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Date : 09/05/2022

OceanaGold Corp (ASX: OGC) is Skyrocketing after announcing its First Quarter Results

Global gold producer OceanaGold is devoted to the highest levels of technical, environmental, and social performance in the mining and processing of gold. Founded in 1989, the company’s headquarters are in Melbourne, Australia.

They have been making significant contributions to excellence in their business for the last 33 years by achieving sustainable environmental and social results for their communities while generating substantial returns for investors. The company has had much experience with exploration, development, and operation worldwide. This has led to an industry-leading pipeline of organic growth opportunities and a portfolio of established operating assets, like the Didipio Mine in the Philippines, the Macraes and Waihi operations in New Zealand, and the Haile Gold Mine in the United States of America.

OGC stock is rising after releasing the first quarter of 2022 results and providing production updates. The company’s performance has increased significantly, and investors are excited about the excellent returns.

OGC shares gained after providing positive Production Updates

OGC stock gained as soon as it released its production updates and first-quarter results. OGC stock is currently trading at $3.42 and gained over 7.5% in the intraday trading session as soon as the news of production updates hit the market. If we look at the last 12-months, the stock returned more than 59% to its investors in the previous year. The company has a current market cap of $2.45 billion.

oceanagold corp

  1. Q1 2022 saw OceanaGold post a record quarterly revenue of $286 million, reflecting a 37% increase quarter-on-quarter. It made $148.9 million in sales in the first quarter of 2021.
  2. As a result, the company’s EBITDA for the first quarter of 2022 was $158 million representing a 78% increase quarter-on-quarter. In the first quarter of 2021, the company’s EBITDA was $62 million.
  3. In the first quarter of 2022, its Net profit after tax (NPAT) was $79 million, compared to $16 million in the same quarter the previous year.
  4. In the first quarter of 2022, its basic and diluted earnings per share are $0.11, compared to $0.02 in the first quarter of 2021.
  5. The company’s free cash flow amounted to $63 million.
  6. There was a 29 percent decrease in net debt from the previous quarter to $168 million, with an end-of-period gearing of 9 percent, and the company’s leverage ratio was 0.40 times.

OGC: Production Updates

  1. Gold production at OceanaGold increased by 26% quarter-on-quarter to 134,035.
  2. On gold sales of 129,191 ounces, consolidated All-In Sustaining Costs (AISC) was $1,084 per ounce for the quarter.
  3. In the first quarter, Haile produced a record 60,249 ounces of gold.
  4. In March, Didipio reached full underground mining rates. In the first three months of the year, the company made 29,446 ounces of gold and 3,510 tonnes of copper at the first quartile All-In Sustaining Costs of $40 per ounce sold.
  5. There was a 53% rise in Wharekirauponga (WKP) Indicated Resource to 1.5 million tonnes at 13.5 grammes per tonne gold for 0.64 million ounces gold and 1.27 Moz silver. An estimated 2.3 million tonnes at 9.4 grammes per tonne of gold (0.7 million pounds of gold and 1.6 million pounds of silver) provides a huge prospect for future resource conversion.

OGC: 2022 Guidance

According to OceanaGold, the company expects to sell between 445,500 and 495,000 ounces of gold and 111,000 and 13,000 tonnes of copper in fiscal 2022, at an AISC of $1,275-$1,375 and cash expenses of between $675 and $775 per ounce sold during fiscal 2022.

The company’s management is optimistic about the company’s performance and expects to achieve the projected goals efficiently.

Conclusion

OceanaGold stock is rising on the ASX after releasing its production details. Investors are happy to see the company’s production capability and expect it to improve its numbers in the future. The company optimised its production at full capacity at all mining sites, due to which its production inclined, resulting in the massive growth of revenue and profitability.

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