OceanaGold Philippines (OGP) said it remains optimistic about achieving its 2024 production and revenue goals despite a slower-than-expected performance in the second quarter.
The company said it expects a steady improvement in performance in the third and fourth quarters, supported by consistently high gold prices.
“We certainly expect Q3 and then Q4 to be stronger than Q2… Even with a slightly weaker second quarter, one of the real positives out of Didipio [is that] we were able to declare a dividend within the six-week period that we’ve been listed–a $15-million dividend in six weeks,” said OceanGold Corp. chief operating officer for Asia-Pacific Peter Sharpe.
The company plans to continue making quarterly dividend payments and is confident in its ability to maintain a high dividend level, he said.
Sharpe acknowledged the difficulties faced in the second quarter such as the unplanned downtime in the processing plant and a change in the underground mine sequence due to a geotechnical review impacted mine output in the second quarter.
OGP said while the mine sequence change would result in slightly lower grades in the near term, it was expected to lead to higher grades and improved safety in the long run.
The company generated revenue of less than $70 million and net income of $14 million in the second quarter of 2024. While this was lower than expected, the company emphasized the importance of viewing these results in the context of its long-term guidance and plan.
The company said it is looking at a stronger performance by yearend, hitting, most likely, the lower end of its output guidance of 120,000 ounces of gold and about 14,000 metric tons of copper.
“There are no indications that prices will go down. We’re excited for a better second half,” said OGC senior vice president for business development and investor relations Brian Martin.
