$/lb | — | 3.91 | — | — | 3.91 | 4.74 | | Cash Costs | US$/oz | 926 | 759 | 1,221 | 811 | 880 | 794 | | Site AISC (1) | US$/oz | 1,753 | 1,061 | 2,035 | 1,376 | 1,602 | 1,326 | | Operating Physicals | | | | | | | | | Material Mined | kt | 10,165 | 404 | 241 | 12,473 | 23,283 | 23,433 | | Waste Mined | kt | 9,016 | 42 | 141 | 10,254 | 19,453 | 20,759 | | Ore Mined | kt | 1,149 | 362 | 100 | 2,219 | 3,830 | 2,674 | | Mill Feed | kt | 836 | 1,018 | 97 | 1,530 | 3,481 | 3,084 | | Mill Feed Grade | g/t | 1.86 | 1.00 | 3.65 | 0.99 | 1.28 | 1.27 | | Gold Recovery | % | 83.1 | 89.1 | 91.9 | 81.9 | 84.6 | 83.4 | | Capital Expenditures | | | | | | | | | General Operations | US$m | 14.8 | 6.5 | 1.0 | 9.4 | 31.8 | 11.0 | | Pre-strip & Capitalised Mining | US$m | 18.6 | 0.5 | 6.8 | 12.0 | 37.9 | 30.4 | | Growth | US$m | 9.4 | 3.6 | 3.1 | 1.1 | 17.2 | 29.1 | | Exploration | US$m | 0.8 | 0.4 | 3.6 | 0.8 | 5.6 | 6.5 | | Total Capital Expenditures | US$m | 43.6 | 11.0 | 14.5 | 23.3 | 92.5 | 77.1 |

| Full Year 31 December 2022 | | Haile | Didipio | Waihi | Macraes | Consolidated | | | 2022 | 2021 | | | | | | | | Production, Sales & Costs | | | | | | | | | Gold Produced | koz | 176.2 | 113.2 | 39.1 | 143.7 | 472.2 | 362.8 | | Gold Sales | koz | 175.4 | 109.4 | 39.8 | 144.5 | 469.0 | 381.6 | | Average Gold Price | US$/oz | 1,818 | 1,811 | 1,785 | 1,817 | 1,813 | 1,821 | | Copper Produced | kt | — | 14.4 | — | — | 14.4 | 2.3 | | Copper Sales | kt | — | 14.7 | — | — | 14.7 | 5.1 | | Average Copper Price (2) | US$/lb | — | 3.82 | — | — | 3.82 | 4.39 | | Cash Costs | US$/oz | 867 | 518 | 1,393 | 992 | 869 | 740 | | Site AISC (1) | US$/oz | 1,425 | 637 | 2,174 | 1,510 | 1,407 | 1,247 | | Operating Physicals | | | | | | | | | Material Mined | kt | 38,072 | 1,704 | 922 | 47,529 | 88,227 | 91,967 | | Waste Mined | kt | 34,061 | 153 | 563 | 39,342 | 74,120 | 83,227 | | Ore Mined | kt | 4,012 | 1,552 | 358 | 8,187 | 14,109 | 8,740 | | Mill Feed | kt | 3,490 | 3,996 | 355 | 5,880 | 13,721 | 9,294 | | Mill Feed Grade | g/t | 1.90 | 1.00 | 3.67 | 0.94 | 1.27 | 1.44 | | Gold Recovery | % | 82.1 | 88.5 | 93.1 | 80.3 | 83.5 | 83.3 | | Capital Expenditures | | | | | | | | | General Operations | US$m | 37.1 | 11.0 | 2.4 | 30.4 | 81.0 | 32.4 | | Pre-strip & Capitalised Mining | US$m | 55.4 | 1.2 | 24.5 | 36.6 | 117.7 | 116.4 | | Growth | US$m | 25.1 | 9.7 | 14.6 | 9.4 | 58.7 | 153.8 | | Exploration | US$m | 3.6 | 0.9 | 12.9 | 4.5 | 22.1 | 24.6 | | Total Capital Expenditures | US$m | 121.2 | 22.8 | 54.4 | 80.9 | 279.3 | 327.1 |

| | | | (1) | Site AISC are exclusive of corporate general and administrative expenses, Consolidated AISC is inclusive of corporate general and administrative expenses. Cash Costs and All-In Sustaining Costs are reported on ounces sold and net of by-product credits. | | (2) | The Average Copper Price Received calculated includes marked to market revaluations on unfinalized shipments as well as final adjustments on prior period shipments per accounting requirements. | | Notes: | | | • | Consolidated capital excludes rehabilitation and closure costs at Reefton and corporate capital projects not related to a specific operating region; these totalled $0.5 million and $0.6 million respectively in the fourth quarter. | | • | Capital and exploration expenditure by location excludes related regional greenfield exploration where applicable. |

Table 2 – Financial Summary

| Quarter ended 31 December 2022

(US$m) | Q4

31 Dec 2022 | Q3

30 Sep 2022 | Q4

31 Dec 2021 | 2022 | 2021 | | Revenue | 238.4 | 213.9 | 208.5 | 967.4 | 744.7 | | Cost of sales, excluding depreciation and amortisation | (129.0) | (143.1) | (98.7) | (506.4) | (324.2) | | General and administration – indirect taxes (2) | (3.5) | (3.4) | (1.8) | (15.2) | (6.0) | | General and administration – idle capacity charges (1) | — | — | (3.9) | — | (31.3) | | General and administration – other | (13.8) | (12.3) | (15.0) | (51.7) | (48.6) | | Foreign currency exchange gain/(loss) | 16.3 | (15.7) | (1.3) | (14.2) | (6.7) | | Other income/(expense) | 0.9 | 0.7 | 1.0 | 2.2 | 1.9 | | EBITDA (excluding impairment expense) (4) | 109.3 | 40.1 | 88.7 | 382.1 | 329.8 | | Depreciation and amortisation | (52.5) | (46.3) | (61.6) | (201.2) | (187.8) | | Net interest expense and finance costs | (4.8) | (1.6) | (3.4) | (9.9) | (11.6) | | Earnings before income tax (excluding impairment expense) (4) | 52.0 | (7.8) | 23.8 | 171.0 | 130.3 | | Income tax (expense)/benefit on earnings | (11.0) | 1.4 | (17.7) | (34.0) | (30.7) | | Earnings after income tax (excluding impairment expense) (4) | 41.0 | (6.4) | 6.1 | 137.0 | 99.7 | | Net impairment expense | — | — | (162.2) | — | (162.2) | | Tax benefit on impairment expense | — | — | 60.1 | — | 60.1 | | Impairment of exploration/property expenditure / investment (3) | — | — | — | (4.4) | (1.3) | | Net Profit/(loss) after Tax | 41.0 | (6.4) | (96.0) | 132.6 | (3.7) | | Basic earnings/(loss) per share | $0.06 | $(0.01) | $(0.14) | $0.19 | $(0.01) | | Earnings/(loss) per share - fully diluted | $0.05 | $(0.01) | $(0.14) | $0.18 | $(0.01) |

| | | | (1) | The Company did not record any revenue or cost of sales from the Didipio mine during the six months ended 30 June 2021. General and Administration – idle capacity charges reflect non-production costs related to maintaining Didipio's operational readiness to October 31, 2021. | | (2) | Represents production-based taxes in the Philippines, specifically excise tax, local business and property taxes. | | (3) | There was a $1.2m write-off related to the Sam's Creek investment as at 30 June 2022. | | (4) | EBITDA, EBIT and Earnings after income tax are non-GAAP measures. Refer to the Accounting & Controls section of the MD&A report for an explanation. |

Table 3 - Cash flow Summary

| Quarter ended 31 December 2022

(US$m) | Q4

31 Dec 2022 | Q3

30 Sep 2022 | Q4

31 Dec 2021 | 2022 | 2021 | | Cash flows from Operating Activities | 100.2 | 45.0 | 109.0 | 368.7 | 261.4 | | Cash flows used in Investing Activities | (90.2) | (55.1) | (79.8) | (280.8) | (315.8) | | Cash flows from / (used) in Financing Activities | (57.3) | (6.9) | (6.3) | (130.2) | 25.1 | | Free Cash Flow | 2.7 | (17.1) | 22.9 | 57.7 | (81.5) |

| | | | | Note: Free Cash Flow has been calculated as cash flows from operating activities, less cash flow used in investing activities less finance lease principal payments which are reported as part of cash flow used in financing activities. |

Operations

The Company achieved its consolidated full production and cost guidance, producing 472,201 ounces of gold and 14,361 tonnes of copper at an AISC of $1,407 per ounce. Full year gold production was approximately 30% higher than 2021 due to stronger gold production from the New Zealand Operations and the successful ramp-up of operations at Didipio, where target underground mining rates were achieved ahead of schedule in the second quarter of 2022. Fourth quarter consolidated production was 120,918 ounces of gold, a 15% quarter-on-quarter increase due to higher grades at Haile and Macraes as expected.

On a consolidated basis, the Company recorded full-year AISC of $1,407 per ounce on gold sales of 469,045 ounces and copper sales of 14,699 tonnes. Fourth quarter consolidated AISC was $1,602 per ounce on gold sales of 118,667 ounces and copper sales of 3,530 tonnes. AISC per ounce was similar year-on-year with the benefit of higher sales being offset by increased sustaining capital investments. The Company's AISC increased 3% quarter-on-quarter due to higher sustaining capital, partially offset by higher gold sales and by-product credits.

Haile produced 41,533 ounces of gold in the fourth quarter, resulting in 176,222 ounces of gold production for the full year, which was just above the top end of guidance for the operation. The higher quarter-on-quarter production reflected higher grades processed, and was achieved despite processing being interrupted for approximately five days by the large scale, extreme cold weather event experienced in late December. Consistent with the higher full year production, Haile's full year AISC was below the low end of its full year AISC guidance range at $1,425 per ounce, while fourth quarter AISC was $1,753 per ounce sold.

In the fourth quarter, the United States Army Corp of Engineers ("ACOE") issued the Haile Supplemental Environmental Impact Statement Record of Decision ("SEIS ROD"), and granted a permit under Section 404 of the Clean Water Act ("404 Permit"). Receipt of the SEIS ROD and 404 Permit completed the federal permitting process for the Haile expansion. In addition, the South Carolina Department of Health and Environmental Control ("DHEC") issued the Mine Operating Permit ("MOP"), which completed the state permitting process.

The receipt of the SEIS ROD, 404 Permit and the MOP allows for development and operation of the underground mine and an expanded operating footprint to allow for additional waste containment facilities and tailings storage capacity. To date, the Company has developed approximately 400 metres of the underground decline and a combined 550 metres of work on two ventilation portals. First ore from Haile underground remains on track for delivery to the mill in the fourth quarter of 2023.

Didipio produced 29,104 ounces of gold and 3,476 tonnes of copper in the fourth quarter, resulting in 113,198 ounces of gold and 14,361 tonnes of copper produced for the full year, which was in line with guidance for the operation. The fourth quarter was the second consecutive quarter in which underground mining operated at full target production rates. Didipio's full year AISC was $637 per ounce in line with guidance. Didipio's fourth quarter AISC was $1,061 per ounce, while cash costs were $759 per ounce. The quarter-on-quarter increase in AISC was due to lower gold sales combined with higher sustaining capital investments. The lower gold sales reflected 4,378 ounces of gold in doré unable to be transported for sale in late December due to inclement weather (which was subsequently sold in January 2023 ).

Macraes produced 39,815 ounces in the fourth quarter, resulting in 143,672 ounces of gold for the full year. Quarter-on-quarter production increased 35% due to higher grades and increased mill feed tonnes. Full year production was 9% higher than the prior year, despite the impacts of inclement weather on the operation in mid-2022, with higher annual mill throughput the main driver. In the fourth quarter, the operation delivered first ore production from Golden Point Underground ("GPUG") as planned. Despite the stronger fourth quarter, the full year production result was marginally (1.3 koz or 0.9%) below guidance for the operation. Full year AISC at Macraes was $1,510 per ounce while fourth quarter AISC was $1,376 per ounce.

The Waihi operation produced 10,466 ounces in the fourth quarter, resulting in 39,109 ounces of gold for the full year which was in-line with revised guidance for the operation. Quarter-on-quarter production was 24% lower, reflecting increased remnant ore mining in October. Annual production was impacted by various local and regional COVID-19 restrictions and isolation requirements in the first half, in addition to the negative reconciliation as previously communicated. For the full year, Waihi's AISC was $2,174 per ounce while fourth quarter AISC was $2,035 per ounce.

Financial

Consolidated full year 2022 revenue was $967.4 million , a record for the Company and a 30% increase on the previous year which reflects the successful ramp-up of Didipio and higher gold sales from the New Zealand operations. The average gold price received year-on-year was similar, while the average copper price received was 13% lower than 2021. Fourth quarter revenue of $238.4 million was 11% above the previous quarter, with increased gold sales from Macraes and Haile, as expected, and higher average realised gold prices. This was partly offset by lower sales from Didipio where inclement weather delayed the final planned 2022 gold doré delivery until January 2023 . This delayed Didipio sale also negatively impacted free cash flow for the quarter.

EBITDA for the full year 2022 was $382.1 million , reflecting a 16% increase year-on-year primarily driven by higher revenue partially offset by the higher cost of sales. Fourth quarter EBITDA of $109.3 million was significantly higher than the previous quarter, mainly due to the higher revenue combined with a lower cost of sales and non-cash unrealised foreign exchange translation gains.

Full year 2022 earnings after tax were $137.0 million , $37.3 million or 37% higher than the prior year earnings after tax of $99.7 million . Fourth quarter earnings after tax were $41.0 million .

Fourth quarter adjusted net profit after tax was $29.9 million or $0.04 per share fully diluted. Full year 2022 adjusted net profit after tax of $147.9 million or $0.21 per share fully diluted. The adjustments from statutory net profit for the 2022 year relate primarily to $10.9 million of non-cash unrealised foreign exchange losses on U.S. dollar denominated debt held by the New Zealand subsidiaries.

Cash flows from operating activities were $368.7 million for the full year 2022, $107.3 million or 41% higher than the prior year. Operating cash flow was $100.2 million in the fourth quarter, 123% above the third quarter due to strong EBITDA and favourable working capital movements. The resulting Free Cash Flow generated was $57.7 million , $139.2 million higher than the prior year.

Cash flows used in investing activities totalled $280.8 million for the full year 2022, which was 11% below the prior year, driven by lower growth capital at Haile and Waihi, partly offset by higher general operations sustaining capital at Haile and Macraes combined with the resumption of capital expenditure at Didipio following the restart.

Fully diluted cash flow per share was $0.54 for the full year 2022 and $0.12 in the fourth quarter. As of December 31, 2022, the Company had immediately available liquidity of $183 .2 million, comprising $83 .2 million in cash and $100 .0 million in undrawn credit facilities. Net Debt, inclusive of equipment leases, was $170 .2 million as at December 31, 2022, a 28% reduction relative to December 31, 2021.

2023 Guidance and Multi-Year Outlook

The 2023 full year guidance is stated in the tables below.

| Production & Costs | | Haile | Didipio | Waihi | Macraes | Consolidated | | | | | | | | | | | | Gold Production | koz | 170 | - | 185 | 120 | - | 130 | 50 | - | 60 | 120 | - | 135 | 460 | - | 510 | | Copper Production | kt | | - | | 12 | - | 14 | | - | | | - | | 12 | - | 14 | | All-in sustaining costs 1 | $/oz | 1,500 | - | 1,600 | 750 | - | 850 | 1,400 | - | 1,500 | 1,625 | - | 1,725 | 1,425 | - | 1,525 | | Cash costs | $/oz | 725 | - | 825 | 525 | - | 625 | 1,000 | - | 1,100 | 1,000 | - | 1,100 | 800 | - | 900 |

| Capital Investments (US$m) | Haile | Didipio | Waihi | Macraes | Consolidated 2 | Included in AISC | | | | | | | | | | | | | | Pre-strip and Capitalised Mining | 75 | - | 85 | 4 | - | 6 | 15 | - | 20 | 45 | - | 50 | 145 | - | 165 | 145 | - | 165 | | General Operations | 55 | - | 60 | 20 | - | 25 | 3 | - | 5 | 20 | - | 25 | 95 | - | 110 | 95 | - | 110 | | Growth | 40 | - | 45 | 10 | - | 15 | 10 | - | 15 | 1 | - | 3 | 65 | - | 75 | — | - | — | | Exploration | 6 | - | 8 | 3 | - | 5 | 13 | - | 18 | 2 | - | 4 | 25 | - | 35 | 7 | - | 9 | | Total Investments | 180 | - | 200 | 35 | - | 50 | 45 | - | 55 | 75 | - | 85 | 330 | - | 385 | 245 | - | 285 |

| | | | Notes | | | 1. | Consolidated AISC include corporate costs. AISC guidance based on copper price of $3.75/lb . | | 2. | Includes corporate capital and excludes Reefton Rehabilitation costs and equipment leases classified as non-sustaining at inception. |