Make Kitco Your Homepage

OceanaGold boosts quarterly net profit 391% as gold production jumps 61% in Q1

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - OceanaGold Corporation (TSX: OGC) reported Thursday that the company produced 134,035 ounces of gold in Q1 2022, representing a 61% increase compared to the first quarter of 2021.

The company said that the stronger quarterly production was driven by record quarterly production at Haile and a solid quarter of production at Didipio, partially offset by decreased production at Waihi.

The company also produced 3,500 tonnes of copper in Q1 2022 (Q1 2021: nil).

On a consolidated basis, the company recorded an AISC of $1,084 per ounce on gold sales of 129,191 ounces and copper sales of 3,711 tonnes.

The company noted that AISC was 14% lower year-on-year with the benefits from a full quarter of operations at Didipio partially offset by increased sustaining capital investments.

The company reported record quarterly revenue of $285.7 million, also adding that its record first quarter 2022 EBITDA of $158 million was 155% higher than the first quarter of 2021, related to resumption of operations at Didipio and increased gold prices.

Importantly, the company said that its first quarter 2022 net profit was $78.6 million, an increase of 391% compared to Q1 2021 ($16.0 million).

Agnico Eagle ups gold production 28% in Q1, says net income down due to merger costs

Cash flows from operating activities for the first quarter of $143.8 million exceeded the comparative quarters, driven by stronger EBITDA though partially offset by unfavorable working capital movements.

The company also reaffirmed its full year consolidated guidance of 445,000 to 495,000 ounces of gold and 11,000 to 13,000 tonnes of copper, at an AISC of $1,275 to $1,375 and cash costs between $675 to $775 per ounce sold.

OceanaGold is a multinational gold producer with a portfolio of established operating assets including Didipio mine in the Philippines; Macraes and Waihi operations in New Zealand; and Haile gold mine in the United States of America.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.