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MELBOURNE, Oct. 15, 2019 /CNW/ - OceanaGold Corporation
(TSX: OGC) (ASX: OGC) (the "Company") announces that
due to the local government unit blockade impacting operations in
the Philippines, it is revising
full year guidance. With continued restraint of supplies to the
Didipio Mine, and the timing of a resumption uncertain, the Company
has temporarily suspended processing following depletion of
consumables necessary for sustained operations. This follows the
suspension of underground mining in mid-July.
The Company now expects to produce between 460,000 and 480,000
ounces of gold along with 10,000 to 11,000 tonnes of copper for the
full year. The Company's consolidated All-In Sustaining Costs
("AISC") is now expected to range between US$1,040 and US$1,090 per ounce sold while the cash cost
guidance has been revised to US$710
to US$760 per ounce sold.
This guidance assumes no further production or sales from the
Didipio operation for the remainder of the year. In the event an
injunction is granted by the Philippine Court of Appeals, or a
renewal of the Financial or Technical Assistance Agreement ("FTAA")
is finalised and normal operations resume, the Company may provide
a further update on its full year guidance.
Mick Wilkes, President and CEO of
OceanaGold said, "This is a very disappointing outcome for the
Company, our shareholders and our truly valued Filipino workforce.
The Didipio Mine has contributed significant socio-economic
benefits to the Barangay of Didipio and neighbouring communities
within the provinces of Nueva
Vizcaya and Quirino. The Didipio Mine is a major direct and
indirect employer in the remote communities of Northern Luzon and
is the template for responsible mining in the Philippines."
"With the timing of the Court of Appeals injunction decision
uncertain, and efforts to finalise a renewal of the FTAA ongoing,
we have no other choice but to temporarily suspend production at
Didipio. The operations will remain in a state of readiness for
re-start and the health and safety of our employees will continue,
as always to be a top priority. We also remain actively engaged
with the national government and our regulators to finalise a
renewal of the FTAA and secure the long-term future of the best
mining operation in the
Philippines."
When operational, the Didipio mine directly employs 1,500
workers of which approximately 97% are Philippine nationals
including over 59% from the local communities and provides several
thousand indirect jobs through the supply chain, partnerships with
cooperatives and social development organisations.
Preliminary and Unaudited Third Quarter 2019 Results
For the nine months ended 30 September
2019, consolidated production was 362,450 ounces of gold and
10,187 tonnes of copper at cash cost of $725 per ounce and AISC of $1,087 per ounce on sales of 341,100 ounces of
gold.
Consolidated production for the third quarter of 2019 was
107,478 ounces of gold and 2,316 tonnes of copper including 16,727
ounces of gold and 2,316 tonnes of copper produced at Didipio. The
third quarter production from Didipio went unsold in the quarter
due to the cessation of transport activities early in the
quarter.
Consolidated AISC for the third quarter was $1,122 per ounce on sales of 94,347 ounces of
gold while cash costs were $828 per
ounce sold.
Haile gold production in the third quarter was 36,812 ounces
with AISC of $1,106 per ounce on
sales of 42,085 ounces. The quarter-on-quarter decrease in AISC
reflects improved mine productivity and continued increases in
process plant throughput across the quarter. Mining movements
increased 36% from the second quarter with ore mining up nearly 10%
quarter-on-quarter. Mining, processing and site general &
administrative unit costs were all significantly lower. The slight
decrease in recovery relates mainly to processing of low-grade
stockpiles and continued fine tuning of the new regrinding circuit.
As previously stated, the Company expects second half 2019
production at Haile to be greater than in the first half and as
such, production is expected to be higher in the fourth
quarter.
At Waihi, gold production was 16,021 ounces with AISC of
$778 per ounce on sales of 15,257
ounces. The quarter-on-quarter decrease in production was
previously forecast and related to mine sequencing whereby lower
grades were mined and processed. The Company expects broadly
similar production in the fourth quarter.
At Macraes, gold production was 37,918 ounces with AISC of
$1,262 per ounce on sales of 37,595
ounces. Production was flat quarter-on-quarter as previously
forecast due to similar grades and recoveries. The Company expects
increased production from Macraes in the fourth quarter due to
higher grades.
Production, cash costs and AISC figures provided for the third
quarter are preliminary in nature. As such, they are subject to
finalisation in the full financial results release on October 31, 2019.
Table 1 – Production and Cost Results
Quarter ended 30 Sept
2019
|
Haile
|
Didipio
|
Waihi
|
Macraes
|
Consolidated
|
Q3 2019
|
Q2 2019
|
Gold
Produced
|
koz
|
36.8
|
16.7
|
16.0
|
37.9
|
107.5
|
129.3
|
Gold Sales
|
koz
|
42.1
|
(0.6)
|
15.3
|
37.6
|
94.3
|
125.6
|
Average Gold
Price
|
US$/oz
|
1,477
|
-
|
1,481
|
1,482
|
1,414
|
1,331
|
Copper
Produced
|
kt
|
-
|
2.3
|
-
|
-
|
2.3
|
4.0
|
Copper
Sales
|
kt
|
-
|
-
|
-
|
-
|
-
|
3.6
|
Average Copper
Price
|
US$/lb
|
-
|
-
|
-
|
-
|
-
|
2.60
|
|
|
|
|
|
|
|
|
Total Ore
Mined
|
kt
|
669
|
92
|
115
|
1,181
|
2,057
|
2,836
|
Tonnes
Processed
|
kt
|
834
|
604
|
117
|
1,471
|
3,026
|
3,431
|
Gold Grade
Processed
|
g/t
|
1.75
|
0.97
|
4.93
|
0.98
|
1.34
|
1.40
|
Gold
Recovery
|
%
|
78.1
|
89.4
|
86.3
|
81.9
|
82.4
|
83.8
|
|
|
|
|
|
|
|
|
Cash Costs
|
US$/oz
|
888
|
0(1)
|
686
|
805
|
828
|
684
|
All-In Sustaining
Costs
|
US$/oz
|
1,106
|
0(1)
|
778
|
1,262
|
1,122
|
1,118
|
Year to date 30 Sept
2019
|
Haile
|
Didipio
|
Waihi
|
Macraes
|
Consolidated
|
YTD 2019
|
YTD 2018
|
Gold
Produced
|
koz
|
99.7
|
83.5
|
52.3
|
127.0
|
362
|
407
|
Gold Sales
|
koz
|
100.9
|
60.2
|
50.5
|
129.5
|
341
|
401
|
Average Gold
Price
|
US$/oz
|
1,380
|
1,385
|
1,361
|
1,358
|
1,346
|
1,315
|
Copper
Produced
|
kt
|
-
|
10.2
|
-
|
-
|
10.2
|
12.1
|
Copper
Sales
|
kt
|
-
|
6.9
|
-
|
-
|
6.9
|
11.4
|
Average Copper
Price
|
US$/lb
|
-
|
2.84
|
-
|
-
|
2.84
|
3.05
|
|
|
|
|
|
|
|
|
Total Ore
Mined
|
kt
|
1,852
|
1,173
|
333
|
4,616
|
7,974
|
7,839
|
Tonnes
processed
|
kt
|
2,341
|
2,633
|
338
|
4,452
|
9,763
|
9,241
|
Gold grade
processed
|
g/t
|
1.69
|
1.11
|
5.55
|
1.07
|
1.39
|
1.58
|
Recovery
|
%
|
77.9
|
88.5
|
86.5
|
82.8
|
83.3
|
86.4
|
|
|
|
|
|
|
|
|
Cash Costs
|
US$/oz
|
896
|
481
|
695
|
718
|
725
|
465
|
All-In Sustaining
Costs
|
US$/oz
|
1,366
|
694
|
855
|
1,142
|
1,087
|
751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Didipio
recorded nil gold sales in the quarter ended 30 September 2019
and therefore did not record an AISC on an ounce sold basis. An
AISC on gold produced during Q3 will be recognised on
sale.
|
www.oceanagold.com | Twitter: @OceanaGold
About OceanaGold
OceanaGold Corporation is a mid-tier, high-margin, multinational
gold producer with assets located in the
Philippines, New Zealand
and the United States. The
Company's assets encompass the Didipio Gold-Copper Mine located on
the island of Luzon in the
Philippines. On the North Island of New Zealand, the Company operates the
high-grade Waihi Gold Mine while on the South Island of
New Zealand, the Company operates
the largest gold mine in the country at the Macraes Goldfield which
is made up of a series of open pit mines and the Frasers
underground mine. In the United
States, the Company operates the Haile Gold Mine, a
top-tier, long-life, high-margin asset located in South Carolina. OceanaGold also has a
significant pipeline of organic growth and exploration
opportunities in the Americas and Asia-Pacific regions.
OceanaGold has operated sustainably since 1990 with a proven
track-record for environmental management and community and social
engagement. The Company has a strong social license to operate and
works collaboratively with its valued stakeholders to identify and
invest in social programs that are designed to build capacity and
not dependency.
In 2019, the Company expects to produce between 460,000 to
480,000 ounces of gold and 10,000 to 11,000 tonnes of copper at
All-In Sustaining Costs ranging between $1,040 and $1,090
per ounce sold.
Cautionary Statement for Public Release
Certain information contained in this public release may be
deemed "forward-looking" within the meaning of applicable
securities laws. Forward-looking statements and information relate
to future performance and reflect the Company's expectations
regarding the generation of free cash flow, execution of business
strategy, future growth, future production, estimated costs,
results of operations, business prospects and opportunities of
OceanaGold Corporation and its related subsidiaries. Any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "expects" or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans", "estimates" or
"intends", or stating that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved) are not statements of historical fact and may be
forward-looking statements. Forward-looking statements are subject
to a variety of risks and uncertainties which could cause actual
events or results to differ materially from those expressed in the
forward-looking statements and information. They include, among
others, the accuracy of mineral reserve and resource estimates and
related assumptions, inherent operating risks, sovereign risks,
risk of suspension and those risk factors identified in the
Company's most recent Annual Information Form prepared and filed
with securities regulators which is available on SEDAR at
www.sedar.com under the Company's name. There are no assurances the
Company can fulfil forward-looking statements and information. Such
forward-looking statements and information are only predictions
based on current information available to management as of the date
that such predictions are made; actual events or results may differ
materially because of risks facing the Company, some of which are
beyond the Company's control. Although the Company believes that
any forward-looking statements and information contained in this
press release is based on reasonable assumptions, readers cannot be
assured that actual outcomes or results will be consistent with
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements and information. The Company
expressly disclaims any intention or obligation to update or revise
any forward-looking statements and information, whether because of
new information, events or otherwise, except as required by
applicable securities laws. The information contained in this
release is not investment or financial product advice.
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