OceanaGold Philippines anticipates a strong financial year driven by increasing global gold and copper prices, according to the company’s president.
“The positive outlook for gold and copper definitely helps,” stated President and General Manager for External Affairs and Social Performance Joan D. Adaci-Cattiling in an interview with BusinessWorld.
In the first quarter of 2024, the average gold price rose to $2,070.05 per troy ounce from $1,889.05 in the previous year, according to the Mines and Geosciences Bureau. Although copper prices averaged $3.83 per pound, down from $4.05 per pound a year earlier, the global shift to green energy and limited supply is expected to boost copper prices, as per the Chamber of Mines of the Philippines.
Ms. Cattiling noted that even modest increases in metal prices could potentially raise the company’s free cash flows by about 7 to 8%. This estimate assumes production consists of 71% gold and the remainder copper.
However, the company reported a 47.9% decline in net income for the first three months, dropping to $11.5 million from $22.1 million in 2023.
The company operates the Didipio gold and copper mine in Nueva Vizcaya. By the second half of the year, OceanaGold expects to increase its ore production.
“We’re following our mine plan, and the second half of the year sees a higher production,” General Manager David John Bickerton said. “We’ve been moving low-grade dirt to access some of the high-grade areas later in the year.”
Gold sales for the first quarter totaled 31,863 ounces, with 33% of the first-quarter gold doré sold to the Bangko Sentral ng Pilipinas. Copper production dropped by 22% to 3,015 tons from 3,500 tons during the same period in 2023, with copper sales at 3,180 ounces.
The company is targeting to produce 120,000 to 135,000 ounces of gold and 12,000 to 14,000 tons of copper this year. 
