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OceanaGold share price on watch after FY 2019 update

The OceanaGold Corp (ASX: OGC) share price will be one to watch on Friday following the release of its fourth quarter and full year update after the market close.

How did OceanaGold perform in the fourth quarter?

During the fourth quarter OceanaGold’s gold production from its United States and New Zealand operations increased by nearly 20% quarter on quarter. This was thanks to stronger production from its Haile and Macraes operations.

Haile gold production increased by 26% quarter-on-quarter to 46,420 ounces in the fourth quarter.

This helped take total gold production in the fourth quarter to 108,151 ounces and to 470,601 ounces for the full year.

The latter was in line with its revised guidance of 460,000 to 480,000 ounces. Which was notably lower than in FY 2018 due to the suspension of its Didipio operation in the Philippines.

OceanaGold’s annual copper production came in at 10,255 tonnes, compared to its guidance of 10,000 to 11,000 tonnes.

Also coming in within its revised guidance range was its all-in sustaining costs (AISC). OceanaGold’s AISC for the fourth quarter was US$980 per ounce, which brought its full year AISC to US$1,061 per ounce. This compares to its AISC guidance of US$1,040 to US$1,090 per ounce sold.

The company’s president and CEO, Mick Wilkes, was pleased with the fourth quarter.

He said: “We are pleased to report a stronger quarter-on-quarter operating performance from Macraes and Haile in particular. Despite the weather challenges we experienced and worked through, Haile managed to achieve its annual production range by delivering a 26% increase in gold production from the third quarter while continuing to demonstrate continuous productivity improvements and lower unit costs.”

Didipio operation.

Mr Wilkes provided investors with an update on its suspended Didipio operation.

He said: “Last year was challenging for us particularly in the Philippines. We continue to have positive engagement with the National Government and we continue to see very strong support from our local communities. The FTAA renewal is currently with the Office of the President for review, and we remain committed to providing the market with updates related to the advancement of the renewal and other impacts related to Didipio’s operating status.”

Looking ahead, the company’s CEO appears cautiously optimistic on the future.

“We are focused on resolving the suspension of Didipio as soon as we can, executing at our operations and the timely delivery of key projects. We are progressing and prioritising our robust project pipeline in New Zealand and North America in accordance with our principle to always pursue opportunities that can deliver strong economic returns,” he concluded.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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