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OceanaGold posts record FY16 revenue, net profit

24th February 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner OceanaGold has reported record revenue for the financial year ended December 31, with net profit more than doubling.

The ASX- and TSX-listed company has reported revenue of $628.6-million for the year, compared with revenue of $507.9-million in 2015, while net profit increased to $136.4-million, from $53-million in 2015.

The revenue increase was driven by an 8% increase in the average gold price received; however, OceanaGold noted that the year-on-year increase was partially offset by lower copper sales.

Gold production for full-year 2016 remained nearly stagnant at 416 741 oz, compared with the 419 153 oz produced in the previous financial year, while copper production was down from 23 109 t to 21 123 t over the same period.

Gold sales volumes, however, rose from 401 350 oz in 2015 to 437 146 oz in the 2016 financial year, while copper sales decreased from 22 764 t in 2015 to 21 413 t for the year under review.

Meanwhile, earnings before interest, taxes, depreciation and amortisation were up from $193.4-million at the end of 2015, to $283.6-million.

“OceanaGold achieved strong financial results from our portfolio of high-quality assets in 2016. With growth in production and higher margins expected in 2017, we are further strengthening our financial results and balance sheet,” said OceanaGold MD and CEO Mick Wilkes.

“We expect this year to unlock significant growth opportunities in the business, particularly in New Zealand and the US. Commissioning of Haile continues to advance well and we expect to announce commercial production early in the second quarter.

“We will continue to create value through exploration supported by a larger exploration spend in New Zealand and the US, and will also complete studies for the potential expansion of Haile and the exciting Martha project, at Waihi,” Wilkes said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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