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OceanaGold reports net profit of $133 million in 2022 as gold production up 30%

Kitco News

(Kitco News) - OceanaGold (TSX: OGC) reported today that the company achieved its consolidated full production and cost guidance in 2022, producing 472,201 ounces of gold and 14,361 tonnes of copper at an AISC of $1,407 per ounce.

The company said that full year 2022 gold production was approximately 30% higher than 2021 due to stronger gold production from the New Zealand operations and the successful ramp-up of operations at Didipio, where target underground mining rates were achieved ahead of schedule in the second quarter of 2022.

Consolidated full year 2022 revenue was $967.4 million, a record for the company and a 30% increase on the previous year which reflects the successful ramp-up of Didipio and higher gold sales from the New Zealand operations.

EBITDA for the full year 2022 was $382.1 million, reflecting a 16% increase year-on-year primarily driven by higher revenue partially offset by the higher cost of sales.

Full year 2022 earnings after tax were $137.0 million, $37.3 million or 37% higher than the prior year earnings after tax of $99.7 million. Full year 2022 net profit after tax was $132.6 million (2021: net loss of $3.7 million), and adjusted net profit after tax was $147.9 million or $0.21 per share fully diluted.

Cash flows from operating activities were $368.7 million for the full year 2022, $107.3 million or 41% higher than the prior year, while free cash flow generated was $57.7 million, $139.2 million higher than the prior year.

The company also announced a semi-annual dividend payment of $0.01 per common share.

The company’s consolidated 2023 production guidance is between 460,000 and 510,000 ounces of gold and between 12,000 and 14,000 tonnes of copper, and its three-year outlook is for production growth to over 600,000 ounces of gold by 2025.

OceanaGold is a multinational gold producer operating the Haile gold mine in the United States of America, the Didipio gold mine in the Philippines, and the Macraes and Waihi mines in New Zealand.

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