Photo by: Bloomberg
PERTH (miningweekly.com) – Dual-listed gold miner OceanaGold on Friday announced plans to delist from the ASX, citing ongoing low trading frequency, low traded volumes and limited index inclusion of its chess depository interests (CDIs) traded on the ASX compared with the TSX.
The CDIs held on the Australian register have declined to around 7.5% of the company’s total issued share capital.
The delisting, which will not require security holder approval, is expected to occur at the end of August this year.
“While this decision was not easy given the company’s historical ties to the ASX, we believe that consolidating the shares into one liquid market in which almost all of the shares are held will benefit shareholders,” said OceanaGold president and CEO Gerard Bond.
Meanwhile, OceanaGold on Friday reported that gold production for the second quarter ended June had reached 112 296 oz, down from the 134 035 oz produced in the March quarter, bringing half-year production to 246 331 oz.
Haile delivered 38 000 oz during the quarter under review, while Didipio contributed 29 300 oz and Waihi 8 200 oz. The Macreas operation, in New Zealand, contributed a further 36 900 oz.
All-in sustaining costs (AISC) for the quarter were reported at $1 430/oz, up from the $1 048/oz reported in the March quarter.
Second-quarter revenue reached $229-million, with earnings before interest, taxes, depreciation and amortisation (Ebitda) of $75-million and net profit after tax of $19-million, leading to record first-half revenue of $515-million, Ebitda of $233-million and net profit after tax of $98-million.
“The company delivered a solid second quarter reflecting operational performance in line with expectations across our portfolio. Together with strong prices we achieved record revenue in the first half of 2022 and strong free cash flow, allowing us to repay $50-million of drawn bank debt and strengthen the balance sheet which will enable continued investment in high-value opportunities throughout our business,” said Bond.
“In the second quarter, Haile continued to deliver to plan. Mining transitioned to the Haile pit and the operation continued to make good progress on productivity and efficiency initiatives. Though the supplemental environmental impact statement is yet to be published, which means the record of decision and receipt of subsequent operating permits is yet to occur, we have been advised that it is in the final stages of editing and is very close to being published.”
“At Didipio, the team continues to do an exceptional job, with the second quarter being the first quarter where full underground mining rates were sustained. This is a great achievement so soon after recommencing operations,” added Bond.
“While challenges persisted at Waihi, we saw an improvement in mining rates and reconciliation as mining commenced on areas better defined by the accelerated grade control drill programme, and it is expected that performance will continue to improve over the coming quarters.”
Bond said that the strong first-half performances from Haile and Didipio have led OceanaGold to re-affirm its full-year consolidated production guidance of 445 000 oz to 495 000 oz while increasing full-year copper production guidance to between 12 000 t and 14 000 t.
Reflecting material inflation-driven increases in key input costs across its business, most notably diesel costs, materials and consumables, combined with the decline in copper prices, the miner was increasing its full-year consolidated AISC guidance by approximately 7.5%, with AISC now expected in the range of $1 375 to $1 475 an ounce. Partially offsetting this increase in AISC is an expectation that total capital expenditures in 2022 will be $30-million lower, with sustaining capital and growth capital being between $10-million and $20-million lower than original guidance.