OceanaGold's loss follows asset troubles

ALAN WOOD
Last updated 05:00 22/02/2014

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OceanaGold's US$47.9 million loss (NZ$57.6m) follows its huge impairment on assets. The 2013 full-year loss compares to a net profit of US$20.6m for the 2012 calendar year.

Hit by the weaker gold price of recent quarters, the company has signalled it will close its Otago mining operations by 2017. Yesterday, gold was quoted at around US$1316.80 an ounce. OceanaGold shares closed 9 cents higher at NZ$2.84 (compared to NZ$3.10 after the release of the 2012 result).

The NZX-listed miner produced a record 325,732 ounces of gold in the past year, just better than earlier guidance. It also produced 23,059 tonnes of copper, exceeding guidance.

The company also has mines on the West Coast of the South Island and in the Philippines.

The net loss came after a US$193m full-year impairment, with a net profit before impairment of US$91.3m.

Subsequent to the year-end, OceanaGold announced that, in response to the lower gold price environment, it had changed mine plans for the Otago operations. "As a result of these changes, the company assessed the carrying value of these assets and recorded a post-tax impairment charge of US$77.6m in the fourth quarter."

OceanaGold said it achieved record revenues of US$553.6m (US$385.5m in the 2012 year). Earnings before interest, tax, depreciation and amortisation of US$262.4m for 2013 came on an average gold price received of US$1382 an ounce.

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