Encouraging test drilling results at Oceana's mainstay Macraes mine in East Otago have prompted an investigation of the possibility of a second underground operation.
The present Frasers underground mine has about double the gold grades of above-ground operations.
The crucial all-in sustaining costs guidance for calendar 2018, averaged across four mines, remains unchanged in a range of $US725-$US775, to produce each ounce of gold
Oceana chief executive Mick Wilkes has announced gold production forecasts would move upward from 500,000-540,000oz to 515,000-545,000oz.
For calendar 2017, Oceana delivered a record 574,606oz of gold.
``I'm very pleased with our operational and financial performance so far this year with each of our operations delivering solid production and strong cash flows,'' he said.
For the year to September, Oceana posted revenue of $US589.2million, earnings before interest, tax, depreciation and amortisation of $US290million and a net profit of $US110.8million.
Mr Wilkes said Oceana had continued to advance its growth opportunities at its mines in New Zealand, the US and the Philippines, having achieved some ``significant drill results'' across both brownfield and greenfield exploration targets.
Mr Wilkes said at Macraes, Oceana had continued to drill multiple targets, mainly at Coronation North, Coronation, Deepdell, Frasers and Frasers Underground, ``with encouraging results''.
``The company also achieved significant results at Golden Point and is now investigating the potential of a new underground mining operation,'' he said.
Also, work was being done on a revised mine plan given the recent exploration success which could further extend the Macraes mine life, at present set to end in 2021.
At Waihi in the central North Island, advances were being made in the permitting for a 10-year mine life extension, with positive support from stakeholders and the Waihi township, Mr Wilkes said.
In the third quarter, Oceana reduced its total debt by 23% through a $US50million repayment to its revolving credit facility, and $2.7million in equipment leases.
Oceana also paid $12.4million in dividends, which reflected its strong cash flow generation, Mr Wilkes said. The company had available liquidity of $US139.7million, of which $US69.7million was cash but which excluded $US76.6million held in strategic equity investments.
