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Oceana Gold Update | Gerard Bond and Jimmy Connor

Jimmy Connor Feb 4, 2026 18:03

Summary

OceanaGold holds full New Zealand approval for the Waihi North Project, a high-grade underground mine that could lift Waihi output to 220,000-250,000 ounces at peak.

AISC (All-In Sustaining Cost — what it really costs to produce an ounce) averages $1,850 at the South Carolina mine versus $800 at DiPIO.

The company is debt-free with $335 million in cash at September 2025, and in 2025 doubled its dividend while buying back $175 million of shares.

Exploration added five million ounces to reserves at about $50 an ounce finding cost, with the Pisces discovery and Clydesdale target extending the pipeline.

A New York Stock Exchange listing is planned for April 2026, aimed at giving US investors easier access to the gold producer's shares.

Key points on Newmont

  • Gerard Bond notes OceanaGold bought the Waihi mine from Newmont in 2015 and says the asset has since paid for its purchase price and more.

Key points on Oceanagold

  • CEO Gerard Bond says the Waihi North Project received all of its New Zealand permits on 18 December 2025 and is expected to lift Waihi from about 70,000 oz to roughly 220,000-250,000 oz peak annual production, with ore feeding production in the early 2030s.
  • Hale in South Carolina is the largest producer at about 40% of output, with 2025 guidance of 170,000-200,000 oz at around $1,850/oz AISC, and management says a Q3 2025 open-pit waste-stripping campaign positions it for higher production in 2026.
  • The CEO reports $335 million of cash and no debt as of end-September 2025, and says in 2025 the dividend was doubled and $175 million of shares were bought back, with a strong Q4 cash build expected at higher gold prices.
  • The DiPIO gold-copper mine in the Philippines (2025 guidance of 85,000-105,000 oz at about $800/oz AISC) is described as a strong free cash flow generator, with a roughly 7,000-hectare exploration land package and an ore body open at depth.
  • Management plans to list on the New York Stock Exchange in April 2026 to widen US investor access, with technical reports for Hale and McRades due in March 2026.

Jimmy Connor's takeaways

  • Top takeaway Jimmy Connor frames the balance-sheet discussion around gold trading well over $4,000/oz and presses management on how it will allocate the cash in the coming year.
  • He points to an industry trend of miners acquiring assets in the US or Canada for safer jurisdictions and asks whether OceanaGold would follow.

Gerard Bond's takeaways

  • Top takeaway Gerard Bond pitches OceanaGold as a low-risk, near-term organic growth story generating strong free cash flow, with a history of returning capital and an April 2026 NYSE listing as key upcoming news flow.
  • He says 2025 was the company's biggest exploration year ever, adding about 5 million ounces to reserves at an average finding cost near $50/oz, with the Pisces and Clydesdale discoveries and the Brewer gold-copper target to be drilled in 2026.
  • His stated capital hierarchy is to invest in high-return organic growth and exploration, keep a strong balance sheet, and return capital to shareholders.
  • On M&A he answers yes to acquiring in the US or Canada, arguing the company's existing US operations and Canadian headquarters give it the capability to grow in North America.
  • He expects McRades production to be higher in 2026 after a well-executed 2025 stripping campaign and more 2026 exploration spending, while acknowledging its AISC stays relatively high at about $2,000/oz due to low grade.