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OceanaGold Sees NZ fuel cost pressures through 2008

Thursday 19th June 2008

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OceanaGold Corp., operator of New Zealand's biggest gold mine, says fuel cost pressures at Macraes in the second quarter will probably continue through 2008 after electricity prices soared.

The price of electricity rose 556% between December and June to almost 45 NZ cents/kilowatt per hour, according to briefing notes for a company presentation to a gold conference in San Francisco. Fuel costs rose 50% in the same period. A company spokesman wasn't immediately available to comment further.

OceanaGold, whose stock trades on the NZX and ASX, forecasts annual gold production will rise to 368,000 ounces in 2010 from an estimated 270,000 ounces this year. It begins copper production in 2009, with an estimated 16,000 metric tons output, rising to 21,000 in 2010.

The company is set to start producing from its fourth mine next year, the Didipio Gold Copper Project in the northern Philippines.

The shares traded at NZ$1.36 on the NZX yesterday.


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