OceanaGold Philippines, Inc. (OGPI) is anticipating a sturdy financial incline in 2024, driven by the increasing global prices of gold and copper.
In a report by Business World, OGPI’s President and General Manager for External Affairs and Social Performance Joan D. Adaci-Cattiling said that the favorable outlook for copper and gold undoubtedly enhances the firm’s odds.
According to data from the Mines and Geosciences Bureau, the average price of gold surged to USD 2,070.05 per troy ounce in the first quarter, an increase compared to USD 1,889.05 per troy ounce a year earlier.
On the contrary, copper prices averaged USD 3.83 per pound, declining from USD 4.05 per pound in the previous year. Nevertheless, the Chamber of Mines of the Philippines said that projections indicate a strengthening trend due to global shifts towards green energy and constrained supply.
Cattiling added that even slight increases in metal prices could potentially raise OGPI’s free cash flows by approximately 7 to 8%, based on their current production mix of 71% gold and the remainder copper.
Additionally, the company reported a significant decline in net income for the first quarter, plummeting by 47.9% to USD 11.5 million compared to USD 22.1 million in the same period of 2023.
Meanwhile, OceanaGold is foreseeing ramping up its ore production in the latter half of the year.
OceanaGold’s General Manager David John Bickerton said that the firm is on track with their mine plan, and higher production levels are expected in the second half of the year.
Gold sales for the first quarter had mounted to 31,863 ounces, with 33% of the gold doré sold to the Bangko Sentral ng Pilipinas.
Similarly, copper production saw a decline of 22%, dropping to 3,015 tons from 3,500 tons in the same period last year. Copper sales amounted to 3,180 ounces.
The mining firm is eyeing to achieve production targets of 120,000 to 135,000 ounces of gold and 12,000 to 14,000 tons of copper for the entirety of this year.
OGPI operates the Didipio gold and copper mine located in Nueva Vizcaya.
