Q2 2024 OceanaGold Corp Earnings Call Transcript
Key Points
- OceanaGold Corp (OCANF) achieved free cash flow positivity in the quarter, aided by the sale of the noncore Blackwater asset.
- The company successfully completed the initial public offering of OceanaGold Philippines, listing it on the Philippines Stock Exchange, which contributed to a net cash position.
- Production is expected to be strongly back half weighted, with improvements anticipated at Didipio and Waihi, aligning with the company's 2024 consolidated guidance.
- The company declared a $0.01 per share semi-annual dividend and introduced a share buyback program, reflecting a commitment to returning capital to shareholders.
- OceanaGold Corp (OCANF) reported record average realized gold prices, contributing to $251 million in revenue for the second quarter.
- The company experienced a fatality at the Didipio mine, marking its first since 2016, which led to a temporary suspension of operations.
- Production was weaker than expected at both Didipio and Waihi, impacting the first half performance and resulting in higher all-in sustaining costs.
- The Didipio mine faced operational challenges, including unplanned maintenance shutdowns and lower grade mining, affecting overall production.
- Geotechnical issues at Waihi led to mining stopes out of sequence, impacting production and necessitating external consultation for solutions.
- The company had to redesign and resequence mining plans at Didipio due to challenging ground conditions, which may slow down the mining cycle and affect short-term productivity.
Good morning and welcome to OceanaGold's second quarter 2024 results webcast and conference call. I'm Rebecca Henare, Director of Investor Relations. We are joined today by Gerard Bond, President and Chief Executive Officer; Marius van Niekerk, Chief Financial Officer; David Londono, Chief Operating Officer Americas; and Peter Sharpe, Chief Operating Officer Asia-Pacific. The presentation that we will be referencing during the conference call is available through the webcast and on our website. I would also like to remind everyone that our presentation will be followed by a Q&A session.
As we will be making forward-looking statements during the call, please refer to the cautionary notes included in the presentation, news release and MD&A, as well as the risk factors set out in our annual information form. All dollar amounts discussed in this conference call are in U.S. dollars. I will now turn the call over to Gerard for opening remarks.
Thank you, Rebecca.
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