OceanaGold TSE: OGC reported second-quarter 2026 gold production of about 139,000 ounces and copper production of 2,700 tonnes, with management saying results were in line with plan and kept the company on track to meet full-year guidance.
President and Chief Executive Officer Gerard Bond said quarterly gold output rose 7% from the first quarter. The company generated $130 million of free cash flow after investments in growth projects, bringing year-to-date free cash flow to $385 million. OceanaGold ended the quarter with $655 million in cash, up 6% sequentially, and remained debt-free.
“We had a really good second quarter,” Bond said, citing stronger production, progress on organic growth projects, shareholder returns and a higher cash balance.
Financial Results and Capital Returns
Chief Financial Officer Marius van Niekerk said OceanaGold recorded a quarterly adjusted EBITDA margin of 61%, which he described as a record. The margin benefited from lower cost of sales and a lower additional government share at Didipio.
Revenue totaled $647 million during the quarter, based on an average realized gold price of just over $4,400 per ounce, reflecting the timing of gold sales. Compared with the same quarter a year earlier, adjusted EBITDA increased 84%, operating cash flow rose 38%, and earnings per share more than doubled to $0.99. Free cash flow per share was $0.58.
The company returned $78 million to shareholders through dividends and share repurchases during the second quarter. First-half shareholder returns totaled $174 million. OceanaGold has authorization for up to $350 million in share repurchases during 2026 and had bought back $134 million of stock as of the call.
For the first half, the company spent $165 million on sustaining capital, $118 million on growth capital and $25 million on exploration. Bond said the growth investments were primarily directed toward the Waihi North project and the Leadbetter Underground development at Haile.
Outlook Points to Stronger Second Half
Management expects third-quarter gold production to be similar to the second quarter, followed by the company’s highest gold production of the year in the fourth quarter. The anticipated second-half improvement is expected to be driven by stronger output at Haile, while higher production and a lower rate of sustaining capital should reduce all-in sustaining costs in the third and fourth quarters.
However, Bond said full-year all-in sustaining costs are expected to be near the upper end of OceanaGold’s guidance range. The company cited labor-cost inflation, increased maintenance and reliability spending, higher diesel prices and lower-than-expected silver by-product credits.
Van Niekerk said the company has experienced no operational or fuel-supply disruption related to the Iran conflict. OceanaGold has hedged roughly 80% of diesel requirements at Haile and Macraes, and has extended 80% diesel hedging across all operations beginning in the first quarter of 2027. If oil prices around $100 per barrel persist through the rest of 2026, management estimates an all-in sustaining cost impact of approximately $25 per ounce.
Operations: Haile, Macraes, Waihi and Didipio
At Haile, OceanaGold produced 60,000 ounces of gold in the quarter, supported by better access to open-pit ore at Leadbetter 3 and higher-grade material from the Horseshoe Underground. Chief Operating Officer Bhuvanesh Malhotra said Haile achieved record monthly mill throughput in June, its highest level since commissioning in 2017.
Development of the decline toward the Palomino Underground mine remained on schedule for first ore in 2028. Bond said the development is expected to provide improved drilling access to areas including Pisces and Horseshoe Underground. The company also approved a paste plant at Haile. Malhotra said the facility is expected to shorten stope sequencing cycles, reduce the required pace of tailings-dam raises and help extend tailings capacity.
Macraes had an “exceptional” first half, according to Malhotra, producing 64% of the midpoint of its annual guidance due to higher grades from the Innes Mills open pit. Output is expected to decline in the second half while remaining within full-year production and cost guidance. Waste stripping continued at Coronation North ahead of planned ore access later this year. The company expects to submit its Macraes Phase IV Fast Track application in the third quarter as part of mine-life extension planning.
Macraes produced its 6 millionth ounce of gold in July. Management is also evaluating further expansion opportunities that could potentially extend the asset’s mine life into the 2040s.
At Waihi, second-quarter production was just under 17,000 ounces. Costs were affected by processing lower-grade stockpile material, but management expects lower costs in the second half as higher-grade underground stopes become available. Waihi also recorded its highest quarterly mill throughput since becoming an underground-only operation in 2016.
Waihi North and Didipio Development
Waihi North reached a key milestone in May with the opening of the portal and the start of decline development toward the Wharekirauponga underground orebody. The decline had advanced nearly 200 meters as of the call. Management said ground conditions have tracked expectations, supported by prior geotechnical drilling.
The project’s service trench was completed in July, while commissioning of an expanded water-treatment plant is expected by the end of the third quarter. OceanaGold plans to add a second underground jumbo to begin twin tunnels toward Wharekirauponga. Drilling at the project is accelerating, with five rigs now active.
Didipio produced more than 21,000 ounces of gold and about 2,700 tonnes of copper in the quarter. Gold production improved from the first quarter despite some mill downtime, while underground mining rates increased and decline development resumed. Management expects higher gold and copper production, along with lower all-in sustaining costs, in the second half.
OceanaGold also increased exploration activity at Didipio, with three underground drill rigs operating and another testing mineralization at depth. Drilling continues at True Blue, located about 800 meters northeast of Didipio, as the company targets the addition of mineral resources by year-end.
About OceanaGold (TSE:OGC)
OceanaGold is a global intermediate gold and copper producer committed to safely and responsibly maximizing the generation of Free Cash Flow from our operations and delivering strong returns for our shareholders. We have a portfolio of four operating mines: the wholly-owned Haile Gold Mine in the United States of America ; the wholly-owned Macraes and Waihi operations in New Zealand ; and the 80%-owned Didipio Mine in the Philippines.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider OceanaGold, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and OceanaGold wasn't on the list.
While OceanaGold currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Learn the basics of options trading and how to use them to boost returns and manage risk with this free report from MarketBeat. Click the link below to get your free copy.
Get This Free Report
