Philippines mine overtakes Macraes production

Oceana Gold's Philippine gold and copper mine has for the first time surpassed quarterly gold production at the mining company's mainstay Macraes mine.

Across all operations, Oceana increased gold delivery 2.7% on a year ago, to 122,782 ounces.

Macraes and the tail-end of Reefton mining produced 38,988oz, while four-year-old Didipio in the northern Philippines contributed 46,811oz.

Revenue for the quarter to March was $US161.1million, ($NZ231.4million) earnings before interest, tax, depreciation and amortisation was $US77.9million and after tax profit, before hedging, was $US36.7million.

However, a loss of $US18.3million on undesignated hedging came off the profit line, delivering a $US23.5million after-tax profit, down on last year's $US24.6million profit.

Oceana chief executive Mick Wilkes said he was pleased to announce another strong quarter of operational and financial results, underpinned by record quarterly production from Didipio and a continued improvement in safety.

Oceana's consolidated all-in sustaining costs per ounce were slightly up on the previous quarter at $US716 per ounce, while cash costs of production were slightly down at $US436 per ounce.

He said Oceana's assets continued to deliver positive results and the company was well-placed to achieve its plans for 2016, with construction of the Haile gold mine in South Carolina, while the Didipio underground mine was progressing on time and budget.

Mr Wilkes said Didipio was on track for its first ore to be processed by the end of 2017 and, after recently receiving an exploration permit renewal, was beginning to build a pipeline of targets within the 13,000ha area, while starting exploration drilling of advanced targets during the second half of 2016.

He said production from Macraes and Reefton was lower than the previous quarter, mainly due to decreased Reefton production; which has now been mothballed.

"Exploration activities at Macraes continued to progress well with drilling of multiple targets including Coronation North, Coronation South and the Frasers Underground.''

Didipio's record quarterly gold production of 46,811 ounces, and 5972 tonnes of copper, came from record quarterly mill feed and higher grades of ore.

Mr Wilkes said "steady production'' was achieved at its Waihi mine in the North island; but on Tuesday this week there was a two-million-tonne slip into the historic Martha pit, which is likely to delay reopening of the pit, which has been closed for a year.

Underground mining has continued throughout.

simon.hartley@odt.co.nz

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