Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


OceanaGold reports FY loss of US$47.9M on further writedowns

OceanaGold reports FY loss of US$47.9 mln on further NZ assets writedown

By Suze Metherell

Feb. 21 (BusinessDesk) – OceanaGold Corp, the Melbourne-based mining group, reported a net loss of US$47.9 million for calendar 2013, as the company wrote down its New Zealand assets in the face of a declining gold price, offsetting a 44 percent gain in revenue.

Revenue was US$553.7 million for the 12 months ended Dec. 31, up from US$385.4 million a year earlier, the company said in a statement. A US$193.3 million impairment charge walloped the company’s bottom line, as the company revalued its New Zealand assets.

Impairments of US$85.5 million were recognised in the second quarter, with a further US$107.8 million added in the last quarter of the financial year.

Excluding the one-time charge, the miner recorded full-year earnings after tax of US$92.8 million, up from US$20.3 million.

The impairment charges related to writedowns of its Macraes goldfield in Otago, which closes in 2017, and its Reefton mine, to be mothballed mid-next year. In the face of declining gold prices the miner is winding down its New Zealand interests to focus on its Philippines gold and copper operations. The spot gold price has declined 16 percent in the past 12 months, and fallen 26 percent over the past two years.

OceanaGold’s earnings before interest and tax rose 150 percent to US$135.2 million as both gold and copper production exceeded the company’s expectations. After depreciation and amortisation expenses of US$129.3 million, and prior to impairments, ebitda was $262.4 million, up from US$144.6 million. It reported record gold production in the fourth quarter, up 54 percent to 115,219 ounces, and 325,732 ounces for the full year, just ahead of its guidance range of 285,000 to 325,000 ounces.

Its Philippines copper and gold mine Didipio began commercial production in April. It produced 66,277 ounces of gold, in line with guidance. Copper production exceeded expectation at 23,059 tonnes, above the predicted range of 18,000 to 20,000 tonnes.

It forecast gold production to be in the range of 275,000 – 305,000 ounces for the year ahead, a drop-off due to the decline in its Macraes operations. Copper production is forecast between 21,000 to 24,000 tonnes.

OceanaGold spent C$10.2 million on buying the 80 percent of Pacific Rim Mining Corp it didn’t already own, gaining access to the El Dorado gold and silver deposit in El Salvador.

The company’s shares were up 2.9 percent to $2.83, and down 2.5 percent in the past 12 months.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news