Debt-free and cash-rich: OceanaGold Philippines makes history as first 2024 IPO and mining listing in a decade
Photo Courtesy: OceanaGold Philippines
OceanaGold Philippines Inc. (OGPI), the operator of the Didipio gold-copper mine, is set to etch its name in history twice over.
Not only will OGPI be the maiden initial public offering of 2024, it will also be the first mining company to list on the Philippine Stock Exchange in over a decade.
This move comes as global uncertainties have weighed on investor sentiment.
Bucking the trend of recent market turbulence, OGPI has slashed its initial price tag by 23 percent, showcasing its confidence in navigating choppy waters.
The company is betting on its strong financial position and attractive dividend yield to entice investors.
OGPI boasts a debt-free balance sheet and significant free cash flow generation, negating the need for additional capital for day-to-day operations or mine expansion.
The listing fulfills a requirement under its existing Financial or Technical Assistance Agreement (FTAA) that extends its mining rights until 2044.
The company is offering a potential 13.3 percent dividend yield in 2025, a figure that could climb to 15 percent given current gold prices exceeding $2,100 per ounce.
Additionally, OGPI’s revenue and cash flow are denominated in US dollars, providing a natural hedge against potential depreciation of the Philippine peso.
OGPI’s focus on both gold and copper, a key metal for renewable energy and electric vehicles, has reportedly drawn interest from major institutional investors in Europe and Asia.
OGPI’s parent company, a Toronto-listed Austro-Canadian powerhouse, boasts a $1.7 billion market cap and an MSCI ESG rating of AA.
This signifies their commitment to responsible mining practices across the globe.
The company is actively exploring further expansion within the Didipio Mine and is also considering a new nearby mining site.
OGPI’s IPO is steered by a seasoned team. BDO Capital, led by industry veteran Ed Francisco, will act as their global coordinator, domestic underwriter, and bookrunner. Joining them as the international underwriter is CLSA Limited.
Source: Bilyonaryo.Com
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