In This Article:
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Revenue: $345 million for the third quarter.
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Net Profit: $61 million.
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Adjusted Earnings Per Share: $0.09, doubling from $0.04 in the previous quarter.
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Free Cash Flow: $66 million for the quarter, nearly $100 million year-to-date.
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All-In Sustaining Cost (AISC): $1,729 per ounce, a 19% decrease from the prior quarter.
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Average Realized Gold Price: Approximately $2,500 per ounce.
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Debt Repayment: $40 million repaid during the quarter.
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Share Buyback: 3.2 million common shares repurchased at an average price of CAD3.37 per share.
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Net Cash Position: $72 million.
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Haile Gold Production: 64,900 ounces in the third quarter.
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Didipio Gold Production: Approximately 28,000 ounces.
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Didipio Copper Production: 3,400 tonnes.
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Macraes Gold Production: Approximately 28,000 ounces.
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Waihi Gold Production: Around 14,000 ounces.
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Revised 2024 Production Guidance: 480,000 to 500,000 ounces of gold.
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Revised AISC Guidance: $1,725 to $1,825 per ounce for the full year.
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Capital Expenditure: Approximately $25 million above original guidance range.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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OceanaGold Corp (OCANF) reported a 37% increase in gold production with lower all-in sustaining costs quarter-on-quarter.
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The company generated $66 million in free cash flow for the quarter, excluding 10,000 ounces of gold produced but not sold.
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Record quarterly production was achieved at the Haile operation, contributing to significant cost reductions and strong free cash flow.
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OceanaGold Corp (OCANF) repaid $40 million of debt and bought back 3.2 million shares, enhancing shareholder value.
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The Waihi North Project, including the WKP deposit, is being considered for Fast-track consenting by the New Zealand government, indicating potential for accelerated development.
Negative Points
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Full-year consolidated gold production guidance was revised to be around 4% below the original guidance range.
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Didipio and Waihi operations faced challenges, leading to adjusted production guidance and higher all-in sustaining costs.
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The company experienced a significant storm event at Didipio, impacting production performance and exploration activities.
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Waihi's production guidance was revised downward due to underperformance in the first half of the year.
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Total capital expenditure for the year is expected to be around $25 million or 5% above the original guidance range.
Q & A Highlights
Q: How will the challenging ground conditions at Didipio impact the underground PFS results? A: Gerard Bond, President and CEO, explained that the Didipio study focuses on increasing the rate of haulage from underground, which will displace lower-grade stockpiles. The breccia stope areas are a subset of the overall feed, and while they will moderate the amount of high-grade material in the short term, the redesign ensures all high-grade ore is accessed. The goal of increasing ore haulage remains unchanged.