The OceanaGold Corp (ASX: OGC) share price will be one to watch tomorrow following the after-hours release of its fourth quarter and full year update.
What did OceanaGold announce?
According to the release, the company expects to report fourth quarter consolidated gold production of 99,155 ounces for the three months ended 31 December.
This will bring its full year gold production to a total of 301,675 ounces, which is down 36% on the FY 2019 due to the shutdown of its Didipio operation in the Philippines following protests.
OceanaGold achieved this with an all-in sustaining cost (AISC) of US$1,075 per ounce for the quarter and US$1,276 per ounce for the full year. The latter was up from US$980 per ounce in FY 2019.
However, the company benefited from the appreciation in the gold price in 2020. Its average gold sold price came in at US1,648 per ounce for the quarter and US$1,573 per ounce for the year. This compares to FY 2019’s average gold sold price of US$1,360 per ounce.
At the end of the period, the company had liquidity of US$229 million. This includes US$179 million of cash on hand and $50 million in undrawn credit facilities.
OceanaGold’s President and CEO, Michael Holmes, commented: “We delivered a strong fourth quarter of production, consistent with our core value to deliver on our commitments. Despite the ongoing risks associated with the COVID-19 global pandemic in the United States, Haile achieved its full year production guidance with 137,413 gold ounces produced including 48,988 ounces in the fourth quarter.”
“The risks associated with the management of COVID-19 remain, and we are focussed on keeping our workforce safe while delivering on our commitments. We expect the continued mining of high-grade zones at Haile through the first half of 2021,” he added.
OceanaGold appears optimistic that its troubled Didipio operation could be back up and running as normal in the near future.
It advised that it has had multiple meetings with national government officials in December to finalise the terms of the FTAA renewal. This renewal is expected to be endorsed to the Office of the President for approval.
It added that it will continue to engage with government officials and work with stakeholders for a safe restart of operations at Didipio. However, it warned that the timeline for the renewal remains uncertain and achieving steady state production will be dependent on the timing of the renewal and workforce recruitment efforts.