- Record Financial Performance: Achieved record net profit, earnings per share, and free cash flow of $120M, driven by $432M revenue and $217M EBITDA.
- Strong Production Results: Haile produced 48,000 oz gold (Q2) and Didipio delivered 25,000 oz gold & 3,700 tonnes copper, with Q4 production expected to match Q1 levels.
- Balance Sheet Strength: Maintained debt-free status, increased cash reserves by 31% to $300M, and returned capital via dividend hikes and $100M share buyback program.
- Capital Expenditure & Growth: $485–$530M CAPEX budget with 2.5M tonne mining rate target at Didipio by 2026 and $50/oz exploration cost for resource additions.
- Operational Efficiency: AISC tracking lower end of guidance ($105–$115/oz), 9% QoQ cost decline at Haile, and 25% year-to-date grade improvement at Didipio.
Production and Cost Performance
The company's production and cost performance were in line with full-year guidance, with consolidated gold production around the midpoint of the guidance range and AISC tracking towards the lower end of the guidance range. Bhuvanesh Malhotra, VP Operations, highlighted that Haile achieved strong second-quarter gold production of around 48,000 ounces, while Didipio delivered increased gold production of approximately 25,000 ounces and copper production of 3,700 tonnes.
Organic Growth Opportunities and Capital Allocation
OceanaGold made significant progress on its organic growth opportunities, with the permitting application for the Waihi North project in New Zealand advancing through the process. The company expects approval by the end of this year. With a strong balance sheet and increasing cash position, OceanaGold has the flexibility to continue funding its organic growth opportunities and return capital to shareholders through its recently increased dividend and active share buyback program.
Valuation Metrics
With a P/E Ratio of 39.61, P/B Ratio of 6.11, and EV/EBITDA of 5.3, the market seems to be pricing in OceanaGold's strong financial performance and growth prospects. The company's ROIC of 13.69% and ROE of 16.22% indicate a strong return on invested capital and equity. Additionally, the Net Debt / EBITDA ratio of -0.24 suggests a robust balance sheet.
Outlook and Guidance
OceanaGold remains well on track to meet its 2025 full-year guidance, with the fourth quarter expected to be the strongest and the third quarter the softest. The company's capital expenditure budget for the year is $485 million to $530 million, with heavier spending expected in the third quarter on stripping at Macraes and Haile. Analysts estimate next year's revenue growth at 24.2%, and the company's actual EPS came out at $0.694, relative to estimates at $0.4125.