PERTH (miningweekly.com) – Dual-listed gold miner OceanaGold has reported higher gold and copper output during the three months ended September, driven by higher production from the Haile and Waihi mines, in the US and New Zealand respectively.

Gold production during the third quarter increased to 136 043 oz, compared with the 124 396 oz delivered in the second quarter, while copper production was up from 4 322 t to 4 387 t.

Gold sales for the quarter were up from 129 750 oz recorded in the second quarter, to 131 071 oz, while copper sales decreased from 5 828 t to 3 273 t.

Revenue declined from A$171.6-million in the second quarter to A$144.8-million in the three months under review. On a year-on-year basis, revenue was 4% less.

The company noted that revenue and cash flow were impacted by timing delays in the sale of both gold/copper concentrates and gold dore from the Didipio operation, in the Philippines, around the end of the quarter.

The Melbourne, Australia-based company said net profit came to $21.7-million, or $0.04 a share, compared with $30.7-million, or $0.05 a share, in the same period of 2016.

OceanaGold president and CEO Mick Wilkes said on Thursday that he was pleased with the third quarter performance, which showed increased gold production and steady financial results.

The increased output from Haile follows the changes made to the process plant to address the issues reported just prior to the start of the third quarter. As the quarter progressed, throughput and recoveries continued to improve and as a result, the company announced commercial production at Haile effective October 1.

Production at Waihi increased by 40% year-on-year on the back of mining higher grade zones in the underground operation. At Macraes – also in New Zealand – production was lower than expected owing to equipment availability at both the surface operations and underground, resulting in lower average grades in run-of-mine ore processed. At Didipio, in the Phillipines, decreased quarter-on-quarter production was expected and previously forecast as lower grade stockpiled ore remained the sole source of mill feed.

“In particular, I am very pleased that the technical issues that were identified within the Haile process plant during the second quarter were resolved, leading to the start of commercial production at the start of the fourth quarter," Wilkes said.

He added that OceanaGold continued to ramp up operations at Haile, with positive results, and expected stronger production from the mine in the fourth quarter.

“We continue to ramp up operations at Haile with positive results and expect stronger production again next quarter. We also expect stronger production from Macreas as we begin to process higher-grade ores from Coronation North, steady production at Waihi, partially offset by reduced production from Didipio as we process lower-grade stockpile ore and advance the development of the underground mine towards first production.”

OceanaGold also declared a second semi-annual dividend payment for of $0.01 a common share.

At the end of the third quarter, the minerhad immediate available liquidity of $118.4-million, which included a cash balance of $61.2-million. Further, $69.9-million of marketable securities were held in strategic investments. During the period, the company repaid $12-million of its $300-million revolving credit facility.

- with reporting by Henry Lazenby