26 Jul 2013

Gold price fall hits OceanaGold value

1:37 pm on 26 July 2013

A falling gold price and plans to cut production at its mine in Reefton has led OceanaGold to wipe $US85.5 million off the value of its assets.

The Australian-owned gold and copper miner made an operating profit of $US45.5 million in the three months ended June but posted a bottom-line loss of $US70.5 million.

OceanaGold says it has already cut $US100 million from its operating budget and is reviewing its operations to identify where else it can save money.

The company says the Reefton mine will stop producing gold by the middle of 2015 unless there is a material improvement in the price of gold.