The company recently released its annual financial results for the year ended December 31, 2020 and provided a multi-year perspective on its business.
Fourth quarter revenue increased by nearly 72% over the previous quarter, reflecting higher gold sales from Haile and Macraes and the resumption of production in Waihi.
For the entire year, the company generated $ 500 million ($ NZ683.6 million) in revenue. This fell from $ 651 million in 2019, mainly due to limited sales from its Didipio mine in the Philippines and lower annual production from Martha Underground’s Waihi development, both partially offset by a higher average gold price received.
For the entire year, the company recorded a net loss of $ 150 million, which included a $ 80 million pre-tax loss charge in relation to the uncertainty at the time of a restart at Didipio.
Consolidated production for the full year was 301,675 ounces of gold, including fourth quarter production of 99,155 ounces of gold, a quarterly increase of 57%.
In his view, a 2021 production range of 340,000 to 380,000 ounces of gold, with total sustaining costs of $ 1,050 to $ 1200 per ounce sold, was predicted, reflecting an increase of approximately 20% in 2020 production by around 12% lower AISC.
In a statement, Holmes said Oceana Gold has one of the “main growth channels” in the sector, including the production of three new underground mines in the next three years.
Martha Underground was already producing, the first production in the Golden Point underground in Macraes was expected for the fourth quarter of this year, and the development in the underground Haile, in South Carolina, was expected to start in the second half.
These three projects alone were expected to increase production by more than 75% compared to 2020 with decreasing costs and increasing margins.
Macraes was expected to produce between 155,000 and 165,000 ounces of gold in 2021 at cash costs of $ 700 to $ 800 per ounce sold and local AISC from $ 1000 to $ 1100 per ounce sold.
The development of the portal for Golden Point Underground, the pre-removal of the Deepdell open pit mine and the expansion of the Fraser open wells, including the Frasers West and Gay Tan wells, all started at the end of the fourth quarter of 2020.
These projects were expected to extend the life of the mine in Macraes until 2028, with a production forecast of 1.1 million ounces in the period. GPUG was expected to start production in the fourth quarter of 2021, complementing and eventually replacing Frasers Underground’s underground production, which was due to be completed in the second half of 2022.
The Macraes 2021 capital program was focused on the progress of mine life extension projects.
He expected to invest $ 10 million to $ 15 million in growth capital, mainly attributable to the development of the GPUG portal.