OceanaGold posts lackluster earnings in Q1

MANILA, Philippines — Australian-Canadian mining company OceanaGold Philippines Inc. (OGPI) saw its net income plunge by almost half in the first quarter as lower mine production and sales pulled down revenues.

OGPI, the initial public offering (IPO) curtain-raiser this year, reported a net income of $11.5 million, down by 48 percent from $22.1 million it recorded a year ago.

The mining firm raked in $92.1 million in revenues in the first three months, slightly lower than the $92.5 million it recorded in the same period a year ago.

The lower revenues was caused by the drop in the firm’s Didipio mine production in Nueva Vizcaya and lower sales of gold and copper during the reference period.

The miner’s gold sales declined by a fifth on an annual basis to 31,800 ounces from last year’s 39,700 ounces. Likewise, its gold production fell by 20 percent year-on-year to 26,300 ounces from 33,000 ounces.

OGPI prioritized mining lower grade ores in the first quarter compared to the higher-grade ones it mined in the previous quarter and a year ago as part of its mine schedule this year. As a result, the lower grade ores yielded lower gold content for the mining firm.

Likewise, the mining firm saw the same results for its copper production in the first quarter.

Copper output dropped by 14.28 percent year-on-year to 3,000 metric tons (MT) from 3,500 MT a year ago.

Furthermore, the firm’s copper sales declined by almost 18 percent to 3,200 MT from last year’s 3,900 MT.

Nonetheless, OGPI saw its average prices for gold and copper increase in the first quarter on an annual basis driven by higher global commodity prices.

For gold, the miner received an average price of $2,136 per ounce, up by almost five percent from $2,039 average quotation a year ago. The firm received an average copper price of $3.9 per pound versus last year’s $3.8 per pound average.

OGPI said its Didipio mine remains on track to meet its 2024 production guidance despite the lower gold and copper production in the first quarter.

The company expects Didipio mine to produce between 120,000 and 135,000 ounces of gold and 12,000 MT to 14,000 MT of copper this year.