OceanaGold hunts for more deals to add to strong growth pipeline

Canadian gold miner OceanaGold Corp. is aggressively canvassing options to buy other producers and existing operations while also pursuing a strong organic growth strategy, with two new mines in development.

“We have plenty to invest inside our existing portfolio, but like everyone else we’re scanning assets outside as well,” OceanaGold chief executive officer Gerard Bond said in an interview Thursday.

The company’s main near-term growth asset is a new underground mine at the Haile project in South Carolina, US, which will soon account for 45% of its gold production. It is also actively developing a large-scale underground mine at Waihi North in New Zealand.

“We’ve got four assets already and growth within them, so we’re being patient and judicious with what we’ve swung the bat at, but we have been very active,” Bond said.

A combination of higher gold prices and a strong share price has boosted the company’s search for new assets, he said. It is specifically seeking projects in Canada and Australia, as well as regions it currently operates in including the US, New Zealand and the Philippines, he added.

The gold industry has seen increased deal activity in recent years, fueled by a sharp rise in prices. Bullion has nearly doubled over the past two years, hovering near $4,700 an ounce on Thursday. The latest major deal was just this week with Regis Resources Ltd. buying Vault Minerals Ltd. in an all-share transaction worth around of $7.7 billion.

Toronto-listed OceanaGold also floated on the New York Stock Exchange a month ago, a move aimed at boosting liquidity and targeting larger institutional investors.

Over the first quarter to March it produced 130,100 ounces of precious metal. Full year guidance remained at 520,000 to 590,000 ounces.

(By Paul-Alain Hunt)