OceanaGold sees half-year profit despite quarterly production decline

JOHANNESBURG (miningweekly.com) – Despite a quarter-on-quarter decline in gold production, owing to a lower head grade, in the three months to June 30, New Zealand-based gold explorer OceanaGold’s profit rose to $63-million, or 10c a share, in the first six months of the year.

At its Didipio mine, in the Philippines, the company produced 90 887 oz of gold and 12 244 t of copper in the first half of the year, including 44 076 oz of gold and 6 272 t of copper in the second quarter.On the North Island of New Zealand, Oceana’s Waihi gold operation continued to track to guidance with 63 523 oz of gold produced including 26 540 oz in the second quarter.

Quarter-on-quarter gold production at Waihi decreased as a result of less ore mined from the Correnso underground operation. Oceana continues to develop access drives to Correnso Deeps, as well as the Daybreak and Empire veins.

In July, the company transitioned its Waihi operations to owner-mining and now expects to achieve cost reductions and productivity enhancements.On the South Island of New Zealand, Oceana’s Macraes and Reefton operations produced 70 929 oz of gold in the first of half, including 31 941 oz produced from Macraes in the second quarter alone.

The decrease in production at Macraes on the previous quarter was a result of a lower head grade.

As at the end of the second quarter, the company had spent $246-million of the $380-million estimated capital cost while the capital spent and committed as at the end of the quarter was $330-million.

Meanwhile, in the US, construction of all major infrastructure at the company’s Haile mine, in Lancaster County, South Carolina, is tracking to schedule and budget.

“We have bolstered our balance sheet from strong cash flows generated by our business, expanding our revolving credit facility and monetising the Haile mining equipment under a sale and lease arrangement,” said CEO Mick Wilkes.

He added that the company continued to advance the project towards commissioning at the end of this year.