OceanaGold Corp, operator of the Macraes and Reefton gold mines, reported a bottom line profit of US$1.8 million (NZ$2.5 million) in the three months to March 31, down from US$9.05m in the same quarter last year.Total production of 65,291 ounces was down
OceanaGold Corp, operator of the Macraes and Reefton gold mines, reported a bottom line profit of US$1.8 million (NZ$2.5 million) in the three months to March 31, down from US$9.05m in the same quarter last year.
Total production of 65,291 ounces was down 22.3 percent on the same quarter last year due to mining moving through some lower grade benches in the Macraes deposit, unplanned maintenance to the autoclave and low throughput due to harder ore at the Macraes mine. This was partly offset by an improvement in gold recovery.
Gold sales in the quarter of $48.3m were down from $55.27m last year.
The company has closed out its hedge contracts and from April 1 will sell gold on the spot market.
It said the spot gold price in New Zealand dollars rose $NZ55 during the quarter to average approximately $NZ1565 per ounce. The average gold price the company received during the quarter fell because the price in its hedge book was below the spot price.
Cash costs per ounce sold rose 13.6 percent to $551m. The company said per ounce costs rise when production is lower.
Earnings before interest, tax, depreciation and amortisation of $8.48m were down from $31.03m in the same quarter last year. Depreciation and amortisation of $17.57m compared to $13.47m last year.
During the quarter the company poured the three millionth ounce of gold at the Macraes processing plant, which it said was a significant milestone after 20 years of operations.
Recoveries of gold at its New Zealand mines improved to 82 percent from 79.7 percent last year.
"The Reefton operation continued to perform above expectations and has been a model of consistency. Material movements were similar to the previous quarter as the operation achieved high equipment availabilities as well as experienced better than average weather conditions," the company said.
