In This Article:
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Quarterly Revenue: Record revenue, contributing to an annual total of $1.3 billion.
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EBITDA Margin: Strong 58% margin for the quarter.
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Adjusted Earnings Per Share (EPS): $0.15 for the quarter, a 67% increase from the prior quarter; $0.29 for the year.
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Free Cash Flow: Record $245 million for the year, with $147 million generated in Q4.
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Net Cash Position: $192 million, after repaying the revolving credit facility.
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Gold Production: 12% increase in Q4, with a record annual production of 215,000 ounces at Haile.
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All-in Sustaining Cost (AISC): 10% lower per ounce in Q4 compared to the previous quarter.
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Dividend and Share Buybacks: Annual dividend doubled; up to $100 million in share buybacks approved for 2025.
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Mineral Reserves Increase: 27% increase in reserves, net of mining depletion.
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Average Realized Gold Price: Over $2400 per ounce.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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OceanaGold Corp (OCANF) reported record quarterly and annual net profit, as well as record free cash flow for 2024.
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The company increased its mineral reserves by 27% net of mining depletion, driven by successful exploration results.
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OceanaGold Corp (OCANF) achieved a record $245 million in free cash flow, representing a 15% after-tax yield on enterprise value.
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The board approved a doubling of the annual dividend and up to $100 million in share buybacks for 2025.
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Employee engagement scores increased significantly in 2024, contributing to strong operational performance.
Negative Points
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The Didipio operation faced operational issues and severe weather events, impacting production.
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Harder-than-expected ore at Haile has slowed mining and processing rates, affecting production timelines.
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The 2025 production guidance reflects higher all-in sustaining costs due to increased stripping and fleet maintenance.
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The company anticipates a moderation in production outlook for 2026 due to delays in stripping and harder ore at Haile.
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Inflationary pressures, particularly in labor costs, are impacting the company's cost structure.
Q & A Highlights
Q: Can you explain the moderation in the 2026 production outlook for Haile? A: Gerard Bond, President and CEO, explained that the moderation is due to a delay in stripping and encountering harder ore than expected, which has slowed mining and processing rates. This has resulted in a longer timeline for extracting gold, affecting the near-term production outlook.
Q: Regarding the reserve update at Didipio, why is there an increase in tonnage but a decrease in grade? A: Craig Feebrey, Chief Exploration Officer, clarified that while the tonnage has increased, the grade has decreased due to the redesign of the Breccia ore zone. However, the total ounces remain similar, and the redesign has not altered the reserve.