PERTH (miningweekly.com) – ASX- and TSX-listed gold miner OceanaGold will produce more gold in 2015 than in 2014, as its Didipio mine, in the Philippines, and the New Zealand operations upped their output.

OceanaGold on Tuesday reported that gold production during 2015 was expected to increase to between 295 000 oz and 335 000 oz, from the 275 000 oz to 305 000 oz the company expected to produce in 2014.

Gold production from the Didipio operation was expected to account for between 100 000 oz and 120 000 oz during 2015, while the mine would also deliver between 21 000 t and 23 000 t of copper.

The New Zealand operations would produce between 195 000 oz and 215 000 oz of gold.

“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,” said OceanaGold MD and CEO Mick Wilkes.

Meanwhile, consolidated cash costs were expected to increase slightly on the 2014 projections during 2015, with consolidated cash costs expected to range between $450/oz and $530/oz in 2015, compared with the $400/oz to $450/oz predicted for 2014.

All-in sustaining cash costs would decrease to between $770/oz and $840/oz, compared with the $750/oz to $850/oz predicted for 2014.

For 2015, Oceanagold was also expected to spend about $100-million on capital and exploration expenditure across its operations, with the New Zealand mines accounting for $33-million of this spend.

Wilkes pointed out that the New Zealand expenditure was significantly below previous years, owing to lower sustaining and capital mining costs at the Macreas operation, and at Reefton, where the operation would transition into care and maintenance by the end of the year.

At Didipio, capital expenditure would reach about $63-million, including a $23-million spend for the underground development of the mine and a further $10-million to connect the project to the power grid.

“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 orebody earlier in the mine plan,” Wilkes said.

He noted that the power grid connection at Didipio would further reduce the company’s operating costs by year-end.