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OceanaGold reiterates its 2021 production guidance despite COVID-19 lockdown in New Zealand

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(Kitco News) - OceanaGold (TSX: OGC) today provided a progress update related to the restart of operations at its Didipio mine in the Philippines, including the shipment and sale of finished product inventory stored on-site, as well as a broader operations update.

According to the company’s statement, Didipio restart activities advancing ahead of plan and inventory sales well underway with 1,096 ounces of Doré sold and $25 million (or 40%) of concentrate inventory transported to port and invoiced to date. 90% of revenue expected to be received by mid-October, the company said.

The company noted that 65% of workforce at Didipio expected to be in place by end the of the third quarter, and that processing and underground ore stoping both scheduled to commence in November. Didipio’s 2021 production guidance is 5,000 to 10,000 ounces of gold and 1,000 tonnes of copper.

OceanaGold added that its New Zealand operations impacted by 15-day national COVID-19 lockdown with Macraes guidance revised to 135,000 to 145,000 gold ounces at AISC of $1,300 to $1,350 per ounce sold.

The company pointed out that Haile technical reviews advancing, operational performance well on track to deliver full year guidance.

On a consolidated basis, after the inclusion of Didipio, the company said it continues to expect full year production to be 350,000 to 370,000 gold ounces at an AISC of $1,200 to $1,250 and cash costs of $825 to $875 per ounce sold. With the inclusion of Doré and concentrate inventory sales from Didipio, consolidated gold
ounces sold for 2021 are expected to be approximately 20,000 ounces higher than production.

OceanaGold is a multinational gold producer with a portfolio of established operating assets including Didipio mine in the Philippines; Macraes and Waihi operations in New Zealand; and Haile gold mine in the United States of America.

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