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

 


OceanaGold posts first-half profit on strong first-quarter

OceanaGold posts first-half profit on strong first-quarter, Didipio

By Jonathan Underhill

July 31 (BusinessDesk) - OceanaGold, which operates the Macraes goldfield in Otago, posted a first-half profit as its Didipio operation in the Philippines helped lift first-quarter earnings to a record, making up for a small loss in the second quarter blamed on higher New Zealand costs and weaker sales.

Net profit was US$56.8 million in the six months ended June 30, from a year-earlier loss of US$63 million, which included some of 2013's US$193.3 million of impairments against its New Zealand assets, the Melbourne-based company said in a statement. Sales rose to US$297.8 million from US$226.9 million a year earlier, it said.

The mining company achieved a profit of US$58.9 million in the first three months of the year as production from Didipio came onstream, lifting sales by 78 percent. In the second quarter, sales fell 2.7 percent to US$127 million and were eclipsed by cost of sales, depreciation and amortisation, and other expenses amounting to about US$129 million.

OceanaGold attributed the second-quarter loss to "lower revenue from lower overall sales and higher costs in New Zealand due to a higher New Zealand dollar and a drawdown of inventory and gold-in-circuit."

“We had a strong start to the first half of the year with free cash flow generation of US$71 million including US$22 million in the second quarter despite a lower quarter for production,” said chief executive Mick Wilkes. The company was on track to achieve its 2014 guidance, he said.

The shares fell 8.2 percent to $3.58 on the NZX and have surged 128 percent this year. In that time the spot price of gold has gained about 16 percent.

Total production in the first half was 147,399 ounces of gold and 11,185 tonnes of copper including 60,831 ounces of gold and 4,706 tonnes of copper in the second quarter.

The Didipio operation produced 45,266 ounces of gold and 11,185 tonnes of copper in the first half, with much of the output achieved in the first quarter of the year, the company said. Production was expected to be lower in the second quarter because of the timing of extraction of lower grade ore and maintenance and is expected to pick up in the third quarter, it said.

In New Zealand, gold production was 102,133 ounces in the first half, down from 115,263 ounces a year earlier. That mainly reflected a decline in the second quarter of the latest year, which the company said was due to "lower grade ore mined and processed across the New Zealand operations and to lower mill feed at Reefton." Less ore was mined at Reefton towards the end of the second quarter because instability of a pit wall temporarily affected access, it said.

"Reduced ore feed will continue in the third quarter while an alternate access in the open pit is established," the company said. "As a result, production at Reefton for the third quarter and full year will be lower than expected."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news