PERTH (miningweekly.com) – Dual listed gold miner OceanaGold has reported an increase in gold production and revenue for the quarter ended June, compared with the first quarter.
Gold production in the second quarter reached 93 848 oz, compared with the 83 191 oz produced in the previous quarter, taking half-year consolidated gold production to 177 039 oz at an all-in sustaining cost of $1 227/oz.
First half revenues reached $331.5-million, with earnings before interest, taxes, depreciation and amortisation reported at $161.9-million.
For the second quarter, revenue was reported at $182.6-million, compared with the $148.9-million in the three months to March.
“I am very pleased with the operational and financial performance of the business in the second quarter 2021. Haile delivered a record quarter of gold production and is well on-track to deliver on the full year production guidance. Waihi plant upgrades were completed, and we commenced continuous milling late in the second quarter which is a tremendous outcome as we continue to ramp up underground operations,” said president and CEO Michael Holmes.
“Based on year-to-date performance we have refined our expectations for the full year. We currently expect consolidated production of 350 000 oz to 370 000 oz of gold at all-in sustaining costs of $1 200/oz to $1 250/oz sold at cash costs of $825/oz to $875/oz sold. Strong first half performance at Haile has put us firmly on track to deliver ahead of 160 000 gold ounces for the full year at moderately higher all-in sustaining costs, largely driven by an increased proportion of mining costs capitalised as pre-strip plus higher than expected mining costs incurred.
“On the other hand, a softer first half at Macraes is driving production to the lower end of guidance of 155 000 oz to 165 000 oz for the full year at consequently higher all-in sustaining cost. Waihi is firmly on track and production guidance remains unchanged but at improved costs. We expect to provide updated consolidated guidance in line with the staged restart of Didipio over the coming weeks,” said Holmes.
He noted that the renewal of the Financial or Technical Assistance Agreement at Didipio was one of OceanaGold’s key priorities this year, and was delivered allowing for operational restart.
“The staged restart of the asset is under way with the current focus on the rehire and training of our skilled Philippine workforce. We expect to restart processing well prior to year-end, initially sourcing mill feed from existing stockpiles at site.
“Our expectation is to also transport and sell approximately 18 500 oz of gold and 3 500 t of copper in concentrate on site by early fourth quarter. The rehire and retraining of the workforce, as well as the ongoing risks associated with the Covid-19 pandemic, could impact the timeline associated with returning to full underground production of 1.6-million tonnes a year, which could take up to 12 months.”