OceanaGold (OGC) AI Stock Analysis

• Market Cap: $3.12B
• Dividend Yield: 0.65%
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.27
• Revenue Growth: 28.24%
• EPS Growth: 132.38%
• Country: CA
• Employees: 3,783
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Gold
• EPS (TTM): 0.37
• Shares Outstanding: 702,471,000
• 10 Day Avg. Volume: 1,885,196
• 30 Day Avg. Volume: 3,047,075
• PEG Ratio: 0.09
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.64
• Price to Cash Flow (P/CF): 2.20
• P/FCF Ratio: 3.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$5.96
• Price Target Upside: 34.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

OceanaGold demonstrates strong financial health with significant growth potential in the mining sector. Its robust financial performance and positive earnings call sentiment are key strengths. Technical indicators show a stable trend, while the valuation remains reasonable, providing a balanced risk-reward profile.

Positive Factors

Exploration Investment

OGC looks to build on this success, budgeting $40M for exploration across all four sites, the highest exploration budget in five years.

Mineral Reserves

Total mineral reserves increased 27% to 6.2Moz Au, net of mining depletion at a 15% higher grade.

Negative Factors

Gold Production Forecast

Updated 2025 and 2026 guidance for gold production were both lower than previously disclosed.

Guidance

Updated mid-term guidance was slightly more conservative, featuring both lower gold production and higher AISC.

OceanaGold Business Overview & Revenue Model

Company Description

OceanaGold Corporation, a gold producer, engages in the exploration, development, and operation of mineral properties. It explores for gold, copper, and silver deposits. The company operates the Didipio gold-copper mine located in the Nueva Vizcaya and Quirino provinces on the island of Luzon in the Philippines; the Macraes goldfield mine on the South Island of New Zealand and the Waihi gold mine on the North Island of New Zealand; and the Haile gold mine located in South Carolina, the United States. OceanaGold Corporation was founded in 2003 and is based in South Brisbane, Australia.

How the Company Makes Money

OceanaGold generates revenue primarily through the extraction and sale of gold and copper from its mining operations. The company's key revenue streams include the production and sale of gold bullion and copper concentrate. OceanaGold operates several mines, including the Didipio mine in the Philippines, the Macraes and Waihi operations in New Zealand, and the Haile Gold Mine in the United States. The company benefits from strategic partnerships and off-take agreements that facilitate the sale and distribution of its mineral products. Additionally, fluctuations in global commodity prices, production volumes, and operational efficiencies are significant factors influencing the company's earnings.

OceanaGold Financial Statement Overview

Summary

OceanaGold's financial performance is strong with substantial revenue and profit growth, a solid balance sheet with minimal leverage, and robust cash flow generation. The company is well-positioned in the mining industry, although it must navigate industry-specific risks such as commodity price volatility.

Income Statement

OceanaGold shows strong revenue growth with a 26.09% increase from 2023 to 2024, indicating robust performance. The gross profit margin improved to 28.77%, and the net profit margin increased to 14.48%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 21.21% and 45.65%, respectively, showcasing efficient operations. Overall, the income statement reflects a positive trajectory with significant revenue and profit growth, although the cyclical nature of mining could pose risks.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.04, suggesting minimal leverage. The equity ratio is strong at 73.11%, indicating a solid equity base. Return on equity improved to 10.30%, reflecting better utilization of shareholder funds. However, the potential risks include industry volatility affecting asset values and future liabilities. Overall, the balance sheet demonstrates a strong equity position with manageable debt levels.

Cash Flow

OceanaGold's cash flow is robust with a 522.74% increase in free cash flow from 2023 to 2024, indicating improved cash generation. The operating cash flow to net income ratio is 3.17, and the free cash flow to net income ratio is 1.14, reflecting strong cash flow relative to earnings. The company efficiently manages capital expenditure to sustain operations. The main risk is variability in cash flow due to commodity price fluctuations. Overall, the cash flow statement indicates strong cash generation and efficient capital management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.29B	1.03B	984.70M	744.70M	500.10M
	Gross Profit
372.30M	298.70M	259.80M	232.70M	45.10M
	EBIT
274.40M	187.80M	192.90M	146.80M	-37.30M
	EBITDA
590.80M	369.80M	378.90M	166.40M	144.10M
	Net Income Common Stockholders
187.40M	83.10M	132.60M	-3.70M	-150.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
193.50M	61.70M	83.20M	133.00M	179.00M
	Total Assets
2.49B	2.45B	2.29B	2.26B	2.25B
	Total Debt
71.60M	231.80M	253.40M	370.90M	312.90M
	Net Debt
-121.90M	170.10M	170.20M	237.90M	133.90M
	Total Liabilities
562.60M	713.20M	617.30M	710.00M	688.40M
	Stockholders Equity
1.82B	1.73B	1.67B	1.55B	1.56B
Cash Flow		Free Cash Flow
213.70M	34.30M	87.00M	-63.30M	-54.90M
	Operating Cash Flow
593.90M	384.20M	368.70M	261.40M	198.80M
	Investing Cash Flow
-348.70M	-341.80M	-280.80M	-315.80M	-225.80M
	Financing Cash Flow
-120.50M	-57.80M	-130.20M	25.10M	159.50M

OceanaGold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OGC, the sentiment is Positive. The current price of 4.44 is above the 20-day moving average (MA) of 4.37, above the 50-day MA of 4.28, and above the 200-day MA of 3.92, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 69.29 is Neutral, neither overbought nor oversold. The STOCH value of 93.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:OGC.

OceanaGold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGC	79 Outperform	$3.12B	12.26	10.55%	0.65%	28.24%	132.38%
Sector *	47 Neutral	$2.36B	-3.00	-21.73%	3.58%	3.97%	-28.71%

OceanaGold Corporate Events

OceanaGold Advances Waihi North Project with Fast-Track Application and New Discoveries

OceanaGold has submitted an application for fast-track approval for its Waihi North Project in New Zealand, which includes the Wharekirauponga Underground. This move is expected to expedite the permitting process by the end of 2025, marking a significant milestone in the project’s development. The company also reported promising results from its exploration program at Wharekirauponga, with high-grade mineralization identified in several drill holes. These developments underscore OceanaGold’s commitment to expanding its resource base and enhancing its position in the gold mining industry.

OceanaGold Unveils New Discovery and Boosts Exploration Budget at Haile

OceanaGold has announced a new discovery and high-grade drill results at the Haile Gold Mine in the United States, highlighting the potential of the Pisces and Horseshoe areas. The company has increased its 2025 exploration budget by 20% to $10 million, reflecting its commitment to enhancing shareholder value through exploration success.

OceanaGold Unveils New Discovery and Boosts Exploration Budget at Haile Mine

OceanaGold has announced a significant new discovery and high-grade drill results at its Haile Gold Mine in the United States. The exploration success at Haile, particularly the Pisces and Horseshoe areas, has led to an increase in the 2025 exploration budget by 20% to $10 million, the largest since the mine’s production began. This move underscores the company’s strategy to enhance shareholder value through exploration, with the new findings potentially benefiting mining operations due to their proximity to existing infrastructure.

OceanaGold Strengthens Board with New Appointment

OceanaGold Corporation has appointed Stefanie Loader as a Non-Executive Director to its Board of Directors. Loader brings extensive experience in geology, mining operations, and corporate strategy, with a history of leadership roles in major mining companies such as Rio Tinto and CMOC International. Her appointment is expected to enhance OceanaGold’s board with her expertise in mineral exploration and project development, potentially influencing the company’s strategic direction and value for shareholders.

OceanaGold Reports 27% Increase in Mineral Reserves for 2024

OceanaGold has reported a significant increase in its mineral reserves and resources for the year ending 2024, with a 27% rise in mineral reserves totaling 6.2 million ounces of gold, net of mining depletion, at a higher average grade. Key developments include the declaration of initial mineral reserves at Wharekirauponga and increases in reserves at Didipio, alongside a boost in indicated mineral resources at Waihi and Macraes. This growth reflects the company’s strategic focus on value creation through exploration, underscored by a planned $40 million investment in exploration for 2025, marking its highest budget in five years.

OceanaGold Achieves Record Production and Financial Milestones in 2024

OceanaGold Corporation has reported its financial and operational results for the fourth quarter and full year of 2024, achieving record outcomes. The company met its updated production guidance with a substantial increase in annual production, resulting in a record net profit of $192 million and free cash flow of $245 million. Key achievements include a doubling of the annual dividend and plans to repurchase up to $100 million of shares in 2025, highlighting a robust financial position.

OceanaGold to Announce Q4 and Full Year 2024 Results

OceanaGold Corporation announced that it will release its fourth quarter and full year 2024 operational and financial results on February 19, 2025. A conference call is scheduled for February 20, 2025, to discuss these results, indicating the company’s ongoing transparency and engagement with stakeholders. The announcement reflects the company’s commitment to maintaining strong communication with investors and stakeholders as it continues its operations across multiple countries.