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OceanaGold reports preliminary operational results

Published by
Global Mining Review,


OceanaGold Corp. has announced its preliminary full year and 4Q20 operational results for the year ended 31 December 2020. The numbers are unaudited and subject to finalisation. The company will release its complete 2020 audited financial and operational results after TSX market close on 18 February 2021 (Toronto eastern standard time).

Key highlights

  • Achieved consolidated full year gold production of 301 675 oz including 99 155 oz produced in 4Q20.
  • Unaudited consolidated all-in sustaining costs (AISC) for the full year of US$1276/oz sold and cash costs of US$866/oz sold.
  • Haile produced 48 988 oz of gold in 4Q20 and 137 413 oz for the full year.
  • Martha Underground progressing to first production in 2Q21.
  • Completed new, 4-year US$250 million revolving credit facility with 31 December 2024 maturity date.
  • Ended the full year with immediately available liquidity of US$229 million, including US$179 million of cash on hand and US$50 million in undrawn credit facilities.
  • Philippines Office of the President instructed government agencies to finalise terms and conditions of the Didipio FTAA renewal.

Michael Holmes, President and CEO of OceanaGold said: “We delivered a strong 4Q20 of production, consistent with our core value to deliver on our commitments. Despite the ongoing risks associated with the COVID-19 global pandemic in the US, Haile achieved its full year production guidance with 137 413 gold oz produced including 48 988 oz in 4Q20. The risks associated with the management of COVID-19 remain, and we are focused on keeping our workforce safe while delivering on our commitments. We expect the continued mining of high-grade zones at Haile through the 1H21.”

“In New Zealand, both Macraes and Waihi operations delivered on full year production guidance with 144 487 and 19 775 oz of gold, respectively. Development of the Martha Underground continues to advance, and we expect first production at the end of 2Q21. Meanwhile at Macraes, development of Golden Point Underground is progressing well with first production on-track for 4Q20. Over 30 000 m were drilled in the Waihi District through 2020 with 4Q20 activities focused on resource conversion drilling at Martha Underground and Wharekirauponga.”

“In December, the company met with Philippine government officials, as instructed by the Office of the President, to finalise the terms and conditions of the FTAA renewal. We expect the renewal will be returned to the Office of the President for review and approval in the near-term. Didipio is a world-class operation that employs thousands of Filipinos and is a significant source of economic benefit to the National government as well as the local communities of Nueva Vizcaya and Quirino. We look forward to working with stakeholders and government officials to safely restart operations and continue the significant socio-economic benefits when the renewal has been approved. OceanaGold is a responsible gold mining company that is focused on operating to the highest social and environmental international standards and considers Didipio the template for responsible mining globally.”

“Looking ahead to 2021, we expect stronger y/y production. Our robust organic growth pipeline is advancing to plan, and we are excited to bring Martha Underground into full production in 2Q20. Exploration remains a critical part of the OceanaGold story, and we will continue to invest in the drill bit to discover and convert ounces at each of our operations. OceanaGold is a dynamic and resilient gold miner with an exciting future, and we look forward to releasing our inaugural multi-year guidance on 18 February 2021 and hosting a webcast to better define the future of the business.”

Read the article online at: https://www.globalminingreview.com/finance-business/18012021/oceanagold-reports-preliminary-operational-results/

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