OceanaGold Corp. (TSE:OGC), the Australian miner which operates in New Zealand and the Philippines, soared to the highest in six weeks after reporting third-quarter results that surpassed analysts' expectations on higher demand for copper and gold.
OceanaGold surged 18 percent to C$1.74 at 2:07 in Toronto after climbing to C$1.78, the highest price since Sept. 19. The stock had lost 56 percent this year through yesterday.
Net income in the three months ended Sept. 30 was $43.7 million, or 14 cents per diluted share, compared with a net loss of $0.3 million, or breakeven per share, in the year-earlier period, Melbourne-based company said in a statement today.
Analysts on average were looking for profit of a penny per share. Analysts' estimates typically exclude one-time items.
Revenue increased to $156.6 million from $91.2 million, also beating expectations.
OceanaGold attributed the increase in the third quarter higher gold and copper sales revenue and lower costs and depreciation and amortisation, partly offsetting a lower average price received for the gold.
OceanaGold said total gold production for the quarter was 74,697 ounces, up 9 percent from the previous quarter. Copper production rose to 6,150 tonnes in the third quarter from 5,710 tonnes in the previous quarter.
Looking ahead, the company said it increased its full-year copper production guidance while decreasing its cash cost guidance. It anticipates to produce 18,000-20,000 tons of copper in 2013, up from its prior view of 15,000-18,000 tons.
The company will "remain committed to strengthening the balance sheet through the repayment of debt," Managing Director and Chief Executive Officer Mick Wilkes said in the statement.
OceanaGold owns and operates the Macraes goldmine in New Zealand's Central Otago and the Globe Progress goldmine at Reefton on the West Coast. It has also the Didipio gold and copper mine in the Philippines.