OCEANAGOLD (Philippines), Inc. saw its net income drop by 30.7% year on year to $14.2 million in the second quarter (Q2) from $20.5 million due to lower ore production.
The company’s revenues dropped 22.1% to $68.8 million in the period from $88.3 million a year prior, it said in a disclosure to the stock exchange.
OceanaGold operates the Didipio gold and copper mine in Nueva Vizcaya.
Gold ore production fell by 28% to 23,100 ounces in the second quarter from 32,200 ounces. Copper output likewise dropped by 18% to 2,800 tons from last year’s 3,400 tons.
Production was affected by the lower ore grade mined during the period, OceanaGold said. It also pushed back the extraction of the higher-grade ore body to the third quarter due to a fatality at the company’s mine site last month.
Meanwhile, the company’s gold sales totaled 18,900 ounces, a 42% drop from 32,700 ounces a year ago. Copper sales fell by 37% to 2,200 tons from 3,500 tons.
The average price for gold during the period was at $2,531 per ounce, while copper prices averaged $4.58 per pound.
“The company sold 33% of the second quarter’s total gold doré to the BSP (Bangko Sentral ng Pilipinas),” it added.
Under the company’s Financial or Technical Assistance Agreement, 60% of its net revenues go to the Philippine government.
The company’s net revenues amounted to $11.4 million during the quarter, down from last year’s $39.7 million. This put the government’s share at $6.9 million.
Meanwhile, for the first semester, OceanaGold’s net income declined by 40% to $25.7 million from $42.6 million the same period in 2023. Its revenues fell by 11% year on year to $160.9 million.
“We expect gold production to increase in the second half of the year as we access higher grade ore and increase mining rates from the underground,” OceanaGold Philippines President Joan D. Adaci-Cattiling said.
“We are also continuing to invest in exploration, both near-mine and regionally, and look forward to sharing results in the future.” Ms. Adaci-Cattiling added.
OceanaGold earlier said it expects to produce 120,000-135,000 ounces of gold and 12,000-14,000 tons of copper this year. It is spending $2 million this year on drilling and exploration for an ore body in Nueva Viscaya.
OceanaGold shares fell by 2.32% or 32 centavos to close at P13.48 apiece on Wednesday. — Adrian H. Halili
