Philippine Mining Firm OceanaGold (Philippines) Inc. Goes Public with P6-B IPO
In a bold move amidst global uncertainties, OceanaGold (Philippines) Inc. (OGPI), the second largest producer of gold and copper in the Philippines, is set to launch a P6-billion initial public offering (IPO). This marks the first time in over a decade that a Philippine mining firm is going public.
OGPI, a unit of Toronto-listed OceanaGold Group, is capitalizing on the high demand and record-high prices of precious metals like gold and copper. The company’s Didipio mine, spanning Nueva Vizcaya and Quirino provinces, is at the center of this IPO.
According to OceanaGold Group CEO Gerard Bond, the decision to go public is a requirement for the Financial or Technical Assistance Agreement (FTAA) renewal. Under this agreement, the government receives 60 percent of net revenue from the mine, with OGPI receiving the remaining 40 percent.
OGPI’s IPO comes at a time when the company is experiencing strong financial performance. In 2023, the company reported a net profit of $26.8 million from $371.1 million in revenues. The company is expecting to produce 120 to 135 thousand ounces of gold and 12 to 14 kilotons of copper in 2024.
With a 90% dividend policy, OGPI aims to pay out 90 percent of its free cash flow from the previous year as dividend payments. The company started paying dividends in December last year, amounting to $1.84 million.
While OGPI has no primary shares up for sale in this offering, the company remains optimistic about its future growth potential. Bond emphasizes the profitability and success of the Didipio mine, which he sees as a key asset in the company’s portfolio.
Looking ahead, OGPI is exploring expansion opportunities within its existing FTAA, including the development of the Napartan prospect near the Didipio mine. The company is committed to sustainable and responsible mining practices, investing in local communities and environmental conservation efforts.
Despite facing regulatory and political challenges in the mining industry, OGPI remains focused on building a better future through responsible mining practices. Bond emphasizes the importance of creating value for local communities and stakeholders while operating in line with laws and regulations as a key strategy for risk management.
The IPO offering of 456 million shares priced at P13.33 each is set to run from April 29 to May 6, with the listing of shares on the Philippine Stock Exchange scheduled for May 13. As OGPI looks towards the future, the company remains dedicated to maximizing the potential of the Didipio mine and contributing to the sustainable development of the mining industry in the Philippines.
