OceanaGold posts record $172m profit as production spikes

OceanaGold Corporation has posted record net profits for its full-year statement ending December 2017.

Full-year net profits were $172 million, which included a record quarterly profit of $89 million. In addition, OceanaGold achieved record full year and quarterly revenues of $724 million and $246 million, respectively. Net debt was reduced by $88 million in the fourth quarter to $78 million overall.

The company cited strong operational performance as a key reason for the results; in an earlier release on January 18, OceanaGold pointed to record annual and quarterly gold production — 574,606 ounces (oz) and 166,211oz respectively — and strong copper production of 18,351 tonnes, meeting company guidance for the sixth consecutive year.

Mick Wilkes, president and chief executive officer of OceanaGold, said the record profits were underpinned by a record year of production at sector-leading margins.

“On the back of the significant cash flow generation from our suite of high-quality assets, the company continued to strengthen its balance sheet,” he said.

“In the fourth quarter alone, we increased our cash balance from $61 million to $73 million while reducing our revolving credit facility from $273 million to $200 million.

“We are well positioned to continue to deliver strong margins and returns to shareholders in 2018.”

ASX-listed OceanaGold’s major projects (among others) include the Haile gold mine in South Carolina, US, Didipio gold-copper mine in Luzon, the Philippines, and the Correnso underground gold mine in New Zealand, which OceanaGold purchased from Newmont Mining in October 2015.

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