Oceanagold Prepares for Phillipines decision on new Start Up Date

On May 6 Oceanagold released it's first quarter operational report.It contained some information that Oceanagold shareholders have been waiting for but the final report will be out on May14.The Phillipine government has not  yet allowed production to continue  on the Didipio mine but negotiations seem slightly more friendly than in 2019. There has been a hiatus of about 7 months now.And OGC is still waiting to see if any  conditions will be required in order to begin production at their Didipio mine.In the meantime the Phillipine government has granted some minor concessions while the President of the Phillipines studies the timing for the new startup of the Didipio mine.

This website predicted in my blog dated Workathon 01/08/2020 that the Didipio mine would likely be operating by the start of Q2.But that will be in 3 weeks and that would make the shutdown almost 8 months.This blog would like to see the Didipio mine in operation sometime during Q2. 

Q1 Highlights

Consolidated gold production was 80,707 ounces plus 54,134 ounces of silver.Both were well above production in Q1 2019.In addition,there were increases in unproven reserves of 1.5 million ounces of which 800,000 was measured and indicated (M&I).The high production was chiefly because of the resumed operations at the Macraes mine.Furthermore they have enhanced development of the Martha Underground project at their Waihi mine.These developments have caused OGC to maintain their annual guidance and expect stronger second half performance.

Actual gold sold was up in Q1- to 91,400 ounces from 37,800 ounces in 2019.This includes the sale of 6,450 ounces from the Didipio mine that had been put in storage in gold bars form for several months.The Phillipine government allowed them to be exported and sold.

           

Summary

This is a preliminary report; the final Q1 treport will be out on May14.This report tells us that 54,134 ounces of silver were produced but it does not tell if this was an increase over Q1 2019.Doubtless the revenues were higher in this quarter because of the increase in the price of silver.It is important to notice that even with a 5 week lockdown (for health reasons) Oceanagold will maintain it's original guidance.And this is partly because the average price of gold  has increased by 25% in Q1 2020. Perhaps it will now invest more into it's partly owned subsidiary called New Pacific Minerals.All of that aside, soon investors will be demanding more concrete action towards the startup of the Didipio mine.