Production costs down for Oceana Gold

Oceana Gold have proven they are the lowest cost gold producer on the ASX, with record quarterly earnings announced in their 2014 first quarterly report.

For the quarter ending March 31, Oceana Gold had quarterly revenue of US$170.4 million, EBITDA of US$101 million with net profits of $58.9 million, made on sales of 94,050 ounces of gold and 7752 tonnes of copper.

The company have also increased their available facilities to US$92.1 million, including US$42.1 million in cash, plus credit.

In the first quarter, the company reported an astonishing overall gold production cash cost of US$170 per ounce, with all-in-sustaining costs at US$450 per ounce.

Oceana Gold managing director and CEO Mike Wilkes commented on the first quarter 2014 results, ans said that the company has strengthened their balance sheet through repayment of US$20 million of debt, and building up their available cash reserves.

“We had another strong quarter of production and financial results with record quarterly revenue, EBITDA and net earnings on the back of higher sales and lower operating costs,” he said.

“The Didipio process plant is well on track to increase throughput rates to 3.5 million tonnes per annum by the end of the year and will continue generating strong free cash flows.

“For the remainder of the year, we will continue to further strengthen the balance sheet by repaying debt to enhance shareholder value and position the Company for new value-add opportunities. “

Oceana Gold has also remain strong on the health and safety for employees, claiming to have registered 10 million plus man hours worked without a lost time injury at Didipio mine, which is located near Luzon in the northern Phillipines.

Didipio reported record quarterly gold production of 30,480 ounces and copper production of 6479 tonnes.

In the first quarter, Oceana Gold made four shipments of copper- gold concentrate totalling 30,152 dry metric tonnes to markets in Asia.

The company said debottlenecking of the process plant to achieve the planned 3.5 million tonnes per annum throughput rate “is advancing well and on schedule for completion by the end of the year”.

Oceana Gold has recently received the support and official consent from the National Commission of Indigenous Peoples to conduct exploration activities at the Mayag tenement in northern Mindanao, regarded as a major milestone for the Company, demonstrating the successful completion of a free informed consent process with indigenous groups, and bringing the company closer to receiving exploration permits for the Mayag tenement.

In 2014 Oceana Gold expects to produce 275,000 to 305,000 ounces of gold from the combined New Zealand and Philippine operations and 21,000 to 24,000 tonnes of copper from the Philippine operations. 

Oceana Gold is currently trading at  $2.70 on the ASX, up from $2.25 at the beginning of April.

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