The OceanaGold Corp (ASX: OGC) share price is down 6.02% to $3.59 at the time of writing, after the company released its quarterly statement after market close yesterday afternoon.
What was in the announcement?
OceanaGold reported production of 139,385 ounces of gold in the first half of 2020. This was a 45% drop in production compared to the same period in 2019. The company reported that this was mainly due to a temporary suspension of operations at its Didipio mine. During the first half of 2020, OceanaGold had an all in sustaining cost of $1,237 on 153,343 ounces of gold sold.
During the quarter ending June 2020, the company produced 58,678 ounces of gold. It sold 61,955 ounces of gold at an all in sustaining cost of $1,265 per ounce.
The company had revenue in the first half of 2020 of $234 million with earnings before interest, tax, depreciation and amortisation of $54.8 million.
OceanaGold reported that production guidance for 2020 would be lowered from 360,000–380,000 ounces of gold down to 340,000–360,000 ounces of gold. It attributed this to the 5-week coronavirus lockdown in New Zealand, which affected the company's Macraes site. The lockdown was lifted on 27 April.
The company reported that guidance for all in sustaining costs on a gold sold basis for 2020 would be reduced from $1,075–$1,125 down to $1,050–$1,100 per ounce of gold.
President and CEO of OceanaGold Michael Holmes commented on the result and the company's plans for the rest of 2020, stating:
We look forward to the second half where we continue to expect a material increase in production at both Haile and Macraes at lower AISC plus continued advancement of our key organic growth projects including those recently outlined in the Waihi District Study.
The second quarter was expected to be our weakest in terms of production, but the results also demonstrate the impact the global COVID-19 pandemic has had on our business. We have worked hard to safeguard the health and safety of our employees through the implementation of rigorous protocols including health screening, physical distancing and disinfecting throughout our operations.
About the OceanaGold share price
OceanaGold in a multinational gold explorer and producer. The company has operations in the United States, New Zealand, and the Phillipines.
In July, the company revealed that it had completed a study for its Waihi district site. OceanaGold announced that the site had a net present value of US$931 million with a life of mine estimated to last until 2036 and beyond.
The OceanaGold share price is up 145.89% since its 52-week low of $1.46. It has returned 29.14% since the beginning of the year. The OceanaGold share price is down 13.29% since this time last year.
