OceanaGold Philippines earnings drop in Q2 as production declines

Listed miner OceanaGold (Philippines) Inc. (OGPI) saw a decline in its earnings during the second quarter of the year as it produced lower gold and copper during the period, but is optimistic to boost gold production moving forward.

In a regulatory filing, OGPI said its net income slipped to $14.2 million in the second quarter, down from $20.3 million in the same period of 2023, equivalent to $0.01 per share from $0.04 per share last year. Revenues fell to $68.8 million from $88.3 million.

This comes as the company said gold production declined to 23.1 thousand ounces (koz) from 32.2 koz the previous year, while copper production fell to 2.8 thousand tonnes (kt) from 3.4 kt. All-in sustaining costs increased to $1,250 per ounce from $740 per ounce.

“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,” OGPI president Joan Adaci-Cattiling said in the filing.

“We are also continuing to invest in exploration, both near-mine and regionally, and look forward to sharing results in the future,” she added.

The latest figures brought the year-to-date net income to $25.7 million, down from $42.6 million last year. Revenues fell to $160.9 million from $180.8 million.

OGPI listed on the Philippine Stock Exchange (PSE) in the second quarter, raising P6.08 million from the sale of 456 million secondary shares. The final price was lower than its initial maximum target of P17.28 per share.

OGPI on Wednesday also announced dividends of P0.39 per share or $0.0066 per share, based on the exchange rate of P58.6:$1, for the post-listing period from May 13, 2024 to June 30, 2024.

“I am very pleased to welcome our new shareholders and to be able to declare an initial post-listing dividend, which equates an annualized yield of 21.5%, and is in-line with our committed dividend policy,” Cattiling said.

The company is a subsidiary of OceanaGold Corp., which also operates the Waihi and Macraes mines in New Zealand and the Haile mine in the United States.—RF, GMA Integrated News