Higher metal prices nearly doubled OceanaGold Philippines Inc.’s (OGP) net profit in the nine months ending September, despite lower sales and production.
The local unit of Australian-Canadian mining company OceanaGold Corp. reported a net income of $95.6 million from January to September, a 95-percent surge from the same period a year ago.
Revenue rose 37 percent to $434.4 million, as higher gold and copper prices offset lower sales, making this the main driver of revenue growth.
Gold prices averaged $4,535 per ounce, up 40 percent, while average copper prices climbed 45 percent to $6.35 per ounce.However, metal production declined, ending at 64,500 ounces of gold and 9,300 tons of copper.
OGP sold 66,300 ounces of gold, down 3 percent, while copper sales decreased by 12 percent to 9,300 tons.
‘During the third quarter, we continued the safe and responsible production of gold and copper in line with our guidance. With today’s gold prices and another solid quarter of operating performance, we generated strong Free Cash Flow of $51 million. We announced another healthy quarterly dividend for our shareholders,’ OGP president Joan Adaci-Cattiling said.
OGP said it remains on track to achieve this year’s production target of 85,000 to 105,000 ounces of gold and 13,000 to 15,000 tons of copper.’Production is expected to increase in the fourth quarter, driven by improved underground mining rates,’ it added.
Cattiling said the mining company has continued to advance its organic growth projects, which include ramping up underground mining rates and accelerating drilling.
Moreover, OGP completed an advanced drilling program at True Blue, a mineralization area situated 800 meters northeast of the Didipio mine.
Technical work is underway to evaluate the potential for a future Mineral Resource estimate.
OGP laid out its ongoing projects amid the uncertainty caused by the Middle East conflict, even though its impact remains limited and supply chains have continued to support normal business operations.
‘Though there has been no disruption to operations to date, conditions remain uncertain, and the conflict has contributed to broader inflationary pressures across global energy and commodity markets, increasing the cost of diesel, freight, consumables and other operating inputs used throughout the business,’ the firm said.