OceanaGold net profit falls 88% on Didipio troubles
By Vandana Singh
- OceanaGold (OTCPK:OCANF) reports lower revenues and profits, on fall in production volumes, as the company decides to suspend mining operations at the Didipio mine, in the Philippines.
- 2019 production stood at 470,600, down from 533,300 oz last year, while copper production declined from 15,000 tonnes to 10,300 tonnes.
- Gold sales compressed for the full year also declined from % Y/Y to 448,400 oz, while copper sales was down to 6,900 t.
- Underground operations at Didipio were suspended in mid-July last year, and ore processing in December, owing to depletion of consumables required for sustained operations. Mining and processing activities were suspended owing to restrictions placed on material movements imposed by the local government unit’s blockade.
- As a result, no gold or copper sales were made from Didipio in 2H of the year.
- The issues at Didipio resulted in net profits decreasing from $121.7M in 2018 to $14.5M, with EBITDA down from $363.7M to $214.2M.
- The company says that US and New Zealand operations delivered a strong Q4. Haile continued its improvement throughout the year and expects this to continue in 2020 with an approximate 25% increase in production and lower all-in sustaining costs.
- Previously: OceanaGold misses on revenue (Feb. 20)
Source: Seeking Alpha