The Motley Fool

TFSA Investors: Get Portfolio Exposure to New Zealand

Image source: Getty Images.

OceanaGold (TSX:OGC) is a high-margin, multinational gold producer with four operating assets and a pipeline of exploration opportunities. The company operates high-quality assets and delivers superior returns in a responsible manner. It is focused on operating to the highest of standards in health, safety, environment, and social performance.

Highly efficient operations

OceanaGold is deeply focused on maintaining a consistent track record of profitability from the company’s business. The company focuses on maintaining high margins and delivering strong returns. Over the past 10 years, the company has consistently delivered a positive return on invested capital.

The company strategy is to drive operational efficiencies at each of OceanaGold’s operations. The strategy includes creating additional value for the company’s shareholders through prudent capital investments on organic growth opportunities and targeted exploration. The company’s management has nearly 30 years of operating experience, which it leverages to identify new value-creating opportunities in the Americas, Australasia, and Asia-Pacific regions.

OceanaGold is involved in several exciting business initiatives. The company is working on extending the mine life of several assets and advancing mine expansion through the successful permitting of larger open pits, construction of additional waste storage facilities, and optimization. OceanaGold is working to fine tune the on-time, on-budget commissioning of the upgraded Haile process plant to improve throughput rates and recoveries while improving mining productivity rates.

Focus on shareholder return

Further, OceanaGold is looking to increase the reserve base net of depletion while identifying new exploration targets to further increase the company’s resource base. The company continues to strengthen OceanaGold’s balance sheet and provides returns to shareholders via the payment of dividends.

OceanaGold also seeks opportunities, proactively, to invest in value-creating technologies to drive operational efficiencies, reduce costs, and further improve on safety and environmental performance. The company works closely with stakeholders in the United States, the Philippines, and New Zealand.

The company also invests in early-stage exploration opportunities that could deliver value in the long term and divests early-stage exploration opportunities that are deemed non-core. A big focus for OceanaGold is to improve the company’s social performance to become the partner, employer, and gold company of choice with communities, governments, and investors.

Diverse operations in New Zealand

OceanaGold ensures that contracts are in place covering underground mining, transportation, and refining of bullion and the purchase and delivery of fuel, electricity supply, explosives, and other commodities. The company’s New Zealand subsidiary maintains a number of operating permits for the importation of reagents into New Zealand.

New Zealand has an established framework that is well regulated and monitored by a range of regulatory bodies. Risk associated with renewal of importation permits, is upon that basis is easily manageable. However, annual royalties are collected to a maximum of 1% ad valorem on net sales revenues or 5 % of accounting profits, whichever is higher, which are payable to the Crown for gold and silver.

OceanaGold pursues growth opportunities via accretive investments in high-quality exploration, development, and producing assets that complements the company’s existing portfolio of assets. This increases the diversification of the company’s business to mitigate risk and strengthens long-term profitability.

If you enjoyed this article, click the link below for top market insight delivered directly to your inbox!

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.