OceanaGold Corporation (ASX: OGC) is a gold mining and exploration company. The Company currently owns interests in projects in New Zealand and the Philippines.
The company, today on 8 March 2019, has come up with its investor day presentation. As per the same the company has emphasized upon its latest achievements and highlights. The presentation stated that the company had achieved its guidance in terms of operations for seven straight years. The company has performed exceptionally well at Macreas, through the implementation of advanced technology. Also, the company has been able to perform well on the socio-environmental front.
The company focussed upon its organic growth opportunities which were evident from the consent garnered for the Martha underground project. The company also undertook Haile plant expansion and the same is advancing well. On the financial front, the company has been able to exhibit positive ROIC every year since the year 2011. The company has strong EBITDA margins, and there has been a decent cash balance growth which has led to the reduction of debt on its balance sheet.
On the exploration front, the company has discovered that the Martha underground resource base has increased. Also, the company has found a significant initial resource at the WKP site.
Going forward, the management has a strategy to drive efficiency through its technical efficiency, excellence, and leadership. The company will aim to boost performance through new technologies, i.e., via the usage of analytics and automation. The company will keep on concentrating upon the organic growth opportunities. The management aims to reduce the risk of the business through the geographic and asset class diversification. This kind of diversification would help the management to mitigate the operational and financial risks going forward and will put the organization into a much more comfortable position. All these strategies are anticipated to drive the value creation for the shareholders of the company in the long run.
The company reported the robust Financial year 2018 in financial terms. The company generated a Free Cash Flow of $121 Mn. The company’s cash balance rose by 47% on a YoY basis. This indicated the company’s ability to generate profitability year after year. The balance sheet of the company has become less leveraged as the net debt has reduced by 59% over the past year.
The Company achieved a revenue of $773 million, which was 7% higher on a YoY basis. The Company also reported an EBITDA of $364 Mn.
On the price-performance front, the stock has posted the YTD return of -16.18%. The company also posted returns of 7.23% & 8.04% over the past six & three-month period respectively. At the time of writing (08 March 2019, AEST 04:00 PM), the stock of the company traded at a price of $4.67, up 8.605% during the day’s trade with a market capitalization of ~$ 2.66 Bn. The stock opened the day at $ 4.610, reached the day’s high of $ 4.800 and touched the day’s low of $ 4.580, with an average daily volume of 628,142. It had a 52-week high price of $ 5.280 and a 52 weeks low price of $ 3.200, with an average volume of, 464,610 approximately.
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