LISTED mining firm OceanaGold (Philippines) Inc. (OGP) saw net income in the first six months of 2024 drop by around 17 percent to $25.7 million, from $42.5 million last year, due to lower gold and copper production at its Didipio mine.
In a disclosure, the company said it expected production to increase in the second half “based on slope sequence and the addition of new underground equipment.”
OGP President Joan Adaci-Cattiling said the company was also continuing to invest in exploration, “both near-mine and regionally.”
OGP produced 23,100 ounces of gold and 2,800 tonnes of copper in the second quarter, compared to 32,200 ounces of gold and 3,400 tonnes of copper a year ago.
Year-to-date gold output shrank to 49,400 ounces, while copper output decreased to 5,800 tonnes from 6,900 tonnes previously.
As a result of the lower output, first-half revenue fell 20 percent to $160.9 million and second-quarter revenue dropped to $69 million from $88.3 million.
For the second quarter, net income plunged 30 percent to $14.2 million from $20.3 million a year ago, but was higher than the first quarter’s net income of $11.5 million.
In May, OGP completed a secondary offering and public listing of 20 percent of its outstanding common shares on the Philippine Stock Exchange, raising net proceeds of $100.5 million.
OGP will be allocating $15 million for an initial post-listing dividend and will pay $0.0066 per common share to shareholders on record as of August 14. Payment will be made in Philippine pesos on September 11, based on the prevailing exchange rate on that day.
OGP’s capital expenditures (capex) for the first six months more than doubled to $18.8 million from $7.8 million last year. For 2024, total capex is set at around $45 million to $55 million.
The company added a new underground loader to its mining fleet in the second quarter, with an additional loader and an underground truck expected to arrive in the third quarter at its Didipio mine.
OGP’s parent company, Toronto-listed OceanaGold Corp. (OceanaGold), likewise posted weak second-quarter and first-half results.
Its consolidated net profit for the second quarter shrank 50 percent to $34 million from $68.6 million in 2023 and plunged 73 percent to $28.7 million in the first half from $107.5 million a year earlier.
Last month, OceanaGold completed the sale of its interest in the Blackwater project in New Zealand for a cash consideration of $30 million, resulting in a pretax gain for the company of $17.6 million for the second quarter.
On Wednesday, OGP shares fell by 32 centavos, or 2.32 percent, to P13.48 apiece.
Be the first to comment