Bigger quarter underway for OceanaGold

OCEANAGOLD is set to deliver some strong months of production in order to meet guidance given for output in 2017, with the miner producing 136,043 ounces of gold and 4387 tonnes of copper in the third quarter.
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Haile is set to shine for OceanaGold

 

Michael Quinn

Production for the year to the end of September totalled 408,394oz with guidance for the full year of 550,000-600,000oz.

OceanaGold expects a strong contribution this quarter from the new Haile operation in South Carolina – where commercial production was recently reached after processing plant issues were rectified – and has flagged higher production from Macraes.

The company said the third quarter had delivered “steady financial results”, with all-in sustaining costs of US$748 per ounce (excluding Haile output) seeing earnings total $73.4 million (on an EBITDA basis) and net profit of $21.7 million.

A semi-annual dividend of 1c per common share was declared.

On the exploration front, OceanaGold reported strong drill results from the Martha open pit area in New Zealand, including 18 metres grading 7.9 grams per tonne gold and 11.1m at 8.1gpt gold.

The company also signed a joint venture last week with Mirasol Resources for the Claudia gold-silver project in Argentina’s Santa Cruz province, with OceanaGold able to earn 51% by spending $10.5 million over four years and paying the Canada-listed company $1 million.

The two are already partners at the La Curva exploration project in the same province. 

Shares in OceanaGold were down 2.5% to A$3.60 in early trade, broadly in line with peers in the gold sector.

At that price the company is capitalised at $2.2 billion.     

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