OceanaGold 2Q profit plunges 82% on falling gold prices
The gold miner reported a net loss of $US3.1 million for the six-month period, compared to a profit of $US18.9 million a year earlier.
BUSINESSDESK: OceanaGold Corp, which operates the Macraes gold field near Dunedin, saw second-quarter profit plunge 82% as falling gold prices eroded earnings and led to a six-month loss.
Net profit was $US735,000 in the three months ended June 30, down from $US4.1 million in the same period a year earlier, the Melbourne-based company said. That was an improvement on the first three months of the year when its bottom line sank into the red.
The gold miner reported a net loss of $US3.1 million for the six-month period, compared to a profit of $US18.9 million a year earlier.
Earnings before interest, tax, depreciation and amortisation dropped 22% to $US25.6 million in the quarter, with sales down 8.5% to $US86.7 million.
"The New Zealand operations achieved good production improvement this quarter and remain on track to meet full-year guidance," chief executive Mick Wilkes said. "Didipio construction is at peak levels and progressing on schedule to commission in the fourth quarter of 2012."
Last week the company launched an investigation into the death of a contract worker at the site of its Didipio mine project in the Philippines after a severe storm hit the construction site.
The project is set to run over budget by $US35 million to $US220 million due to engineering design and procurement services, the tailings storage facility, and infrastructure construction and support costs.
Gold production fell to 5709 ounces in the second quarter from 61,988 ounces a year earlier. The average price received was $US1613 per ounce, an improvement on the $US1546 achieved in 2011, though at a smaller margin of $US584/oz compared to $US625/oz.
The company retained its 2012 production guidance of between 230,000 and 250,000 ounces of gold at cash costs of $US900 to $US980 an ounce, and assumes an exchange rate of 80 US cents per New Zealand dollar.
The shares, which are listed in New Zealand, Australia and Canada, fell 2.9% to $2.45 yesterday, and have dropped 13% this year.
Paul McBeth
Fri, 27 Jul 2012
Fri, 27 Jul 2012
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OceanaGold 2Q profit plunges 82% on falling gold prices
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