PERTH (miningweekly.com) – Dual-listed gold miner OceanaGold has reported a 26% increase in gold production for the three months to March, resulting in record quarterly revenues.

Gold production in the March quarter reached 134 000 oz, up from the 83 200 oz produced in the previous corresponding period and up from the 108 900 oz produced in the previous quarter, with 3 510 t of copper also produced in the first quarter.

The stronger quarterly production was driven by record quarterly production at Haile and a solid quarter of production at Didipio, partially offset by decreased production at Waihi.

Didipio contributed 29 400 oz of gold during the quarter under review, while the Haile operation, in the US, contributed 60 200 oz. The Waihi and Macraes operations, in New Zealand, contributed a further 6 800 oz and 37 600 oz respectively.

“OceanaGold has started the year strongly with the first quarter safely delivering record quarterly revenue and earnings before interest, tax, depreciation and amortisation (Ebitda) and significant free cash flow. This strong free cash flow generation allowed us to achieve a 29% reduction in net debt and reduce our leverage ratio to 0.40 times,” said OceanaGold president and CEO Gerard Bond.

Revenue for the quarter was reported at $285.7-million, with Ebitda reaching $158-million, compared with the $88.7-million reported in the December quarter. Net profits for the quarter were reported at $78.6-million, compared with a net loss of $96-million in the previous quarter.

“Our stronger balance sheet puts us in a solid financial position from which we can invest in attractive growth projects to create value for our shareholders.

“This quarter’s performance was underpinned by record quarterly gold production at our Haile operation in the US and a very strong first quarter of full production at our Didipio operations in the Philippines. At Haile, we are continuing to see the benefits of operational and productivity improvements that began in mid-2021. At Didipio, the operation achieved full underground mining rates at the end of the first quarter, ahead of schedule by nearly one quarter.”

“Though there is a lot to celebrate in the quarterly results, we also know that there is a lot of work ahead of us to fully optimise the potential of the business. At Waihi, poor grade reconciliation at Martha underground had an impact on its quarterly performance. A grade control drill programme is currently underway to deliver improved resource definition and allow for more optimal mine planning and stope sequencing, which we expect will improve the performance of this orebody and mining operation overall,” Bond said.

“We also have a pipeline of organic growth projects that have the potential to create additional value for shareholders. Once we commence development of the underground mine at Haile, we believe we will begin to unlock the true upside potential of this orebody. Looking further ahead, Wharekirauponga has the potential to be a significant, high-grade mine within our portfolio.

“We remain focused on safely and responsibly delivering on our production guidance for 2022, maximising free cash flow generation and progressing the attractive growth options in our portfolio.” said Bond.