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  • Gold producer OceanaGold (OGC) has reported US$500.1 million (roughly A$644.5 million) in revenue for the full year ending December 31, 2020
  • This marks a year-on-year decrease due to reduce sales from the Didipio mine and lower production from the Waihi operation in New Zealand
  • Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased in the fourth quarter to $70 million (roughly A$90.1 million), excluding Didipio carrying costs
  • The increase reflects higher producer from the Haile and Macreas operations, as well as production resuming at Waihi
  • OceanaGold saw a full-year net loss of US$150 million (roughly A$193.2 million), which was largely due to a US$80 million (roughly A$103 million) impairment charge
  • The billion-dollar company rounded the year off with US$229 million (roughly A$295 million) of available liquidity
  • Company shares have dropped 10.7 per cent to trade at $1.97

OceanaGold (OGC) has reported US$500.1 million (roughly A$644.5 million) in revenue for the full year ending December 31 2020.

Of the full year revenue, US$168.2 million (roughly A$216.7 million) was generated in the fourth quarter alone. The revenue represents a year-on-year decrease, which was due to limited sales from its Didipio mine and lower annual production from the Waihi operation as the development of the Martha Underground mine progressed.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the full year was US$165 million (roughly A$212.5 million) and $70 million (roughly A$90.1 million) for the fourth quarter, excluding Didipio carrying costs.

EBITDA for the fourth quarter significant increased from the previous quarter, which reflects higher production from Haile and Macraes, as well as production resuming at Waihi. EBITDA for the full year decreased, which was mainly due to reduced sales from Didipio.

Adjusted net profit for the fourth quarter was US$2 million (roughly A$2.6 million) which compares favourably to an adjusted net loss of US$15 million (roughly A$19.3 million) in the September quarter.

However, for the full year, OceanaGold recorded a net loss of US$150 million (roughly A$193.2 million). This was largely due to a pre-tax impairment charge of US$80 million (roughly A$103 million) regarding the Didipio mine.

At the end of the year, OceanaGold had US$229 million(roughly A$295 million) of available liquidity including US$179 million (roughly A$230.6 million) in cash and US$50 million (roughly A$64.4 million) in undrawn credit as part of a US$250 million (roughly A$322 million) revolving credit facility.

Looking ahead, the billion-dollar company expects to produce 340,000 to 380,000 ounces of gold at an all-in sustaining cost (AISC) of between US$1050 (roughly A$1352) and US$1200 (roughly 1546) per ounce sold. The production guidance range marks a 20 per cent increase in gold production alongside the 12 per cent decrease in AISC.

“As we close the books on 2020, we look ahead to 2021 and beyond where we expect a very exciting period for the company and our shareholders,” CEO Michael Holmes said.

“This includes bringing three new underground mines into production over the next three years with Martha Underground already producing, Golden Point Underground at Macraes where first production is expected in the fourth quarter of this year, and the Haile Underground where development is expected to commence in the second half of this year,” Michael said.

These three projects are expected to deliver more than a 75 per cent production increase.

OceanaGold is also committed to achieving net zero greenhouse emissions by 2050 and will do so by establishing emission targets before the end of this year.

Company shares have dropped 10.7 per cent to trade at $1.97 at 1:18 pm AEDT.

OGC by the numbers
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