19 Feb 2011

Record gold sales fail to prevent profit drop

8:00 am on 19 February 2011

The goldmining company OceanaGold has reported a drop in full-year profit despite record sales.

The listed firm made $US44.4 million in the year to December, a decrease of 19% on the previous year.

Excluding hedging and tax, earnings doubled to $55.4 million.

Sales jumped 29% to $306 million, on production of 269,000 ounces at an average cash cost of $570 an ounce.

The company, which operates mines in central Otago and the Philippines, says the rising gold price boosted revenue.

OceanaGold raised $115 million Canadian to develop its Didipio gold and copper mine in the Philippines. It also invested $10 million to boost production rates at its New Zealand operations.