OceanaGold Philippines Inc. (OGPI), an Australian-Canadian mining company, experienced a significant decline in net income for the first quarter, driven by reduced mine production and sales.
In a report by the Philippine Star, the company’s net income fell by nearly half, registering $11.5 million, compared to $22.1 million in the same period last year.
In the first three months of 2024, OGPI reported revenues of $92.1 million, a slight decrease from the $92.5 million recorded in the previous year.
This decline in revenue was attributed to lower production at the Didipio mine in Nueva Vizcaya and decreased sales of gold and copper.
Gold sales dropped by 20 percent year-on-year to 31,800 ounces from 39,700 ounces, while gold production also fell by 20 percent to 26,300 ounces from 33,000 ounces.
OGPI’s strategic decision to prioritize mining lower-grade ores in the first quarter resulted in reduced gold content. Similarly, copper production decreased by 14.28% year-on-year to 3,000 metric tons (MT) from 3,500 MT. Copper sales also saw a decline of almost 18%, dropping to 3,200 MT from 3,900 MT.
Despite these challenges, OGPI benefited from higher global commodity prices, with the average price for gold increasing by almost 5% to $2,136 per ounce, and the average price for copper rising to $3.9 per pound from $3.8 per pound the previous year.
OGPI remains optimistic about the future, with its Didipio mine on track to meet its 2024 production guidance.
The company expects to produce between 120,000 and 135,000 ounces of gold and 12,000 to 14,000 MT of copper this year.
