"An Oceana of gold from New Zealand BARRY FITZGERALD July 30, 2010
CASH operating margins at its New Zealand gold operations have more than tripled for Melbourne-based OceanaGold (OGC) thanks to the closure of its out-of-the-money hedge book earlier this year.
OGC reported yesterday that profit margins rose to $US627 an ounce in the June quarter compared with $US192 an ounce in the March quarter. The boost underpinned a rise in earnings before interest, taxes and depreciation to $US39.2 million, up from $US8.47 million in the March quarter.
OGC ranks behind Newcrest and Lihir - which are set to merge - as the third-biggest fully unhedged ASX-listed gold producer. Gold production in the June quarter was 67,541 ounces, a modest rise on 65,291 ounces in the March quarter.
Production for the June quarter would have been higher but for heavy rain at the Macraes operations in New Zealand in May. The region received half its annual rainfall in 2 days, forcing OGC to process more of its lower-grade stockpiles.
OGC chief executive Paul Bibby said the company expected more production increases in the second half of the year."
