OceanaGold Corporation Signs Non-Binding Letter of Intent with Newmont Mining Corporation
Apr 29 15
OceanaGold Corporation announced that it has signed a non-binding Letter of Intent with Newmont Mining Corporation to acquire Newmont's Waihi Gold Mine in New Zealand for $101 million in cash plus customary adjustments. Newmont will also retain a 1% Net Smelter Royalty for gold ounces mined from one specific exploration tenement capped at 300,000 ounces of production. The proposed transaction is subject to completion of comprehensive due diligence, execution of a definitive acquisition agreement, Board and regulatory approvals and other customary closing conditions. Pursuant to the LOI, Newmont has granted OceanaGold an exclusivity period until June 1, 2015 for OceanaGold to complete its due diligence review and for Newmont and OceanaGold to execute a definitive acquisition agreement. The purchase price of $101 million in cash plus customary adjustments will be paid on legal closing, which is subject to customary closing conditions, including Board and regulatory approvals. Under the proposed transaction, and subject to legal closing occurring, OceanaGold will have the economic benefit of the asset with effect from 1 July 2015 with expected formal closing early in the third quarter of 2015.
OceanaGold Corporation Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2015; Provides Production Guidance for the Year 2015
Apr 29 15
OceanaGold Corporation reported unaudited consolidated earnings and production results for the first quarter ended March 31, 2015. For the quarter, the company's sales were $129,306,000 against $170,355,000 a year ago. Earnings before interest, tax, depreciation & amortisation (excluding gain on undesignated hedges) were $60,740,000 against $101,030,000 a year ago. Earnings before income tax and gain on undesignated hedges were $30,410,000 against $65,234,000 a year ago. Earnings after income tax and before gain on undesignated hedges were $31,203,000 against $59,869,000 a year ago. Net profit was $24,165,000 against $58,945,000 a year ago. Diluted net earnings per share were $0.08 compared to $0.19 a year ago. Cash flows from operating activities were $43,229,000 against $73,288,000 a year ago. Generated $19.4 million in free cash flow despite lower commodity prices received. The company have a net debt position of $45 million. The company reported $24 million of CapEx, $9 million related to the Didipio underground; the power grid, which is in progress; and the first-class training facility being built at Clark base. The other one high level was the pre-strip for $8 million, which is the combinations of stages 4 and 5/6 in Didipio and Coronation in New Zealand. Payment for property, plant and equipment were $1,240,000 compared to $1,769,000 a year ago. Payment for mining assets for exploration and evaluation were $977,000 compared to $402,000 a year ago. Payment for mining assets for development was $11,965,000 compared to $5,859,000 a year ago. Payment for mining assets in production was $9,655,000 compared to $16,117,000 a year ago.
For the quarter, the company reported consolidated production of 91,146 ounces of gold and 6,102 tonnes of copper with sector leading AISC of $630 per ounce on sales of 86,234 ounces of gold and 6,245 tonnes of copper. The slight decrease in production from the previous quarter was a result of lower production from Macraes which was partly offset by higher production from Didipio and Reefton.
For the year 2015, the company expects to produce 295,000 to 335,000 ounces of gold from the combined New Zealand and Didipio operations and 21,000 to 23,000 tonnes of copper from the Didipio operations.