OceanaGold Reports Second Quarter 2026 Results

OceanaGold Corporation reported second-quarter 2026 gold production of 138,800 ounces, a 7% increase quarter-over-quarter. Production contributions came from Haile with 59,500 ounces, Macraes with 41,400 ounces, Waihi with 16,500 ounces, and Didipio with 21,400 ounces, which also yielded 2.7 kilotonnes of copper. The company sold 135,800 ounces of gold at an average realized price of $4,433 per ounce.

Financial results for the quarter included revenue of $647 million, net profit of $222 million, and adjusted EBITDA of $398 million, representing a 61% margin. Operating cash flow stood at $314 million, while free cash flow was $130 million. Consolidated cash costs were recorded at $1,362 per ounce, with all-in sustaining costs (AISC) rising to $2,151 per ounce from $2,094 per ounce in the first quarter, a level well above the full-year range.

The company’s cash balance increased to $655 million with no debt. OceanaGold executed $58 million in share buybacks during the quarter and declared a dividend of $0.09 per share.

On the development front, work on the Waihi North decline commenced in May 2026, with the services trench completed and the water treatment plant on track for the third quarter. Progress continued at Haile with the Palomino decline advancing, while Macraes celebrated the pouring of its six millionth ounce of gold.

OceanaGold reaffirmed its full-year 2026 guidance, targeting gold production between 520,000 and 590,000 ounces and AISC between $1,750 and $1,900 per ounce. Total capital expenditure is expected to be $645 million.

OceanaGold Corporation reported second-quarter results featuring record EBITDA margins, healthy free cash flow, and a growing net cash position, aligning with fiscal year 2025 outcomes and the first quarter of 2026 trajectory. However, the consolidated average industry sustaining cost (AISC) of $2,151 per ounce stands out as a key metric. Following a first-quarter AISC of $2,094 per ounce, management had stated that consolidated AISC was expected to decline throughout the year. Instead, the second-quarter figure rose by $57 per ounce, pushing the first-half blended AISC to approximately $2,122 per ounce.

To achieve the midpoint of the $1,750 to $1,900 per ounce guidance range, the second half of the year must see an average AISC of roughly $1,720 to $1,810 per ounce. This represents a reduction of approximately 16% to 20% from the first-half average. While seasonal mining sequences, such as higher-grade ore availability at Haile and Macraes in the second half, could facilitate this target, the second-quarter print raises the difficulty of the goal. No guidance cut was issued, but the results present a significant test of management’s credibility regarding cost control.

Production levels are tracking comfortably, with first-half output of 268,900 ounces representing approximately 48% to 52% of the 520,000 to 590,000-ounce annual range, consistent with typical second-half weighting. The balance sheet remains strong, holding $655 million in cash with zero debt. Capital returns continue at an aggressive pace, with $77 million in buybacks in the first quarter and $58 million in the second quarter, totaling approximately 30% of the $350 million annual authorization already spent. The dividend of $0.09 per share, which was tripled from 2025 levels, is easily covered by free cash flow.

Market expectations had already moderated since May highs, with the stock declining from $47 to $35 leading into the release, reflecting some skepticism about cost control. Today’s results confirm strong profitability but highlight the lingering pressure from AISC figures. The stock is likely to remain rangebound until second-half cost data validates the company’s guidance.

OceanaGold Corporation is a mid-tier gold producer operating four mines: Haile in South Carolina, USA; Macraes and Waihi in New Zealand; and Didipio in the Philippines, which it owns 80% of. All facilities are currently producing, with Haile and Waihi undergoing active development and expansion. The company is debt-free and is listed on the TSX and NYSE, with a listing date of April 2026.