OceanaGold Corporation (ASX: OGC, TSE: OGC) had record gold revenue from sales in 2010 due to higher prices, as the company closed out its hedge book in March of last year, selling all of its gold into the spot market.
Despite this, the Pacific Rim gold producer decreased its full year net earnings to US$44.4 million, compared to US$54.5 million in 2009.
Before hedging and income tax, however, earnings were US$55.4 million in 2010, a 116% increase from US$25.6 million a year earlier.
EBITDA before gains or losses on hedges, was $139.5 million last year, compared to $106.2 million in 2009.
Gold revenue in 2010 was $305.6 million - a 28.9% increase over 2009 due to a 44% rise in the average gold price to $1,140, partially offset by an 11% decrease in sales volumes, the company said.
OceanaGold sold 268,087 ounces during the year at cash operating costs of $570 per ounce, in the middle of the company's previous guidance range, taking sales to slightly below expectations.
Total production of 268,602 ounces was 10.6% lower than in 2009 largely due to weather, unplanned autoclave maintenance and lower grades.
At year-end, the company had cash funds of $181.3 million and current liabilities of $66.6 million.
OceanaGold's assets are located on the South Island of New Zealand and the Philippines.