OceanaGold Corporation expects production at its Didipio operation to increase during 2015 and has set a production range of 100,000 to 120,000 ounces of gold and 21,000 to 23,000 tonnes of copper. The company also expects slightly higher production from its New Zealand gold operations and has set a production range of 195,000 to 215,000 ounces.
The company has estimated 2015 consolidated cash costs in the range of $450 to $530 per ounces net of by-product costs. It was also estimated consolidated all-in sustaining costs (AISC) in the range of $770 to $840 per ounce net of by-product credits.
The company’s managing director and CEO Mick Wilkes says, “After another year of strong production performance in 2014 we expect to continue delivering significant value to our shareholders in 2015 through increased gold production from our high quality Didipio operation and from improved margins in New Zealand where the zero-cost collar hedges have ensured a meaningful cash margin despite the current weak gold price.”
For 2015 the company estimates a total capital and exploration expenditure of approximately $100 million across its operations. In New Zealand capex is forecast to be $33 million, much lower than in previous years. This is a direct result of lower sustaining and capitalized mining costs at Macraes and at Reefton where the operation will transform to care and maintenance by the end of the year.
At Didipio capex is expected to be approximately $63 million including $23 million for the underground development and $10 million for the connection to the power grid. Of the $100 million total, $62 million is classified as sustaining capital and is included in the AISC estimates. Total company expenditure for exploration in the Philippines is forecast to be $4 million. In the event that additional exploration permits are granted, these activities would increase.
“2015 will be another significant year for the company as we commence development of the underground decline at Didipio which will enable access to the very high grade core of the ore body earlier in the mine plan. Additionally, the power grid connection will further reduce our operating costs by the end of the year,” Mick Wilkes says.