PERTH (miningweekly.com) – Dual listed gold miner OceanaGold has reported a slight increase in gold production for the first quarter ended March, compared with the previous corresponding period.

Group gold production in the March quarter reached 83 200 oz, up from the 80 700 oz produced in the previous corresponding period, with the Haile operation, in the US, contributing 44 300 oz, while the Waihi and Macraes mines, in New Zealand, contributed 4 300 oz and 34 500 oz respectively.

Gold sales for the same period fell from the 91 400 oz sold in the first quarter of last year to 82 800 oz, while the average gold price increased from $1 509/oz to $1 786/oz.

Revenue for the quarter reached $148.9-million, compared with the $138.2-million in the previous corresponding period, while earnings before interest, taxes, depreciation and amortization increased to $62-million, from $42.4-million.

“First quarter 2021 results demonstrate our determination to deliver on our commitments. Despite one-off milling challenges at Haile and Macraes, the ingenuity of our teams ensured we delivered on first quarter expectations, and we remain on track to achieve full year 2021 guidance,” said OceanaGold president and CEO Michael Holmes.

“At Haile, the operation delivered record total mining movements during the first quarter and quickly identified, evaluated, and resolved disruptions to milling. At Macraes, despite failure of one of our mill motors that slowed throughputs, the operation produced just under 35 000 gold ounces during the quarter, and full year guidance remains unchanged.”

Holmes said that the company also continued to advance its organic growth pipeline of three new underground mines over the next two years in favourable jurisdictions.

In New Zealand, the Martha Underground project is on track to begin continuous production late in the second quarter and underpins the greater Waihi district, he said.

“We plan on drilling at Waihi for years to come and adding to the already robust mine life. At Macraes, main access and ventilation declines for the Golden Point Underground are underway, and the project is on track for first production by year-end. Haile Underground preparation continues in anticipation for portal development later this year.

“We remain in dialogue with appropriate representatives at national and local levels on Didipio’s financial or technical assistance agreement (FTAA) renewal status. Currently the renewal is with the Department of Environment and Natural Resources for re-endorsement to the Office of the President.

“In the meantime, we are maintaining Didipio in a state of operational stand-by and planning for the transition to full production. Covid-19 risks remain elevated in the Philippines and at site where nine members of our workforce have tested positive for the virus over the last year. Ongoing risks associated with the pandemic could impact the timeline associated with returning to full operations.”