Q2 FY2026
Filed Aug 6, 2026OceanaGold produced 138,800 ounces of gold, generated $647.3 million of revenue and $130.1 million of Free Cash Flow, while maintaining its 2026 production, cost and capital guidance.
Gold production rose 7% from the prior quarter and 16% from the prior corresponding quarter, while revenue was 50% higher year over year, net profit nearly doubled and Free Cash Flow increased. Revenue, operating cash flow and Free Cash Flow declined sequentially as realized gold prices fell and capital spending increased, while consolidated AISC increased and is expected near the upper end of guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueother | $647.3 million | 9% lower | 50% higher |
| Gold revenueother | $602.2 million | – | – |
| Copper revenueother | $36.7 million | – | – |
| Silver revenueother | $8.9 million | – | – |
| Total Operating Expensesother | $333.2 million | – | – |
| Cost of sales, excluding depreciation and amortizationother | $215.1 million | – | – |
| Depreciation and amortizationother | $86.7 million | in line | 58% higher |
| Net profit attributable to shareholders of the Companyother | $222.2 million | – | – |
| Adjusted net profit attributable to shareholders of the Companynon-GAAP | $221.2 million | – | – |
| Earnings per share - diluted attributable to shareholders of the Companyother | $0.99 | – | – |
| Adjusted earnings per share - diluted attributable to shareholders of the Companynon-GAAP | $0.98 | – | – |
| EBITDAnon-GAAP | $399.0 million | – | – |
| Adjusted EBITDAnon-GAAP | $398.0 million | – | – |
| Adjusted EBITDA Marginnon-GAAP | 61% | – | – |
| Gold producedother | 138.8 koz | 7% higher | 16% higher |
| Copper producedother | 2.7 kt | – | – |
| Consolidated Cash Costsnon-GAAP | $1,362 per ounce | – | – |
| Consolidated AISCnon-GAAP | $2,151 per ounce | a marginal increase | 11% higher |
| Cash flows provided by Operating Activitiesother | $313.6 million | $67.9 million or 18% lower | – |
| Free Cash Flownon-GAAP | $130.1 million | – | – |
| Cash flows used in Investing Activitiesother | $(183.5) million | 45% higher | – |
| Income tax expense recognized in net profitother | $(82.9) million | 16% lower | – |
| Total expenditureother | $167.0 million | – | $53.5 million higher |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Gold revenueHigher realized gold prices and gold sales volumes supported year-over-year revenue growth. | $602.2 million | – | – |
| Copper revenueRevenue reflected copper sales and the average copper price received of $6.40 per pound. | $36.7 million | – | – |
| Silver revenueHigher realized silver prices contributed to year-over-year revenue growth. | $8.9 million | – | – |
2026 Full-Year Guidance outlook
- NoteGold Production: Haile 235 - 260 koz; Macraes 135 - 155 koz; Waihi 60 - 75 koz; Didipio 85 - 105 koz; Consolidated 520 - 590 koz.
- NoteCopper Production: Didipio 13 - 15 kt; Consolidated 13 - 15 kt.
- NoteCash Costs: Haile $970 - $1,070 per ounce; Macraes $1,275 - $1,375 per ounce; Waihi $1,600 - $1,800 per ounce; Didipio $615 - $715 per ounce; Consolidated $1,050 - $1,200 per ounce.
- NoteAISC: Haile $1,500 - $1,700 per ounce; Macraes $1,950 - $2,150 per ounce; Waihi $2,100 - $2,300 per ounce; Didipio $975 - $1,100 per ounce; Consolidated $1,750 - $1,900 per ounce.
- NoteSustaining capital: Haile $95 million; Macraes $30 million; Waihi $15 million; Didipio $25 million; Consolidated $170 million.
- NotePre-strip and Capitalized Mining: Haile $45 million; Macraes $65 million; Waihi $15 million; Didipio $10 million; Consolidated $135 million.
- NoteGrowth capital: Haile $90 million; Macraes $10 million; Waihi $160 million; Didipio $20 million; Consolidated $280 million.
- NoteExploration: Haile $10 million; Macraes $10 million; Waihi $25 million; Didipio $10 million; Consolidated $60 million.
- NoteTotal Investments: Haile $240 million; Macraes $115 million; Waihi $215 million; Didipio $65 million; Consolidated $645 million.
- NoteConsolidated third quarter production is expected to be similar to the second quarter, and the fourth quarter is expected to be the strongest of the year.
- NoteConsolidated AISC is anticipated to be near the upper end of the Company’s 2026 Guidance range.
Capital returns
- Returned $78 million to shareholders in the quarter, via dividends and share buybacks.
- Repurchased and cancelled 1.8 million common shares for consideration of $57.5 million at an average price of CAD$43.94 per share.
- Completed $58 million in share buybacks during the quarter and $134 million year to date.
- Paid $20.0 million of dividends to shareholders of the Company and $9.0 million of dividends to non-controlling interests.
- The Board of Directors approved additional share buybacks in 2026 to a maximum of $350 million of common shares.
- The renewed NCIB permits the Company to buy back up to 22 million common shares during the period commencing on July 24, 2026 and ending on or before July 23, 2027.
What drove it
- Gold production increased 7% from the prior quarter, primarily driven by 43% higher production at Haile from increased access to Ledbetter Phase 3 open-pit ore and higher-grade ore mined from Horseshoe Underground.
- Haile produced 59.5 koz of gold, with gold production 43% higher than the prior quarter and 25% higher than the prior corresponding quarter.
- Macraes produced 41.4 koz of gold. Production was 20% lower sequentially under the mine plan, but 38% higher year over year due to higher-grade Innes Mills Phase 8 ore.
- Waihi produced 16.5 koz of gold, in line with the prior quarter as higher throughput offset lower grades from mine sequencing.
- Didipio produced 21.4 koz of gold, 5% higher sequentially as higher mill feed grade partly offset lower mill throughput caused by reduced mill availability.
- Second-quarter revenue was 50% higher than the prior corresponding quarter, driven by a 35% higher average realized gold price, a 12% increase in gold sales volumes, and higher realized copper and silver prices.
- The Company does not hedge current or future gold sales, nor does it have prepay agreements or royalty financing arrangements.
- Development of the Waihi North Project decline commenced in May 2026 and was nearing 200 metres to date. The project remains on schedule for first ore in 2032.
Concerns
- Consolidated AISC of $2,151 per ounce was 11% higher than the prior corresponding quarter and management expects full-year consolidated AISC to be near the upper end of guidance.
- AISC increased due to labour cost inflation, higher sustaining capital, government royalty expenses, unhedged energy costs and lower silver by-product credits.
- Didipio gold production was 13% lower than the prior corresponding quarter and 7% lower year to date because of lower mill availability and reduced mill throughput.
- Waihi AISC was $2,840 per ounce, above the prior quarter and prior corresponding quarter, reflecting lower-grade stockpile feed and higher processing costs.
- Second-quarter operating cash flow declined $67.9 million or 18% sequentially due to lower realized gold prices and by-product revenues.
- Capital and exploration expenditure rose to $167.0 million, including $73.2 million of growth capital, as investment increased in Waihi North, Palomino Underground and Haile waste stripping.
- One appeal was received against Waihi North Project Fast-track approval, with a court hearing set for the fourth quarter of 2026.
- The Company stated that sustained higher diesel prices linked to the Iran conflict increased operating and capital costs in certain business areas.
What to watch
- Whether third-quarter consolidated production is similar to the second quarter and whether the fourth quarter becomes the strongest production quarter of 2026.
- Haile production growth from higher grades in Ledbetter Phase 3 and Horseshoe Underground, and progress toward Palomino Underground first ore in 2028.
- Didipio underground mining-rate improvements, mill availability and anticipated higher production in the third and fourth quarters.
- Macraes production and AISC in the second half, when production is expected to be lower and AISC is expected to increase.
- The pace of Waihi North Project capital spending, water treatment plant commissioning expected by the end of the third quarter, and the fourth-quarter court hearing on the appeal.
- Whether lower sustaining capital and higher Haile production reduce consolidated AISC in the third quarter and again in the fourth quarter.
- Diesel-price effects and performance of the hedging program, including the expanded Waihi and Didipio coverage beginning in Q1 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $654.8 million as at June 30, 2026, compared to $476.5 million as at December 31, 2025.
- Total debt was nil as at June 30, 2026 and December 31, 2025.
- Net Cash was $654.8 million as at June 30, 2026, compared to $476.5 million as at December 31, 2025.
- Liquidity was $854.8 million as at June 30, 2026, including $200.0 million of funds available to be drawn under the Facility.
- Cash flows provided by Operating Activities were $313.6 million.
- Cash flows used in Investing Activities were $(183.5) million.
- Cash flows used in Financing Activities were $(94.4) million.
- Net increase in cash and cash equivalents was $34.7 million.
- Capital commitments within 1 year were $96.5 million as at June 30, 2026.
Analysis
OceanaGold delivered stronger year-over-year operating and financial results in Q2 2026. Gold production reached 138.8 koz, up 16% from Q2 2025, while net revenue rose 50% to $647.3 million. The reported average gold price received was $4,433 per ounce, compared with $3,293 per ounce in Q2 2025, and gold sales increased to 135.8 koz from 121.3 koz. Net profit attributable to shareholders was $222.2 million, compared with $114.1 million, while adjusted EBITDA rose to $398.0 million from $219.5 million and adjusted EBITDA margin reached 61% from 51%.
Sequentially, the operating result was more mixed. Gold production increased 7% from Q1 to 138.8 koz, driven principally by Haile, where production increased 43% as Ledbetter Phase 3 access improved and Horseshoe Underground grades increased. Macraes output declined 20% according to plan as open-pit grades fell, Waihi production was stable, and Didipio gold production rose 5% despite reduced mill availability. Revenue declined 9% sequentially because the average realized gold price declined 9% to $4,433 per ounce, while gold sales volumes were consistent.
Cost performance remains the main area requiring attention. Consolidated AISC was $2,151 per ounce, a marginal increase from Q1 and 11% above Q2 2025. The filing attributes the year-over-year increase to labour cost inflation, stock-based compensation, sustaining capital, government royalties and unhedged energy costs, partially offset by higher gold sales and Didipio by-product credits. Site trends diverged: Haile AISC declined to $1,953 per ounce from $2,637 per ounce in Q1, while Macraes, Waihi and Didipio AISC increased sequentially to $1,932 per ounce, $2,840 per ounce and $1,589 per ounce, respectively.
Cash generation remained substantial despite heavier investment. Operating cash flow was $313.6 million and Free Cash Flow was $130.1 million, compared with $226.9 million and $120.1 million in Q2 2025. Sequential Free Cash Flow fell from $255.2 million as operating cash flow declined and investing cash outflows rose to $183.5 million. Total quarterly capital and exploration expenditure increased to $167.0 million, led by $73.2 million of growth capital. The company ended the period with $654.8 million of cash, no debt, $854.8 million of liquidity and an undrawn $200 million facility. It also returned $78 million to shareholders during the quarter.
Management maintained all 2026 production, cost and capital guidance. Production is expected to increase in the second half, with Q3 similar to Q2 and Q4 the strongest quarter. The company expects consolidated AISC to decline in Q3 and again in Q4, supported by lower sustaining capital and higher Haile production, but anticipates full-year consolidated AISC near the upper end of its $1,750 - $1,900 per ounce guidance range. Growth spending will increase in the second half, particularly at Waihi North and Palomino Underground, while the Waihi North approval appeal and ongoing diesel-cost exposure remain relevant execution and cost variables.
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- GAAP operating income was not reported.
- A GAAP tax rate was not reported.
- Mine-level revenue for Haile, Macraes, Waihi and Didipio was not reported.
- A prior outlook section was not provided, so comparison of actual results with prior guidance is unavailable.
- Named executive quotes were not included in the provided filing text.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.