OCEANAGOLD Philippines, Inc. (OGP) reported a 47.9% decrease in net income to $11.5 million for the first quarter, down from $22.1 million in the same period last year, mainly due to lower gold and copper production.
In a disclosure on Monday, the company’s revenues edged lower to $92.1 million during the three-month period, down from $92.5 million the previous year.
The company operates the Didipio gold and copper mine in Nueva Vizcaya.
Under the company’s financial or technical assistance agreement, 60% of its net revenues go to the Philippine government.
OGP’s net revenues amounted to $42.2 million during the quarter, which is 14.2% lower than last year’s $49.2 million.
Government shares amounted to $25.3 million, down from $29.5 million a year earlier.
For the three-month period, gold production fell by 39% to 26,312 ounces from the 33,000 ounces the prior year.
The company said that lower production was due to its focus on mining the lower-grade monzonite ore.
Gold sales for the quarter totaled 31,863 ounces. It had sold 33% of the first-quarter gold doré production to the Bangko Sentral ng Pilipinas.
Similarly, copper production dropped 22% to 3,015 tons from 3,500 tons during the same period in 2023. Copper sales were at 3,180 ounces.
Total ore mine for the first quarter amounted to 415,000 tons, 7% higher than the 389,000 tons last year.
“Gold and copper recoveries during the first quarter of 88.6% and 88.4%, respectively, were lower than the previous quarter due to the decreased feed grades,” the company said.
OceanaGold earlier said that it expects to produce 120,000 to 135,000 ounces of gold and 12,000 to 14,000 tons of copper.
“Exploration expenditure at Didipio in 2024 will focus on extension and conversion drilling in the underground as well as planned regional exploration activities,” it added.
Shares for OGP fell 1.87% on Monday to close at P14.72 apiece. — Adrian H. Halili
