Oceana Gold announced a flat result for its second quarter of operations which was partly offset by a 30 per cent rise in the average gold price to US$698 ($973) during the three months to the end of June.
Gold production for the quarter totalled 40,255oz from acombination of its Macraes open pit and underground workings plus concentrate from the recently commissioned open pit Reefton mine on the West Coast (delivering 8429oz), but overall production was well down on the 46,973 oz produced for the same period last year.
The gold recovery rate at the Macraes plant fell from 81.6 per cent last year to 76.7 per cent.
Oceana chief executive Steve Orr said in the quarterly report that gold revenue was down as expected, primarily because to the processing of significant quantities of lower grade ore, while overburden was removed to expose more ore, and also from a slower than expected start-up to full production of Globe Progress near Reefton.
The increased average gold price more than offset the higher production costs leaving a cash operating margin per ounce of US$154, he said.
He reiterated earlier guidance on Oceana's full-year production forecast of delivering 190,000 to 205,000 ounces, but noted yesterday that production was now expected "to be at the bottom of this range".
