OceanaGold to produce up to 380,000 oz in 2020

OceanaGold’s Macraes gold mine in New Zealand. Credit: OceanaGold

OceanaGold expects to produce 360,000 oz. to 380,000 oz. of gold this year from its three operations in New Zealand and the US at all-in sustaining costs of $1,075 to $1,125 per oz. This is a decrease over the 470,601 oz. produced last year at AISCs of $1,061 per oz. due to suspension of processing at the Didipio gold-copper operation in the Philippines in October.

The Didipio mine is governed by a Financial or Technical Assistance Agreement (FTAA) with the Philippine government and includes a revenue sharing provision that entitles the government to 60% of the net revenue. The office of the country’s president is currently reviewing the FTAA renewal application, with a notice of renewal submitted in March 2018, but has not issued a decision timeline. The FTAA became renewable for a 25-year term in June 2019. The mine remains in a state of operational readiness; last year, it produced 83,913 oz. of gold and 10,255 tonnes of copper.

This year, the Haile open-pit mine in South Carolina is expected to contribute 180,000 oz. to 190,000 oz., a slight increase over the 146,131 oz. produced last year, due to higher throughputs and recoveries which are forecast to be weighted toward the second half of the year. Beyond 2020, Haile is expected to yield slightly higher production levels with lower costs. This year, OceanaGold plans to invest $115 million to $130 million at Haile, for pre-stripping, growth capital and exploration.

The Macraes mine in New Zealand is forecast to generate 160,000 oz. to 170,000 oz., in line with last year’s levels.

(This article first appeared in the Canadian Mining Journal)

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