OceanaGold (TSE:OGC) expects its strongest gold production quarter of 2026 in the final three months of the year, as higher-grade ore at its Haile mine and increased underground mining at Didipio help the company work toward the midpoint of its full-year production guidance.
On its third-quarter earnings call, President and CEO Gerard Bond said the company had produced about 72% of the midpoint of its annual gold production guidance through September. He also said all-in sustaining costs were expected to decline in the fourth quarter, although the company anticipates finishing the year toward the upper end of its cost guidance range.
Third-quarter all-in sustaining costs were $1,874 per ounce, down 13% from the preceding quarter. Bond said adjusted earnings per share and free cash flow beat consensus estimates.
Cash Flow and Shareholder Returns
OceanaGold reported third-quarter revenue of $655 million at an average realized gold price of approximately $4,250 an ounce. Adjusted earnings per share rose 135% from a year earlier to $0.94, while adjusted EBITDA increased 82% and operating cash flow climbed 43%, Chief Financial Officer Marius van Niekerk said.
Free cash flow was $155 million for the quarter and $541 million for the first nine months of 2026. Bond said the nine-month figure was almost identical to the amount generated in all of 2025.
The company returned $79 million to shareholders through buybacks and dividends in the third quarter. It ended September with $729 million in cash and no debt. Van Niekerk said the undrawn credit facility gave OceanaGold total liquidity of almost $1 billion.
Asked about the pace of buybacks, Bond said the company tends to increase purchases in the fourth quarter when cash generation is more certain. He said OceanaGold assesses its share price against its own valuation and can deploy capital when the stock underperforms peers, while also taking account of the planned Ausgold acquisition.
Bond said holding cash gives the company confidence that it can execute its growth projects even if gold prices fall, while emphasizing its focus on shareholder returns.
Haile Leads Fourth-Quarter Outlook
Haile produced about 55,000 ounces of gold in the third quarter, below the company’s original expectations. Chief Operating Officer Bhuvanesh Malhotra attributed the shortfall to a revised mine plan that kept mining focused on lower-grade upper benches at the Ledbetter open pit.
Mining reached the lower benches by the end of September, positioning Haile to access higher-grade ore. Bond said the mine produced 27,400 ounces in October and would need a “record-like quarter” to finish within its annual guidance range.
Malhotra said the revised plan had a minimal effect on the strip ratio and that no ounces were lost, although some production was pushed back. Bond declined to provide a quarterly cost forecast, but said higher production and the completion of much of the period’s sustaining capital spending would help lower unit costs.
At Didipio, third-quarter output was nearly 23,000 ounces of gold and about 3,400 tons of copper. The company expects production to rise again in the fourth quarter as underground mining rates increase. Macraes produced about 37,000 ounces of gold in the quarter and is expected to finish near the top of its full-year production guidance, while Waihi produced just under 19,000 ounces.
Growth Spending and Project Timetable
Bond said total capital investment is expected to be approximately $45 million, or 7%, above guidance. Of that increase, $35 million reflects accelerated or additional investment at Macraes, Didipio and the Waihi North Project; the remaining $10 million reflects additional exploration spending.
OceanaGold expects to complete its acquisition of Ausgold by mid-December, adding the Katanning Gold Project to its portfolio. First ore at Katanning is expected in 2029, Bond said.
The company also expects first ore from the Palomino Underground at Haile in early 2028 and from Waihi North in 2032. An updated Waihi District technical report is planned for January 2027 and will include an updated mine plan and a potential processing plant expansion.
At Macraes, OceanaGold submitted a Phase 4 permit application intended to extend the mine’s current reserve life from 2032 to the late 2030s. Bond said the company expects permitting by mid-2027 and an updated technical report in early 2028. Management also sees potential for exploration to extend the mine’s life into the 2040s.
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.
