In its recently released annual meeting report, chief executive Mick Wilkes said $9 million was being spent on exploration at the company's Macraes open pit and Frasers underground mines in East Otago, following an announcement earlier this month of a successful 12-hole drilling programme at its Reefton open pit, which had boosted estimated gold resources by 14%.
Overall, New Zealand mine life operations have been extended by seven to eight years, to 2018-19, Mr Wilkes said.
Craigs Investment Partners broker Peter McIntyre said while the global financial crisis had seen Oceana mothball Philippine development site Didipio, it had since tempered the company's outlook. With high gold prices on the spot market, it was now in a strong cash position, with $US194 million ($NZ236.2 million) in hand.
"They've shown some patience and that should now pay off ... the outlook for gold and copper is favourable for both," he said of forecast prices.
At the Macraes open pit, there was a 28km "mineral trend", Mr Wilkes said, but only one-third of the goldfield had been mined.
At the Frasers underground mine at Macraes, there was an exploration drive under way looking to extend the life of the mine, Mr Wilkes said.
"Recent results indicate [gold] mineralisation 500m down dip from the the current workings," he said of Frasers underground.
Guidance by the company for the full (calendar) year remained at 260,000-280,000oz, with current estimated gold mineral reserves in New Zealand of 2.15 million ounces and 1.41 million ounces in the Philippines, plus several thousand tonnes of copper.
Mr Wilkes said the target was to commission Didipio in the Philippines by the end of 2012, saying it had "low-cost production growth with exceptional reserve life and immense exploration upside", with exploration being ramped up.
Mr McIntyre said the strength of the New Zealand dollar against the US would be undercutting some margins.
Oceana was reaping the benefits of record gold prices, having entirely left any hedging position to sell 100% on the spot market.
At the annual meeting, last week, shareholders re-elected chairman James Askew, chief executive Mick Wilkes and director Denham Shale. Later, the resignation of chief financial officer Marcus Engelbrecht was announced. Mr Engelbrecht is pursuing opportunities elsewhere.
