PERTH (miningweekly.com) – Dual-listed gold miner OceanaGold on Friday reported an $85.5-million impairment on the carrying value of its assets, citing the significant decline in gold prices.

For the quarter ended June, the TSX- and ASX-listed company reported earnings before interest, tax, depreciation and amortisation of $42.5-million and a net loss of $70.5-million.

“Like the rest of the gold mining industry, the company is currently faced with tougher economic realities that require a proactive approach to ensure a healthy business plan,” said MD and CEO Mick Wilkes.

He noted that OceanaGold was committed to preserving shareholder value.

“To date, we have reduced our operating budget by $100-million over the next 18 months and continue to look for additional opportunities to optimise the business. Didipio will continue to drive down our cash costs per ounce, while increasing our production profile,” he added.

Wilkes noted that with cash flows increasing over the next few years and with significant cost reductions at the New Zealand operations, OceanaGold was well positioned for the new economic environment in the gold industry.

Meanwhile, Wilkes reported that for the three months to June, OceanaGold produced 68 353 oz of gold and 5 710 t of copper, with gold production in the second quarter higher than the 67 463 oz produced in the first quarter, as the Didipio and Reefton operations increased production.

Commercial production was declared at Didipio in April, and the project produced some 13 676 oz during the second quarter, along with 5 710 t of copper, while first-half production has been set at 20 553 oz of gold and 9 373 t of copper.

In New Zealand, the Reefton operation delivered higher production as it delivered additional tonnes, with the mine delivering 14 614 oz. The Macreas operation delivered some 40 063 oz during the quarter.

OceanaGold expected production from its New Zealand assets to progressively increase over the remainder of the year, with the fourth quarter expected to be the strongest.