OceanaGold praises NZ operations, signals capital raising

Photo / Greg Bowker.

Melbourne-based gold miner OceanaGold has unveiled a capital raising and said it had a record year in 2009 with its New Zealand mines providing a stable production platform for the company.

The company today reported net earnings of US$54.5 million ($77.5M) in the year to December 31, up from US$54.74m in the same period a year earlier.

It also said it was raising capital by conducting a private placement of Chess Depository Interests and selling subscription receipts. The capital raising is yet to be detailed and has to be approved by shareholders at a special meeting on March 25.

OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges.

The money being raised will fund a restructuring of the company's existing gold hedging facilities and working capital.

Earnings before tax were US$83.85m compared to a loss of US$75.62m last year. Revenue of US$237.06m compared to US$217.2m last year.

The company produced 300,044 ounces of gold in 2009, of which 213,049 ounces came from the Macraes Mine in Otago and 87,342 ounces from the Reefton Mine on the West Coast.

The cash cost per ounce sold was US$411.

"Last year was a record year for the company with both gold sales and cash costs finishing ahead of guidance issued at the beginning of 2009," chief executive Paul Bibby said.

"The New Zealand operations have now demonstrated consistent operating performance over the past six quarters and this provides a stable production platform for the company moving forward."

Macraes is made up of the Macraes open pit and the Frasers underground mines and is the largest gold mine in New Zealand. The company also owns the Didipio Gold-Copper Project in the Philippines.

OceanaGold expects to produce between 270,000 - 290,000 ounces of gold in New Zealand this year.

- NZPA