Oceana Revises Guidance on blockade
OceanaGold announces that due to the local government unit blockade impacting operations in the Philippines, it is revising full year guidance. With continued restraint of supplies to the Didipio Mine, and the timing of resumption uncertain, the Company has temporarily suspended processing following depletion of consumables necessary for sustained operations. This follows the suspension of underground mining in mid-July.
The Company now expects to produce between 460K and 480K ounces of gold along with 10K to 11K tonnes of copper for the full year. The Company's consolidated All-In Sustaining Costs (AISC) is now expected to range between US$1,040 and US$1,090 per ounce sold while the cash cost guidance has been revised to US$710 to US$760 per ounce sold.
This guidance assumes no further production or sales from the Didipio operation for the remainder of the year. In the event an injunction is granted by the Philippine Court of Appeals, or a renewal of the Financial or Technical Assistance Agreement (FTAA) is finalised and normal operations resume, the Company may provide a further update on its full year guidance.
Mick Wilkes, President and CEO of OceanaGold said, "This is a very disappointing outcome for the Company, our shareholders and our truly valued Filipino workforce. The Didipio Mine has contributed significant socio-economic benefits to the Barangay of Didipio and neighbouring communities within the provinces of Nueva Vizcaya and Quirino. The Didipio Mine is a major direct and indirect employer in the remote communities of Northern Luzon and is the template for responsible mining in the Philippines."
"With the timing of the Court of Appeals injunction decision uncertain, and efforts to finalise a renewal of the FTAA ongoing, we have no other choice but to temporarily suspend production at Didipio. The operations will remain in a state of readiness for re-start and the health and safety of our employees will continue, as always to be a top priority. We also remain actively engaged with the national government and our regulators to finalise a renewal of the FTAA and secure the long-term future of the best mining operation in the Philippines."
When operational, the Didipio mine directly employs 1,500 workers of which approximately 97% are Philippine nationals including over 59% from the local communities and provides several thousand indirect jobs through the supply chain, partnerships with cooperatives and social development organisations.
