Make Kitco Your Homepage

OceanaGold ups gold production 60% in second quarter

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - OceanaGold (TSX: OGC) announced Friday that its consolidated second quarter 2021 gold production of 93,848 was 60% higher compared to the second quarter of 2020.

The company said that increase in gold output was primarily due to improved performance at Haile, incremental production from Waihi including the Martha Underground development, and limited impacts from COVID-19.

The company reported that the Haile gold mine in the US produced a quarterly record 57,240 gold ounces in the second quarter, consistent with expectations of a stronger first half of the year. Gold production increased due to higher throughput and higher feed grade as expected.

The Waihi gold mine in New Zealand produced 3,939 gold ounces in the second quarter. Gold production decreased quarter-on-quarter due to the planned plant shutdown for the installation of a new SAG mill, which was completed late in the second quarter.

The Macraes gold mine in New Zealand produced 32,669 gold ounces in the second quarter. Gold production decreased quarter-on-quarter, reflecting access limitations to some higher grade open pit ore zones due to geotechnical challenges plus delays in the planned mill shutdown.

At the Didipio gold mine in the Philippines, the company recently announced the FTAA renewal by the Philippine National Government, effective for a 25-year period as of June 19, 2019. The company said it currently plans a staged restart of operations with milling to recommence as soon as possible utilising stockpiled ore.

Cash costs for the second quarter were $734 per ounce, lower than the prior year and previous quarter due to improved grades and unit cost reductions at Haile, partially offset by higher per ounce cash costs at Macraes.

The company added that it ended the second quarter with $92.3 million in cash and $142.3 million in liquidity, including $50.0 million in undrawn credit facilities.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.