Wave of buying sends OceanaGold shares surging again

OceanaGold Corporation (TSE:OGC, ASX:OGC) shot up more than 11% on Tuesday after releasing record production and revenue numbers from its copper-gold mines.

In early afternoon dealings the Melbourne-based company was changing hands for $2.78, up 11.2% but slipping back from a day high of $2.83 hit in lunchtime trade on the Toronto Stock Exchange.

Around 1.3 million shares in the $823 million counter were traded by 2:00EST versus usual daily volumes of around 700,000.

OceanaGold, with mines in New Zealand and the Philippines, is up more than 67% since the start of the year.

OceanaGold reported record first quarter revenue of $170.4 million, EBITDA of $101.0 million and net profit of $58.9 million.

The stellar financials were achieved with a surge in gold production to 86,568 ounces. That included record quarterly gold production of 30,480 ounces from its Didipio Mine in northern Luzon, Philippines, which only went into operation a year ago.

Company cash costs of $170 per ounce and All-In Sustaining Costs of $450 per ounce are some of the best in the industry and helped the company pay back $20 million of debts.

Copper production increased to 6,479 tonnes with copper sales of 7,752 tonnes.

OceanaGold operates New Zealand’s largest gold complex at the Macraes goldfield in Otago and on the west coast of the South Island, the company operates the Reefton Open Pit mine.

OceanaGold’s commenced commercial production on 1 April 2013 and is expected to produce 100,000 ounces of gold and 14,000 tonnes of copper per year on average over the next 15 years.

In 2014, the company expects to produce 275,000 to 305,000 ounces of gold from the combined New Zealand and Philippine operations and 21,000 to 24,000 tonnes of copper from the Philippine operations.