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MELBOURNE, Australia, Jan. 14 /CNW/ - OceanaGold Corporation
("OceanaGold" or "the Company") is pleased to announce that, subject to final
approval by its partner financial institutions, the Company intends to
restructure its gold hedge facility. Currently the Company has 320,000 ounces
forward sold at NZ$773 / ounce expiring in 2010. The current facility calls
for 113,712 of these ounces to be delivered at NZ$773 / ounce in 2008.
With the proposed restructure, 2008 will become an entirely unhedged
production year allowing the Company to take full advantage of the strong gold
price environment. The ounces for delivery in 2008 will be rolled forward to
2011 in order to benefit from the forward curve and realize a higher price for
those ounces in 2011. Following this adjustment, the additional cash flow
generated in 2008 is expected to total US$33 million at a US$850 per ounce
gold price. These additional funds will be used to accelerate payment of debt
and for general working capital purposes.
Over the past two years, OceanaGold has progressively reduced the
influence of its legacy hedge facility through restructuring and the addition
of unhedged production from new mines. The Company has no intention of hedging
any future gold production and is continuing its strategy to dilute the effect
of the remaining hedge book. In addition, OceanaGold continues to examine
financially sensible options to eliminate the remaining hedge facility.
OceanaGold currently operates in the South Island of New Zealand and in
the Philippines. The Company's assets encompass New Zealand's largest gold
mine at Macraes, a new mine in the Reefton Goldfield also in New Zealand. The
Company also has two development projects ongoing, Frasers Underground in New
Zealand which will commission in early 2008 and the Didipio Gold-Copper
Project in northern Luzon, Philippines scheduled for completion in early 2009.
The Company expects to achieve gold production of approximately 500,000 gold
equivalent ounces (AuEq) in 2009.
OceanaGold is listed on the Toronto, Australian and New Zealand stock
exchanges under the symbol "OGC".
Statements in this release may be viewed as forward-looking statements.
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 from those reflected in the
forward-looking statements. There are no assurances the Company can fulfil
such forward-looking statements and the Company undertakes no obligation to
update such statements. Such forward-looking statements are only predictions;
actual events or results may differ materially as a result of risks facing the
Company, some of which are beyond the Company's control.
For further information:
For further information: Mr Darren Klinck, Vice President, Corporate and
Investor Relations, OceanaGold Corporation, Tel: 61 3 9656 5300