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February 21, 2025 | 12:00am
OGPI said its net income last year reached $30.3 million, higher than the $26.8 million it posted in 2023.
STAR / File
MANILA, Philippines — Australian-Canadian mining firm OceanaGold (Philippines) Inc. (OGPI) reported a 13 percent increase in its net profit last year, buoyed by lower cost of sales and expenses despite lackluster sales caused by unfavorable weather conditions.
OGPI said its net income last year reached $30.3 million, higher than the $26.8 million it posted in 2023.
The miner’s bottom line expanded on the back of lower costs and expenses that offset the drop in its revenues last year.
OGPI’s revenues declined by 7.5 percent year-on-year to $342.91 million from $371.1 million due to lower gold and copper sales as a result of lesser output.
Meanwhile, the company’s cost of sales fell on an annual basis by 3.5 percent to $207.2 million while its general and administrative expenses declined by 30 percent to $63.5 million.
The firm’s other operating expenses also plunged by 64.46 percent to $4.83 million from $13.59 million.
The company’s gold sales last year declined by more than a quarter to 100,400 ounces from 135,700 ounces as operations were hampered by unfavorable weather conditions, particularly typhoons that resulted in flooding.
Likewise, copper sales fell by 15 percent to 11,700 metric tons from 13,800 metric tons.
The miner failed to meet its production guidance last year of 120,000 to 135,000 ounces for gold after it only produced 97,000 ounces of the precious metal.
“The decrease was primarily due to 29 percent lower grade from underground as a result of the stope redesign in the high-grade breccia areas and a decrease in underground ore mined due to weather events in the third and fourth quarters,” OGPI said.
“Interruptions in the process plant in the second quarter and power outages due to the severe weather events in the fourth quarter also contributed to an decrease in mill feed this year,” OGPI added.
As for copper, OGPI produced 12,300 metric tons, hitting the lower end of its production guidance of 12,000 to 14,000 metric tons.
OGPI chairman Peter Sharpe that the company is focused on achieving its production guidance this year and ensure safety of its workers.
“Our priority for 2025 is to operate the Didipio mine safely and responsibly to deliver and to take advantage of today’s strong gold prices to deliver robust to our shareholders,” Sharpe said.
