OceanaGold Announces Record Net Profit and Revenue; Declares Dividend
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(All financial figures in US Dollars unless otherwise stated)
MELBOURNE, Feb. 22, 2018 /CNW/ - OceanaGold Corporation (TSX/ASX: OGC) (the "Company") is pleased to release its full year 2017 financial and operational results for the year ended 31 December 2017. This follows the Company's release of its operational results on 18 January 2018. Details of the consolidated financial statements and the Management Discussion and Analysis ("MD&A") are available on the Company's website at www.oceanagold.com
Record full year net profit of $172 million including a record quarterly net profit of $89 million.Record full year revenue of $724 million including a record quarterly revenue of $246 million.EBITDA of $408 million for the full year including $149 million in the fourth quarter.Net debt reduced by $88 million in the fourth quarter with debt repayments amounting to $78 million.Total liquidity increased to $103 million including an increase in the cash balance from $61 million to $73 million.Second semi-annual dividend for 2017 of $0.01 per share paid in the fourth quarter.Subsequent to year-end, declared the first semi-annual dividend for 2018 of $0.01 per share payable in April 2018.Continued successful exploration results achieved at Waihi.
Mick Wilkes, President and CEO said, "I'm pleased to report another strong year of financial results with a record net profit and revenue that were underpinned by a record year for production at sector leading margins. The fourth quarter delivered significant results for the Company including Haile which contributed strongly on the back of a solid operational performance where the process plant achieved throughput rates higher than nameplate and recoveries averaging 83%." He added, "On the back of the significant cash flow generation from our suite of high-quality assets, the Company continued to strengthen its balance sheet. In the fourth quarter alone, we increased our cash balance from $61 million to $73 million while reducing our revolving credit facility from $273 million to $200 million."
"In 2017, OceanaGold delivered sector leading EBITDA margin of 56% while achieving a return on investment capital of 10% which marked the eighth straight year of positive returns; one of only two gold companies to do so."
"We are well positioned to continue to deliver strong margins and returns to shareholders in 2018. The solid cash flow generation expected from the business provides us with financial flexibility and allows us to continue reducing debt, returning wealth to shareholders in the form of dividends and reinvest in the business' organic growth opportunities including the Haile expansion and Waihi mine life extension. We have a robust business that has been deliberately set up to deliver long-term value in almost any gold commodity price environment."