OceanaGold bullish on higher output this year

Australian-Canadian mining firm OceanaGold Corp. is confident of meeting its target gold production while it raised its copper production for this year on the back of strong performance of its US and Philippine mines.

“The strong first half performances from Haile and Didipio have led us to re-affirm our full-year consolidated production guidance of 445,000 to 495,000 ounces while increasing full-year copper production guidance,” OceanaGold president and CEO Gerard Bond said.

The company produced 246,331 ounces of gold in the first half of the year, a 32 percent jump from 177,000 ounces in the same period last year. It also produced 7,304 tons of copper during the period.

OceanaGold said the improvement reflected solid production across our operations, including Didipio mine in the Philippines, which was not operating in the prior comparative period.

The Philippine mine produced 58,715 ounces of gold and 7,304 tons of copper from January to June as mining was maintained at full production rates of 1.6 million tons per annum (mtpa) since the re-start of operations in November last year.

In the second quarter, the company received the amended Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR), which increased the allowable annual mill throughput limit from 3.5 mtpa to 4.3 mtpa.

In addition to mined ore, Didipio has approximately 17 million tons of stockpiled ore and expects to process approximately 3.9 to four mtpa in 2022.

“At Didipio, the team continue to do an exceptional job, with the second quarter being the first quarter where full underground mining rates were sustained. This is a great achievement so soon after recommencing operations,” Bond said.

Meanwhile, its Haile mine in the US produced 98,206 ounces of gold in the first half. The company expects mining in the Haile pit to continue until the end of the third quarter of 2022.

OceanaGold said its first half revenue jumped by 55 percent to $515.1 million from $331.5 million, reflecting the successful ramp-up of production and sales from Didipio and strong sales from both Macraes and Haile delivered during a time of high gold and copper prices.

“Together with strong prices we achieved record revenue in the first half of 2022 and strong free cashflow, allowing us to repay $50 million of drawn bank debt and strengthen the balance sheet which will enable continued investment in high value opportunities throughout our business,” Bond said.