PERTH (miningweekly.com) – Dual-listed gold miner OceanaGold has reported a mixed bag for the year ending December, with higher gold sales resulting in higher revenues, while higher costs negatively impacted net profits after tax.
The ASX- and TSX-listed company this week reported revenues of $772.5-million, up 6.6% on the $724.4-million reported in 2017, with 532 700 oz of gold sold during the full year, compared with the 555 600 oz sold in the previous year.
The average gold price was up from $1 261/oz to $1 268/oz during the period under review.
However, higher operating costs and higher taxes resulted in net profits for the period declining from $171.8-million at the end of 2017 to $121.7-million, with earnings before interest, taxes, depreciation and amortisation declining from $408.4-million to $363.7-million.
President and CEO Mick Wilkes noted that OceanaGold’s cash balance at the end of the year increased by 47%, reflecting the company’s consistent profitability over the past several years.
“Our net debt reduced by 59% over the past year, reflecting the strong cash flow generation in 2018 and our commitment to strengthen our balance sheet through discretionary debt repayments.”
Wilkes said that the company was well positioned to invest in expanding its operations or extending the mine lives, all with an objective to create long-term value for both shareholders and the communities in which OceanaGold operated.
“One such investment is Waihi, where we have received the permit for the Martha underground project and are mobilising to implement this growth project in a way that will maximise value to all stakeholders.”
The Martha underground project is estimated to host a measured and indicated resource of 140 000 oz of gold and an inferred resource of some 339 000 oz. The underground project had the potential to add an additional ten years to the life of the Waihi mine.