{"id":1204458,"date":"2020-08-28T12:37:47","date_gmt":"2020-08-28T17:37:47","guid":{"rendered":"https:\/\/www.mining.com\/?p=1034137"},"modified":"2020-08-28T12:37:47","modified_gmt":"2020-08-28T17:37:47","slug":"outlook-at-haile-is-uncertain-oceanagold","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1204458","title":{"rendered":"Outlook at Haile is uncertain \u2013 OceanaGold"},"content":{"rendered":"

OceanaGold said<\/a> on Friday that the outlook at its Haile mine in South Carolina is now uncertain, after 18 staff members tested positive for covid-19 since June.<\/p>\n

According to the company, approximately 220 workers have been required to self-isolate for a two-week period at some point since the beginning of March.<\/p>\n

“This has had an impact on material movement, which is key to accessing some of the higher grade portions of the ore body.” BMO\u2019s\u00a0Brian Quast said in a note to investors.<\/p>\n

\n
\n

The company expects\u00a0total production for 2020 to reach between 295,000 ounces and 345,000 ounces, down from the previous estimate of 340,000 to 360,000 ounces<\/p>\n<\/blockquote>\n<\/figure>\n

The company now expects Haile\u2019s 2020 production to range between
135,000 and 175,000 ounces of gold. Full year production had previously been estimated at between 180,000 and 190,000 ounces.<\/p>\n

“Given the continued fluid situation in the US regarding covid-19, combined with productivity losses due to weather, the outlook at Haile for
the remainder of the year is now uncertain.” said Michael Holmes, president and CEO of OceanaGold. <\/p>\n

“We are behind schedule on our targeted mining advance rates,
which is delaying access to the higher-grade zones of the open pits necessary to achieve the significantly higher production levels expected in the latter months of the year.\u201d<\/p>\n

“In our view, the coming months will see a number of such guidance downgrades (for both H2 2020 and 2021) as the impacts of lower pre-stripping and planned maintenance over recent months is factored into future plans.” said Brian Quast.<\/p>\n

OceanaGold has previously reduced the full year production guidance for its Macreas operation, in New Zealand, to between 140,000 ounces and 150,000 ounces of gold, after operations were impacted by a government shutdown in April.<\/p>\n

The company expects total production for 2020 to reach between 295,000 ounces and 345,000 ounces, down from the previous estimate of 340,000 to 360,000 ounces.<\/p>\n

In response to the uncertain outlook, OceanaGold also entered into a new forward gold sale arrangement with Citibank, BNP Paribas and the Commonwealth Bank of Australia. The miner will receive a pre-payment of approximately $77 million, in exchange for delivering of 40,000 ounces of gold in the second quarter of 2021, representing approximately 10% of next year\u2019s expected gold output excluding any contribution from Didipio mine, which is under a dispute with the Filipino government<\/a>. <\/p>\n

\u201cThis recognises the change in the timing of operating cash flow and provides additional liquidity to continue to manage the near-term risks of Covid-19 while continuing development of Martha Underground ahead of first production in the second quarter of 2021,\u201d Holmes said.<\/p>\n

Midday Friday, OceanaGold\u2019s stock was down nearly 6% on the TSE. The company has a C$1.9 billion market capitalization.<\/p>\n","protected":false},"excerpt":{"rendered":"

Company said that the outlook at its gold mine in South Carolina is now uncertain, after 18 staff members tested positive for covid-19 since June.<\/p>\n","protected":false},"author":110,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[369],"tags":[43],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1204458"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1204458"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1204458\/revisions"}],"predecessor-version":[{"id":1204479,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1204458\/revisions\/1204479"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1204458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1204458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1204458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}