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MELBOURNE, March 26, 2020 /CNW/ - OceanaGold Corporation
(TSX: OGC) (ASX: OGC) (the "Company") is providing
additional information on the actions it has taken in response to
the New Zealand Government's decision to move to Alert Level Four,
the country's highest alert level. The Government's order went into
effect at 11:59pm on Wednesday March 25,
2020 for a period of four weeks.
Michael Holmes, Acting President
and CEO of OceanaGold said, "These are unprecedented times which
requires all of us to follow the strict guidance of government
authorities to minimise and contain the spread of COVID-19 for the
health and wellbeing of our global team, operations and the
communities where we work and live. We remain in close contact with
government authorities and are working closely with our workforce
to support them through this global crisis."
New Zealand
The New Zealand government has
clarified that gold mining, while not an essential industry, is
required to conduct a certain level of on-site activity to maintain
environmental monitoring, safety and security.
At the Macraes operation, the Company has worked with
New Zealand regulators to identify
the appropriate level of activity to satisfy these requirements.
The Company is now operating under a work plan which it has lodged
with the regulator to continue processing of stockpiles and broken
stocks, and plant maintenance on this basis, in accordance with
expectations of operators of high hazard facilities. Full shutdown
of the process plant would require additional workforce levels that
would increase health and safety risks. The Company has stocks on
hand for an extended period beyond the current four-weeks, if
required.
At the Waihi operation, the Company has temporarily suspended
development of the Martha Underground and regional exploration
activities. Following the completion of primary stoping activity at
the Correnso Underground, the processing plant was shut down in
March post completion of planned gold shipments.
Over the next four weeks, the Company expects to incur a cost of
approximately $1.8 million to
maintain the new status at Waihi. This compares to the Company's
previous guidance of approximately $4.5 – $5.5 million
per month, if development and exploration activities were
continuing as planned. At this time, the Company does not expect
the current Waihi suspension to impact the timing of planned first
production from the Martha Underground (Q2 2021).
Haile
The Haile Gold Mine continues to operate at full capacity with
only essential employees and contractors permitted on site. The
Company has strict safety and health screening protocols in place
and is working closely with the South Carolina Department of Health
and Environment Control.
Didipio
At Didipio, the Philippine government implemented an enhanced
community quarantine order on the entire island of Luzon. The
Company's operational camp has implemented a temporary lockdown of
staff at the mine and is following strict protocols to safeguard
the health and wellbeing of the workforce.
Corporate
The Company currently has approximately $183 million in cash. This follows the drawdown
of the remaining $50 million of its
revolving credit facility to maximise cash reserves and reduce
liquidity risk given the volatile and uncertain financial market
conditions. The facility is now fully drawn at $200 million with a current maturity date of
December 31, 2021. The Company
acknowledges and appreciates the ongoing support and responsiveness
of our long-standing banking group during these uncertain
times.
The Company is continuously reviewing its plans to identify
reductions in corporate, capital and operating costs. As a result
of government mandated actions or revisions to internal plans, the
Company may provide capital guidance updates as required.
At this point in time, the Company maintains its full year 2020
production guidance, however, the Company notes that it may be
required to withdraw its full year guidance should there be a
change to the current status of the Macraes and Haile
operations.
Covid-19 Update
To date, the Company has not had any confirmed cases of Covid-19
among any of its employees or contractors. Potential for supply
chain interruptions have been assessed at each operation with no
likely shortfalls identified. The Company has not experienced any
material delays with orders for supplies at any operation due to
Covid-19.
At Company offices, most of its employees have transitioned to
work from home and are encouraged to practice social distancing,
heightened workplace and personal hygiene practices and adhere to
local government advice. The Company had previously suspended all
international and non-essential domestic travel for employees and
requires employees returning from any travel to self-isolate for 14
days. The Company also requires any employee or contractor who has
come into close contact with someone suspected of or confirmed to
have COVID-19, or who feels unwell to stay away from work, seek
appropriate medical advice, and self-isolate for 14 days.
At the operational level, the Company has very strict protocols
in place which include medical screening and assessment prior to
attending work, and enhanced workplace hygiene and social
distancing. Only essential operators and contractors are permitted
on sites. Staggered start/stop times and meal breaks have been
implemented to support social distancing and all operations have
implemented more frequent cleaning of offices and equipment.
Additional information related to the Company's Covid-19
response including specific protocols to protect the health and
safety of the workforce and local communities can be found on the
Company's website at www.oceanagold.com. The Company will use
its website and social media to provide regular updates as to the
status of its operations and workforce.
Mr. Holmes went on to say, "Although we have a good balance
sheet that includes $180 million in
cash, we are evaluating opportunities to further reduce our capital
and operating spend and planning for the future including a
seamless resumption of mining operations at Macraes, recommencement
of development at Martha Underground and other corporate activities
including but not limited to exploration drilling. Our strategy
remains the same as it has been for the past year including the
continued engagement with the Philippine national government for
the resumption of operations at Didipio."
Authorised for release to market by OceanaGold Corporate Company
Secretary, Liang Tang.
www.oceanagold.com | Twitter:
@OceanaGold
About OceanaGold
OceanaGold Corporation is a mid-tier, high-margin, multinational
gold producer with assets located in the
Philippines, New Zealand
and the United States. The
Company's assets encompass the Didipio Gold-Copper Mine located on
the island of Luzon in the
Philippines. On the North Island of New Zealand, the Company operates the
high-grade Waihi Gold Mine while on the South Island of
New Zealand, the Company operates
the largest gold mine in the country at the Macraes Goldfield which
is made up of a series of open pit mines and the Frasers
underground mine. In the United
States, the Company operates the Haile Gold Mine, a
top-tier, long-life, high-margin asset located in South Carolina. OceanaGold also has a
significant pipeline of organic growth and exploration
opportunities in the Americas and Asia-Pacific regions.
OceanaGold has operated sustainably since 1990 with a proven
track-record for environmental management and community and social
engagement. The Company has a strong social license to operate and
works collaboratively with its valued stakeholders to identify and
invest in social programs that are designed to build capacity and
not dependency.
For 2020, the Company expects to produce between 360,000 and
380,000 ounces of gold from Haile, Waihi and Macraes combined at a
consolidated All-In Sustaining Costs ranging from $1,075 to $1,125
per ounce sold.
Cautionary Statement for Public Release
Certain information contained in this public release may be
deemed "forward-looking" within the meaning of applicable
securities laws. Forward-looking statements and information relate
to future performance and reflect the Company's expectations
regarding the generation of free cash flow, execution of business
strategy, future growth, future production, estimated costs,
results of operations, business prospects and opportunities of
OceanaGold Corporation and its related subsidiaries. Any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "expects" or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans", "estimates" or
"intends", or stating that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved) are not statements of historical fact and may be
forward-looking statements. Forward-looking statements are subject
to a variety of risks and uncertainties which could cause actual
events or results to differ materially from those expressed in the
forward-looking statements and information. They include, among
others, the accuracy of mineral reserve and resource estimates and
related assumptions, inherent operating risks and those risk
factors identified in the Company's most recent Annual Information
Form prepared and filed with securities regulators which is
available on SEDAR at www.sedar.com under the Company's name. There
are no assurances the Company can fulfil forward-looking statements
and information. Such forward-looking statements and information
are only predictions based on current information available to
management as of the date that such predictions are made; actual
events or results may differ materially as a result of risks facing
the Company, some of which are beyond the Company's control.
Although the Company believes that any forward-looking statements
and information contained in this press release is based on
reasonable assumptions, readers cannot be assured that actual
outcomes or results will be consistent with such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements and information. The Company expressly
disclaims any intention or obligation to update or revise any
forward-looking statements and information, whether as a result of
new information, events or otherwise, except as required by
applicable securities laws. The information contained in this
release is not investment or financial product advice.
SOURCE OceanaGold Corporation