A strong performance in the September quarter has seen OceanaGold Corporation (TSX & ASX: OGC) marginally upgrade its production guidance for the calendar year.
The company said last night that the guidance for the year had been increased to between 515,000-545,000 ounces from 500,000-540,000 oz.
Revenue recorded by the company was $US589.2 million with EBITDA of $US290 M and a net profit for the nine months to September of $US110.8 M, taking in revenue for the third quarter of $US186.8 M, with EBITDA of $US74 M and a net profit for the three months of $US21.7 M.
The performance allowed OceanaGold to reduce total debt by 23% through a discretionary repayment of $US50 M to the revolving credit facility, and $US2.7 M in equipment leases while paying $US12.4 M in dividends.
For the quarter group production was 134,134 oz of gold and 4,232 tonnes of copper as part of the Didipio mine output in the Philippines. Consolidated production for the nine months was now 406,631 oz and 12,118t of copper.
All in sustaining costs (AISC) were slightly higher in the September quarter at $US761/ounce on the sale of 134,134 oz gold and 4,2325 of copper, while for the nine months the AISC was $US751/oz Au on the sale of 400,556 oz and the sale of 11,404t Cu.
In New Zealand the company earlier reported successful drilling results at both Waihi and Macraes, and chief executive Mick Wilkes said the company was now investigating scope for a new underground operation at Golden Point at the Macraes operation.
The mineral resource had been increased at the Martha project at Waihi as drilling continues along two drill drives beneath the open cut, to prove up an exploration target that had increased recently by 50%.
Wilkes said that over the past 12 months OceanaGold had decreased total debt by 43%, while increasing total liquidity by 18%.
“Our organic growth opportunities across our business continue to advance well with the Haile (in South Carolina) expansion expected to increase annual gold production while the Martha project is set to deliver significant value in the near future,” Wilkes said.
“Exploration continues to yield excellent results exceeding our expectations.”
In the September quarter Macraes produced 50,000 oz of gold at an AISC of $US874/oz, while Waihi produced 26,600 oz at an AISC of $US603/oz.