OceanaGold (Philippines) Inc. more than doubled second-quarter profit as soaring gold prices more than compensated for lower production, highlighting how a buoyant bullion market continues to shield miners from operational headwinds.
The operator of the Didipio gold-copper mine posted net income of USD32.7 million in the April-to-June period, up from USD14.6 million a year earlier, while revenue jumped 32 percent to USD126.9 million.
The strong financial performance came despite a 13 percent decline in gold production to 21,400 ounces and a 27 percent drop in copper output to 2,700 metric tons, reflecting the growing influence of higher commodity prices over production volumes.
For the first half, net income surged to USD67.4 million from USD22.0 million a year ago, while revenue climbed 63 percent to USD285.3 million.
The company said it remains on track to meet its 2026 production, cost and capital expenditure guidance, with higher output and lower unit costs expected in the second half as underground mining rates continue to ramp up.
“Our second-quarter performance reflects safe and disciplined operations that remain in line with our guidance,” President Joan Adaci-Cattiling said. “Strong gold prices have enabled us to reward shareholders with another healthy dividend while continuing to invest in expanding underground mining and accelerating exploration around the Didipio mine.”
OceanaGold declared a second-quarter cash dividend of USD0.0075 per share, equivalent to about P0.4628 per share based on an exchange rate of P61.713 to the dollar. Shareholders on record as of Aug. 20 will receive payment on Sept. 17.
The company’s all-in sustaining cost rose 23 percent to USD1,589 per ounce as lower production and ongoing growth investments pushed up unit costs. Free cash flow also turned negative at USD17.8 million after the company accelerated spending on underground development and drilling.
The quarter illustrates a defining feature of today’s mining cycle. With gold trading near record highs, pricing has become a more powerful earnings driver than production, allowing miners such as OceanaGold to fund expansion, extend mine life and continue returning cash to shareholders even during periods of softer output.
