Good timing for Oceana Gold production ramp-up

Friday 30th October 2009

Oceana Gold is forecasting a further increase in gold production capability and a record full year result as world gold prices continue to strengthen, the company says in its third quarter report, released this morning to the NZX, ASX and Toronto stock exchange.

The triple-listed New Zealand-based explorer reports a 14% increase in gold sales, to 71,492 ounces over the three months to September 30, compared to the same period a year ago, while production was up 10% on the same measure at 70,020 oz for the latest quarter.

"Year to date gold production has jumped by 23% over the previous year," interim CEO and CFO Marcus Engelbrecht said in a statement.

"The robust third quarter results have prompted an upward revision of FY2009 production guidance to 297,000 oz to 303,000 oz (up from 280,000 oz to 300,000 oz)."

With gold prices continuing to strengthen, production at the company's flagship Macraes, Frasers and Reefton mines "couldn't be better", Engelbrecht said.

Oceana Gold shares rose 1.4% to $1.42 and have risen 40% in the past six months.

A new brownfields exploration programme started in the current quarter "and we expect a steady stream of news over the coming months as we work towards materially extending the mine life of the New Zealand operations".

EBITDA excluding unrealised gains and losses on undesignated hedges rose 9% in the quarter over the previous quarter to US$24.4 million and the company expanded csh operating margin by 19% over the previous quarter to US$365 per oz.

Businesswire.co.nz

Comments from our readers

No comments yet