OCEANAGOLD (Philippines), Inc. reported a more 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 in the January-to-March period surged to $34.7 million from $7.4 million a year earlier.
Total revenue nearly doubled to $158.4 million from $79.3 million previously.
Gold production slipped 1% to 20,400 ounces from 20,600 ounces a year earlier, while copper output declined 6% to 3,200 tonnes from 3,400 tonnes.
Despite lower output, the company benefited from higher realized prices for both gold and copper during the quarter.
OceanaGold said the average gold price received rose 77% to $5,049 per ounce from $2,858 per ounce a year 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 increase was attributable to higher cost of underground mining activities, including increased contract and consulting costs for technical, engineering, and service support, as well as higher processing cost,” the company said.
General and administrative expenses more than doubled to $34.5 million from $14.6 million a year earlier, mainly due to higher additional government share, taxes and licenses, and free-carried interest during the period.
The company also said direct operational impacts from the Iran conflict have so far remained limited.
“To date, the direct impacts of the Iran conflict on the Company’s operation have been limited, and supply chains have continued to support normal business operations,” OceanaGold said.
However, the miner said it continues to monitor potential risks from higher fuel prices and supply-chain disruptions linked to global developments.
“The Company continues to monitor global conditions closely and, while contingency plans are in place, the full extent of potential impacts on costs and supply chains remains uncertain,” it said.
Shares in OceanaGold Philippines rose 5.67% or P2 to close at P37.30 apiece on Thursday. — Vonn Andrei E. Villamiel
