OceanaGold Q4 Earnings Call Highlights

Core Insights - OceanaGold reported record free cash flow of $259 million in Q4, surpassing the total free cash flow generated in all of 2024, with adjusted net profit and earnings per share roughly doubling from the prior year [2][3] - The company ended the period with a strong net cash position of $477 million, up 42% from the prior quarter, despite returning over $100 million to shareholders through dividends and buybacks [3] - The fourth quarter was the strongest production quarter of the year, with increased production from all four operating sites and a record average realized gold price of just over $4,200 per ounce [4] Financial Performance - Adjusted EPS included a $0.26 per share impact from share-based compensation, with cash costs and EBITDA for 2025 reflecting a $70 per ounce increase due to accounting allocations related to capitalized sustaining waste stripping [1] - OceanaGold set annual records for EBITDA, EBITDA margins, net profit, earnings per share, operating cash flow, and free cash flow, achieved at an average realized gold price of around $3,500 per ounce [4] 2026 Outlook - The company expects higher production and lower all-in sustaining costs (AISC) in 2026, with a projected 12% increase in gold production compared to 2025 and a 7% decrease in AISC [6] - Growth in 2026 production is primarily driven by Haile, with a 35% increase in output expected due to open-pit waste stripping that will provide access to higher-grade ore [7] Operational Updates - All four operating sites increased production in Q4, with Haile producing 56,000 ounces, Macraes also producing 56,000 ounces, Waihi exceeding production guidance, and Didipio producing approximately 24,000 ounces of gold [9][10][12][14] - Haile's unit costs are expected to decline by 25% year-over-year, while Macraes' AISC was under $1,300 per ounce in Q4, down significantly from Q3 [10][12] Exploration and Capital Returns - OceanaGold plans to increase its exploration budget in 2026, focusing on converting resources to reserves and enhancing brownfields and greenfields exploration [15] - The board approved a tripling of the quarterly dividend and a doubling of the share buyback for 2026, resulting in up to $432 million in total shareholder returns, an increase of 112% year-over-year [18] Strategic Developments - The company expects to complete its listing on the New York Stock Exchange in April and remains open to inorganic growth opportunities, although it is not a priority focus [19]