OceanaGold Corp. (TSX:OGC, Financial) informed through a news release published on its website Oct. 4 that the production of gold in its South Carolinian Haile Gold Mine reached the saleable level on Oct. 1.
Mick Wilkes, the president and CEO of OceanaGold, commented that “the achievement of commercial production is a major milestone for the Haile Gold Mine,” a world-class asset located in South Carolina. Ownership was acquired by OceanaGold less than two years ago.
Wilkes also said that, to align Haile Gold Mine’s operations with the company’s international standards, OceanaGold will be engaged in the improvement of the South Carolinian asset’s productivity and its operator training.
With its financial and operating results for the third quarter of fiscal 2017, OceanaGold expects to also release “the final reconciled revenue and costs associated with Haile’s pre-commercial operating period.”
The results of the third quarter of fiscal 2017 will be released by OceanaGold on Oct. 26.
For the quarter that ended Sept. 30, analysts expect OceanaGold will report a net profit of 6 cents in Canadian dollars per share, a 50% increase on a year-over-year basis and backed on revenue that is expected to have come in at 187.71 million Canadian dollars ($150.47 million).
The last figure on quarterly revenue represents a 24.80% increase from the comparable quarter of fiscal 2016 when the Australian gold producer closed the reporting period with a value for customers invoiced of 150.39 million Canadian dollars.
Projections on OceanaGold’s third-quarter earnings per share range between a low of 2 cents and a high of 9 cents.
OceanaGold is currently trading around 3.93 Canadian dollars per share on the Toronto Stock Exchange, up 13 cents or plus 3.42% from the previous trading day. This news on Haile Gold mine will likely produce more upsides in the market value of the Australian precious metal stock over the coming days.
OceanaGold has a market capitalization of 2.42 billion Canadian dollars. The Australian miner has 615.08 million outstanding shares, of which approximately 99.46% is float. The company has a price-book (P/B) ratio of 1.74.
Analysts recommend buying shares of OceanaGold with a rating of 1.9 out of 5.
The analysts’ average target price is 4.39 Canadian dollars and ranges between a low of 3.24 and a high of 5.80 Canadian dollars.
The gold stock has a price-earnings (P/E) ratio of 13.49 and a forward one of 15.12 that multiplied by an EPS of 25 cents in Canadian dollars – as forecasted by analysts for full fiscal 2017 – yields to a value of 3.78 Canadian dollars.
Disclosure: I have no positions in OceanaGold.
