OceanaGold profits up 45% on previous year, declares dividend

Image: OceanaGold

Melbourne-based OceanaGold has released strong results for the second quarter (Q2) of 2018, posting net revenue of $US402.4 million ($544.9 million) and profit of $US89.1 million ($120.7 million) for the first half of 2017.

These results represented year-on-year (YoY) increases of 21 per cent and 45 per cent respectively. In addition, the company’s cash balance saw a 58 per cent YoY increase to $US129 million. In addition to an undrawn $US20 million credit facility, company liquidity now stands at $US149 million with total debt of $US233 million ($US104 million net debt).

The company has increased its annual gold guidance across its projects to 500–540,000oz (up from 480–530,000oz) and declared a dividend for the second half of the year as a result of strong performance. The dividend will see a distribution of two cents per common share to be paid on September 14.

Company president and chief executive officer Mick Wilkes said that OceanaGold had delivered robust performance in the fist half of 2018.

Over the past 12 months we have increased our cash balance by nearly 60 per cent and cut our net debt by almost half, which reflects the strength of our assets,” he said.

“As a result of our continued business strength, the Board of Directors is also pleased to declare a dividend of $0.02 per share, which also reflects continued confidence in our business going forward.”

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