Shares in OceanaGold Corporation soared after a rise in gold...

Shares in OceanaGold Corporation soared after a rise in gold sales gave it the rank of Australia's fourth largest gold producer, although the miner incurred a full year net loss.

It achieved record gold sales revenue of $US217.2 million ($A338.4 million) in 2008, up 108 per cent on the previous year, and record gold sales of 264,124 ounces, up 49 per cent.

So how is it possible with all this that;

The company reported a net loss of $54.7 million for the 2008 calendar year, compared with a loss of $69 million in 2007.

It also said it had cash on hand of $9.7 million, sufficient for the next 12 months of operations, and would consider its options to secure additional capital including finance facilities and equity.

"Nevertheless, there is no assurance that these initiatives would be successful or sufficient," OceanaGold said.

I just cant see how with the gold price being were it is that these guys cant make a profit.