OceanaGold Corp, which is set to quit its NZX listing at the end of the year, expects increased gold production at a cheaper cash cost in 2017 as its Haile gold mine in the US comes on stream, providing higher margins.
The Melbourne-based company, which has gold mining operations in Otago and Waihi, forecasts gold production of between 550,000 ounces and 610,000 ounces in 2017, up from the projected 385,000-to-425,000 ounces in the current year, it said in a statement. That increase is driven by a forecast 150,000-to-170,000 ounces of gold produced from Haile, though its Waihi and Macraes operations are also tipped to deliver an increased yield.
At the same time, all-in-sustaining cash costs (AISC) are projected to be US$600-to-US$650 per ounce, a reduction on the US$700-to-US$750/ounce forecast for 2016.
"The increase in production year-on-year is a result of incremental production from the Haile gold mine which is nearing completion of construction and the commencement of wet commissioning," the company said in a statement. "In addition to the increase in gold production guidance, the company is pleased to report decreased AISC guidance which reflects lower costs expected from Didipio (in the Philippines) and the inclusion of high margin ounces from Haile."
Lat month OceanaGold said it would leave the NZX at the end of the year to try and cut costs, keeping its listings on the ASX and Toronto stock exchange.
