PERTH (miningweekly.com) – Dual-listed gold miner OceanaGold has achieved record production from its Didipio operation, in the Philippines, during the quarter ended March, although the company’s total gold output dipped slightly.
Total gold production declined to 91 146 oz, from the 92 712 oz delivered in the previous quarter, while copper production for the first quarter reached 6 102 t, compared with the 6 747 t delivered in the fourth quarter. The decrease was a result of lower production from the Macraes operation, in New Zealand, which was partially offset by higher production from Didipio and Reefton.
At the Didipio operation, OceanaGold reported a second consecutive quarter of record gold production, delivering 35 122 oz of gold along with the 6 102 t of copper. This compared with 34 783 oz of gold and 6 747 t of copper produced in the fourth quarter.
In New Zealand, consolidated production reached 56 024 oz of gold, a slight decrease from the 57 929 oz of gold produced in the previous quarter, owing to the lower production from the Macraes mine.
“OceanaGold continues to deliver strong performance across all of its operations,” said MD and CEO Mick Wilkes.
“The efficiencies implemented a year ago in New Zealand along with lower fuel prices and more favourable exchange rates have translated into a more robust business with even stronger profit margins.”
Wilkes noted that the significant free cash flow generated continued to be used prudently to further strengthen the company’s balance sheet by increasing its cash position and repaying debt.
OceanaGold reported record revenue of $129.3-million during the quarter, and earnings before interest, taxes, depreciation and amortisation of $60.7-million and a net profit of $24.5-million.
For the full year, OceanaGold expected to produce between 295 000 oz and 335 000 oz of gold.
OceanaGold, meanwhile, signed an agreement with US gold miner Newmont Mining to acquire the Waihi gold mine, in New Zealand, for $106-million in cash.