OGC Announces First Quarter 2012 Results

OGC Announces First Quarter 2012 Results

26 April, 2012

Today, OceanaGold announced that the Didipio Project in the Philippines remains on track with project commissioning commencing in Q4 2012. Construction activities continued as planned with key milestones being met. Major long lead-time items were delivered to site awaiting installation of structural erection which is underway. Concrete pouring is more than 50% complete and progressing to plan. Mining activities commenced during the quarter as planned as did the construction on the Tailings Storage Facility. More than 1000 workers are currently engaged with the construction of the project.

Gold production from the New Zealand operations for Q1 was lower compared to the previous quarter as per the full year plan due to planned maintenance shutdowns at both the Macraes and Reefton process plants.

However, the Frasers Underground mine experienced higher than expected ground movement resulting in restricted access to some stoping areas. Mining operations have moved to a different area of the mine following redevelopment of access infrastructure but this affected mined tonnes and grade for the quarter. Mining rates are expected to average approximately 70% of plan for H1 2012 and returning to full run rates in H2 2012.

Cash costs per ounce were higher as expected than the previous quarter due to the fewer ounces sold during the period. The Company expects the unit cash costs to average above the FY2012 guidance range in H1 and then below the guidance range in H2 concurrent with increased production in the second half of the year. This increase in production will be driven by higher grades from the Macraes Open Pit and a return to full capacity at the underground mine.

FY2012 production guidance of 230,000-250,000 ounces of gold at cash costs of US$900-$980 per ounce (using a NZD:USD FX of $0.80) remains unchanged.

Revenue for the first quarter was $88.6 million from an average gold price received of $1,708 per ounce, virtually unchanged from the previous quarter at $1,705 per ounce.

OceanaGold Managing Director & CEO, Mick Wilkes, commented, “The New Zealand operations remain on track to meet the full year guidance and we are seeing a good turnaround at the Frasers Underground after some geotechnical issues during the first quarter. We expect to see progressive improvement in production throughout the year and into 2013 as higher grade ore from Stage 5 of the Macraes open pit enters the mine plan. Progress at Didipio continues to go well and we are growing increasingly confident about commissioning in the December quarter this year.”

Other highlights from the OceanaGold 2012 First Quarter Results include:

• Sold 51,852 ounces of gold at an average price of $1,708 per ounce with cash operating costs of $1,126 per ounce;

• Produced 50,842 ounces of gold;

• EBITDA (earnings before interest, taxes, depreciation and amortisation) of $23.3 million;

• Cash flow from operations of $24.1 million;

• Blackwater exploration program successful initial drill results with intersection of high grade quartz reef reporting 1.0 metre (0.5m true width) at 23.3g/t Au.

Conference Call / Webcast
The Company will host a conference call / webcast to discuss the Q1 2012 Financial Results. The call will take place at 7.30am on Friday 27 April (Melbourne, Australia time) / 5.30pm on Thursday 26 April (Toronto, Canada time). Details are available on the OceanaGold website at www.oceanagold.com.

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