CAPITAL MARKETS

Bigger 2017 for OceanaGold

OCEANAGOLD Corp is aiming to again increase production and lower costs next year as the Haile mine in South Carolina comes on-line.

Michael Quinn
Bigger 2017 for OceanaGold

The miner has flagged output for the year of between 550,000 and 610,000 ounces of gold and 15,000-17,000t of copper at all-in sustaining costs (AISC) of $US600-650/oz.

Of that total, Haile will contribute 150,000-170,000oz at AISC of $500-550/oz.

OceanaGold produced 419,153oz and 23,109t of copper in (at AISC of $709/oz) in 2015, and flagged 385,000-425,000oz (and 19,000-21,000t of copper) in the current year.

Regarding exploration, OceanaGold said it had increased its footprint in the Carolinas by 50%, with the hunt on for more Haile-like orebodies.

It also has a “medium-term” discovery target at Waihi in New Zealand of an additional 1 million ounces.

At the end of the third quarter, OceanaGold had total immediate available liquidity of $145.3 million including approximately $88.1 million in cash and $57.2 million undrawn from its revolving credit facility.

Total debt at the end of the quarter stood at approximately $298 million. In addition, the company held approximately $118 million in marketable securities as at the end of the third quarter from the previous investments it had made in junior exploration companies.

Shares in OceanaGold were up 1.6% to $A3.82 in morning trade, capitalising the stock at $2.39 billion.

It started the year trading at about $2.75 per share, and reached a 12-month high of more than double that in July.  

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.