Gold-rush Q2 2021 earnings for OceanaGold (ASX:OGC)

Company News

by Melissa Darmawan

Dual-listed gold producer OceanaGold (ASX:OGC) has seen a bright spot in their preliminary second quarter results they released after market close on Friday, 15 July. The gold miner produced 12.8 per cent more gold at 93,848 ounces at an all-in sustaining cost (AISC) of US$1,226 per ounce, $3 less per ounce in the second quarter.

The multinational miner reports first half of 2021 production to be 27 per cent higher than the same period in 2020. This was mainly driven by their Haile gold mine in South Carolina in the USA lifting for the other three mines as they drilled through barriers.

"At Haile, the operation delivered record total mining movements during the first quarter and quickly identified, evaluated, and resolved disruptions to milling" said Michael Holmes, president and CEO.

The success came after they announced last week that the Philippines government renewed the Financial or Technical Assistance Agreement (FTAA) for Didipio, their gold and copper producing mine situated on the northern end of the Philippines for another 25 years.

The grand news was much enjoyed after the debacle in October last year when the government sealed the area off, halting production as negotiations went underway. A total of 496 staff and 400 contractors were given the sack that were predominantly from local communities.

Despite the boost in their second quarter production, their New Zealand operations lagged.

Waihi saw a 9.2 per cent drop at 3,939 gold ounces in the second quarter when compared to 4,337 gold ounces in the first quarter. This was due to the planned plant shutdown for the installation of a new semi-autogenous grinding mill, which was completed late in the second quarter. The plant is back operating with no major plant shutdowns or upgrades planned in the near term.

Their second Kiwi operation, Macraes has been on an ongoing decline quarter-on-quarter. The miner attributes this to access limitations to some higher grade open pit ore zones due to geotechnical challenges as well as falling behind schedule in their planned mill shutdown.

The Australian-Canadian miner will host a conference call / webcast to discuss the results at 7:30 am on Friday July 30, 2021 (AEST).

Shares in OceanaGold (ASX:OGC) closed 1.6 per cent higher at $2.62 on Friday.

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