OceanaGold raises annual gold production estimate for Didipio mine

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OceanaGold raises annual gold production estimate for Didipio mine
Credit: © Reuters.

OceanaGold (OTC: OCANF ) Corp, through its subsidiary OGPI, has revised its annual gold production guidance for its Didipio mine in the Philippines. The new estimate is now set at 135,000 ounces, an increase from the initial forecast of 120,000 to 130,000 ounces. Despite facing challenges in the mill zone pit at Haile in Q3 2023, CEO Gerard Bond confirmed they are on track for their annual output thanks to robust performance at Didipio and Macraes mines.

By the end of September, Didipio had produced 95,720 ounces of gold and 10,324 tons of copper . In Q3 alone, the mine yielded 30,479 ounces of gold and 3,413 tons of copper. The increased production is expected to lower the all-in sustaining cost (AISC) to $650-$750 per ounce.

OGPI's revised forecast has placed it among the top gold producers in the country, accounting for 12 percent of the country's total gold and 23 percent of the total 30,763 DMT of copper produced. Meanwhile, OceanaGold has also reduced its capital investment for Didipio this year from the initial bracket of $35-$50 million to $25-$35 million.

Despite a 5.5 percent decrease in copper production to 10,300 tons in the first three quarters of this year, gold output rose by 13.8 percent to 95,700 ounces. Bond attributed this strong performance to Didipio mine's extended mineralization by about 100 meters.

While OGPI continues to explore other prospects in the Philippines, it maintains focus on Didipio. The company is confident that it will meet the lower end of its full-year consolidated production guidance. The Didipio and Macraes mines remain key assets in driving OceanaGold towards its minimum yearly gold production target of 460,000 ounces.

InvestingPro Insights

According to InvestingPro, OceanaGold Corp (OGC) boasts a promising outlook. The company's strong earnings should allow management to continue dividend payments, as per InvestingPro Tip 0. This is particularly relevant in light of the company's revised forecast which places it among the top gold producers in the country.

InvestingPro Tip 1 highlights OGC's consistently increasing earnings per share, which is echoed in the company's financial performance, as evidenced by the production increase at its Didipio mine. This consistent growth is a promising sign for investors, indicating the company's ability to generate profits.

InvestingPro's real-time data further supports this positive outlook. The company's Market Cap stands at 1229.01M USD, and its P/E Ratio is 8.66, suggesting that the stock is reasonably priced relative to its earnings. Moreover, the company's Revenue Growth over the last twelve months as of Q3 2023 is 6.38%, indicating a steady increase in its earnings.

InvestingPro offers an array of additional tips and real-time metrics, providing a comprehensive view of the company's financial health and future prospects. These insights can be invaluable for investors, helping them make informed decisions based on reliable, up-to-date data.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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