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Gold output lower in first quarter for OceanaGold
12 June 2007 - OceanaGold’s gold production of 36,255 oz during the first quarter of 2007 was lower than the 53,188 oz output from the corresponding 2006, but was in line with the 2007 operating plan, the company says in its first quarter report.
The lower production was due to significant processing of low grade stockpiles at its Macraes mine while overburden is removed to expose deeper ore in the Frasers pit stage 4.
The lower gold production was offset in part by a significant rise in the average gold price received per ounce. This increased 35% to A$822 per ounce due to the combination of continued higher gold spot prices and the continued benefits of the hedge restructure completed in 2006.
Gold revenue in the first quarter was lower than the comparative quarter in 2006.
During the quarter 44% of gold sales were sold into forward sales contracts compared to 89% sold into forward contracts in the equivalent quarter of 2006.
Cash operating margin of A$303 per ounce sold was only 4% lower than the comparative quarter in 2006.
The processing plant throughput for the quarter was up more than 169,000 tonnes to 1,393,599 tonnes largely due to improvements in debottlenecking the plant and better fragmentation associated with blasting in the pit.
OceanaGold expects to achieve its 2007 year production target of 190,000 oz as the Macraes plant uses more shipments of concentrate from its Reefton mine.
Source: OceanaGold
