Home Page Another strong quarter for OceanaGold - NZResources.com
Our Sponsor
All articles are now Free to View!
27/4/2018 — Gold
Another strong quarter for OceanaGold
By Ross Louthean

The Macraes operation was again the premier gold producer for OceanaGold Corporation (TSX & ASX: OGC) in the March quarter which saw the company realise a net profit for the period of $US44.5 million ($NZ62.96 M).

The quarter report released last night showed Macraes producing 44,419 ounces of gold for the quarter, followed by the emerging Haile mine in United States with 37,049 oz, then the low-cost Didipio in the Philippines with 25,656 oz and Waihi on NZ’s North Island with 18,522 oz.

Macraes, with its bulk mining and low grade ore, continued to have relatively high all-in sustaining costs (AISC) of $US1,095/oz (but realised an average gold price of $US1,326/oz). Didipio, which has major copper credits, remained one of the lowest cost producers in the world with an AISC of $US231/oz.

OceanaGold had consolidated production for the quarter of 125,646 oz gold and 3,889t of copper from Didipio.

Revenue for the three months was $US196.7 M with an EBITDA of $US100.9 M.

The Didipio mine has been nominated for awards in environmental excellence, workplace practices, education and literary programmes & community projects at the 10th Annual Global CSR Awards. It’s less than two years since the political crisis in the Philippines when a then Government official was on a campaign to stop open pit mines, including Didipio, despite it winning local industry awards.

Commenting on the result, OceanaGold chief executive Mick Wilkes said the company continues to deliver EBITDA margins at or near the top of the gold mining industry.

“At Waihi, we achieved a major milestone by starting the permitting process for a 10 year mine life extension through the Martha project.

“We have received positive feedback and response in our engagements with the community and this close engagement will continue through the permitting process.”

He said operationally, gold production was generally in-line with expectations, despite a severe cold weather event that impacted the Haile operation in the year. In the Philippines, ramp-up of the underground operations was progressing to plan.

Companies mentioned in article
Accessed via NZResources.com account: - no subscription / expired subscription