Details of the consolidated financial statements and the Management Discussion and Analysis ('MD&A') are available on the Company's website at www.oceanagold.com
Highlights
Total Recordable Injury Frequency Rate ('TRIFR') of 2.9 per million hours worked compared to 2.7 per million hours worked at the end of the second quarter of 2020.
Year-to-date ('YTD') 2020 consolidated production of 202,521 ounces of gold at All-In Sustaining Costs ('AISC') of
Consolidated third quarter gold production of 63,136 ounces at AISC of
YTD revenue of
YTD net loss of
Cash balance and total immediately available liquidity of
Subsequent to quarter-end, the Company completed a bought deal offering in which 81.6 million common shares were issued for total net proceeds of
Advanced Martha Underground development at Waihi with 2,240 metres completed in the third quarter and 5,095 metres YTD; the project remains on-track for first production in the second quarter of 2021.
Company expects to achieve the low-end of full year 2020 production guidance of 295,000 to 345,000 consolidated ounces at AISC of
'As mentioned in our corporate update at the end of August, we continue to manage the near-term risks at Haile while working hard to deliver on our commitments and keep our workforce safe. We are focussed on areas in which we can make meaningful improvements, including increased mining and milling rates while continuing to improve recoveries. We are pleased with the long-term trend of higher mining rates despite the impact that COVID-19 has had to staffing levels and the record rainfall experienced this year.'
'In New Zealand, Macraes continues to perform exceptionally well and delivered a quarter-on-quarter production increase as the operation returned to full scale mining post government-imposed COVID-19 shutdowns. Development of Martha Underground at Waihi is on-track with approximately 5,000 metres completed year-to-date including 2,240 metres in the third quarter. We have commenced mining development ore at Martha Underground which will be stockpile ahead of the planned commencement of processing scheduled for the second quarter of 2021.'
'Subsequent to quarter-end, we completed the bought deal offering for net proceeds of
Operations
YTD the Company produced 202,521 ounces of gold, including 63,136 ounces of gold in the third quarter. Gold production YTD was 44% lower than the same period in 2019 primarily due to the suspension of operations at Didipio. Quarter-on-quarter gold production increased 8% with stronger production at Macraes, partly offset by lower production at Haile due to COVID-19 related workforce disruptions and record rainfall that reduced mining rates and delayed access to higher grade ore zones.
Consolidated AISC of
Macraes delivered a 25% increase in production quarter-on-quarter following the resumption of full-scale mining operations after the government imposed COVID-19 shutdown in the second quarter. Higher third quarter AISC was expected and reflects increased sustaining capital investments and pre-stripping activities. Full year guidance for Macraes of 140,000 to 150,000 gold ounces at site AISC of
Activities at Waihi focussed on the development of Martha Underground, including the completion of 2,240 metres of underground development during the third quarter and 5,095 metres YTD. Development of Martha Underground remains on-track for first production in the second quarter of 2021, and full year 2020 guidance at Waihi remains unchanged. The Company expects to produce approximately 20,000 gold ounces at AISC of
At Haile, health and safety protocols remain in place to protect the wellbeing of the workforce amidst increasing local COVID-19 confirmed cases. The protocols in place have successfully prevented the spread of COVID-19 at site; however, during the third quarter, the operation experienced a significant increase in confirmed COVID-19 cases and self-isolations within the workforce. Confirmed cases increased from two to twenty during the third quarter, and approximately 160 employees and contractors self-isolated during this period. Workforce disruption from COVID-19, combined with record rainfall YTD of approximately 51 inches (the highest in 35 years), impacted mining advance rates and delayed access to higher grade ore zones. As such, third quarter production was adversely impacted resulting in lower production and higher than expected costs.
The Company continues to expect Haile's fourth quarter to deliver its highest level of gold production for the year as mining progressively advances to higher grade ore zones. That said, the Company notes that the Haile outlook could be adversely impacted by additional challenges related to the COVID-19 pandemic. Currently, the Company expects to deliver the lower-end of full-year production guidance of 135,000 to 175,000 gold ounces at a site AISC of
The Didipio mine remained suspended during the quarter due to ongoing restraints placed on the operations. The Company has maintained Didipio in a state of operational readiness for rapid re-start on the expectation that a resumption of normal operations could be achieved in 2020, either through lifting of restrictions imposed on access, or completion of a renewal of the Financial or Technical Assistance Agreement ('FTAA'). To date, completion of the renewal is outstanding, and subsequent to quarter-end the Company issued the notices for permanent termination of employment to 496 employees (excluding contracted workforce) on temporary lay-off. The termination became effective on
About
For 30 years, we have been contributing to excellence in our industry by delivering sustainable environmental and social outcomes for our communities, and strong returns for our shareholders. Our global exploration, development, and operating experience has created a significant pipeline of organic growth opportunities and a portfolio of established operating assets including
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, achievement of guidance, execution of business strategy, future growth, future production, estimated costs, results of operations, business prospects and opportunities of
Contact:
Tel: +1 720 484 1147
Email: IR@oceanagold.com
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