PERTH (miningweekly.com) – Gold production for dual listed OceanaGold declined 16% in the third quarter to September, compared with the previous quarter, owing to softer production from the New Zealand operations.

The ASX- and TSX-listed company on Friday announced that gold production in the September quarter had reached 79 200 oz, down from the 93 800 oz produced in the June quarter, with gold sales increasing slightly from 95 900 oz to 97 400 oz in the same period.

In the year-to-date, gold production has been reported at 256 216 oz, at an all-in sustaining cost of $1 218/oz, with gold sales reaching 276 226 oz. Revenues during the year-to-date reached $536.1-million, with adjusted earnings before interest, taxes, depreciation and amortisation reported at $259.2-million and adjusted net profits at $111.7-million.

OceanaGold told shareholders that a two-week nationwide Covid-19 lockdown in New Zealand, along with lower production from the Haile operation, owing to expected lower grades, had all contributed to the fall in production.

“In New Zealand, both operations were adversely impacted by the two-week nationwide lockdown. At Waihi, the impact related to the shutdown and subsequent regional lockdowns was greater than first expected, with carry-over impacts in our supply chain beyond the two-week closure,” said OceanaGold COO and acting CEO Scott Sullivan.

“Additionally, recent updates to the resource models impact material planned for the fourth quarter. As a result, Waihi is now expected to deliver 30 000 oz to 35 000 oz of gold for the full year. Despite the challenges Waihi has had recently, ramp-up of Martha Underground mining rates continue to advance and the company expects a stronger fourth quarter and 2022. At Macraes, we are focused on delivering a strong fourth quarter of production to achieve the narrowed guidance range of 138 000 oz to 143 000 oz.”

Sullivan noted that the Haile operation achieved a better-than-expected quarter of production with costs in-line with expectations.

“Although the fourth quarter is expected to deliver softer production from mining and processing of lower grades, we are well positioned to finish the year strongly. We are pleased to increase Haile’s 2021 production range to 175 000 oz to 180 000 oz of gold, reflecting the better-than-expected operating performance over the first nine months of the year. The Haile technical review continues to advance well, and we are expecting to complete a new mine plan within the first half of 2022.”

During the quarter under review, the Financial or Technical Asistance Agreement (FTAA) for the Didipio operation, in the Philippines, was renewed for a further 25 years, and OceanaGold started underground mining at the project, one month ahead of schedule, with delivery of underground ore now under way.

“The Didipio restart activities continue to exceed our expectations with recruiting and training activities progressing to plan despite the ongoing risks associated with Covid-19. We are pleased to announce the resumption of underground mining and the delivery of underground ore to the run-of-mine pad early in October, one month ahead of schedule. Stope development is expected to commence in the coming weeks and we will continue to ramp up underground operations to full mining production rates over the course of the next eight to nine months,” said Sullivan.

“Processing activities are tracking ahead of plan with recommissioning of the primary crusher completed in the third quarter. We expect milling at Didipio to recommence in mid-November with ore sourced primarily from stockpiles and supplemented progressively with higher-grade underground ore.”