This revised release replaces "OceanaGold Reports Fourth Quarter 2019 Operational Results" issued
OceanaGold Reports Fourth Quarter 2019 Operational Results
/NOT FOR DISSEMINATION OR DISTRIBUTION IN
(All financial figures in US Dollars unless otherwise stated)
Key Highlights
- Gold production from
the United States andNew Zealand operations increased by nearly 20% quarter-on-quarter on the back of stronger production from Haile and Macraes. - Haile gold production increased by 26% quarter-on-quarter with 46,420 ounces produced in the fourth quarter.
- Annual gold production of 470,601 ounces including 108,151 ounces produced in the fourth quarter, in-line with revised 2019 consolidated production guidance of 460,000 to 480,000 ounces.
- Annual copper production of 10,255 tonnes of copper, in line with revised 2019 consolidated production guidance of 10,000 to 11,000 tonnes.
- Full year 2019 All-In Sustaining Costs ("AISC")1 of
$1,061 per ounce including$980 per ounce in the fourth quarter, compared to 2019 revised AISC guidance of$1,040 to$1,090 per ounce sold. - Full year 2019 cash costs of
$733 per ounce sold including$757 per ounce sold in the fourth quarter, compared to revised 2019 guidance of$710 to$760 per ounce sold. - Continued to advance Martha Underground with approximately 830 metres of development and construction of the raise bore between the 800-RL and 920-RL drives completed in the fourth quarter.
- Achieved a Total Recordable Injury Frequency Rate ("TRIFR") of 3.6 per million hours worked compared to 4.5 per million hours worked in 2018.
___________________________ | |
1 AISC are unaudited, consolidated figures. |
"For 2019, the Haile process plant milled 3.2 million tonnes which met our expectations and is currently operating at an annualised throughput rate of 3.5 million tonnes per annum. We will continue to push throughput rates higher as we shift our focus to achieving better recoveries. We are pleased with the progress made on the expansion of Haile throughout the year and have the right team in place to deliver further efficiencies and lower unit costs while meeting our targets for the further ramp up in annual production."
"In
"Last year was challenging for us particularly in
"We are focused on resolving the suspension of Didipio as soon as we can, executing at our operations and the timely delivery of key projects. We are progressing and prioritising our robust project pipeline in
Table 1 – Fourth Quarter and Full Year Operational Results | |||||||||||||
Quarter ended | Haile | Didipio | Waihi | Macraes | Consolidated | ||||||||
Q4 2019 | Q3 2019 | ||||||||||||
Gold Produced | koz | 46.4 | 0.4 | 15.8 | 45.5 | 108.2 | 107.5 | ||||||
Gold Sales | koz | 42.3 | - | 18.6 | 46.4 | 107.3 | 94.3 | ||||||
Average Gold Price | US$/oz | 1,479 | - | 1,476 | 1,485 | 1,404 | 1,414(2) | ||||||
Copper Produced | kt | - | 0.1 | - | - | 0.1 | 2.3 | ||||||
Copper Sales | kt | - | - | - | - | - | - | ||||||
Average Copper Price | US$/lb | - | - | - | - | - | - | ||||||
Total Ore Mined | kt | 1,365 | - | 100 | 1,841 | 3,306 | 2,057 | ||||||
Tonnes Processed | kt | 863 | 23 | 97 | 1,465 | 2,449 | 3,026 | ||||||
Gold Grade Processed | g/t | 2.09 | 0.67 | 5.82 | 1.18 | 1.59 | 1.34 | ||||||
Gold Recovery | % | 80.0 | 89.9 | 86.7 | 81.6 | 86.4 | 82.4 | ||||||
Cash Costs | US$/oz | 772 | - | 646 | 788 | 757 | 828 | ||||||
All-In Sustaining Costs(1) | US$/oz | 1,014 | - | 741 | 1,039 | 980 | 1,122 | ||||||
Full Year 2019 | Haile | Didipio | Waihi | Macraes | Consolidated | ||||||||
2019 | 2018 | ||||||||||||
Gold Produced | koz | 146.1 | 83.9 | 68.1 | 172.5 | 470.6 | 533.3 | ||||||
Gold Sales | koz | 143.3 | 60.2 | 69.2 | 175.8 | 448.4 | 532.7 | ||||||
Average Gold Price | US$/oz | 1,409 | 1,385 | 1,392 | 1,391 | 1,360 | 1,268 | ||||||
Copper Produced | kt | - | 10.3 | - | - | 10.3 | 15.0 | ||||||
Copper Sales | kt | - | 6.9 | - | - | 6.9 | 14.5 | ||||||
Average Copper Price | US$/lb | - | 2.84 | - | - | 2.84 | 3.05 | ||||||
Total Ore Mined | Kt | 3,217 | 1,173 | 433 | 6,456 | 11,280 | 10,518 | ||||||
Tonnes processed | Kt | 3,204 | 2,656 | 435 | 5,917 | 12,212 | 12,219 | ||||||
Gold grade processed | g/t | 1.80 | 1.11 | 5.61 | 1.10 | 1.42 | 1.59 | ||||||
Recovery | % | 78.6 | 88.3 | 86.6 | 82.5 | 84.4 | 86.0 | ||||||
Cash Costs | US$/oz | 859 | 481 | 682 | 736 | 733 | 489 | ||||||
All-In Sustaining Costs(1) | US$/oz | 1,262 | 694 | 825 | 1,115 | 1,061 | 767 |
(1) | AISC for each operation accounts for corporate general and administrative allocations |
(2) | Realised gains and losses on gold hedging are included in the consolidated average gold price. |
For 2019, the Company achieved a TRIFR of 3.6 per million hours worked, which compares to 4.5 per million hours worked in 2018. The improvement year-on-year reflects significant improvements in health and safety performance at Haile and Macraes and continued reinforcement of strong health and safety behaviours across the business.
On a consolidated basis, the Company produced 470,601 ounces of gold for the full year 2019, including 108,151 ounces in the fourth quarter. Gold production from Haile and the
The Company also achieved its revised 2019 cost guidance with AISC of
The
AISC for the full year 2019 at Haile was
Mining operations in the fourth quarter were focused on completing ore mining from Snake phase 1 while continuing to mine ore from Red Hill. The Company continued to pre-strip Ledbetter phase 1 and Snake phase 2 with ore mining from lower grade benches now taking place. In the fourth quarter, the Haile operation mined 7.94 million tonnes of material including 1.37 million tonnes of ore representing quarter-on-quarter increases of 5% and 104% respectively. Mining operations were supported by the increased number of larger Komatsu 730-E haul trucks of which ten were operational as at the end of the year.
For the full year, the Haile operation processed 3.2 million tonnes of ore representing a 34% increase from 2018 and in-line with the Company's ramp up plans. The year-on-year increase related to investments made by the Company to debottleneck the process plant, which continues to achieve daily throughput rates that annualise to over 3.5 million tonnes. A primary focus for plant operations in the first quarter of 2020 will be to commission the final components of the new fine grinding circuit and achieve average gold recoveries in the mid-80% range for the full year.
On the back of the upgraded fleet, workforce stability and productivity improvements, the Haile operation reduced its mining unit costs by 11% quarter-on-quarter and 44% from the first quarter of 2019. The processing unit costs decreased 9% quarter-on-quarter and 12% from the first quarter of 2019. The AISC and cash costs continued to trend lower with quarter-on-quarter decreases of 8% and 13% respectively and decreases of 43% and 34% respectively from the first quarter of 2019.
Looking ahead, the Company expects increased gold production with continued decrease in AISC for 2020. Production in the second half of the year is expected to deliver two-thirds of the year's gold output at significantly lower AISC than the first half. The variability in production and costs relate to mine sequencing whereby mined and processed grades increase as the year progresses. The fourth quarter is expected to deliver the highest production while the first quarter is expected to have the lowest production for the year.
The Company continues to enhance open pit operations by accelerating mining activities. The Company expects to have 15 Komatsu 730-E haul trucks in operation in the second quarter to support the mining activities. For 2020, the Company will bring forward mining of the Haile and
At Waihi, the operation produced 68,082 ounces of gold, including 15,778 ounces in the fourth quarter, which was relatively flat quarter-on-quarter. For the year, AISC was
Looking ahead, mining from Correnso Deeps is expected to be completed in the first quarter with processing temporarily shutting down at that point. Mining of narrow veins in the Correnso area will continue for the duration of the year with this ore stockpiled ahead of processing in the fourth quarter. Following completion of processing of this ore, the process plant will be shut down temporarily and is expected to restart in the second quarter of 2021 with ore sourced exclusively from Martha Underground. The Waihi operation is expected to produce approximately 12,000 ounces of gold in the first quarter of 2020 with an additional 8,000 ounces in the fourth quarter. The Waihi district study is currently underway and expected to be completed in the first half of 2020. This preliminary economic assessment will provide longer-term production rates, costs and schedules related to the
Macraes,
At Macraes, the operation produced 172,475 ounces of gold, including 45,505 ounces in the fourth quarter. The 20% quarter-on-quarter increase in production was attributable to a higher head grade from Coronation stage 5 and the Frasers Underground. AISC was
Looking ahead, the Company expects steady production and flat AISC from Macraes while plans to increase the mine life are progressing well. The Company is currently working on a pre-feasibility study in relation to an underground mine at
Didipio,
In
The Didipio operation continues to receive strong community support. A community coalition comprising Indigenous Peoples from the host community of Didipio and 10 adjacent communities have held numerous rallies to demonstrate their support for the continued operation of the mine. The most recent, held at Malacañang (the
Full Year Results and Webcast
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About
In 2019, the Company produced 470,601 ounces of gold and 10,255 tonnes of copper at All-In Sustaining Costs of
Cautionary Statement for Public Release
Certain information contained in this public release may be deemed "forward-looking" within the meaning of applicable securities laws. Forward-looking statements and information relate to future performance and reflect the Company's expectations regarding the generation of free cash flow, execution of business strategy, future growth, future production, estimated costs, results of operations, business prospects and opportunities of
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