OceanaGold Corporation
(ASX:OGC) will put off production at its Reefton mine in New Zealand, amid a slump in gold prices.
The move amounts to a two-year reduction in the mine schedule and will cut production by 110,000 ounces between 2015 and 2017 to achieve significant cost and risk reductions.
The plan will strip out up to $37 million in capital spending over the next two years.
Managing Director Mick Wilkes says the decline in the gold price over the past two months has eroded much of the profitability at Reefton.
The Melbourne-based gold miner extracted 12,447 ounces from the Reefton site in the first three months of the year.
OceanaGold generated a net profit of $19.9 million in its 2012 financial year.
