OceanaGold Boasts One Of The Strongest Organic Growth Profiles

OceanaGold is a Canada-based mid-tier gold producer that operates multiple gold mines worldwide. These include four operating gold mines including the Haile Gold Mine in the United States, the Didipio Mine in the Philippines, along with the Macraes and Waihi operations in New Zealand.

Growth Profile: Nine Percent Growth Rate

OceanaGold boasts one of the strongest organic growth profiles within the entire gold sector. During 2022, the company produced 472,000 ounces of gold and the strong performance helped the company lower its net debt by $68 million.

After a strong performance, management is projecting a notable nine percent annual production growth through 2025.

Within three years, OceanaGold expects to produce more than 600,000 ounces of gold. The main driver of growth will come from the Haile mine which is now fully permitted for an underground expansion project that is underway. Management expects the first ore from the underground expansion project to come online in the last quarter of 2023.

At the Didipio Mine, the company discovered two new near-mine mineralized structures and follow up drilling is expected to start in 2023. Meanwhile, around 27,000 meters of drilling is planned at Waihi in 2023.

The growth plans through 2025 will naturally translate to improved margins, falling capital spending, and a significant increase in projected free cash flow. 

A greener gold company

OceanaGold recognizes the need to invest and focus on the often overlooked green aspect of a gold mining company. Management is committed to 30 percent reduction in GHG emissions by 2030 and net zero by 2050. 

The company has an emissions reduction plan in place for each operation and investors can judge management’s green advancements through its annual Sustainability Report.