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24/9/2018 — Gold
Value creation at Waihi and Haile

Exploration and forward permitting at Waihi and expansion of the Haile gold project in the United States were cited as two key value creators for OceanaGold Corporation (TSX & ASX: OGC).

The gold miner had this month produced some positive reports for the market and late last week told the JP Morgan Gold Forum that critical value creaton would come from permitting at Waihi for a 10 year mine life extension, and also the positive results coming from group exploration, with the WKP prospect near Waihi as a good example.

Expansion of the new Haile gold project in South Carolina was producing positive results where current production was lifting to a guidance of between 140,000-155,000 ounces per annum at a target all-in sustaining cost (AISC) of between $US725-775/ounce.

The robust balance sheet was showing a cash balance of $US129 million, with an undrawn credit facility of $US20 M, and total debt of $US233 M, taking in a drawn credit facility of $US200 M and equipment leases of $US33 M.

On being able to achieve consistent profitability the company was ranked third behind Randgold of Africa and Canada’s Centerra Gold, and was ahead of top performing Australians Northern Star and Regis Resources.

The organic growth at Waihi (with a life of mine of 2019+) was increased exploration targets near and below the Martha open cut and further exploration activity at WKP.

At Haile (LOM 2033+) the process plant capacity was being expanded to 4 million tonnes per annm, the Horeshoe underground mine was being expanded and open pit mining was expanding.

At the low-cost Didipio gold-copper operations in the Philippines (LOM 2032+) there was development of the panel 2 section of the mine and a ramp-up of underground production.

At the foundation Macraes operation in East Otago (LOM 2021+) there was strategic mine planning for longevity including the Round Hill project, ongoing exploration and infill drilling and exploration targets at Golden Point.

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