Thursday, October 9, 2025

Latest

BMO Lowers Revenue Forecast For OceanaGold Following COVID Outbreak

OceanaGold Corp (TSX: OGC) provided a corporate update to their investors on August 27. Included within the update they indicated that the Haile operation had roughly 220 workers go into self-isolation, which slowed down operations materially. Since June, the company has had 18 confirmed positive COVID cases and three presumptive cases. For those reasons they have revised their full year 2020 guidance lower. Now the production at Hailie’s will come in around 135,000 to 175,000 ounces of gold, and they now see full-year production between 295,000 and 345,000 ounces of gold at an all-in sustaining cost between $1,150 to $1,250 per ounce.

OceanaGold also announced that they are receiving a $77 million pre-payment for the delivery of 40,000 ounces of gold in the second quarter of 2021, which equates to $1,925 an ounce. These proceeds will go towards getting production ready at the Martha Underground mine for the second quarter of 2021.

In BMO’s note to investors on Friday, Brian Quast reiterated his firm’s outperform rating and $4.25 price target, which is a 31% upside, and commented that “even after factoring in the lower near term production from Haile, the company trades at 0.7x NPV and 7.2x estimated NTM CFPS. This compares to other medium-sized producers, which trade at 1.6x NPV and 7.9x 2021E CFPS.”

With the news, Quast updated his full-year 2020 revenue and earnings per share estimates downwards to incorporate Hailie’s lower production. Quast now estimates that revenue and earnings per share will come in at $593 million and $(0.05) versus $667 million and $0.03 prior.

Sixteen analysts cover OceanaGold. Three analysts have strong buy ratings, while ten analysts have buy ratings, and the last three have hold ratings. The mean price target is C$4.35, while the highest comes from Ian Parkinson from Stifel Canada, and the lowest comes from Mark Geordie from Haywood Securities with a C$2.75 price target.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Village Farms: Consensus Estimates For Q4 2020

Village Farms (TSX: VFF) (NASDAQ: VFF) will be reporting their fourth quarter and year end...

Monday, March 15, 2021, 11:43:00 AM

BMO: Netflix Is Now “Growth At A Reasonable Price”

The earnings season has started off with a bang as Netflix (Nasdaq: NFLX) closed its...

Wednesday, April 20, 2022, 04:45:47 PM

Microsoft: BMO Cuts Target To $270 After Weak Q1 Earnings

Microsoft (Nasdaq: MSFT) last week released their first quarter results for fiscal 2023, which ended...

Sunday, October 30, 2022, 01:31:00 PM

Cineplex: BMO Reiterates Targets Despite Earnings Missing Consensus

Cineplex Inc. (TSX: CGX) reported its second quarter financial results last week. The company announced...

Monday, August 15, 2022, 12:24:00 PM

Peloton: BMO Says Q4 Leaves More Questions Than Answers

Peloton Interactive (Nasdaq: PTON) on Thursday announced its fiscal fourth-quarter financial results. The company announced...

Sunday, August 28, 2022, 05:18:00 AM