OceanaGold sinks to Q1 loss, maintains production guidance
TSX- and ASX-listed OceanaGold posted a net loss of $26-million in the first quarter of the year, and an adjusted net loss of $10.7-million. This equated to an adjusted loss a share of $0.02 apiece.
The first-quarter loss compares with net profit of $8.7-million in the fourth quarter of 2019 and net profit of $12.4-million in the prior-year quarter.
The company decreased its debt from $179-million to $121-million in the quarter ended March 31, and is left with $177-million of available liquidity.
OceanaGold says it has taken proactive steps to increase its cash reserves, including drawing down a remaining $50-million on its revolving credit facility and pre-selling gold valued at $78.5-million.
The company reported consolidated gold production of 80 707 oz, at an all-in sustaining cost (AISC) of $1 218/oz, in the quarter under review. It also produced 54 134 oz of silver. Its first-quarter production compares with gold output of 108 200 oz in the fourth quarter.
CEO and president Michael Holmes expects the company to increase production and lower AISC in the second half of the year.
“We maintain our 2020 guidance, however, we acknowledge that the continued risks associated with Covid-19 remain elevated and could further impact our operational performance.
“We will continue to monitor these risks while strictly enforcing the protocols and safeguards we have in place at each of our operations which have proven successful to-date.”
The company has assets located in the Philippines, New Zealand and the US. These assets encompass the Didipio gold/copper mine, the Waihi gold mine, openpit mines at the Macraes Goldfield and the Frasers underground mine. The company also operates the Haile gold mine.
“Our organic growth projects continue to advance, with first production from the Martha Underground deposit expected in the second quarter of 2021.
We are progressing the Waihi district study which will highlight the initial value of the Waihi district while we continue to target further expansion through exploration. The market release of the Waihi district study is expected in the second or third quarter.
"At Macraes, the Golden Point underground study continues to progress, and we expect the results to be released in the second half of the year,” Holmes says.
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