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

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news