2024-04-29 13:47:35 ET
Summary
- OceanaGold had a tough year at its flagship Haile Mine in 2023 but production will bounce back in 2024 with mining underway at Haile Underground.
- Unfortunately, I believe Oceana will have a weak Q1 with minimal margin improvement after ending 2023 with industry-lagging margins, but we should see a stronger H2 2024 as production ramps up.
- In this update, we’ll dig into the company’s FY2023 results, recent developments and where the stock’s updated low risk buy zone lies ahead of Q1 earnings.
The Q1 Earnings Season is finally underway and while several of the major producers released results last week, the small-cap producers will start reporting results in early to mid-May. One name that should enjoy significant margin expansion after a mediocre year in 2023 is OceanaGold (OCANF), with it being one of the few producers that saw significant compression in its all-in sustaining costs margins last year (18.8 vs. 22.4%). Meanwhile, its long-term outlook remains quite exciting, with a path to 640,000+ ounces ~$1,325/oz in 2026 , even if this is a downgrade from its previous outlook of ~600,000 ounces at $1,075/oz AISC in 2024 provided at its year-end 2021 results....
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For further details see:
OceanaGold: Growing Production With Increasing Margins