Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


OceanaGold gains on news of Q4 uplift

OceanaGold gains on news of Q4 uplift

By Suze Metherell

Jan. 21 (BusinessDesk) – Shares of Melbourne based mining group OceanaGold has risen 9.7 percent in early NZX trading after announcing its gold production exceeded expectations in 2013.

The company produced 325,732 ounces of gold across its New Zealand and Philippines operations, slightly ahead the top of the range it had forecast of 285,000 to 325,000 ounces. It says its 2013 final quarter was a record, producing 115,219 ounces.

Its New Zealand operations in the three months to Dec 31, were 54 percent above the previous quarter, producing a total of 87,506 ounces between the Reefton and Macraes mine. In the calendar year of 2013 New Zealand goldfields produced 259,455 ounces, the highest production of gold since 2010.

In the past 12 months the company’s share price has dropped 37 percent as it has battled against falling gold prices. The mining group is in the process of shifting its focus to its Philippines gold and copper operations, signalling its intention to scale down New Zealand operations. It will mothball its Reefton mine mid-next year and expects its Macraes goldfield in Otago to close by the end of 2017.

OceanaGold said it expected its 2014 gold production to range between 275,000 to 305,000 ounces because of its New Zealand wind down.

Gold prices have fallen some 26 percent in the last year, from US$1685.14 an ounce to $US1240.25. the company.

At the time of its announcement of the New Zealand operations wind-down, the company also announced extra hedging for 208,000 ounces to partially cover production over the next two years at its Otago sites, ensuring it will get at least NZ$1,500 per ounce and no more than NZ$1,600 an ounce, effectively shielding it from further falls in gold prices from current levels.

The additional hedging runs from January this year though to December 2015.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news