OceanaGold Corp - President and CEO, Michael Holmes
President and CEO, Michael Holmes
Source: Mining Global
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • OceanaGold Corp (TSXLOGC) has felt the impact of the New Zealand Government’s new lockdown laws
  • The government mandate will last for four weeks and aims to halt the spread of COVID-19 throughout the country
  • As a result, the company has halted development of the Martha’s Underground project at the Waihi Gold Mine
  • OceanaGold has also ceased mining at Macraes, but continues to process stockpiled ore
  • At previous market close, OceanaGold (OGC) was up 22.8 per cent, with shares trading at C$1.56 and a $970.8 million market cap

OceanaGold (TSX:OGC) has been heavily impacted by New Zealand’s new lockdown laws, which aim to halt the spread of COVID-19.

At midnight this morning, New Zealand officially moved into Alert Level Four. As a result, all non-essential businesses and industries will have no choice but to close.

The government has implemented this plan while cases numbers in the country are relatively low, at only 238 confirmed cases.

As mining does not qualify as an essential service, operations at OceanaGold’s Macraes and Waihi properties have been hindered.

At Macraes, mining has ceased but the company continues to process stockpiled ore. OceanaGold claims that stockpiles are more than sufficient for four weeks’ processing and therefore shouldn’t impact overall quarterly production.

The development of the Martha’s Underground mine expansion at Waihi has also ceased. Maintaining the project during the interim is likely to cost the company around C$1.8 million.

Despite the halt, OceanaGold expects the Martha Underground project to meet its planned completion date. 

OceanaGold’s Acting President and CEO, Michael Holmes, appears to be in favour of the government’s efforts.

“These unprecedented times require 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,” he said,

The company was quick to point out that the Haile gold mine in the US remains fully operational. As a result, OeanaGold has not withdrawn its 2020 guidance and still expects to meet its quarterly production figures.

However, if the outbreak impacts Haile or Macreas much further, the company may have to withdraw its previous guidance.

At previous close, OceanaGold (OGC) was up 22.8 per cent, with share trading at $1.56 and a $970.8 million market cap.

More From The Market Herald

" Summa Silver (TSXV:SSVR) upsizes private placement

Summa Silver Corp. (SSVR) has upsized its brokered private placement offering for gross proceeds of up to $10 million.
Novo Resources

" Novo (TSX:NVO) receives high-grade assays from Parnell-Vulture Trend

Novo Resources Corp. (NVO) has provided updates on the Parnell-Vulture trend on the Nullagine Gold Project in Western Australia.

" K2 (TSXV:KTO) appoints Anthony Margarit as President and Director

K2 Gold Corporation (KTO) has appointed Anthony Margarit to join K2 as President and Director.
Advance United - David Boulette, Board member

" Technology veteran David Boulette appointed to Advance United’s Board of Directors

Advance United Holdings Inc. (AUHI) has appointed veteran David Boulette to its Board of Directors.