On the back of strong operational performance in the first nine months of the year, OceanaGold has increased its 2018 gold production guidance for the second time, to a range of 515 000 oz to 545 000 oz.
The Melbourne-headquartered company previously forecast production to be in the 500 000 oz to 540 000 oz range, but upped this on Thursday, citing improved grades and recoveries at its Didipo mine in the Philippines.
For the nine months ended September, the company produced 406 631 oz, including 138 034 oz in the third quarter. Quarter-on-quarter, gold production decreased, owing to lower production at the Haile mine, in the US, from lower grades and mill utilisation.
Consolidated all-in sustaining costs (AISC) in the third quarter were in line with company expectations at $761/oz on the sale of 134 134 oz of gold. The AISC guidance for the year was maintained at $725/oz to $775/oz.
“I am very pleased with our operational and financial performance so far this year with each of our operations delivering solid production and strong cash flows. We expect to continue this positive momentum to close out the year on a strong note with increased cash flows expected in the fourth quarter. Despite the lower gold price received in the third quarter, we still generated a solid $64-million in net operating cash flow allowing us to continue our investment in exploration and organic growth projects, make a discretionary debt repayment of $50-million and pay $12.4-million in dividends," commented president and CEO Mick Wilkes.
The TSX- and ASX-listed company posted $186.8-million in revenue, compared with $144.8-million in the third quarter of 2017. Its net profit amounted to $21.7-million, which is unchanged on the comparative period.
In the third quarter, OceanaGold reduced its debt position by 23% through a repayment of $50-million towards the revolving credit facility and $2.7-million in equipment leases.
At the end of the quarter, the company’s immediate available liquidity was $139.7-million, of which $69.7-million was held in cash.