Oceana gold production up

FIRSTHALF gold production for Oceana Gold has increased on a year ago, underpinned by production in the Philippines, while it booked a profit dip, to $US61.4 million ($NZ81.9 million).

For its first half trading to June, revenue rose from $US330.8 million to $US333.4 million while earnings before tax, depreciation and amortisation rose from $US155.1 million to $US186.4 million.

Last year’s $63.2 million profit slipped to $US61.4 million, largely due to a oneoff impairment charge against mining assets in El Salvador, higher finance costs and increased depreciation expenses, the company reported yesterday.

The unsuccessful foray into El Salvador has previously been reported. Oceana settled with the Government there for $US8 million.

Oceana chief executive Mick Wilkes described first half

trading operational and financial results as ‘‘strong’’.

‘‘The Didipio [Philippines] operation continued its strong performance, delivering strong cashflows and highmargin ounces to offset weaker production from Haile [in South Carolina], where production is improving as we rectify the [plant] commissioning issues previously flagged,’’ he said in a statement.

Halfyear gold production was up, rising from 225,339oz to 272,352oz, while copper from the Philippine goldcopper mine Didipio was down from 12,244 tonnes to 10,277 tonnes.

Oceana has maintained its guidance of producing between 550,000oz and 600,000oz this calendar year, a record.

During the half year, Oceana sold 114,192oz of gold, excluding any from Haile, and 5828 tonnes of copper.

Mr Wilkes said during the next 18 months he expected the Haile mine to deliver ‘‘significant’’ cashflows and remained excited about its longterm exploration potential.

simon.hartley@odt.co.nz

❛The Didipio [Philippines] operation continued its strong performance delivering strong cashflows and highmargin ounces to offset weaker production from Haile [in South Carolina] where production is improving as we rectify the [plant] commissioning issues

previously flagged❜

— Oceana chief executive Mick Wilkes