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Oceanagold Forecasts Record Full Year Production

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Oct 30 NZPA - OceanaGold, which operates gold mines in the South Island, has lifted its full year production forecast to a record level after a strong third quarter performance.

The company today said its third quarter gold sales were 14 percent up on a year ago at 71,492oz (2.02 million grams).

Gold production for the three months to the end of September was up 10 percent to 70,020oz, while year-to-date gold production was 23 percent up on a year earlier at 228,297oz.

The "robust" third quarter results prompted an increase in full year production guidance to between 297,000oz and 303,000oz, from 280,000oz to 300,000oz.

OceanaGold interim chief executive Marcus Engelbrecht said the third quarter results demonstrated the company was well on track to deliver record full year gold production and sales.

Year-to-date production was ahead of expectation and was evidence of steady operations at the Macraes and Frasers mines in Otago, and the Reefton mine on the West Coast.

Melbourne-based OceanaGold reported third quarter ebitda (earnings before interest, taxes, depreciation and amortisation excluding unrealised gains/losses on undesignated hedges) of $US24.4 million, up from $US22.5m in the June quarter and $US19m in the September 2008 quarter.

Mr Engelbrecht said the company was ramping up a brownfields exploration programme.

It expected a steady stream of news from he programme in the coming months as it worked towards extending the mine life of its operations in this country.

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