OceanaGold Extends Mine Lives, Shifts to Underground Operations
Event summary
- OceanaGold reports total mineral reserves of 5.83 million ounces of gold across its four operating assets as of December 31, 2025.
- The company has shifted the final Ledbetter open pit phase at Haile to an underground mine, removing lower-margin ounces and increasing asset NPV.
- Macraes mine life extended to 2032 due to higher gold price assumptions, making previously marginal open pits economic.
- Inferred resources increased by 0.3 million ounces, driven by additions at Wharekirauponga Underground at Waihi and open pit expansions at Macraes.
- OceanaGold plans to increase exploration investment by 50%, with a $60 million expenditure planned for 2026.
The big picture
OceanaGold's strategic shift to underground mining and extension of mine lives reflect broader industry trends towards optimizing existing assets in a higher gold price environment. The company's increased focus on exploration aligns with the need to replenish reserves and sustain long-term production. The operational benefits of underground mining, including lower greenhouse gas emissions and reduced waste movement, also highlight the company's commitment to sustainable practices.
What we're watching
- Execution Risk
- Whether OceanaGold can successfully transition Ledbetter to underground mining and meet production targets.
- Gold Price Sensitivity
- How the company's reserves and resources will be affected by fluctuations in gold prices.
- Exploration Success
- The pace at which OceanaGold's increased exploration investment will translate into new reserves and resources.
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