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  • Continuing interruptions at OceanaGold’s global mining operations have hampered its recent quarterly gold production
  • Pandemic-related disruptions at the company’s Haile mine in the U.S. have caused operational delays, impacting the site’s overall quarterly performance
  • Meanwhile, production was further hit by the continuing shutdown of the company’s Didipio operation in the Phillipines, due to an ongoing licensing dispute with the government
  • As a result, the company produced just 63,100 ounces of gold from its operations in the third quarter of 2020, a considerable drop on 107,500 ounces in last year’s same period
  • Despite the weaker quarterly performance, OceanaGold still expects to hit the lower end of its full-year production guidance at between 295,000 and 345,000 ounces of gold
  • OceanaGold closed 5.45 per cent down for $2.00 per share.

Continuing interruptions at OceanaGold’s (OGC) global mining operations have hampered its recent quarterly production and sales figures.

Pandemic-related disruptions at the company’s Haile site in the U.S and a continuing shutdown of its Didipio operation in the Phillipines dragged its third quarter performance down substantially, leading to heavy knock-on effects to its bottom line.

Due the disruptions, the company produced just 63,100 ounces from its operations in the third quarter of 2020, a considerable drop on 107,500 ounces in last year’s same period.

As a result, gold sales also dropped to 60,800 ounces this quarter, compared to around 94,300 ounces sold in 2019’s same quarter.

The marked drop in sales has led to the company’s posting a net loss for a quarter of US$96.8 million (approximately A$138.11 million), compared to a loss of US$21 million (approximately A$29.96 million) in last year’s corresponding period.

Much of the drop in production was attributed to a lack of sales from the company’s Didipio mine, which remains on care and maintenance while a year-long licensing dispute with the government continues to hold up operations.

On top of the hit to its sales, operational costs and a recent slew of redundancies at Didipio have resulted in US$80 million (approximately A$113.74 million) in charges, further hindering OceanaGold’s quarterly figures.

Meanwhile, confirmed cases of COVID-19 at the company’s Haile mine site leapt from two to 20 over the course of the quarter, causing safety protocols to ramp up and ultimately delay the operation reaching its long-awaited high-grade ore reserves.

Despite the slumping sales, President and CEO Michael Holmes said the company remains focussed on delivering a stronger fourth quarter of operational and financial results.

Undeterred by its current production challenges, the company still expects to hit the lower end of its expected guidance of between 295,000 and 345,000 ounces.

To meet the guidance, higher production at Haile is forecast in the fourth quarter, alongside upcoming improvements at the company’s Waihi and Macraes operations in New Zealand.

OceanaGold closed 5.45 per cent down for $2.00 per share.

OGC by the numbers
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