OceanaGold reports strong 2018 financials as gold hits 10-month high

Mid-tier gold producer OceanaGold Corp has reported annual revenue of US$773 million and net profit before unrealised gains or losses on undesignated hedges of $124 million, in its 2018 financial report.

The TSX and ASX-listed firm delivered a ninth consecutive year of positive returns on invested capital, generating around $121 million in free cash flow and $346 million in operating cash flow. Earnings before interest, tax, depreciation and amortization (EBIDTA) came in at $364 million.

Oceana’s president and CEO Mick Wilkes said that the company’s cash balance increase of 47% year-on-year was a reflection of Oceana’s consistent profitability during recent years.

“Our net debt reduced by 59% over the past year, reflecting the strong cash flow generation in 2018 and our commitment to strengthen our balance sheet through discretionary debt repayments,” said Wilkes.

The group’s final gold count for the year was 533,300 ounces from its assets in New Zealand, Philippines and the US, at cash costs of $489 per ounce and all-in-sustaining costs of US$767 per ounce.

Oceana’s share price in Toronto was up 5.41% at market close on Tuesday, trading at C$4.48 per share within a 52-week trading range of $3.12 and $5.01.

Meanwhile, Gold prices rose to a 10-month high as concerns over a global economic slowdown spurred a flurry of buying. Gold for delivery in April reached a high of US$1,345 an ounce on Tuesday.