OceanaGold PHL Q1 profit falls 36% on lower gold sales

11 hours ago

0 1 minute read

The Didipio Mine, located in the host community of Barangay Didipio, Nueva Vizcaya, operates in approximately 334 hectares of land, representing 34% of its partial declaration of mining feasibility (PDMF) area. — DIDIPIOMINE.COM.PH

LISTED OceanaGold Philippines, Inc. (OGP) saw its net income for the first three months drop by 36% to $7.4 million, as revenue decreased primarily due to lower gold sales.

The company’s revenue fell by 14% to $79.3 million from $92.1 million a year earlier.

“For the first quarter, the company sold 17,800 ounces (oz) of gold, with an average price received of $2,858 per ounce, compared to 31,800 ounces of gold, with an average price received of $2,136 per ounce for the prior corresponding quarter,” the company said in its first-quarter (Q1) financial report released on Thursday.

OGP’s gold production fell to 20,600 ounces during the period, from 26,300 ounces in the same period in 2024.

Its copper production, on the other hand, rose by 13% to 3,400 metric tons from 3,000 metric tons.

“During the first quarter, we safely produced gold and copper in line with our guidance,” said Joan Adaci-Cattiling, president of OceanaGold Philippines.

“We expect to increase our mining rates in the coming quarters and remain focused on safely and responsibly delivering on our guidance for the year, capitalizing on record-high metal prices and continuing to generate strong returns for our shareholders.”

Gold has been hitting record-high prices in the global market amid strong demand from central banks, a weaker dollar, and geopolitical uncertainties.

A Reuters report on Wednesday said the price of spot gold rose 2.4% to $3,413.29 per ounce, its highest since April 22, “when it hit a record high of $3,500.05/oz.”

OGP and the Philippine central bank recently renewed for another three years their gold-buying agreement first executed in May 2022.

Under the agreement running until March 2028, OGP is required to offer for purchase no less than 25% of its annual gold doré production — an alloy or solid mixture of gold and other metals such as silver — to the Bangko Sentral ng Pilipinas.

In 2024, OGP sold a total of 6,628 ounces of gold doré — or 29% of its gold doré output — to the central bank.

The company operates the 7,750-hectare mine straddling the northern Philippine provinces of Nueva Vizcaya and Quirino. — Kyle Aristophere T. Atienza