OCEANAGOLD (Philippines), Inc. reported a greater than fourfold increase in first-quarter (Q1) net income as higher gold and copper prices offset lower production volumes and boosted revenues.
In a regulatory filing on Thursday, the listed miner said net income within the January-to-March period surged to $34.7 million from $7.4 million a 12 months earlier.
Total revenue nearly doubled to $158.4 million from $79.3 million previously.
Gold production slipped 1% to twenty,400 ounces from 20,600 ounces a 12 months earlier, while copper output declined 6% to three,200 tonnes from 3,400 tonnes.
Despite lower output, the corporate benefited from higher realized prices for each gold and copper throughout the quarter.
OceanaGold said the common gold price received rose 77% to $5,049 per ounce from $2,858 per ounce a 12 months earlier. Average copper prices also increased 43% to $6.10 per pound from $4.27 per pound.
Cost of sales rose 30% to $67.5 million from $52 million previously.
“The rise was attributable to higher cost of underground mining activities, including increased contract and consulting costs for technical, engineering, and repair support, in addition to higher processing cost,” the corporate said.
General and administrative expenses greater than doubled to $34.5 million from $14.6 million a 12 months earlier, mainly as a consequence of higher additional government share, taxes and licenses, and free-carried interest throughout the period.
The corporate also said direct operational impacts from the Iran conflict have to this point remained limited.
“Up to now, the direct impacts of the Iran conflict on the Company’s operation have been limited, and provide chains have continued to support normal business operations,” OceanaGold said.
Nevertheless, the miner said it continues to watch potential risks from higher fuel prices and supply-chain disruptions linked to global developments.
“The Company continues to watch global conditions closely and, while contingency plans are in place, the total extent of potential impacts on costs and provide chains stays uncertain,” it said.
Shares in OceanaGold Philippines rose 5.67% or P2 to shut at P37.30 apiece on Thursday. — Vonn Andrei E. Villamiel