OceanaGold (OTC:) Company (ticker: OGC) introduced a record-breaking income of $1B for the fourth quarter and year-end 2023, with substantial free money move and plans for manufacturing progress. The corporate’s give attention to security and manufacturing has led to a powerful monetary efficiency, together with a free money move of $42M. OceanaGold expects to proceed this momentum with a 13% manufacturing enhance in 2024, primarily pushed by operations at Haile and Waihi mines. The corporate additionally mentioned its methods for monetary strengthening, exploration investments, and shareholder returns throughout its earnings name.

Key Takeaways

• OceanaGold achieved a report income of $1B and generated $42M in free money move.
• The corporate anticipates a 13% manufacturing progress in 2024, specializing in Haile and Waihi mines.
• Plans are in place to strengthen the monetary place and spend money on progress capital and exploration.
• Natural manufacturing progress and declining prices are anticipated to yield sturdy free money move sooner or later.
• Didipio had a powerful This autumn, surpassing manufacturing steerage, and Waihi is ready to extend manufacturing in 2024.
• Macraes confronted geotechnical dangers, resulting in the removing of Spherical Hill from reserves.
• The corporate is contemplating underground mining at Ledbetter Section 4 for improved economics.
• OceanaGold is getting ready to launch up to date NI 43-101 stories and expects to see a manufacturing enhance in 2026.
• Asset gross sales and a partial itemizing of Didipio are anticipated to shut within the first half of the yr.
• The corporate goals for a web money place by the tip of 2024 with plans to cut back dedicated progress capital in 2025 and 2026.

Firm Outlook

• OceanaGold plans to realize a web money place by the tip of 2024.
• The corporate is targeted on lowering dedicated progress capital in 2025 and 2026.
• Investments in progress initiatives like Palomino and Didipio are anticipated to ship sturdy returns.

Bearish Highlights

• Labor charge inflation and exercise degree optimization are impacting price modifications.
• Macraes has eliminated Spherical Hill from reserves as a result of geotechnical dangers.
• A historic tax receivable write-down was needed as a result of modifications in tax legal guidelines.

Bullish Highlights

• The corporate has added reserves and sources and is devoted to exploration efforts.
• Sturdy fourth-quarter efficiency by Didipio, exceeding manufacturing steerage.
• Authorities share at Didipio is accrued quarterly and paid yearly, indicating a gentle revenue stream.

Misses

• No particular misses had been highlighted within the earnings name.

Q&A Highlights

• Gerard Bond offered insights on manufacturing components at Macraes and the impression of the removing of Spherical Hill reserves.
• The March 43-101 report will provide detailed data on reserves and sources.
• A manufacturing enhance is anticipated in 2026, primarily from Haile and Macraes.

OceanaGold is positioning itself for future progress with a powerful emphasis on security, manufacturing effectivity, and monetary prudence. The corporate’s strategic choices, such because the potential underground mining at Ledbetter Section 4 and the give attention to key mines like Haile and Waihi, are designed to maximise financial outcomes and shareholder worth. With the anticipated asset gross sales and the partial itemizing of Didipio, OceanaGold is aiming to additional solidify its stability sheet and improve returns to its shareholders by means of dividends or share buybacks within the coming years.

InvestingPro Insights

OceanaGold Company’s (ticker: OGC) monetary power and progress prospects are highlighted by a number of key metrics and insights from InvestingPro. With a market capitalization of $1.37 billion, the corporate’s valuation displays its sturdy market place. The adjusted P/E ratio for the final twelve months as of This autumn 2023 stands at 15.74, suggesting that the inventory is fairly valued in comparison with its earnings. The PEG ratio, which measures the inventory’s value relative to its earnings progress, is exceptionally low at 0.01, indicating potential undervaluation based mostly on future earnings progress expectations.

InvestingPro Ideas reveal that analysts are optimistic about OceanaGold’s prospects, predicting the corporate shall be worthwhile this yr, with web revenue anticipated to develop. This aligns with the corporate’s personal projections of elevated manufacturing and monetary strengthening. The truth that OceanaGold has been worthwhile during the last twelve months additional reinforces the optimistic outlook.

Income progress can also be a powerful level for OceanaGold, with a 6.09% enhance during the last twelve months as of This autumn 2023. This progress is a testomony to the corporate’s operational effectivity and market demand for its merchandise.

For buyers concerned about a deeper dive into OceanaGold’s financials and future prospects, InvestingPro provides extra insights. There are extra InvestingPro Ideas accessible, which will be accessed by means of the devoted web page for OceanaGold at https://www.investing.com/professional/OCANF. Customers can make the most of the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Professional and Professional+ subscription, unlocking additional helpful evaluation and information to tell their funding choices.

Full transcript – Oceangold Corp Com (OCANF) This autumn 2023:

Operator: Good morning and afternoon, women and gents, and welcome to the OceanaGold This autumn and 12 months-Finish 2023 Webcast and Convention Name. Presently, observe that every one strains are in a listen-only mode. Following the presentation, we’ll conduct a question-and-answer session. [Operator Instructions]. Additionally observe that this name is being recorded on Thursday, February 22, 2024 at 10 a.m. Jap Time. And I want to flip the convention over to Rebecca Harris. Please go forward.

Rebecca Harris: Good morning, and welcome to OceanaGold’s fourth quarter and year-end 2023 outcomes webcast and convention name. I am Rebecca Harris, Director of Investor Relations. At this time, we’re joined by Gerard Bond, President and Chief Government Officer; Marius van Niekerk, Chief Monetary Officer; David Londono, Chief Working Officer, Americas; Peter Sharpe, Chief Working Officer at Asia Pacific; and Craig Feebrey, Chief Exploration Officer. Additionally current is Brian Martin, Senior Vice President, Enterprise Improvement and Investor Relations. The presentation that we are going to be referencing in the course of the convention name is accessible by means of the webcast and on our web site. I might additionally wish to remind everybody that our presentation shall be adopted by a Q&A session. As we shall be making forward-looking statements in the course of the name, please seek advice from the cautionary notes included within the presentation, information launch, and MD&A in addition to the chance components set out in our annual data kind. All greenback quantities mentioned on this convention name are in U.S. {dollars}. I’ll now flip the decision over to Gerard for opening remarks.

Gerard Bond: Thanks, Rebecca, and good morning, everybody. Thanks for becoming a member of the decision. I would like to begin by recognizing among the 2023 highlights by means of the lens of the 5 pillars of our company technique. 2023 was our third consecutive yr of safely and responsibly delivering on consolidated manufacturing steerage. We all know that median manufacturing steerage is a key expectation of the market and I am happy that every of our operations delivered a powerful fourth quarter outcome to get us solidly throughout the manufacturing steerage vary. Our complete recordable harm frequency charge was 4.4 per million hours labored. We stay dedicated to making a secure office at OceanaGold. And in help of this, in 2023, we commenced the rollout of our refreshed behavioral-based security program and our new Cease and Assume danger evaluation device throughout all websites. These packages empower our workforce to work safely and to mindfully establish danger earlier than performing a job. The second pillar of our technique pertains to ensuring now we have the proper tradition. Pleasingly, the outcomes of a brand new complete survey of all our staff confirmed that now we have a extremely engaged workforce with a excessive intention to remain at OceanaGold. We are going to work with the detailed outcomes of this survey to establish the place and the way we are able to enhance our tradition even additional in 2024. Yesterday, we additionally launched our annual reserve and useful resource replace during which we declared an preliminary reserve at Palomino underground at Haile, and confirmed a rise in indicated sources at Wharekirauponga to over 1 million ounces at a world-class gold grade of 15.9 grams a tonne. Each the achievements of Palomino and Wharekirauponga along with profitable ongoing exploration at Didipio, which we shared final yr, reveal the upside potential of our asset base and our skill so as to add worth by means of the drill bit. Craig Feebrey will converse extra about this afterward. In 2023, we strengthened our stability sheet and elevated returns to shareholders. We generated free money move of $42 million, which is after the numerous funding in constructing Haile Underground and elevated exploration spend. We have refinanced our debt services on improved phrases, and we returned to paying dividends to shareholders. We count on to proceed to strengthen our monetary place in 2024, each by means of the technology of extra free money move and with the proceeds of the upcoming itemizing of 20% of OceanaGold’s Philippine, Inc. Lastly, with the transfer of our company workplace to Vancouver, we’re now nearer to and extra engaged with our investor and analyst neighborhood. We elevated the variety of investor web site visits, and we upgraded our buying and selling platform to offer higher entry for U.S. buyers to commerce our shares. Our sturdy efficiency throughout the enterprise in 2023 allowed us to fulfill all 2023 consolidated steerage numbers, each the unique and revised excluding the unique all-in sustaining price steerage on account of the impression of mill zone at Haile, which we mentioned final yr. This profitable supply steerage was powered by a powerful fourth quarter, which was pushed by high-grade ore coming from Horseshoe Underground at Haile, improved throughput from operational efficiencies at Macraes and sooner than deliberate entry into excessive grade areas of the mine at Didipio. This slide exhibits what’s really distinctive about OceanaGold, being a powerful charge of natural manufacturing progress and declining all-in sustaining price over the subsequent three years. We’re nicely right into a excessive natural progress part and count on to provide roughly 13% extra gold in 2024 than we did in 2023, with manufacturing progress of at the least 30% over the subsequent three years. This enhance is pushed largely by a metamorphosis within the manufacturing profile and the fee profile at Haile, which takes form in 2024. This thrilling natural progress profile and declining ranges of progress capital, which you see on the right-hand aspect of the slide, positions the corporate to generate sturdy free money move over the approaching years. I will now flip the decision over to Marius, so he can talk about our 2023 monetary outcomes and 2024 steerage in additional element.

Marius van Niekerk: Thanks, Gerard, and good morning, everybody. I am happy to share that we generated a report full-year income of $1 billion in 2023, pushed by sturdy gold gross sales at report common realized costs. As you may see on the slide, our annual gold gross sales, income, and adjusted EBITDA have elevated annually since 2020 and at right this moment’s gold value, mixed with the three yr outlook, we count on our monetary place to stay sturdy within the years to return. Our 2023 full-year working money move per share of $0.56 and our adjusted earnings per share of $0.16 are in step with analyst consensus estimates. Our monetary place stays sturdy with $170 million in web debt, good liquidity and a low leverage ratio of 0.41x on the finish of the yr. Shifting on to the 2024 full-year steerage. 12 months-over-year manufacturing progress of 13% is pushed by elevated gold manufacturing at each Haile and Waihi. Haile advantages from an elevated contribution from the upper grade Horseshoe Underground in addition to entry to a excessive proportion of open pit ore from the Ledbetter pits within the second half of the yr. Waihi manufacturing can even enhance from the prior yr as mining advances into an elevated ratio of upper grade recent stope materials. We’ve larger pre-stripping at each Macraes and Haile within the first half of the yr to permit for entry to extra open pit ore within the second half. The impression of this on a consolidated foundation is that the primary quarter of 2024 is anticipated to be the weakest with roughly 55% to 60% of 2024 gold manufacturing weighted to the second half of the yr. The consolidated AISC profile follows the identical pattern and is as anticipated to be considerably larger within the first quarter and better than that within the fourth quarter of 2023. AISC is then anticipated to return down quarter-over-quarter by means of 2024. We’ve taken the chance to convey ahead some capital works and to optimize the Ledbetter pit at Haile. This has resulted within the unit price and that of the corporate being larger in 2024 than we projected this time final yr with advantages flowing into 2025 and 2026. We additionally proceed investing in our enterprise by means of progress capital and exploration and count on to spend an identical quantity in complete as we did in 2023. As we superior the decline at Horseshoe to entry newly added reserves at debt. I’ll now flip the decision over to David to debate out.

David Londono: Thanks, Marius, and whats up, everybody. Fourth quarter gold manufacturing at Haile was roughly 38,000 ounces, a wholesome enhance from the third quarter. This enhance was pushed by a major contribution from higher-grade ore on the Horseshoe underground. Throughout the identical interval, [indiscernible] continued in Ledbetter Section 2 plus stripping and this momentum is anticipated to proceed by means of 2024. From a value perspective, we had been impacted in the course of the yr by the shortfall in grade and the now accomplished Mill Zone pit that prices did rebound from the excessive in Q3 over the last quarter of the yr. Waiting for 2024, we predict a better contribution from low-grade stockpile materials being processed by means of the mill in the course of the first quarter, whereas we proceed advancing within the Ledbetter pit and we’ll count on to exit the primary ore physique of the Ledbetter Section 2 within the second quarter. Contemplating the timing of open pit ore availability and the ramp-up of Horseshoe underground in the course of the first half of the yr, our manufacturing profile for 2024 is anticipated to extend quarter-over-quarter and are all in sustaining prices to progressively decline in every quarter as nicely. Our annual manufacturing at commerce is projected to be 60 to 65 weighted in the direction of the second half of the yr. Now speaking concerning the Haile growth. In 2023, Haile skilled a exceptional transformation with the beginning of operations on the Horseshoe Underground mine. In a single yr, we established underground mining in two completely different ranges, optimizing our retractions, efforts that resulted in 83,000 tonnes of ore produced in 2023 at a grade of 5.32 grams per tonne. I discussed earlier, the underground is anticipated to proceed to ramp up till it reaches full annualized run charges of roughly 750,000 tonnes each year by New 12 months 2024. I want to spotlight that we now have added Palomino to reserves. That is an extra 380,000 ounces of underground ore with a goal to begin mining in 2027. Influence of this shall be detailed in an NI43-101 technical report back to be launched on the finish of March 2024. On floor, we accomplished the water remedy plant in 2023. This was an vital milestone in managing our contact water of web site. Haile has now handled over 75% of historic contact water stock and it’s anticipated that the remaining contact water stock, which now sits on this [indiscernible] pit shall be handled and discharged in the course of the first half of 2024. This advances to our dedication to accountable operations and accountable retailer ship at Haile. The ultimate level I want to discuss is that we’re at the moment engaged on a trade-off examine that evaluates the potential for Ledbetter Section 4 to be mined as an underground. Whereas it’s at the moment enhancing demand plan as an open pit, given the excessive stripping ratio, we consider it may enhance the location economics to mine these deposits as an underground, and we’re finding out the viability of doing so. We are going to maintain you up to date as these works progresses included extra drilling all through yr. I’ll now flip the decision over to Peter to debate the main points on our New Zealand belongings.

Peter Sharpe: Thanks, David, and good morning, everybody. The Didipio had an distinctive fourth quarter, delivering gold manufacturing of 43,000 ounces and manufacturing of three,800 tonnes, which helped us to ship and exceed the highest finish of our annual manufacturing steerage. Our fourth quarter outcomes had been underpinned by the power to mine high-grade stopes within the high of the ore physique, enabled partially by sooner than deliberate progress of our Crown pillar strengthening mission. This sturdy manufacturing for the yr helped to ship an all-in sustaining price of $730 an oz, which was inside steerage that we lowered with our Q3 outcomes. Final month, we additionally introduced the outcomes of the underground optimization work at Didipio, which is indicating a capability to extend underground mining charges from the present 1.75 million tonne each year to roughly 2.5 million tonne each year, which might ship a serious profit by offsetting decrease grade stockpile feed by means of the mill. This, together with some spectacular exploration outcomes at depth final yr, will inform an up to date NI 43-101 report that’s deliberate to be launched early subsequent yr. I am very pleased with the Didipio crew for all they’ve completed during the last yr, and I believe all of us stay up for what 2024 brings. Now on to Macraes. Macraes produced 36,000 ounces of gold within the fourth quarter. Final yr, the crew delivered a rise within the common day by day quantity of tonnes milled by means of the yr which we consider can proceed to be delivered sustainably going ahead. These efficiencies happened by means of the implementation of numerous steady enchancment initiatives and resulted in Macraes producing close to the highest finish of its 2023 manufacturing steerage and decrease finish of its all-in sustaining price steerage. As introduced in our useful resource and reserve replace launched yesterday, we took the choice to take away the Spherical Hill open pit from reserves at Macraes on account of the recognized geotechnical danger and low financial returns. An up to date NI 43-101 technical report from Macraes is anticipated to be launched by March 31, 2024. The Macares aspect has a monitor report of mining decrease grade materials at low unit prices. And certainly one of our key focus areas in the course of the 2024 yr shall be to establish areas of mineralization that exists exterior of our present mine plans, which might be thought of for future mining if gold costs had been maintained round present ranges. Now on to the North Island and New Zealand had been Waihi produced roughly 13,000 ounces of gold this quarter. Fourth quarter was an enchancment from the third quarter because the mining sequence included all from the high-grade skins of remnant stopes. 2023 was a difficult yr, nevertheless, as we began the yr with important rainfall within the first half which restricted entry to high-grade areas of the mine for a protracted interval. For our 2024 steerage, you will see that we have elevated our anticipated manufacturing output in comparison with 2023, and now we have additionally widened our steerage vary to mirror the continuing variability that we count on to come across as we proceed to mine the remnant stopes within the historic workings of Martha Underground. We additionally need to take the chance to spotlight the useful resource addition at Martha Underground right here as nicely. This skill so as to add ounces in shut proximity to our current operation helps to increase present mine life at Martha Underground, which in flip bridges the hole to after we can entry Wharekirauponga. As a reminder, Wharekirauponga is a part of the Waihi North mission. And yesterday, we introduced an rising indicated sources at Wharekirauponga. The opposite growth that occurred in 2023 was a change within the nationwide degree authorities in New Zealand. The brand new incoming authorities has made public statements in help of growth throughout a number of sectors, together with mining and plans to speed up timelines for getting main initiatives consented and permitted. We’re watching intently as the brand new authorities unveils their plans to determine what they’re referring to as a quick monitor one-stop store course of. Wharekirauponga continues to reveal spectacular exploration outcomes. And with the change in authorities, we stay up for what this might imply as we proceed to advance the Waihi North mission. I’ll now hand it over to Craig to offer an exploration overview.

Craig Feebrey: Thanks, Peter. As talked about, we launched our annual reserve and useful resource replace yesterday and I am more than happy to say reserve additions greater than offset group depletion by means of mining earlier than investments. Haile contributed considerably to group reserves with the addition of just about 0.5 million ounces from Horseshoe Underground and Palomino. This yr was additionally a milestone yr delivering over 1 million ounces of latest measured and indicated useful resource of 350,000 ounces of that coming from our rising Wharekirauponga deposit in New Zealand. As deliberate, we have been endeavor the Spherical Hill operation — sorry Spherical Hill possibility examine at Macraes to grasp the geotechnically complicated plan of tailings empowerment removing. In the end, the financial return did not justify the technical danger of endeavor this mission and was faraway from reserves and sources. As we take a look at 2024, drilling at every of the websites is off to an awesome begin. At Haile, now we have 32,000 meters deliberate to construct on the success of 2023 and proceed to increase our underground alternatives. Drilling is targeted on Ledbetter Section 4 conversion, testing the down dip extension of the high-grade Horseshoe mineralization, testing the Northeast extension to Palomino the place we intersected additional mineralization final yr in addition to testing a number of early-stage targets. Then on the Didipio, copper, gold, porphyry mineralization lends itself to continuation at depth as we’re confirming by means of exploration. Right here, we have been centered on increasing the underground with conversion of mineralization in Panel 2 and defining an preliminary useful resource on Panel 3. With roughly 28,000 meters deliberate on the mine this yr, we’re nicely positioned to proceed the growth of Panel 3 useful resource and additional outline the depth extensions not too long ago intersected. We even have some distinctive regional targets, each throughout the FTAA and the neighboring exploration license that is within the ultimate levels of approval, and we’ll share extra about these as approval is granted and land entry agreements are finalized within the coming months. And eventually, at Waihi now we have 36,000 meters of drilling underway the place we proceed to develop the Martha underground and take a look at the scale potential of the EG vein at Wharekirauponga, the place we have simply reported over 1 million ounces at 15.9 grams per tonne gold and an indicated useful resource and one other 350,000 ounces at 9 grams per tonne gold as inferred. Width and high-grade mineralization persevering with as we step south on the EG financial institution, we’re excited trying ahead to what this yr’s drill program will ship. And with that, I will now flip the presentation again to Gerard.

Gerard Bond: Thanks, Craig. I will take the chance to remind you all that we not too long ago strengthened our administration crew with the addition of Bhuvanesh Malhotra because the Chief Technical and Initiatives Officer, who joined us a month in the past. Bhuvanesh has over 25 years of expertise in technical and operational roles throughout a number of commodities and most not too long ago was with Rio Tinto (NYSE:). His expertise shall be instrumental as he drives worth by means of our technical initiatives and research groups at OceanaGold. In abstract, we safely and responsibly delivered on our 2023 manufacturing steerage, which I am more than happy with. We stay centered on our targets for 2024, together with rising the high-grade underground ore feed from each Highland and Didipio, persevering with to advance the Waihi North mission, safely and responsibly maximizing the free money move technology of the corporate, rising reserves and sources by investing in exploration. And eventually, lowering debt and rising returns to shareholders. I will now return the decision to the operator and open up the road for any questions.

Operator: Thanks, sir. [Operator Instructions] And your first query shall be from Wayne Lam at RBC. Please go forward.

Wayne Lam: Hey, good morning guys. Simply questioning on the up to date three-year outlook. Perhaps on the fee aspect, a reality from the deferral at Ledbetter, simply questioning if there’s different drivers of that on inflation pressures? Or is that additionally a operate of upper realized price? As you have really had 1 / 4 now mining underground?

Gerard Bond: Thanks, Wayne. honest query. There are most likely three most important drivers of prices that save are completely different from what we had this time final yr. One which is what everyone seems to be experiencing, and that is labor charge inflation. And our labor charge inflation, which can impression immediately by means of worker wages, but additionally not directly by means of contractors and different service suppliers, sits within the mid-single-digits. So when it is that publicity to your price base is, I do not know 40-odd % by way of labor prices, you do have that strain. Because it pertains to issues like procurement and what we’re spending by means of items and providers excluding activity-driven prices akin to floor help as we develop Horseshoe Underground, we’re really actually happy with the management and moderated degree of inflation there. So it tends to be exercise pushed fairly than price inflation exterior of labor charge. Secondly, because it pertains to the most important shift within the unit price really comes from the exercise degree. We’ve, on account of optimizing the plans at notably Haile and Macraes, you are seeing some shift in expenditures that impression the all-in sustaining prices. So at Haile, for instance, we have optimized Ledbetter pit and among the prices related to West PAG Section 2 and three have been introduced ahead into early years, which will increase the fee. The dividend of that’s better flexibility and you actually begin to see in, say 2026 onwards. And once more, as you see that massive carry there in manufacturing and in addition the discount in all-in sustaining prices on account of that funding. As we’re producing extra, clearly, we need to get forward of the curve on this tailings lifts. After which the opposite is a combination problem. The third problem can be a combination problem as we have taking a extra modest outlook on Waihi’s contribution after which the removing of Macraes Spherical Hill open pit. That has shifted the form of among the manufacturing as nicely. So a little bit of a dip and enhance within the unit price in, say, ’24, ’25 earlier than higher entry to ore out of Macraes within the later years. So in abstract, labor charge inflation, a little bit of exercise combine after which a reshaping of issues such because the West PAG and stripping and titling providers.

Wayne Lam: Okay. Nice. Thanks for that element. That is actually useful. Perhaps simply on Macraes, you guys had famous an rising manufacturing outlook over the three-year interval. However on the similar time, Spherical Hill was faraway from the reserves. Simply curious what number of ounces the Spherical Hill type of account for? And simply questioning what’s driving a possible rising manufacturing profile at Macraes. And the way ought to we consider the type of remaining reserve life there?

Gerard Bond: Sure, nice query, Wayne. I imply, the — plenty of that detailed reply will include the 43-101 that may come out on the finish of March. So in the event you can maintain your breath for six weeks for the element, it’ll come. However in the event you take a look at — by way of the removing of Spherical Hill, that prices us 0.5 million ounces in reserves. And the place among the clawback of that impact is coming from a manufacturing perspective is among the learnings that we obtained by means of 2023 by way of milling charge and the advance in recoveries that we’re getting from that larger milling charge. So holding or enhancing recoveries at this excessive milling charge, which is nice testimony to the crew there. While we endure like a little bit of a dip in entry to the Spherical Hill pit with a little bit of funding will get entry to ore within the outer boundaries of those who three-year interval. And mixed with this enhance in milling charge is type of offsetting partially or reasonable in impact of the lack of Spherical Hill. To the reserve query once more, that may come out or reserve life that may come out within the 43-101. I believe Macraes first minted its first ore in December — sorry, 1990. I do not suppose it is life was purported to be the 34 years that it is obtained to to this point. And I believe the reserve life is circa 2028 based mostly on the final extrapolation of reserve data. We are going to proceed to discover and go deeper in new the place we exist presently. And naturally, it’ll all depend upon value. So at round present value ranges, Macraes can earn cash at reserve costs, that are presently $1,500 an oz. Clearly, its reserve life shall be shorter than longer. So not wishing to — it is type of a protracted reply, I am not wishing to obfuscate something, however fairly present you the type of drivers of what you will see within the 43-101 when it comes out.

Wayne Lam: Okay. Nice. Thanks. So we made a protracted historical past there and hopefully extra to return. Perhaps simply final one for me. Are you able to simply present a little bit of colour on the federal government share payable at Didipio? Simply curious, when is it paid out in money by means of the yr as accrued? After which simply on the historic tax receivable, are you able to shed some gentle on type of what occurred there on the write-down? And is there any read-through to the general relationship in that?

Gerard Bond: So the federal government share in abstract, we accrued quarterly, pay yearly. The fee happens in April. That — in order that’s easy. The tax case, I’ll hand it over to Marius for all of the element. However in abstract, we had — we paid taxes that we did not really feel we would have liked to underneath the FTAA, however the way in which the tax legal guidelines work in most jurisdictions, it is higher to pay after which try to get a refund. We have been attempting to get a refund for a decade on a few of these taxes paid. Simply as time has handed, and notably now that we’re within the restoration interval of the extra authorities share, we in essence, grew to become money impartial by not persisting with the case. It is — and we already had the credit score. And if we have a refund, it will go to the federal government anyway. So we discovered ourselves able the place there was no advantage to proceed. And to your third level, completely nothing as a read-through in relation to the connection with the federal government there. It’s sturdy, it’s good. This can be a tidy up of a legacy matter. Marius something you need to cowl the federal government — the tax case?

Marius van Niekerk: I’ve obtained nothing so as to add.

Wayne Lam: Okay, good. Thanks for answering my questions.

Gerard Bond: Thanks, Wayne.

Operator: [Operator Instructions] And your subsequent query shall be from Ovais Habib at Scotiabank. Please go forward.

Ovais Habib: Hello, Gerard and OceanaGold crew. Congrats on a powerful finish to 2023. And in addition nice to see each the Didipio and Macraes enhance — or exceeding steerage. A few questions for me. Only a follow-up on Wayne’s query relating to the manufacturing enhance and type of price enhance going into 2025. Is the sustaining capital that you just’re type of bringing ahead primarily helping you to get larger manufacturing in 2026? Is that type of what you had been attempting to elucidate?

Gerard Bond: Appropriate.

Ovais Habib: Okay. So by way of manufacturing rising in 2026, the place will we see the bump coming from? Is it primarily from Haile then?

Gerard Bond: Primarily from Haile and a little bit bit from Macraes as nicely.

Ovais Habib: Okay. Thanks for the readability on that. Then simply type of shifting — sticking with Haile, I assume, Haile Underground appears to be performing nicely. That is nice to see. Any colour you or David can present on drilling and growth? Primarily, I simply need to work out how far forward of manufacturing are you on each ends?

Gerard Bond: David, do you need to take that?

David Londono: I can take that. And so — we are literally occurring plan and growth and the drilling device for the yr. So now we have mined three stopes in This autumn of 2023. After which we’re able to mine the subsequent two stopes in Q1. So we’re advancing proper on our funds. And drilling additionally we’re a little bit bit forward of the funds we deliberate for the yr. And we’re getting some good intercepts down on the backside of Haile or Horseshoe Underground.

Ovais Habib: And David, by way of the primary three stopes that you just mined appeared prefer it was type of in step with your expectations, above your expectations and in addition by way of what you are drilling to this point? How is that type of reconciling by way of are we getting some optimistic reconciliation or nonetheless pretty in line?

David Londono: A number of the stopes are coming in line, and we obtained to begin that was barely a optimistic reconciliation and the identical enhance on the subsequent stopes that we’re at the moment mining. We’ve barely optimistic reconciliation on these two and the buying and selling that we do in flip on the backside can also be both in line or barely optimistic.

Ovais Habib: Okay. Good colour. Thanks for that. And simply shifting on to Palomino then. Nice to see an preliminary reserve there. You all the time wish to come out with, I consider, a tech report on the finish of March. I imply, simply type of preliminary ideas right here, David, how are you seeking to type of grow to be Palomino. Is it type of by means of a drift from Horseshoe or separate ramp? Are you able to give us a little bit bit extra colour on any kind of preliminary ideas there?

David Londono: We’ve the preliminary — like we’re engaged on the prefeasibility now, and the thought is to drive a decline from Horseshoe into Palomino after which a dent shaft from the excess. In order that our preliminary ideas. Clearly, that will change on the feasibility report. However that is what we’re doing at the moment. That is what we’re planning at the moment.

Ovais Habib: Okay, good. That is it from me guys. And thanks for taking my questions.

Gerard Bond: Thanks, Ovais. Admire it.

Operator: Subsequent query shall be from Farooq Hamed at Raymond James. Please go forward.

Farooq Hamed: Good morning everybody. Apologies if this query was requested, possibly I did not catch it. However Gerard possibly a query for you, simply type of trying larger image, as your manufacturing ramps up this yr and over the subsequent couple of years and your stability sheet begins to type of clear up or it already has been pretty cleaned up, however then you definitely’ve obtained proceeds coming from the Didipio IPO when you may have proceeds from that sale of the asset in New Zealand, and that stability sheet begins to look fairly clear. What’s your type of hierarchy and the place you are going to begin spending your extra capability or extra liquidity and free money move type of — as your operations begin to type of hit their stride right here and possibly in the direction of the again finish of the yr, you begin to see a a lot cleaner liquidity place?

Gerard Bond: Sure. Thanks, Farooq. And I will take — I will leverage one phrase to make use of, which is clear. And simply to reemphasize the purpose that relative to many different corporations in our area, our stability sheet is as clear as they are often. We’ve financial institution debt, and now we have finance leases. We’ve only a few and solely minor legacy royalty preparations on a few our belongings. It is a quite simple, clear stability sheet to grasp and that compressibility of that financial institution debt after which the finance leases signifies that as you say, as we generate free money move in the course of the yr and get the proceeds from the Didipio partial itemizing relying on what the gold value is and topic to our efficiency we might be in a web money place by the tip of ’24. Should you take a look at Slide 5 on the presentation, you may see there that the seen dedicated progress capital in ’25, ’26 is a step change decrease than what it was in ’23 and what we count on it to be in ’24. As we progress issues just like the Palomino growth, the drift and shaft that — and growth that David simply spoke of, that may be a superb progress capital funding possibility that shall be — present us with engaging returns. As and after we progress going deeper and into the event of Didipio, there will be some cash required to try this. Each of these are sturdy payback and notably Didipio is a very sturdy payback. After which within the different areas for causes that Peter mentioned, with the potential for us to be included on the quick monitor checklist of New Zealand authorities initiatives, the chance to spend or spend money on the constructing of Wharekirauponga, which given the grades that you just noticed introduced yesterday, make that an thrilling mission for us. I assume that every one summarizes to say now we have progress capital choices which are engaging after which past that, you may count on that we’d maintain the stability sheet sturdy after which you may count on that we are going to look to extend shareholder returns. So in abstract, spend money on engaging progress choices, maintain the stability sheet sturdy and return capital to shareholders. And that capital return can take a type of both enhance the dividend or share buybacks, relying on the worth of the shares at that day. And once more, there are future selections that now we have as soon as we get into that place of getting that alternative.

Farooq Hamed: That is nice messaging, Gerard. Thanks for that. After which possibly just a bit little bit of housekeeping. When it comes to the timing of the asset sale in New Zealand when that may shut and the timing of the closure of the partial IPO of Didipio. Is that — are each of these occasions anticipated to shut with proceeds being acquired within the first half of this yr?

Gerard Bond: Properly, the sale of the Blackwater, that is the $30 million that may occur someday in the course of the yr. It is a little bit bit out of our management topic to regulatory approvals. So we count on that in the course of the yr, most likely early second half, however we’re not in command of that one a lot. With the Didipio OceanaGold Philippines, Inc., we’re anticipating that or concentrating on that to be listed in Could of this yr.

Farooq Hamed: Okay, nice. Thanks. That is it for me.

Gerard Bond: Thanks, Farooq. Admire it.

Operator: And presently, now we have no different questions registered. Please proceed.

Gerard Bond: Look thanks, everyone, for becoming a member of the decision. It is on behalf of everybody at OceanaGold administration and staff, Board. We respect your curiosity in and help of the corporate. I want you the perfect for the remainder of the day. Have a secure day.

Operator: Thanks, sir. Girls and gents, this does certainly conclude your convention name for right this moment. As soon as once more, thanks for attending. And presently, we ask that you just please disconnect your strains.

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