Oceana Gold takes loss on first quarter
OceanaGold Corp, which operates the Macraes gold field near Dunedin, posted a first quarter loss after it pulled less gold out of the ground and had to contend with a tough foreign exchange environment.
The company made a net loss of $US3.9 million ($NZ4.8 million) in the three months ended March 31, compared to a profit of $US14.8 million ($NZ18.2 million) a year earlier.
The company's margins were squeezed by "lower ounces produced and adverse foreign exchange rate movements" and it is reviewing its cost management, it said in its analysis of the quarter.
Production in New Zealand was lower due to planned maintenance shutdowns at the Macraes and Reefton operations.
Gold prices have more than doubled since the global financial crisis as investors sought safe places to park their money, reaching a record high $US1,920.30 an ounce in September last year.
The company retained its 2012 production guidance of between 230,000 ounces and 250,000 ounces of gold.
"The company expects gold production in the second half of the year to be greater than the first half as the production of the higher grade gold from Frasers Stage 5 at Macraes Goldfields commences, Frasers Underground returns to normal operating levels following redevelopment of access to certain stoping areas, and increased mining rates at Reefton," it said.
The company produced 50,842 ounces of gold in the quarter, compared to 65,671 ounces a year earlier.
The shares, which are listed in New Zealand, Australia and Canada, were unchanged on the NZX at $2.85.
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