Australian-based mining company OceanaGold, which has three gold mines in the South Island, has reported a loss of US$54.7 million (NZ$108 million) in 2008.
That compares to the loss of US$63m in 2007 and directors were proposing not to pay a dividend, it announced today in its financial report for the year to the end of December, 2008.
The company warned it was looking to raise capital as balance sheet liabilities exceeded assets by US$43.4m. The company also has capital commitments of US$6.6m.
It has cash on hand of US$9.7m and the cash flow projections showed the company could carry on as a going concern for another 12 months.
However, if projections did not eventuate the company might not be able to meet its obligations.
It said it was considering a number of options to raise capital.
OceanaGold operates mines at Macraes in Otago and Reefton in Buller, as well as a mine in the Philippines, which it has put into mothballs.
OceanaGold is listed on the Toronto, Australian and New Zealand sharemarkets.
This year its New Zealand share price has increased steadily from a low of about NZ22 cents in December to NZ97c before losing NZ17c this morning to NZ80c.
OGC Price at posting:
80.0¢ Sentiment: None Disclosure: Held
