Toronto-listed OceanaGold is on track to meet is 2024 production, cost and capital guidance, despite reporting lower second quarter production.

The miner, which operates mines in the US, Philippines and New Zealand, produced 98 200 oz of gold and 2 800 t of copper in the second quarter. This was 6% lower than in the previous quarter and 24% lower than the corresponding quarter of 2023.

The decrease, compared with the March quarter, was the result of planned lower production at Macraes, in New Zealand, as a result of reliance on low-grade stockpiles and lower production from Didipio, in the Philippines, owing to downtime at the process plant and the Breccia stope redesign.

Year-to-date production of 203 000 oz is 18% below that of last year and is mainly attributed to openpit sequencing at Haile and Macraes, as well as lower-than-expected grade stope sequence at Didipio and Waihi, in New Zealand.

“The investment in waste stripping at Haile and Macraes during the first half of 2024 has positioned us for increased gold production in the remainder of the year. We began accessing openpit ore from Ledbetter Phase 2 at Haile in the middle of the second quarter, achieved target Horseshoe underground production rates at Haile in July, and are on track to begin mining openpit ore from Innes Mills 7 at Macraes in the third quarter.

“Although Didipio and Waihi performed below expectations during the second quarter, we remain positioned to deliver on 2024 guidance and expect to generate strong free cash flow for the remainder of the year,” said CEO Gerard Bond.

The 2024 production guidance is 510 000 oz to 570 000 oz of gold and 12 000 t to 14 000 t of copper at an all-in sustaining cost of $1 475/oz to $1 600/oz.

OceanaGold posted a 17% year-on-year decrease in revenue to $25.2-million and an adjusted net profit of $34-million in the second quarter.

Meanwhile, he reported that OceanaGold strengthened its balance sheet with proceeds from the Didipio initial public offering and the sale of the Blackwater project.

“I am pleased to say that we were in a net cash position at June 30, 2024. Our free cash flow outlook is robust, and the recently announced share buyback programme together with our semi-annual dividend will help us deliver on our commitment to increase returns to shareholders,” said Bond.

OceanaGold announced a semi-annual dividend payment of $0.01 a share.