Why the OceanaGold (ASX:OGC) share price is on watch

The OceanaGold Corp (ASX: OGC) share price is one to watch this morning after the $1.6 billion gold miner's latest quarterly update.

| More on:
ASX share price on watch represented by surprised man with binoculars

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The OceanaGold Corp (ASX: OGC) share price is one to watch in early trade. Investors will be keeping an eye on the Aussie gold miner after its latest quarterly results.

Why is the OceanaGold share price on watch?

The Aussie gold miner this morning provided its latest quarterly results for the period ended 31 March 2021 (Q3 2021).

OceanGold produced 83,191 ounces of gold on a consolidated basis at an all-in sustaining cost (AISC) of $1,229 per ounce. Production was up 3% on the prior corresponding period (pcp) but down 16% from the December quarter.

The group's AISC was marginally higher than the $1,218 per ounce recorded in the previous quarter. OceanaGold increasing consolidated cash costs of $800 per ounce and higher AISC reflected lower production and higher capitalised pre-stripping. 

The OceanaGold share price is one to watch today after the mixed result as the company maintained its full-year guidance numbers.

OceanaGold sold 82,847 ounces of gold during the quarter for revenue of $148.9 million. That was an increase on pcp but down 11.5% from $168.2 million in the December quarter. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $66.5 million for the quarter, down 6% from the December quarter.

Cost increases at the group's Haile plant reflected lower throughput during the quarter and one-off costs. OceanaGold expects Haile to produce 150,000 to 170,000 ounces at an AISC of $950 to $1,100 per ounce sold for FY2021.

The OceanaGold share price is worth watching today as it remains on-track to achieve full year 2021 guidance. That's despite challenges at its Phillippines-based Didipio site. Didipio remains "in a state of operational standby" as an ongoing blockade of the access road continues.

The Aussie gold miner said it is unable to provide a specific timeline to complete the Financial or Technical Assistance Agreement (FTAA) renewal. COVID-19 factors mean it may take "up to 12 months" for normal operations to resume.

Foolish takeaway

The OceanaGold share price is one to watch in early trade after the comprehensive quarterly update form the Aussie gold miner.

Should you invest $1,000 in Newcrest Mining right now?

Before you buy Newcrest Mining shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Newcrest Mining wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Gold

Miner looking at a tablet.
Gold

Why now is the time to buy Northern Star shares

A leading expert recommends buying the recent dip on Northern Star shares. But why?

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Up 114% in a year, why is this ASX 200 gold stock pushing higher again on Tuesday?

The ASX 200 gold stock has more than doubled investors' money in a year, and it’s in the green again…

Read more »

Woman with gold nuggets on her hand.
Gold

Get exposure beyond Australian gold miners with this ASX ETF

This ASX ETF is up more than 30% already this year. 

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.
Gold

Up 40% this year, how much further upside does Macquarie tip for Resolute Mining shares?

Can this gold miner continue to glitter for investors? Let's find out what one leading broker is saying.

Read more »

A few gold nullets sit on an old-fashioned gold scale, representing ASX gold shares.
Gold

What's the right allocation for gold in my portfolio?

The question is becoming more relevant than ever.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

How this ASX All Ords gold stock turned $10,000 into $78,740 in just one year

The ASX All Ords gold miner has raced higher over the year. Let’s find out how.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Up 710% in a year, ASX 300 gold stock surges higher again today on big news

The ASX 300 gold stock continues to reward its investors today. But how?

Read more »