OceanaGold earns $40.11-million in second quarter
2009-07-30 06:04 ET - News Release
Mr. Darren Klinck reports
OCEANAGOLD Q2 2009 INTERIM FINANCIAL RESULTS
OceanaGold Corp. has released its financial results for the second quarter ended June 30, 2009.
Results from operations
OceanaGold New Zealand operations achieved gold sales totalling 75,319 ounces for the second quarter 2009. This was slightly ahead of expectations with the New Zealand mines continuing to demonstrate consistent performance. As expected, gold sales were slightly down from the previous quarter on account of planned maintenance to the autoclave at Macraes in April resulting in a higher component of direct leaching and subsequently lower recoveries. The autoclave rebrick was successfully completed on time and on budget with throughputs returning to normal levels immediately after completion. Year-to-date gold sales for the half-year period ended June 30, 2009, totalled 156,412 ounces.
Operating cash costs for the quarter were $423 per ounce and $349 per ounce for the six-month period ending June 30, 2009. Lower ounces compared with first quarter 2009 and a stronger New Zealand dollar against the U.S. dollar contributed to higher United States cash costs compared with first quarter 2009.
The NZD averaged 60.4 cents for the period against the U.S. dollar, compared with 53.5 cents in first quarter 2009. The average New Zealand-dollar exchange rate for the six-month period ended June 30, 2009, was 57 cents.
Earnings before interest, tax, depreciation and amortization, and excluding gain/loss on undesignated hedges (EBITDA) for the quarter were $22.5-million and $53.5-million for the half year.
Cash flow from operating activities was $20.4-million, bringing total cash flow from operations for the six-month period ended June 30, 2009, to $43.4-million. Lower cash operating costs in the half year 2009 were a key contributor to the 42-per-cent increase in cash flow from operations compared with the same period in 2008.
Didipio gold-copper project
The Didipio project remained on care and maintenance during the quarter. The Company continues to progress internal technical studies reviewing project scope and capital requirements. As previously stated, these studies are intended to provide strategic options for the future of the project.
Site accommodation and office facilities continue to be maintained for personnel to provide site security, maintenance, environmental management and community relations.
The company continues to fulfill all community commitments and was active with a number of initiatives during the quarter. Key areas of focus involved community health and education initiatives. The company was also active in providing continuing financial support to a local community development association for priority projects identified in the local area.
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