CAPITAL MARKETS

Bigger 2017 for OceanaGold

New Haile to add ounces for miner

Michael Quinn
Bigger 2017 for OceanaGold

The miner has flagged output for the year of between 550,000 and 610,000 ounces of gold and 15,000-17,000t of copper at all-in sustaining costs (AISC) of $US600-650/oz.

Of that total, Haile will contribute 150,000-170,000oz at AISC of $500-550/oz.

OceanaGold produced 419,153oz and 23,109t of copper in (at AISC of $709/oz) in 2015, and flagged 385,000-425,000oz (and 19,000-21,000t of copper) in the current year.

Regarding exploration, OceanaGold said it had increased its footprint in the Carolinas by 50%, with the hunt on for more Haile-like orebodies.

It also has a “medium-term” discovery target at Waihi in New Zealand of an additional 1 million ounces.

At the end of the third quarter, OceanaGold had total immediate available liquidity of $145.3 million including approximately $88.1 million in cash and $57.2 million undrawn from its revolving credit facility.

Total debt at the end of the quarter stood at approximately $298 million. In addition, the company held approximately $118 million in marketable securities as at the end of the third quarter from the previous investments it had made in junior exploration companies.

Shares in OceanaGold were up 1.6% to $A3.82 in morning trade, capitalising the stock at $2.39 billion.

It started the year trading at about $2.75 per share, and reached a 12-month high of more than double that in July.  

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