OceanaGold (Philippines) Inc. reported that its net profit fell 40 percent to $25.7 million in the first half of 2024 from the $42.6 million earned in the same period last year.
“This was primarily driven by lower Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), higher depreciation expense, OGP listing costs and restructuring expense,” the firm said in a disclosure to the Philippine Stock Exchange (PSE).
For the second quarter, the firm posted a turnaround, with a net income of $14.2 million compared to the previous quarter’s $11.5 million. However, it is lower than 30 percent compared to the corresponding quarter in 2023.
This was primarily driven by higher adjusted EBITDA, a $12.7 million net after-tax gain on the sale of the Blackwater project, and favorable foreign exchange and income tax expense movements, partially offset by OGP listing costs and higher depreciation expense.
The company recorded consolidated revenue of $521.5 million in the first half of 2024, a four percent decrease relative to the previous year, reflecting a decrease in gold sales volumes, partially offset by a higher average realized gold price.
It recorded second-quarter consolidated revenue of $251.2 million, a seven percent decrease compared to the previous quarter due to an 18 percent decrease in gold sales volumes, partially offset by a 14 percent increase in the average realized gold price.
The company recorded consolidated revenue of $160.9 million in the first half of 2024, a 11 percent decrease relative to the previous year, reflecting a decrease in gold sales volumes, partially offset by a higher average realized gold price.
It recorded second-quarter consolidated revenue of $68.8 million, a 25 percent decrease compared to the previous quarter. Second quarter revenue was 22 percent below the corresponding period in 2023, reflecting lower gold sales volumes due to lower production.
OceanaGold Philippines President Joan D. Adaci-Cattiling said, "We expect gold production to increase in the second half of the year as we access higher grade ore and increase mining rates from the underground. We are also continuing to invest in exploration, both near-mine and regionally, and look forward to sharing results in the future."