The mining company released its third-quarter results showing revenue of $US150.4million ($NZ211.2million), operating earnings of $US61.6million and a reported profit of $US30.7million in the three months ended September.
Mr Wilkes said the company’s financial performance continued to be strong and, with a strong balance sheet, Oceana Gold was well placed for 2017, when it expected to generate even stronger cash flows from Haile being added to the stable of operations.
The Haile gold mine was located in South Carolina, in the United States.
The group had started commissioning activities of the crushing circuit at Haile. The construction of the tailings storage facility was completed ahead of schedule, a "remarkable" achievement for what was a critical development item for much of the year, he said.
Focus had now turned to completing the piping, instrumentation and electrical works — all of which were proceeding according to schedule.
"The project is in the final stretch of development and remains on time and on budget and I am confident we will meet our goal to mill first ore before the end of the year."
In New Zealand, production at Waihi fell quarter-on-quarter, as expected, mainly due to lower grades and the temporary suspension of operations for one week at the start of August. At Macraes, production increased as expected from better grades mined in the underground, processing less stockpiled ore and achieving better recoveries.
Exploration efforts at both Waihi and Macraes continued to advance well with drilling of primary targets in both gold regions, Mr Wilkes said.
In the Philippines, the Didipio operations were focused on mining the outer boundaries of the final stage of the open pit and continued development of the underground mine. Quarter-on-quarter production fell as planned and previously forecast due to mining lower grade ore from the final stage of the open pit. In the quarter, the company identified design improvements to the Didipio underground and as a result, Oceana Gold predicted a life-of-mine capital cost savings of about $US30 million related to less infrastructure required and modifications needed.
In the quarter, the company produced 88,975 ounces of gold from its combined operations. More than 5110 tonnes of copper was produced from Didipio.
A total of 89,975 ounces of gold was sold in the quarter along with 5596 tonnes of copper. Cash costs increased in the quarter to $US529 per ounce.
Operating cash flow before working capital movement was $US60.9million compared to $US73.8million in the three months ended June, a decrease resulting from lower sales, Mr Wilkes said.
Working capital increased due to higher trade receivables and payment of $US7million in provisional tax made by the Waihi gold mine.At the end of the third quarter, the company had total immediate available liquidity of $US145.1million, including about $US88.1million of cash and $US57.2million not drawn from its revolving credit facility.
Total debt at the end of the quarter was about $US289million. Also, the company held about $US118million in marketable securities at the end of the quarter from previous investments made in junior exploration companies.
"Oceana Gold’s vision is to be the mid-tier gold mining company of choice by operating high-quality assets that deliver superior returns in a responsible manner.
"I believe our approach of responsible mining, combined with our financial strength and a continued commitment to close engagement with all of our stakeholders, continues to be the right strategy to make this happen."
Oceana Gold remained committed to the Philippines, Mr Wilkes said.
