Didipio mine reports 1.3 billion sales
Australian OceanaGold Corp.'s Didipio mine here made over P1.82 billion ($38 million) in cash for the third quarter on all gold-copper concentrate delivered at the San Fernando port in La Union province, according to OceanaGold's Q3 report.
The report said OceanaGold sold 19,151 ounces of gold and 3,356 tons of copper from inventory on hand at the Didipio mine and that the company expects to progressively receive all payments associated with the sale of gold-copper concentrate before the end of the year.
"I am very pleased with the financial performance of the business driven by strong Ebitda [earnings before interest, taxes, depreciation and amortization] and profits," Scott Sullivan, OceanaGold chief operating officer and acting chief executive officer, said.
Sullivan added that one of the main drivers of this financial performance relates to a strong quarter at Didipio, where the transportation of gold-copper concentrate has been completed.
"Despite this strong performance, we have much work ahead of us to progress the safe restart of Didipio processing and mining operations while continuing to manage the ongoing risks associated with the pandemic," he said.
In mid-July of this year, the Philippine government renewed the Didipio financial or technical assistance agreement (FTAA) for an additional 25-years effective June 19, 2019, the expiry date of its initial 25-year FTAA.
The FTAA is a permit issued to a multinational company sharing technology and resources to explore and extract minerals in the Philippines.
Sullivan said the renewal paved the way for resumption of operations and commencement of restart activities.
These activities included recruitment and training of the workforce, delivery of equipment and supplies, transportation and sale of gold and copper inventory (both doré and concentrate), process plant maintenance and recommissioning, and underground inspections and upgrades, also according to OceanaGold's report for the third quarter of this year.
Sullivan said the Didipio restart activities continue to exceed their expectations with recruiting and training activities progressing to plan despite the ongoing risks associated with Covid-19 with the resumption of underground mining and the delivery of underground ore to the run of mine (RoM) pad early in October, one month ahead of schedule.
He added that stope development is expected to commence in the coming weeks and they will continue to ramp up underground operations to full mining production rates for the next eight to nine months.
"Processing activities are tracking ahead of plan with recommissioning of the primary crusher completed in the third quarter. We expect milling at Didipio to recommence in mid-November with ore sourced primarily from stockpiles and supplemented progressively with higher-grade underground ore," Sullivan said.
OceanaGold said the Didipio restart activities continue to advance well with recruitment tracking to plan and the company expects 90 percent of the workforce to be in place by the end of the year, subject to the continued management of Covid-19.
In the third quarter, according to the company, it began ore mining, one month ahead of schedule while stope development is expected in November and that its first underground ore was delivered successfully to the RoM pad at the end of the third quarter.
As to its outlook, OceanaGold said it will continue to advance restart and ramp-up activities while managing the ongoing risks associated with Covid-19.
For the fourth quarter of 2021, it added that Didipio is now expected to produce between 7,000 and 12,000 ounces of gold (previously 5,000 to 10,000 ounces of gold) and 1,000 tons of copper with the range reflecting the ongoing risks noted.
