High gold prices boost OceanaGold Q1 profits

Friday 29th April 2011

Melbourne-based OceanaGold, operator of the Macraes and Reefton goldfields in the South Island, saw quarterly net profit jump to US$14.8 million (NZ$18.7 million) on the back of strong gold prices.

Net profit for the three months ended March 31 - derived from its New Zealand gold mines - compared with just US$1.8 million a year earlier.

A record high average gold price of US$1401 per ounce during the first quarter boosted revenue to US$90.7 million from US$48.3 million, and lifted cash operating margins to US$714/oz, up 272% on a year earlier.

"OceanaGold is well positioned to take full advantage of the record gold prices we are seeing today with steady production from our New Zealand operations whilst maintaining our focus on delivering further growth through the development of the Didipio Project in the Philippines," chief executive Mick Wilkes said.

The company was continuing to explore the Frasers underground mine at its Macraes complex in Otago.

OceanaGold produces about 270,000 ounces of gold a year from its New Zealand operations, and sold 64,765 ounces during the quarter.

NZPA

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