The Company has also included its budgeted 2015 capital expenditure for Didipio and the consolidated New Zealand operations.

Key Highlights

  • Increased gold production expected at Didipio with a production range of 100,000 to 120,000 ounces of gold; copper production expected to range from 21,000 to 23,000 tonnes.
  • Slightly higher production expected for the consolidated New Zealand operations with a production range of 195,000 to 215,000 ounces of gold.
  • Consolidated cash costs range of $450 to $530 per ounce net of by-product credits.
  • Consolidated All-In Sustaining Costs ("AISC") range of $770 to $840 per ounce net of by-product credits.

Mick Wilkes , Managing Director and CEO said, "After another year of strong production performance in 2014, we expect to continue delivering significant value to our shareholders in 2015 through increased gold production from our high quality Didipio operation, and from improved margins in New Zealand where the zero-cost collar hedges have ensured a meaningful cash margin despite the current weak gold price."

For 2015, the Company estimates a total capital & exploration expenditure of approximately $100 million across its operations. In New Zealand , capital expenditure is forecasted to be $33 million , much lower than in previous years. The reduction is a direct result of lower sustaining and capitalised mining costs at Macraes, and at Reefton where the operation will transition into care and maintenance by the end of the year. At Didipio, capital expenditure is expected to be approximately $63 million including $23 million for the underground development and $10 million for the connection to the power grid. Of the $100 million total capital budget, $62 million is classified as sustaining capital and is included in the AISC estimates. Total Company expenditure for exploration activities in the Philippines is forecasted to be $4 million . In the event that additional exploration permits are granted in the Philippines these activities would increase.

Mick Wilkes added, "2015 will be another significant year for the Company as we commence development of the underground decline at Didipio which will enable access to the very high grade core of the ore body earlier in the mine plan. Additionally, the power grid connection at Didipio will further reduce our operating costs by the end the year." He added, "In this volatile and persistently challenging environment for gold producers, OceanaGold is uniquely positioned as one of the lowest cost producers globally underpinning strong free cash flows from our business. Our team is committed to executing on our clear and defined strategy, delivering positive results to our shareholders and stakeholders in a safe and sustainable manner and we will continue to evaluate value enhancing opportunities to complement our current asset mix."