OceanaGold Corp. (TSX:OGC, Financial) released its fourth-quarter and full-year 2016 financial results on Feb. 23.Â
The Australian gold and copper miner's operating results were released in January.
For the quarter, OceanaGold generated EPS of seven cents, a 75% increase on a year-over-year basis. In fourth-quarter 2015, the company reported EPS of four cents.
The miner reported revenue of $147.4 million, a 2.6% increase from $143.6 million reported in fourth-quarter 2015.
For the year, OceanaGold generated revenue of $628.6 million, nearly 24% higher than the $508 million in revenue for 2015. The company says revenue for 2016 is a record. The net profit was $136.5 million in 2016, a strong growth of 157% on a year-over-year basis.
The EBITDA increased by almost 47% from $193.5 million in 2015 to $283.6 million in 2016.
Higher 2016 revenue, EBITDA and net income were mainly driven by higher volumes of gold sold, from 401,350 ounces in 2015 to 437,146 ounces in 2016, and higher gold prices.
Lower copper production, higher operating costs sustained in New Zealand, higher operation expenses and higher taxes partially offset the increases in revenue, EBITDA and net profit for the year.
In 2016, cash flow from operations was $232.3 million, a 35.5% increase from $171.4 million generated in 2015.
OceanaGold had $96.1 million in cash and securities as of Dec. 31, 2016, including "a cash balance of $68.9 million and $27.2 million available under the $300 million revolving credit facility."
The company also announced a dividend of one cent that will be distributed twice per year. This brings the annual dividend to two cents for a dividend yield of 0.67%.
OceanaGold is currently trading around 3.96 Canadian dollars ($3.02) per share on the Toronto Stock Exchange, down six cents from the previous trading day.
OceanaGold has a market capitalization of CA$2.42 billion and an enterprise value of CA$2.69 billion. The number of shares outstanding is 611.37 million, of which 608.15 million is float.
The top institutional holder of the company is Tocqueville Asset Management with 20,013,724 shares as of Dec. 31, 2016.
The company is trading at 1.83 times the book value and 9.83 times the EBITDA. As of today, analysts recommend buying shares of OceanaGold with a recommendation rating of 1.7.
The analysts’ average target price is CA$4.16 and ranges between a low target price of CA$2.87 and a high target price of CA$4.97.
The forward price-earnings (P/E) ratio is 13.66.
Disclosure: I have no positions in any stock mentioned in this article.
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