OceanaGold Expects Flat Production

Macraes goldfield operator OceanaGold Corp expects its annual gold and copper production to be largely flat in the year and has signalled costs may fall as much as 13 per cent.

The Melbourne-based miner expects gold production to be between 295,000 ounces and 335,000 ounces in the year ending December 31. That may eclipse last year’s production of 325,732 ounces, it said.

Copper production may be between 21,000 tonnes and 23,000 tonnes, short of the 23,059 tonnes produced in 2013.

In the face of falling gold prices, OceanaGold has been scaling back its New Zealand gold mining production, and plans to close its Macraes goldfield in Otago in 2017.

It will mothball its Reefton mine in mid-2015, as it focuses on its cheaper copper and gold production in the Philippines.

OceanaGold expects total capital and exploration spend to be approximately $NZ100 million ($A93.10 million) across its operations in 2015, with New Zealand capital expenditure forecast to be $NZ33 million, a result of lower costs at Macraes and the mothballing of Reefton, it said.

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