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OceanaGold reports record first-quarter gold output from Didipio, group sales rise 25%

Friday 29th April 2016

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OceanaGold, the gold and copper miner, said it achieved record gold production from its Didipio mine in the Philippines in the first quarter and lifted group sales by 25 percent, although accounting adjustments dented profit.

Sales climbed to US$161 million in the March quarter, from US$129 million a year earlier, the Melbourne-based company said in a statement. While earnings before interest, tax, depreciation and amortisation jumped 28 percent to US$77.9 million, higher depreciation and amortisation, a higher tax bill and a loss on the value of hedges contributed to a 4 percent drop in net profit to $23.5 million.

OceanaGold expanded its portfolio last year, acquiring the Waihi mine from Newmont Mining Corp and developing the Haile mine in the US, where commercial production is slated to start in early 2017. It has also invested C$13.8 million to increase its stake in Gold Standard Ventures Corp to 19.9 percent from 13.9 percent to help finance a gold project in North Central Nevada. Today it said construction of Haile and on its Didipio underground development were on time and budget, leaving the company "very well placed to achieve our plans for growth in 2016."

In the first quarter, consolidated gold production rose 2.8 percent to 122,782 ounces, including record production of 46,811 ounces at Didipio. Copper production edged up to 5,972 tonnes from 5,591 tonnes. 

All-in sustaining costs were US$716 per ounce and cash costs were US$436 per ounce on sales of 117,387 ounces of gold and 4,745 tonnes of copper, the company said. That compares with all-in costs of US$709 an ounce in the fourth quarter of 2015 and cash costs of US$458 an ounce in the fourth quarter on sales of 127,086 ounces of gold and 23,109 tonnes of copper.

OceanaGold's New Zealand shares shares last traded at $4.54 and have surged 62 percent this year.

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