OceanaGold reports 30% drop in Q2 net income

OceanaGold (Philippines) Inc. (OGPI) says the mining firm experienced a 30% drop in its second-quarter net income due to reduced gold and copper production.

Philippine Star reported that OGPI’s net income saw a decline from USD 20.3 million to USD 14.2 million in the second quarter of this year, according to a regulatory filing.

Additionally, the firm’s second-quarter revenues fell to USD 68.8 million, a decrease of over 20% from USD 88.3 million recorded last year.

This was because the Didipio mine in Nueva Vizcaya only produced 23,100 ounces of gold, 28% lower than the 32,200 ounces produced a year ago. Copper output from the Didipio mine also declined by 17.65% year-on-year to 2,800 metric tons (MT) from 3,400 MT.

On top of that, gold sales also saw a decline of 42% to 18,900 ounces from 32,700 ounces, while copper sales declined by 37% year-on-year to 2,200 MT.

OGPI attributed the production decline to mining lower grade ores during the second quarter. The mining of higher-grade ores was postponed to the third quarter due to a recorded fatality at the Didipio mine’s paste plant.

The grade of gold ore mined fell by 32% year-on-year, and the grade of copper ore decreased by 10%.

However, the firm is optimistic as OGPI president Joan Adaci-Cattiling is expecting gold production to increase in the year’s second half as the company accesses higher-grade ore and boosts underground mining rates.

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