OceanaGold's record first-quarter gold output from Didipio
Sales climbed to $US161 million in the March quarter.
OceanaGold [NZX: OGC], the gold and copper miner, said it achieved record gold production from its Didipio mine in the Philippines in the first quarter and lifted group sales by 25%, although accounting adjustments dented profit.
Sales climbed to $US161 million in the March quarter, from $US129 million a year earlier, the Melbourne-based company said in a statement. While earnings before interest, tax, depreciation and amortisation jumped 28% to $US77.9 million, higher depreciation and amortisation, a higher tax bill and a loss on the value of hedges contributed to a 4% drop in net profit to $US23.5 million.
OceanaGold expanded its portfolio last year, acquiring the Waihi mine from Newmont Mining Corp and developing the Haile mine in the US, where commercial production is slated to start in early 2017. It has also invested $C13.8 million to increase its stake in Gold Standard Ventures Corp to 19.9% from 13.9% to help finance a gold project in North Central Nevada. Today it said construction of Haile and on its Didipio underground development were on time and budget, leaving the company "very well placed to achieve our plans for growth in 2016."
In the first quarter, consolidated gold production rose 2.8% to 122,782 ounces, including record production of 46,811oz at Didipio. Copper production edged up to 5972 tonnes from 5591 tonnes.
All-in sustaining costs were $US716 per ounce and cash costs were $US436 per ounce on sales of 117,387 ounces of gold and 4745 tonnes of copper, the company said. That compares with all-in costs of $US709 an ounce in the fourth quarter of 2015 and cash costs of $US458 an ounce in the fourth quarter on sales of 127,086oz of gold and 23,109 tonnes of copper.
OceanaGold's New Zealand shares last traded at $4.54 and have surged 62% this year.
(BusinessDesk)
Jonathan Underhill
Fri, 29 Apr 2016
Fri, 29 Apr 2016
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OceanaGold's record first-quarter gold output from Didipio
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