PERTH (miningweekly.com) – Dual-listed gold miner OceanaGold has reported a 23.2% fall in revenue for the full 2020, compared with 2019, with the miner swinging to a loss of $150.4-million on the back of declining gold and copper production.

Gold production during the full 2020 reached 301 700 oz, with no copper production recorded in 2020. This compared with the 470 601 ounces of gold and 10 255 t of copper produced in the previous financial year.

OceanaGold on Friday said that the year-on-year decrease in production mainly reflected Covid-19 lockdowns in New Zealand, the full-year suspension of operations at its Didipio mine, in the Philippines, and a temporary shutdown of processing at Waihi in the second and third quarters, as development of the Martha underground mine progressed.

Full-year all-in sustaining costs (AISC) for the year were reported at $1 278 per oz, with 310 531 oz of gold sold, reflecting a 19% increase in costs on the back of lower production and higher cash costs associated with the full year of suspension at Didipio.

Revenue for the full year declined from $651.2-million to $500.1-million, while earnings before interest, taxes, depreciation and amortization declined from $214.2-million to $129.6-million.

“As we close the books on 2020, we look ahead to 2021 and beyond where we expect a very exciting period for the company and our shareholders,” said CEO and president Michael Holmes.

“OceanaGold has one of the premier growth pipelines in the industry. This includes bringing three new underground mines into production over the next three years with Martha underground already producing; Golden Point underground at Macraes, where first production is expected in the fourth quarter of this year; and the Haile underground, where development is expected to commence in the second half of this year. These three projects alone are expected to deliver more than an 75% increase in production relative to 2020 at decreasing costs and increasing margins.”

“Additionally, we are very excited with our exploration results at WKP as we continue to advance this world-class prospect. Based on the comprehensive plans we provided to the market last year, first production from WKP is targeted for 2026.

“However, in response to Covid-19 economic recovery plans, in conjunction with stakeholders we are investigating opportunities to bring forward high-grade production into our five-year plan in a responsible and sustainable manner. The significant growth projects in New Zealand are expected to deliver substantial socioeconomic benefits including an additional 300 new jobs for local rural communities.”

Holmes said that at Didipio, the company continue to work with the national government on the renewal of the Didipio financial or technical assistance agreement.

“After strong positive engagement with the Philippine departments of Finance and Environment and Natural Resources in December, the renewal is pending re-endorsement by those departments to the Office of the President for approval.

“We are committed to returning thousands of Filipinos, the majority of whom reside in the rural communities in the provinces of Nueva Vizcaya and Quirino, back to work to operate one of the most responsible mining operations globally. Didipio stands poised to provide much needed economic benefits to the local communities that are recovering from the social and economic impacts of Covid-19 and OceanaGold is committed to supporting that recovery.”

Looking at the 2021 financial year, OceanaGold is targeting gold production of between 340 000 oz and 380 000 oz, at an AISC of between $1 050/oz and $1 200/oz.

The company is hoping to increase production to around 500 000 oz/y over the next five years, with increasing margins on lower costs and decreasing expansionary capital investment.

Capital investment for the 2021 financial year is targeted at around $280-million to $310-million, including between $165-million and $185-million for growth capital and between $85-million and $110-million for sustaining capital.