30 Apr 2013

Gold miner's profit up

12:22 pm on 30 April 2013

OceanaGold, which owns the Macraes gold mine in Central Otago, made a net profit of $US7 million in the three months to the end of March compared with a loss of nearly $US4 million in the same quarter last year.

The company produced more than 67,000 ounces of gold and more than 3600 tonnes of copper from its New Zealand operations, which also include the Reefton goldfield.

Cash costs were slightly higher on gold sales of $US687 per ounce, slightly higher than in the December quarter, on gold sales of nearly 58,600 ounces.

Gold is currently trading at about $US1473 per ounce.

The Didipio mine in the Philippines began production last December and has since produced more than 7000 ounces of gold and nearly 4000 tonnes of copper.

OceanaGold says gold production was in line with expectations despite the Macraes mine experiencing a pit wall slump early in the quarter.

However, the consequences of the pit wall slump means it expects production from its New Zealand mines will vary for the rest of 2013 with less gold production in the June quarter but a rebound in the September quarter

OceanaGold's operating earnings from New Zealand were $47.1 million on revenue of $95.6 million.