PERTH (miningweekly.com) – Dual-listed gold miner OceanaGold has reported a near 50% increase in revenues for the year ended December.

Revenue for the full year reached $744.7-million, compared with the $500.1-million reported in 2020, while earnings before interest, taxes, depreciation and amortisation (Ebitda) increased from $129.6-million to $329.8-million, while net loss after tax narrowed from $150.4-million to $3.7-million.

The increase in profits for the full year came on the back of an increase in gold sales, as well as higher average gold prices. Gold sales for the full year increased from 310 500 oz to 381 600 oz, while copper sales reached 5 100 t.

Average gold prices for the full year reached $1 821/oz, up from the $1 597/oz achieved in the previous financial year.

The company produced 362 807 oz of gold and 2 323 t of copper. Gold production was approximately 20% higher over 2020 owing to significant year-on-year record gold output at Haile, and the successful restart and continued ramp-up of operations at Didipio and Martha Underground at Waihi, which was partially offset by lower head grades and mill feed from Macraes.

“This release brings to a close a successful year of operational and financial performance for the company on the back of record production from Haile and the restart of the Didipio operation,” said acting president and CEO Scott Sullivan.

“Following a challenging year in 2020, financial performance rebounded in 2021 with revenues increasing almost 50% and Ebitda increasing almost 155%. Importantly, the fourth quarter saw the company report positive free cash flow, the first in over two years.

“Additionally, we completed the financial or technical assistance agreement renewal with the government of Philippines, paving the way for the restart of operations at Didipio. The subsequent ramp-up of operations has progressed ahead of our expectations and we completed the transport and sale of copper and gold inventory on- hand before the end of the year.

“The return of Didipio complements the suite of gold producing assets in New Zealand where we are advancing significant growth projects, Wharekirauponga (WKP) in particular and the Haile gold mine where we seek to commence construction of the underground upon securing the necessary permits,” said Sullivan.

He noted that with the release of its 2022 guidance and multi-year outlook, the company had set the stage to generate significantly more free cash flow each year on higher consolidated production.

“We remain focused on driving costs lower while allocating capital prudently to drive stronger risk-adjusted returns. I look forward to working closely with our newly appointed president and CEO Gerard Bond who will bring his extensive financial and commercial experience to drive value for shareholders over the long term.”

On a consolidated basis, the company expects to produce between 445 000 oz and 495 000 oz of gold in 2022 representing a 30% year-on-year increase in production from the midpoint. Gold production is expected to increase to between 490 000 oz and 530 000 oz in 2023 and to between 580 000 oz and 620 000 oz in 2024, approximately 60% higher than in 2021.