OceanaGold’s shares up after reporting 2018 financials
OceanaGold Corp’s. (TSX: OGC; ASX: OGC) stock was up 5.4% on Tuesday after reporting annual revenue in 2018 of $773 million and net profit before unrealised gains or losses on undesignated hedges of $124 million.
Earnings before interest, tax, depreciation and amortization (EBIDTA) came in at $364 million.
The company generated about $121 million in free cash flow, $346 million in operating cash flow.
At the end of the year, OceanaGold had $108 million in cash, excluding about $55 million held in strategic equity investments.
Net debt at the end of the year stood at $69 million.
Commenting on the results, president and CEO Mick Wilkes noted the company’s cash balance increased 47% year-on-year “reflecting the company’s consistent profitability over the past several years.”
“Our net debt reduced by 59% over the past year,” he added, “reflecting the strong cash flow generation in 2018 and our commitment to strengthen our balance sheet through discretionary debt repayments.”
“In 2018, OceanaGold delivered an EBITDA margin of 47% while we achieved the ninth consecutive year of positive returns on invested capital.”
The company produced a total of 533,300 ounces of gold during the year at cash costs of $489 per oz., and all-in-sustaining costs of US$767 per oz.
At market close in Toronto, OceanaGold was trading at $4.48 per share within a 52-week trading range of $3.12 and $5.01.